APUS ACCT100 Week 1 Chapter 1 & 2 Homework latest 2016 feb.

1. Accounting is the information system that

A.

measures business activity.

B.

processes information into reports.

C.

communicates the results to decision makers.

D.

All of the above

2. Which of the following is not an external user of a? business's financial? information?

A.

Investors

B.

Taxing authorities

C.

Employee

D.

Customers

3. Generally Accepted Accounting Principles? (GAAP) are currently formulated by the

A.

Institute of Management Accountants? (IMA).

B.

American Institute of Certified Public Accountants? (AICPA).

C.

Financial Accounting Standards Board? (FASB).

D

Securities and Exchange Commission? (SEC).

4. Which type of business organization is owned by only one? owner?

A.

Sole proprietorship

B.

Corporation

C.

Partnership

D.

Items? a, b, and c are all correct.

5. Which of the following characteristics best describes a? corporation?

A.

Not a separate taxable entity

B.

Is not taxed

C.

A business with a single owner

D.

Stockholders not personally liable for? entity's debts

6. Which of the following requires accounting information to be? complete, neutral, and free from material? error?

A.

Going concern assumption

B.

Economic entity assumption

C.

Cost principle

D.

Faithful representation concept

7. Amoco Car Rentals?' balance sheet data at May? 31, 2014 ?, and June? 30, 2014 ?follow:

LOADING... ?(Click the icon to view the balance sheet? data.)

For each of the following situations with regard to? owner's contributions and withdrawals of the? business, compute the amount of net income or net loss during June 2014.

a. The owner contributed $ 10 in the business and made no withdrawals.

b. The owner made no contributions. The owner withdrew cash of $ 5

c. The company owner made contributions of $ 9, and withdrew cash of $ 13

	May 31, 2014	June 30, 2014
Total assets	$188,000	$245,000
Total liabilities	155,000	144,000

8. Marian Mansion owns and operates a public relations firm called GothGoth. The following amounts summarize her business on August? 31, 2014:

Assets

=

Liabilities

+

Equity

Cash

+

Accounts

+

Office

+

Land

=

Accounts

+

Mansion,

-

Mansion,

+

Service

-

Rent

-

Advertising

Receivable

Supplies

Payable

Capital

Withdrawals

Revenue

Expense

Expense

Bal.

$2,400

+

$2,500

+

$0

+

$10,000

=

$5,000

+

$9,900

9. .

Analyze the effects of the events on the accounting equation of the sole proprietorship of AndreAndre SheenSheen?, CPA.

2.

Prepare the following financial? statements:

a. Income statement

b. Statement of? owner's equity

c. Balance sheet

Sheen recently opened his own accounting? firm, which he operates as a sole proprietorship. The name of the new entity is Andre Sheen?, CPA. SheenSheen experienced the following events during the organizing phase of the new business and its first month of operations in 20142014?

???5

SheenSheen deposited $ 75 comma 000$75,000 in a new business bank account titled AndreAndre SheenSheen?, CPA. The business gave capital to SheenSheen.

6

Paid $ 400$400 cash for letterhead stationery for new office.

7

Purchased office furniture for the office on? account, $ 9 comma 900$9,900.

10

Consulted with tax client and received $ 1 comma 800$1,800 for services rendered.

11

Paid? utilities, $ 190$190.

12

Finished tax hearings on behalf of a client and submitted a bill for accounting? services, $ 8 comma 000$8,000.

18

Paid office? rent, $ 1 comma 300$1,300.

25

Received amount due from client that was billed on FebruaryFebruary 12.

27

Paid full amount of accounts payable created on FebruaryFebruary 7.

28

SheenSheen withdrew cash of $ 4 comma 000$4,000.

10. Water Services had net income for the month of OctoberOctober of $ 51 comma 600$51,600. Assets as of the beginning and end of the month? totaled, $ 374 comma 000$374,000?, and $ 486 comma 000$486,000?, respectively. Calculate RefinedRefined Water? Services' return on assets? (ROA) for the month of OctoberOctober. ?(Round the ROA to the nearest hundredth? percent, X.XX%.)

Chapter 2

1. The detailed record of the changes in a particular asset, liability, or owner's equity is called

A.

a ledger.

B.

an account.

C.

a trial balance.

D.

a journal.

2. Which of the following accounts is a? liability?

A.

Unearned Revenue

B.

Accounts Receivable

C.

Prepaid Rent Expense

D.

Service Revenue

3. The left side of an account is used to record which of the? following?

A.

Credits

B.

Debit or? credit, depending on the type of account

C.

Increases

D.

Debits

4. Which of the following statements is? correct?

A.

Rent Expense is increased with a credit.

B.

Unearned Revenue is increased with a debit.

C.

Prepaid Expenses are decreased with a debit.

D.

Accounts Payable is increased with a credit.

5. 1.

Record the FebruaryFebruary transactions in the journal. Use the following? accounts: Cash; Accounts? Receivable; Office? Supplies; Furniture;? Automobile; Land; Accounts? Payable; Unearned? Revenue; MenningMenning?, ?Capital; MenningMenning?, ?Withdrawals; Service? Revenue; Salaries? Expense; and Rent Expense. Include an explanation for each entry.

2.

The? four-column ledger accounts listed in the trial? balance, together with their balances as of JanuaryJanuary 3131?, have been opened for you and utilize the following account? numbers: Cash,? 11; Accounts? Receivable, 12; Office? Supplies, 13;? Furniture, 14;? Automobile, 15;? Land, 16; Accounts? Payable, 21; Unearned? Revenue, 22; MenningMenning?, ?Capital, 31; MenningMenning?, ?Withdrawals, 32; Service? Revenue, 41; Salaries? Expense, 51; and Rent? Expense, 52. Post the journal entries to? four-column accounts in the? ledger, using? dates, account? numbers, journal? references, and posting references. Assume the journal entries were recorded on page 5 of the journal.

3.

Prepare the trial balance of John MenningJohn Menning?, ?CPA, at FebruaryFebruary 2828?, 20152015.

4

Collected $ 3 comma 500$3,500 cash from a client on account.

8

Performed tax services for a client on? account, $ 5 comma 700$5,700.

13

Paid $ 2 comma 200$2,200 on account.

14

Purchased furniture on? account, $ 3 comma 400$3,400.

15

MenningMenning contributed his personal automobile to the business in exchange for capital. The automobile had a market value of $ 10 comma 500$10,500.

18

Purchased office supplies on? account, $ 1 comma 400$1,400.

19

Received $ 2 comma 850$2,850 for tax services performed on FebruaryFebruary 8.

20

MenningMenning withdrew cash of $ 6 comma 000$6,000.

21

Received $ 5 comma 500$5,500 cash for consulting work completed.

24

Received $ 1 comma 600$1,600 cash for accounting services to be completed next month.

27

Paid office? rent, $ 1 comma 000$1,000.

2828

Paid employee? salary, $ 2 comma 000$2,000.

PrintDone

6. .

Cash is understated by $ 1 comma 400$1,400.

b.

A $ 4 comma 800$4,800 debit to Accounts Receivable was posted as a credit.

c.

A $ 900$900 purchase of office supplies on account was neither journalized nor posted.

d.

Equipment was incorrectly transferred from the ledger as $ 90 comma 100$90,100. It should have been transferred as $ 82 comma 500$82,500.

e.

Salaries Expense is overstated by $ 100$100.

f.

A $ 300$300 cash payment for advertising expense was neither journalized nor posted.

g.

A $ 120$120 ?owner's withdrawal of cash was incorrectly journalized as $ 1 comma 200$1,200.

h.

Service Revenue was understated by $ 3 comma 900$3,900.

i.

A? 12-month insurance policy was posted as a $ 1 comma 100$1,100 credit to Prepaid Insurance. Cash was posted correctly.

7. Using the following accounts and their? balances, calculate the debt ratio for CampoCampo Furniture Repair as of December 31 comma 2015December 31, 2015

Cash

$6,000

Advertising Expense

$1,500

Unearned Revenue

7,600

Utilities Expense

800

Equipment

17,000

Rent Expense

4,500

Service Revenue

8,400

Accounts Payable

1,600

Martinez, Capital

19,000

Martinez, Withdrawals

6,800

.