Financial Accounting 1 From the list of accounts on the inside of the back cover of the textbook identify the type of account its typical balance debit or credit closing status the financial statements on which they are reported and the type of activity following are randomly selected accounts from the inside of the back cover Type of account Typical Balance Closed Yes No Financial Statement Account Accumulated depreciation Advertising Buildings Cost of goods sold Dividends Dividends payable Goodwill Sales Sales discounts Treasury stock Use the following to answer questions 2 7 SARLO provides delivery services to its customers At the end of the year the company reports the following amounts Cash Delivery truck Accounts payable Maintenance expense Salaries expense 8 800 47 800 9 400 3 900 40 000 Service revenue delivery expense Garage Office Building Supplies Salaries payable 108 400 53 800 71 000 300 4 400 In addition the company had common stock of 45 000 at the beginning of the year and issued an additional 15 000 during the year The company also had retained earnings of 45 400 at the beginning of the year and they declared 2 000 of dividends during the year 2 Determine Net Income 3 Determine ending Common Stock 4 Determine ending Retained Earnings 5 Determine Total Assets 6 Determine Total Liabilities 7 Determined Total Stockholders Equity Use the following to answer questions 8 15 Income Statement Statement of Stockholders Equity Common stock Retained earnings Revenues Expenses Salaries Administrative Utilities Total expenses Net income Cash Office supplies Prepaid rent Equipment Total assets Assets Liabilities 54 100 23 500 4 450 82 050 7 200 4 400 56 400 15 000 27 500 35 000 5 900 20 000 27 500 Beginning Issuance Net income Dividends Ending Balance Sheet Stockholders Equity Accounts payable Total liabilities Common stock Retained earnings Total stockholders equity Total L and SE 8 Revenue 12 Office supplies 9 Net Income 13 Total Assets 10 Issuance 14 Stockholders Equity 11 Dividends 15 Total L SE Use the following to answer questions 16 18 Analyze each transaction Under each category in the accounting equation indicate whether the transaction increases decreases or has no effect 16 Pay rent for the current month 17 Collect cash from customers on account 18 Purchase land by issuing common stock 16 17 18 Asset Liability Stockholders Equity Use the following to answer questions 19 22 Indicate which of the following accounts should be debited and which should be credited Cash Accounts receivable Accounts Payable Common Stock Note Payable Office supplies Service revenue Utilities Account Debited Account Credited 19 20 21 22 Issue common stock for cash Provide services to customers on account Paid suppliers for supplies purchased on account Received utility bill at end of month will pay next month Use the following to answer questions 23 34 STE Corporation has provided their trial balance at the end of September Cash A R Supplies Prepaid rent Equipment net A P Income tax payable Utilities payable Unearned revenue Notes payable due in 16 months Common stock Retained Earnings Dividends Service revenue Salaries expense Insurance expense Advertising expense Supplies expense Depreciation expense Legal expense Utilities expense Totals Credits 16 500 12 800 2 100 5 500 17 500 45 000 41 200 201 400 Debits 11 400 24 000 200 5 000 95 100 10 000 114 000 11 000 17 400 4 200 7 100 24 100 18 500 Based on the data provided in the trial balance find the following 342 000 342 000 23 Determine Total expenses 24 Determine Net income 25 Determine Beginning Retained Earnings 26 Determine Ending Retained Earnings 27 Determine Total Stockholders Equity 28 Determine Total Liabilities 29 Determine the current assets 30 Determine the current liabilities 31 Determine Total Assets 32 Determine the current ratio 33 At the beginning of September STE had 35 000 in its common stock account How much stock was issued during September 34 Which accounts are closed 35 Record the adjusting entry at December 31 year end No adjusting entries were made during the year On December 1 2012 the company pays a local radio station 2 400 for 30 radio ads that were to be aired 10 per month throughout December January and February Prepaid Advertising was debited The adjusting entry is Account Debit Credit 36 What is the balance in Prepaid Advertising after the adjusting entry 37 Explain the effects on the financial statements if the adjusting entry had not been recorded 38 Record the adjusting entry at December 31 year end No adjusting entries were made during the year On August 31 2012 Shocker borrows 60 000 from a local bank A note is signed with principal and 8 interest to be paid on August 31 2013 The adjusting entry on 12 31 is Account Debit Credit 39 After the adjusting entry what affect would it have on liabilities on the December 31 st Balance sheet 40 Explain the effects on the financial statements if the adjusting entry had not been recorded Use the following to answer questions 41 45 Following are the transaction of Goldman Inc which provides consulting services related to mining of precious metals Transaction A B C D E F G H I J Cash provided from consulting customers Cash used for purchase of office equipment Cash provided from long term borrowing Cash used for payment of employee salaries Purchase of company vehicle paying 1 5 cash and borrowing the rest Cash used for payment of office rent Cash provided from sale of equipment that had been used in operations Cash used to pay the bank for a loan due this month Cash used to pay office utilities Cash used for purchase of office supplies Amount of Transaction 208 400 20 000 50 000 118 500 30 000 14 500 25 000 30 000 17 000 2 500 41 Refer to transaction E how much should be included in cash used from investing activities 42 Determine the cash flows from operating activities 43 Determine the cash flows from investing activities 44 Determine the cash flows from financing activities 45 How much did cash change over the year Use the following to answer questions 46 47 The company lent 50 000 on October 1 20A at 9 interest for 11 months 46 Determine interest revenue for 20A 47 Determine interest revenue for 20B 48 Fill in the missing amounts Beginning inventory Ending inventory Purchases Cost of goods sold Goods available for sale Case 1 2 140 258 740 260 120 Case 2 3 320 1 430 369 510 Case 3 5 460 3 780 321 500 Case 4 2 240 261 570 260 640 Use the following to answer
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