ACCT 2301 Week 1

Assets

=

Liabilities

+

Stockholders’ Equity

(a)

$78,000

$50,000

$enter a dollar amount

(b)

$enter a dollar amount

$45,000

$70,000

(c)

$94,000

$enter a dollar amount

$60,000

Total assets

$

Total liabilities

$

Stockholders’ equity

$

At the beginning of the year, Canon Company had total assets of $870,000 and total liabilities of $500,000. Answer the following questions.

(a) If total assets increased $150,000 during the year and total liabilities decreased $80,000, what is the amount of stockholders’ equity at the end of the year?

(b) During the year, total liabilities increased $100,000 and stockholders’ equity decreased $66,000. What is the amount of total assets at the end of the year?

(c) If total assets decreased $80,000 and and owner’s equity increased $120,000 during the year, what is the amount of total liabilities at the end of the year?

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Total assets

$enter total assets in dollars

Total liabilities

$enter Total liabilities in dollars

Stockholders’ equity

$enter Stockholders’ equity in dollars

Your answer is correct.

(a)

Accounts receivable

1.liability

2.assets

3.stock holder equity

(b)

Salaries and wages payable

1.liability

2.assets

3.stock holder equity

(c)

Equipment

1.liability

2.assets

3.stock holder equity

(d)

Supplies

1.liability

2.assets

3.stock holder equity

(e)

Dividends

1.liability

2.assets

3.stock holder equity

(f)

Notes payable

1.liability

2.assets

3.stock holder equity

Classify each of the following items as dividends, revenue, or expense.

Student did not submit Show Work for this attempt

Question 7

Your answer is correct.

(a)

Received cash for services performed.

1.expense

2.revenue

3.divedends

4.common stock

5.no affecting stock holder equity

(b)

Paid cash to purchase equipment.

1.expense

2.revenue

3.divedends

4.common stock

5.no affecting stock holder equity

(c)

Paid employee salaries.

1.expense

2.revenue

3.divedends

4.common stock

5.no affecting stock holder equity

Your answer is correct.

Accounts payable

$85,000

Accounts receivable

72,500

Cash

44,000

Common stock

31,500

Indicate whether the following items would appear on the income statement, balance sheet, or retained earnings statement.

Student did not submit Show Work for this attempt

Callison Company performs the following accounting tasks during the year.

Accounting is “an information system that identifies, records, and communicates the economic events of an organization to interested users.”

Categorize the accounting tasks performed by Callison as relating to either the identification, recording, or communication aspects of accounting.

Your answer is correct.

1.internal user

2.external user

Customers

1.internal user

2.external user

Internal Revenue Service

1.internal user

2.external user

Labor unions

1.internal user

2.external user

Marketing manager

1.internal user

2.external user

Production supervisor

Securities and Exchange Commission

1.internal user

2.external user

1.internal user

2.external user

Store manager

1.internal user

2.external user

Suppliers

1.internal user

2.external user

Vice president of finance

1.internal user

2.external user

Can we afford to give our employees a pay raise?

1.internal user

2.external user

Did the company earn a satisfactory income?

1.internal user

2.external user

Do we need to borrow in the near future?

How does the company’s profitability compare to other companies?

1.internal user

2.external user

1.internal user

2.external user

What does it cost us to manufacture each unit produced?

1.internal user

2.external user

Which product should we emphasize?

Will the company be able to pay its short-term debts?

1.internal user

2.external user

Your answer is correct.

Accounts payable

1.Assets

2.liability

3.stock holder equity

Cash

1.Assets

2.liability

3.stock holder equity

Equipment

1.Assets

2.liability

3.stock holder equity

Supplies

1.Assets

2.liability

3.stock holder equity

Accounts receivable

1.Assets

2.liability

3.stock holder equity

Notes payable

1.Assets

2.liability

3.stock holder equity

Salaries and wages payable

1.Assets

2.liability

3.stock holder equity

Common stock

1.Assets

2.liability

3.stock holder equity

Your answer is correct.

1.

Sold common stock for cash to start business.

Increase in assets and increase in stockholders’ equity.

2.

Paid monthly rent.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets and increase in stockholders’ equity Decrease in assets and decrease in stockholders’ equity Increase in assets and increase in liabilities Increase in assets and decrease in assets Increase in liabilities and decrease in stockholders’ equity Decrease in liabilities and increase in stockholders’ equity Increase in liabilities and increase in stockholders’ equity Decrease in liabilities and decrease in stockholders’ equity Increase in assets and decrease in stockholders’ equity Decrease in assets and increase in stockholders’ equity Decrease in assets and decrease in liabilities

3.

Purchased equipment on account.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets and increase in stockholders’ equity Decrease in assets and decrease in stockholders’ equity Increase in assets and increase in liabilities Increase in assets and decrease in assets Increase in liabilities and decrease in stockholders’ equity Decrease in liabilities and increase in stockholders’ equity Increase in liabilities and increase in stockholders’ equity Decrease in liabilities and decrease in stockholders’ equity Increase in assets and decrease in stockholders’ equity Decrease in assets and increase in stockholders’ equity Decrease in assets and decrease in liabilities

4.

Billed customers for services performed.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets and increase in stockholders’ equity Decrease in assets and decrease in stockholders’ equity Increase in assets and increase in liabilities Increase in assets and decrease in assets Increase in liabilities and decrease in stockholders’ equity Decrease in liabilities and increase in stockholders’ equity Increase in liabilities and increase in stockholders’ equity Decrease in liabilities and decrease in stockholders’ equity Increase in assets and decrease in stockholders’ equity Decrease in assets and increase in stockholders’ equity Decrease in assets and decrease in liabilities

5.

Paid dividends.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets and increase in stockholders’ equity Decrease in assets and decrease in stockholders’ equity Increase in assets and increase in liabilities Increase in assets and decrease in assets Increase in liabilities and decrease in stockholders’ equity Decrease in liabilities and increase in stockholders’ equity Increase in liabilities and increase in stockholders’ equity Decrease in liabilities and decrease in stockholders’ equity Increase in assets and decrease in stockholders’ equity Decrease in assets and increase in stockholders’ equity Decrease in assets and decrease in liabilities

6.

Received cash from customers billed in (4).

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets and increase in stockholders’ equity Decrease in assets and decrease in stockholders’ equity Increase in assets and increase in liabilities Increase in assets and decrease in assets Increase in liabilities and decrease in stockholders’ equity Decrease in liabilities and increase in stockholders’ equity Increase in liabilities and increase in stockholders’ equity Decrease in liabilities and decrease in stockholders’ equity Increase in assets and decrease in stockholders’ equity Decrease in assets and increase in stockholders’ equity Decrease in assets and decrease in liabilities

7.

Incurred advertising expense on account.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets and increase in stockholders’ equity Decrease in assets and decrease in stockholders’ equity Increase in assets and increase in liabilities Increase in assets and decrease in assets Increase in liabilities and decrease in stockholders’ equity Decrease in liabilities and increase in stockholders’ equity Increase in liabilities and increase in stockholders’ equity Decrease in liabilities and decrease in stockholders’ equity Increase in assets and decrease in stockholders’ equity Decrease in assets and increase in stockholders’ equity Decrease in assets and decrease in liabilities

8.

Purchased additional equipment for cash.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets and increase in stockholders’ equity Decrease in assets and decrease in stockholders’ equity Increase in assets and increase in liabilities Increase in assets and decrease in assets Increase in liabilities and decrease in stockholders’ equity Decrease in liabilities and increase in stockholders’ equity Increase in liabilities and increase in stockholders’ equity Decrease in liabilities and decrease in stockholders’ equity Increase in assets and decrease in stockholders’ equity Decrease in assets and increase in stockholders’ equity Decrease in assets and decrease in liabilities

9.

Received cash from customers when service was performed.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets and increase in stockholders’ equity Decrease in assets and decrease in stockholders’ equity Increase in assets and increase in liabilities Increase in assets and decrease in assets Increase in liabilities and decrease in stockholders’ equity Decrease in liabilities and increase in stockholders’ equity Increase in liabilities and increase in stockholders’ equity Decrease in liabilities and decrease in stockholders’ equity Increase in assets and decrease in stockholders’ equity Decrease in assets and increase in stockholders’ equity Decrease in assets and decrease in liabilities

Your answer is correct.

1.

Purchased computers for $20,000 from Data Equipment on account.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets, increase in liabilities Increase in assets, increase in stockholders' equity Increase in assets, decrease in liabilities Increase in assets, decrease in stockholders' equity Increase in assets, decrease in assets Increase in liabilities, increase in stockholders' equity Increase in liabilities, decrease in liabilities Increase in liabilities, decrease in stockholders' equity Increase in liabilities, decrease in assets Increase in stockholders' equity, decrease in assets Increase in stockholders' equity,  decrease in liabilities Increase in stockholders' equity, decrease in stockholders' equity Decrease in assets, decrease in liabilities Decrease in assets, decrease in stockholders' equity Decrease in liabilities, decrease in stockholders' equity

2.

Paid $3,000 cash for May rent on storage space.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets, increase in liabilities Increase in assets, increase in stockholders' equity Increase in assets, decrease in liabilities Increase in assets, decrease in stockholders' equity Increase in assets, decrease in assets Increase in liabilities, increase in stockholders' equity Increase in liabilities, decrease in liabilities Increase in liabilities, decrease in stockholders' equity Increase in liabilities, decrease in assets Increase in stockholders' equity, decrease in assets Increase in stockholders' equity,  decrease in liabilities Increase in stockholders' equity, decrease in stockholders' equity Decrease in assets, decrease in liabilities Decrease in assets, decrease in stockholders' equity Decrease in liabilities, decrease in stockholders' equity

3.

Received $15,000 cash from customers for contracts billed in April.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets, increase in liabilities Increase in assets, increase in stockholders' equity Increase in assets, decrease in liabilities Increase in assets, decrease in stockholders' equity Increase in assets, decrease in assets Increase in liabilities, increase in stockholders' equity Increase in liabilities, decrease in liabilities Increase in liabilities, decrease in stockholders' equity Increase in liabilities, decrease in assets Increase in stockholders' equity, decrease in assets Increase in stockholders' equity,  decrease in liabilities Increase in stockholders' equity, decrease in stockholders' equity Decrease in assets, decrease in liabilities Decrease in assets, decrease in stockholders' equity Decrease in liabilities, decrease in stockholders' equity

4.

Performed computer services for Ryan Construction Company for $2,700 cash.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets, increase in liabilities Increase in assets, increase in stockholders' equity Increase in assets, decrease in liabilities Increase in assets, decrease in stockholders' equity Increase in assets, decrease in assets Increase in liabilities, increase in stockholders' equity Increase in liabilities, decrease in liabilities Increase in liabilities, decrease in stockholders' equity Increase in liabilities, decrease in assets Increase in stockholders' equity, decrease in assets Increase in stockholders' equity,  decrease in liabilities Increase in stockholders' equity, decrease in stockholders' equity Decrease in assets, decrease in liabilities Decrease in assets, decrease in stockholders' equity Decrease in liabilities, decrease in stockholders' equity

5.

Paid Midland Power Co. $11,000 cash for energy usage in May.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets, increase in liabilities Increase in assets, increase in stockholders' equity Increase in assets, decrease in liabilities Increase in assets, decrease in stockholders' equity Increase in assets, decrease in assets Increase in liabilities, increase in stockholders' equity Increase in liabilities, decrease in liabilities Increase in liabilities, decrease in stockholders' equity Increase in liabilities, decrease in assets Increase in stockholders' equity, decrease in assets Increase in stockholders' equity,  decrease in liabilities Increase in stockholders' equity, decrease in stockholders' equity Decrease in assets, decrease in liabilities Decrease in assets, decrease in stockholders' equity Decrease in liabilities, decrease in stockholders' equity

6.

Stockholders invested an additional $32,000 in the business.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets, increase in liabilities Increase in assets, increase in stockholders' equity Increase in assets, decrease in liabilities Increase in assets, decrease in stockholders' equity Increase in assets, decrease in assets Increase in liabilities, increase in stockholders' equity Increase in liabilities, decrease in liabilities Increase in liabilities, decrease in stockholders' equity Increase in liabilities, decrease in assets Increase in stockholders' equity, decrease in assets Increase in stockholders' equity,  decrease in liabilities Increase in stockholders' equity, decrease in stockholders' equity Decrease in assets, decrease in liabilities Decrease in assets, decrease in stockholders' equity Decrease in liabilities, decrease in stockholders' equity

7.

Paid Data Equipment for the computers purchased in (1) above.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets, increase in liabilities Increase in assets, increase in stockholders' equity Increase in assets, decrease in liabilities Increase in assets, decrease in stockholders' equity Increase in assets, decrease in assets Increase in liabilities, increase in stockholders' equity Increase in liabilities, decrease in liabilities Increase in liabilities, decrease in stockholders' equity Increase in liabilities, decrease in assets Increase in stockholders' equity, decrease in assets Increase in stockholders' equity,  decrease in liabilities Increase in stockholders' equity, decrease in stockholders' equity Decrease in assets, decrease in liabilities Decrease in assets, decrease in stockholders' equity Decrease in liabilities, decrease in stockholders' equity

8.

Incurred advertising expense for May of $840 on account.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets, increase in liabilities Increase in assets, increase in stockholders' equity Increase in assets, decrease in liabilities Increase in assets, decrease in stockholders' equity Increase in assets, decrease in assets Increase in liabilities, increase in stockholders' equity Increase in liabilities, decrease in liabilities Increase in liabilities, decrease in stockholders' equity Increase in liabilities, decrease in assets Increase in stockholders' equity, decrease in assets Increase in stockholders' equity,  decrease in liabilities Increase in stockholders' equity, decrease in stockholders' equity Decrease in assets, decrease in liabilities Decrease in assets, decrease in stockholders' equity Decrease in liabilities, decrease in stockholders' equity

An analysis of the transactions made by Foley & Co., a certified public accounting firm, for the month of August is shown below.

(b) Determine how much stockholders’ equity increased for the month.

(c) Compute the amount of net income for the month.

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Question 14

An analysis of the transactions made by Foley & Co., a certified public accounting firm, for the month of August, its first month of operations is shown below.

Prepare an retained earnings statement for August. (List items that increase retained earnings first.)

Prepare a balance sheet at August 31, 2020. (List Assets in order of liquidity.)

Your answer is correct.

Accounts payable

$85,000

Accounts receivable

72,500

Cash

44,000

Common stock

31,500

Your answer is correct.

(a)

Notes payable   

1.retained statement

2.balance sheet

3.income statement

(b)

Advertising expense

1.retained statement

2.balance sheet

3.income statement

(c)

Common stock

1.retained statement

2.balance sheet

3.income statement

(d)

Cash

1.retained statement

2.balance sheet

3.income statement

(e)

Service revenue

1.retained statement

2.balance sheet

3.income statement

(f)

Dividends

1.retained statement

2.balance sheet

3.income statement

1.communicates

2.records

3.identifies

Analyzing and interpreting information.

1.communicates

2.records

3.identifies

Classifying economic events.

1.communicates

2.records

3.identifies

Explaining uses, meaning, and limitations of data.

1.communicates

2.records

3.identifies

Keeping a systematic chronological diary of events.

1.communicates

2.records

3.identifies

Measuring events in dollars and cents.

1.communicates

2.records

3.identifies

Preparing accounting reports.

1.communicates

2.records

3.identifies

Reporting information in a standard format.

Selecting economic activities relevant to the company.

1.communicates

2.records

3.identifies

Summarizing economic events.

1.communicates

2.records

3.identifies

1. internal user

2.external user

Customers

1. internal user

2.external user

Internal Revenue Service

1. internal user

2.external user

Labor unions

1. internal user

2.external user

Marketing manager

1. internal user

2.external user

Production supervisor

Securities and Exchange Commission

1. internal user

2.external user

1. internal user

2.external user

Store manager

1. internal user

2.external user

Suppliers

1. internal user

2.external user

Vice president of finance

Can we afford to give our employees a pay raise?

1. internal user

2.external user

Did the company earn a satisfactory income?

1. internal user

2.external user

Do we need to borrow in the near future?

1. internal user

2.external user

How does the company’s profitability compare to other companies?

1. internal user

2.external user

What does it cost us to manufacture each unit produced?

1. internal user

2.external user

Which product should we emphasize?

1. internal user

2.external user

Will the company be able to pay its short-term debts?

1. internal user

2.external user

Bailey Cleaners has the following balance sheet items.

Classify each item as an asset, liability, or stockholders’ equity.

Your answer is correct.

1.

Sold common stock for cash to start business.

Increase in assets and increase in stockholders’ equity.

2.

Paid monthly rent.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets and increase in stockholders’ equity Decrease in assets and decrease in stockholders’ equity Increase in assets and increase in liabilities Increase in assets and decrease in assets Increase in liabilities and decrease in stockholders’ equity Decrease in liabilities and increase in stockholders’ equity Increase in liabilities and increase in stockholders’ equity Decrease in liabilities and decrease in stockholders’ equity Increase in assets and decrease in stockholders’ equity Decrease in assets and increase in stockholders’ equity Decrease in assets and decrease in liabilities

3.

Purchased equipment on account.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets and increase in stockholders’ equity Decrease in assets and decrease in stockholders’ equity Increase in assets and increase in liabilities Increase in assets and decrease in assets Increase in liabilities and decrease in stockholders’ equity Decrease in liabilities and increase in stockholders’ equity Increase in liabilities and increase in stockholders’ equity Decrease in liabilities and decrease in stockholders’ equity Increase in assets and decrease in stockholders’ equity Decrease in assets and increase in stockholders’ equity Decrease in assets and decrease in liabilities

4.

Billed customers for services performed.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets and increase in stockholders’ equity Decrease in assets and decrease in stockholders’ equity Increase in assets and increase in liabilities Increase in assets and decrease in assets Increase in liabilities and decrease in stockholders’ equity Decrease in liabilities and increase in stockholders’ equity Increase in liabilities and increase in stockholders’ equity Decrease in liabilities and decrease in stockholders’ equity Increase in assets and decrease in stockholders’ equity Decrease in assets and increase in stockholders’ equity Decrease in assets and decrease in liabilities

5.

Paid dividends.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets and increase in stockholders’ equity Decrease in assets and decrease in stockholders’ equity Increase in assets and increase in liabilities Increase in assets and decrease in assets Increase in liabilities and decrease in stockholders’ equity Decrease in liabilities and increase in stockholders’ equity Increase in liabilities and increase in stockholders’ equity Decrease in liabilities and decrease in stockholders’ equity Increase in assets and decrease in stockholders’ equity Decrease in assets and increase in stockholders’ equity Decrease in assets and decrease in liabilities

6.

Received cash from customers billed in (4).

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets and increase in stockholders’ equity Decrease in assets and decrease in stockholders’ equity Increase in assets and increase in liabilities Increase in assets and decrease in assets Increase in liabilities and decrease in stockholders’ equity Decrease in liabilities and increase in stockholders’ equity Increase in liabilities and increase in stockholders’ equity Decrease in liabilities and decrease in stockholders’ equity Increase in assets and decrease in stockholders’ equity Decrease in assets and increase in stockholders’ equity Decrease in assets and decrease in liabilities

7.

Incurred advertising expense on account.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets and increase in stockholders’ equity Decrease in assets and decrease in stockholders’ equity Increase in assets and increase in liabilities Increase in assets and decrease in assets Increase in liabilities and decrease in stockholders’ equity Decrease in liabilities and increase in stockholders’ equity Increase in liabilities and increase in stockholders’ equity Decrease in liabilities and decrease in stockholders’ equity Increase in assets and decrease in stockholders’ equity Decrease in assets and increase in stockholders’ equity Decrease in assets and decrease in liabilities

8.

Purchased additional equipment for cash.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets and increase in stockholders’ equity Decrease in assets and decrease in stockholders’ equity Increase in assets and increase in liabilities Increase in assets and decrease in assets Increase in liabilities and decrease in stockholders’ equity Decrease in liabilities and increase in stockholders’ equity Increase in liabilities and increase in stockholders’ equity Decrease in liabilities and decrease in stockholders’ equity Increase in assets and decrease in stockholders’ equity Decrease in assets and increase in stockholders’ equity Decrease in assets and decrease in liabilities

9.

Received cash from customers when service was performed.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets and increase in stockholders’ equity Decrease in assets and decrease in stockholders’ equity Increase in assets and increase in liabilities Increase in assets and decrease in assets Increase in liabilities and decrease in stockholders’ equity Decrease in liabilities and increase in stockholders’ equity Increase in liabilities and increase in stockholders’ equity Decrease in liabilities and decrease in stockholders’ equity Increase in assets and decrease in stockholders’ equity Decrease in assets and increase in stockholders’ equity Decrease in assets and decrease in liabilities

Your answer is correct.

1.

Purchased computers for $20,000 from Data Equipment on account.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets, increase in liabilities Increase in assets, increase in stockholders' equity Increase in assets, decrease in liabilities Increase in assets, decrease in stockholders' equity Increase in assets, decrease in assets Increase in liabilities, increase in stockholders' equity Increase in liabilities, decrease in liabilities Increase in liabilities, decrease in stockholders' equity Increase in liabilities, decrease in assets Increase in stockholders' equity, decrease in assets Increase in stockholders' equity,  decrease in liabilities Increase in stockholders' equity, decrease in stockholders' equity Decrease in assets, decrease in liabilities Decrease in assets, decrease in stockholders' equity Decrease in liabilities, decrease in stockholders' equity

2.

Paid $3,000 cash for May rent on storage space.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets, increase in liabilities Increase in assets, increase in stockholders' equity Increase in assets, decrease in liabilities Increase in assets, decrease in stockholders' equity Increase in assets, decrease in assets Increase in liabilities, increase in stockholders' equity Increase in liabilities, decrease in liabilities Increase in liabilities, decrease in stockholders' equity Increase in liabilities, decrease in assets Increase in stockholders' equity, decrease in assets Increase in stockholders' equity,  decrease in liabilities Increase in stockholders' equity, decrease in stockholders' equity Decrease in assets, decrease in liabilities Decrease in assets, decrease in stockholders' equity Decrease in liabilities, decrease in stockholders' equity

3.

Received $15,000 cash from customers for contracts billed in April.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets, increase in liabilities Increase in assets, increase in stockholders' equity Increase in assets, decrease in liabilities Increase in assets, decrease in stockholders' equity Increase in assets, decrease in assets Increase in liabilities, increase in stockholders' equity Increase in liabilities, decrease in liabilities Increase in liabilities, decrease in stockholders' equity Increase in liabilities, decrease in assets Increase in stockholders' equity, decrease in assets Increase in stockholders' equity,  decrease in liabilities Increase in stockholders' equity, decrease in stockholders' equity Decrease in assets, decrease in liabilities Decrease in assets, decrease in stockholders' equity Decrease in liabilities, decrease in stockholders' equity

4.

Performed computer services for Ryan Construction Company for $2,700 cash.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets, increase in liabilities Increase in assets, increase in stockholders' equity Increase in assets, decrease in liabilities Increase in assets, decrease in stockholders' equity Increase in assets, decrease in assets Increase in liabilities, increase in stockholders' equity Increase in liabilities, decrease in liabilities Increase in liabilities, decrease in stockholders' equity Increase in liabilities, decrease in assets Increase in stockholders' equity, decrease in assets Increase in stockholders' equity,  decrease in liabilities Increase in stockholders' equity, decrease in stockholders' equity Decrease in assets, decrease in liabilities Decrease in assets, decrease in stockholders' equity Decrease in liabilities, decrease in stockholders' equity

5.

Paid Midland Power Co. $11,000 cash for energy usage in May.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets, increase in liabilities Increase in assets, increase in stockholders' equity Increase in assets, decrease in liabilities Increase in assets, decrease in stockholders' equity Increase in assets, decrease in assets Increase in liabilities, increase in stockholders' equity Increase in liabilities, decrease in liabilities Increase in liabilities, decrease in stockholders' equity Increase in liabilities, decrease in assets Increase in stockholders' equity, decrease in assets Increase in stockholders' equity,  decrease in liabilities Increase in stockholders' equity, decrease in stockholders' equity Decrease in assets, decrease in liabilities Decrease in assets, decrease in stockholders' equity Decrease in liabilities, decrease in stockholders' equity

6.

Stockholders invested an additional $32,000 in the business.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets, increase in liabilities Increase in assets, increase in stockholders' equity Increase in assets, decrease in liabilities Increase in assets, decrease in stockholders' equity Increase in assets, decrease in assets Increase in liabilities, increase in stockholders' equity Increase in liabilities, decrease in liabilities Increase in liabilities, decrease in stockholders' equity Increase in liabilities, decrease in assets Increase in stockholders' equity, decrease in assets Increase in stockholders' equity,  decrease in liabilities Increase in stockholders' equity, decrease in stockholders' equity Decrease in assets, decrease in liabilities Decrease in assets, decrease in stockholders' equity Decrease in liabilities, decrease in stockholders' equity

7.

Paid Data Equipment for the computers purchased in (1) above.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets, increase in liabilities Increase in assets, increase in stockholders' equity Increase in assets, decrease in liabilities Increase in assets, decrease in stockholders' equity Increase in assets, decrease in assets Increase in liabilities, increase in stockholders' equity Increase in liabilities, decrease in liabilities Increase in liabilities, decrease in stockholders' equity Increase in liabilities, decrease in assets Increase in stockholders' equity, decrease in assets Increase in stockholders' equity,  decrease in liabilities Increase in stockholders' equity, decrease in stockholders' equity Decrease in assets, decrease in liabilities Decrease in assets, decrease in stockholders' equity Decrease in liabilities, decrease in stockholders' equity

8.

Incurred advertising expense for May of $840 on account.

select an effect on assets, liabilities, and stockholders’ equity

Increase in assets, increase in liabilities Increase in assets, increase in stockholders' equity Increase in assets, decrease in liabilities Increase in assets, decrease in stockholders' equity Increase in assets, decrease in assets Increase in liabilities, increase in stockholders' equity Increase in liabilities, decrease in liabilities Increase in liabilities, decrease in stockholders' equity Increase in liabilities, decrease in assets Increase in stockholders' equity, decrease in assets Increase in stockholders' equity,  decrease in liabilities Increase in stockholders' equity, decrease in stockholders' equity Decrease in assets, decrease in liabilities Decrease in assets, decrease in stockholders' equity Decrease in liabilities, decrease in stockholders' equity

Assets

=

Liabilities

+

Stockholders’ Equity

Cash

 + 

Accounts
Receivable

 + 

Supplies

 + 

Equipment

Accounts
Payable

Common
Stock

Retained Earnings

 = 

 + 

 + 

Revenues

 – 

Expenses

 – 

Dividend

1.

+$15,000

+$15,000

2.

–2,000

+$5,000

+$3,000

3.

 –750

+$750

4.

+4,900

+$4,500

+$9,400

Service Revenue

5.

–1,500

–1,500

6.

–2,000

-$2,000

7.

–850

–$850

Rent Expense

8.

+450

–450

9.

–3,900

–3,900

Salaries/Wages Expense

10.

+500

–500

Utilities Expense

Increase in stockholders' equity

$

Net income

$

Question 20

An analysis of the transactions made by Foley & Co., a certified public accounting firm, for the month of August, its first month of operations is shown below.

Prepare an income statement for August.

Prepare an retained earnings statement for August. (List items that increase retained earnings first.)

Prepare a balance sheet at August 31, 2020. (List Assets in order of liquidity.)

.

December 31

Total Assets

Total Liabilities

2019

$400,000

$260,000

2020

$480,000

$300,000

2021

$590,000

$400,000

Net income (loss) for 2019

$enter the Net income (loss) for 2019 in dollars

Net income (loss) for 2020

$enter the Net income (loss) for 2020 in dollars

Net income (loss) for 2021

$enter the Net income (loss) for 2021 in dollars

Question 21

The following information relates to La Greca Co. for the year 2020.

After analyzing the data, prepare an income statement for the year ending December 31, 2020.

After analyzing the data, prepare a retained earnings statement for the year ending December 31, 2020. (List items that increase retained earnings first.)

Question 22

Wyco Park, a public camping ground near the Four Corners National Recreation Area, has compiled the following financial information as of December 31, 2020.