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Principles of Accounting, Volume 1: Financial Accounting

Exercise Set B

Principles of Accounting, Volume 1: Financial AccountingExercise Set B

Exercise Set B

EB 1.

LO 2.1For each independent situation below, calculate the missing values.

EB 2.

LO 2.1For each independent situation below, calculate the missing values for Owner’s Equity.

EB 3.

LO 2.1For each independent situation below, calculate the missing values.

EB 4.

LO 2.1For each of the following independent situations, place an (X) by the transactions that would be included in the statement of cash flows.

 
Transaction Included
Purchased supplies with check  
Received inventory (a bill was included)  
Paid cash to owner for withdrawal  
Gave cash donation to local charity  
Received bill for utilities  
Table 2.4
EB 5.

LO 2.2For each of the following items, identify whether the item is considered current or noncurrent, and explain why.

 
Item Current or Noncurrent?
Inventory  
Buildings  
Accounts Receivable  
Cash  
Trademarks  
Accounts Payable  
Wages Payable  
Common Stock  
Table 2.7
EB 6.

LO 2.2For the items listed below, indicate how the item affects equity (increase, decrease, or no impact).

 
Item Increase? Decrease? or No Impact?
Revenues  
Gains  
Losses  
Drawings  
Investments  
Table 2.8
EB 7.

LO 2.2Gumbo Company had the following transactions during the month of December. What was the December 1 cash balance?

EB 8.

LO 2.2Here are facts for Hailey’s Collision Service for January.

Assuming no investments or withdrawals, what is the ending balance in the owners’ capital account?

EB 9.

LO 2.3Prepare an income statement using the following information for CK Company for the month of February 2019.

EB 10.

LO 2.3Prepare a statement of owner’s equity using the following information for the Can Due Shop for the month of September 2018.

EB 11.

LO 2.3Prepare a balance sheet using the following information for Mike’s Consulting as of January 31, 2019.

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