Accounting 1 (Chapter 1 Homework)

Which of the following is the most popular form of business organization in the United States?

- Sole proprietorship
- Partnership
- Corporation

Which of the following must have at least two owners?

- Sole proprietorship
- Partnership
- Corporation
- Sole proprietorship and partnership
- Partnership and corporation

A separate Legal entity. Owners of corporations(Stockholders) are not personally liable for debt of the corporation

Corporation

Decision Makers: what are the 2 groups under the "Accounting Information provided to users

Financial Accounting Reports , Managerial Accounting Reports

The Accounting System

1. Operating, Investing, Financing Activities
2. Accounting System
3. Accounting Reports (Financial, Managerial)
4. Internal Users ( managers, supervisors, etc.)

Which of the following are External users of accounting information?

- Creditors checked
- Future investors checked
- The government

Which of the following are Internal users of accounting information?

- Owners
- Managers

Basic Accounting Equation (Balance Sheet Equation)

Assets = Liabilities + Stockholders' Equity

Ex.) Armstrong Company ended the year with assets of $104,000 and liabilities of $77,000. What was the amount of stockholders' equity at the end of the year?

Amount of Stockholders' Equity = $27,000

Which of the following would be classified as an asset account?

- Accounts Payable
- Cash
- Common Stock
- Dividends
- Retained Earnings

Which of the following would be classified as a stockholders' equity account?

- Accounts Payable
- Cash
- Common Stock
- Service Revenue
- Retained Earnings

2 ways to finance your business

- loans debt barrow money
- Investors or have other people give us money
Ex.) (How to invest in your, you can by a pizza oven for
your pizza business or couches or chairs out front.)

Ex.) During its first month of operations, Labrador Corporation provided $10,000 of services to it customers. Its costs included rent of $1,000 and salaries and wages totaling $3,000. At the end of the month, the board of directors approved a dividend of

Total Amount of Expenses = $4,000

Ex.) Abbott Company had $13,000 in revenue and net income of $5,000 during its first year of operations. What was the amount of the company's expenses during that year?

Amount of Company's Expenses = $8,000

Which of the following financial statements reports changes the amount of net income and dividends declared during the period?

- Balance sheet
- Balance sheet and income statement
- Statement of retained earnings
- Balance sheet and statement of retained earnings

Which of the following financial statements reports assets, liabilities, and retained earnings?

- Balance sheet
- Income statement
- Statement of cash flows
- Statement of retained earnings

Which of the following activities is not a category reported on the Statement of Cash Flows?

- Investing activities
- Financing activities
- Profit activities
- Operating activities

Match the financial statement with the order in which it is prepared?

1.Prepared first - Income statement
2.Prepared second - Statement of retained earnings
3.Prepared third - Balance sheet
4.Prepared last - Statement of cash flows

Where do creditors and investors obtain information to make decision concerning a company?

- Financial statements
- General journal
- General ledger
- Trial balance

Which of the following questions are of primary interest to a company's creditors?

- Does the company have enough assets to cover its liabilities?
- How long has the company been operating?unanswered
- Is the company is generating enough cash to pay what it owes?
- Is the company profitable?

Which of the following are expected by investors?

- A return on their contributions to the company
- Immediate returns through dividends
- That the company has enough assets to cover its liabilities
- Long-term returns through selling their stock certificates at a price higher than their original cost

Financial Statements

1. Income Statements >>> Ability to generate points
2. Statement of Retained Earnings >>> Ability to Distribute Dividends

General Mills is a manufacturer of food products, such as Lucky Charms cereal, Pillsbury crescent rolls, and Green Giant vegetables. The following items were presented in the company's financial statements.
For each item, select (1) the type of account an

1. Accounts Payable - Liability - B/S
2. Common Stock - Stockholders' Equity - B/S
3. Equipment - Asset - B/S
4. Accounts Receivable - Asset - B/S
5. Notes Payable - Liability - B/S
6. Cash - Asset - B/S
7. Retained Earnings - Stockholders' Equity - B/S
8

Items from the income statement, statement of retained earnings, and balance sheet are listed below in alphabetical order. For the companies shown in each column, solve for the missing amounts.

Amazin' Corp. Best Tech, Inc. Colossal Corp.
1. Common Stock $9 $19 $120
2. Dividends $14 $7 $70
3. Net Income $25 $40 $120
4. Retained Earnings, $50 $0 $220
(Beginning of Year)
5. Retained Earnings, $61 $33 $270
(End of Year)
6. Total Assets $120 $102 $7

DSW, Inc., is a designer shoe warehouse, selling luxurious and fashionable shoes. Its balance sheet, at July 30, 2016 (the last Saturday of the month), contained the following (listed alphabetically, amounts in thousands).
Accounts Payable - $282,300
Acco

DSW, Inc.
Balance Sheet
At July 30, 2016
(in thousands)
Assets
Cashs - $315,700
Accounts Receivable - $115,800
Equipment - $446,300
Inventory - 394,800
Total Assets - $1,272,600
Liabilities
Accounts Payable - $282,300
Notes Payable - 128,700
Total Liabili

Cinemark Holdings, Inc., operates movies and food concession counters throughout the United States. Its income statement for the quarter ended September 30, 2016, reported the following (accounts are listed alphabetically in thousands):
Admissions Revenue

CINEMARK HOLDINGS, INC.
Income Statement
For the Quarter Ended September 30, 2016
(in thousands)
Revenue
Admissions Revenue - $485,600
Concessions Revenue - $310,000
Total Revenue - $795,600
Expenses
Concessions Expenses - $39,400
Film Rental Expenses - $

Assume you are the president of APEC Aerospace Corporation. At the end of the first year of operations (December 31), the following financial data for the company are available:
Accounts Payable - $34,630
Accounts Receivable 11,000
Cash - 15,400
Common St

APEC AEROSPACE CORPORATION
Income Statement
For the Year Ended December 31
Revenues
Sales Revenue - $117,700
Total Revenues - 117,700
Expenses
Operating Expenses - $75,000
Other Expenses - $9,600
Total Expenses - $84,600
Net Income - $33,100

Assume you are the president of APEC Aerospace Corporation. At the end of the first year of operations (December 31), the following financial data for the company are available:
Accounts Payable$34,630
Accounts Receivable 11,000
Cash 15,400
Common Stock 1

APEC AEROSPACE CORPORATION
Statement of Retained Earnings
For the Year Ended December 31
Retained Earnings, January 1 - $0
Add: Net Income - $33,100
Less: Dividends - $1,800
Retained Earnings, December 31 - $31,300

Assume you are the president of APEC Aerospace Corporation. At the end of the first year of operations (December 31), the following financial data for the company are available:
Accounts Payable - $34,630
Accounts Receivable $11,000
Cash - $15,400
Common

APEC AEROSPACE CORPORATION
Balance Sheet
At December 31
Assets
Cash - $15,400
Accounts Receivable - $11,000
Supplies - $10,500
Equipment - $94,000
Total Assets - $130,900
Liabilities
Accounts Payable - $34,630
Notes Payable - 53,470
Total Liabilities - 88

Assume you are the president of APEC Aerospace Corporation. At the end of the first year of operations (December 31), the following financial data for the company are available:
Accounts Payable - $34,630
Accounts Receivable - $11,000
Cash - $15,400
Commo

Is the company financed mainly by creditors or stockholders?
- Creditors
- Stockholders
Which financial statement provides the information regarding the source of financing?
- Income Statement
- Statement of Retained Earnings
- Balance Sheet
- Statement o

Assume you are the president of APEC Aerospace Corporation. At the end of the first year of operations (December 31), the following financial data for the company are available:
Accounts Payable - $34,630
Accounts Receivable - $11,000
Cash - $15,400
Commo

Was the company profitable?
- Yes
- No
Which financial statement provides the information regarding profitability?
- Income Statement
- Statement of Retained Earnings
- Balance Sheet
- Statement of Cash Flows

Assume you are the president of APEC Aerospace Corporation. At the end of the first year of operations (December 31), the following financial data for the company are available:
Accounts Payable - $34,630
Accounts Receivable - 11,000
Cash - 15,400
Common

By how much did cash increase (decrease)?term-30
Increase in cash - $15,400
Which financial statement would report the business activities responsible for the change in cash?
- Income Statement
- Statement of Retained Earnings
- Balance Sheet
- Statement

Assume you are the president of APEC Aerospace Corporation. At the end of the first year of operations (December 31), the following financial data for the company are available:
Accounts Payable - $34,630
Accounts Receivable 11,000
Cash - $15,400
Common S

Did the company's dividends exceed its net income?
- Yes
- No
Which financial statement provides the information regarding the company's dividends?
- Income Statement
- Statement of Retained Earnings
- Balance Sheet
- Statement of Cash Flows