When inputting your answers in CANVAS do not include $ signs or commas in your answers. DO NOT include words in your answer unless specifically asked. Use the following information to answer questions 1-10 For each item, determine the type of account (Asset, Liability, Stockholder's Equity, Dividends, Revenue or Expense) and the type of activity (Operating, Investing or Financing). When answering the question, input ONLY the first letter, for example: if the answer was Liability input Las the answer. Item Type of Account A, L, SE, D, R or E Type of Activity 0,1,F Provide services to customers 1. 2. Distributions to stockholders 3. 4. Cost of electricity used during the period 5. 6. 8. Acquisition of an office building 7. Borrowing from a financial institution 9. 10. Use the following to answer questions 11 - 14 The company reports the following amounts at the end of the year: Dividends Liabilities Expenses Revenues Assets Common stock $125,000 445,000 421,000 687,000 990,000 300,000 Item Type of Account A, L, SE, D, Ror E Type of Activity O, IF Provide services to customers 1. 2. Distributions to stockholders 3. 4. 5. 6. Cost of electricity used during the period Acquisition of an office building Borrowing from a financial institution 7. 8. 9. 10. Use the following to answer questions 11-14 The company reports the following amounts at the end of the year: Dividends Liabilities Expenses Revenues Assets Common stock $125,000 445,000 421,000 687,000 990,000 300,000 11.5 Calculate net income 12. $ 13. $ Calculate stockholders' equity at the end of the period _Calculate ending retained earnings: Calculate beginning retained earnings: 14. $ Chapter 1 Page 11 The company had the following account balances at the end of December: Balances $50,000 2,000 Accounts Dividends Supplies Service revenue Beginning Retained earnings Utilities expense Common stock Salaries expense Accounts payable Cash Equipment 688,000 112,000 65,000 350,000 430,000 35,000 40,000 ? 15. $ 16. $ 17. $ _What were total expenses for the year? _Calculate their net income for the year _Calculate their ending balance in Retained Earnings. What is their balance in stockholder's equity on 12/31 What is the balance of the Equipment account. 18. $ 19. $ Use the following to answer questions 20-22 Determine ending retained earnings for years 1, 2 and 3. At the beginning of year 1, the retained earnings had a 50 balance Year Dividends Retained Earnings Net Income $35.000 1 $10,000 20. 2 89,000 25,000 21 3 152.000 50,000 22 O FOCU States) Use the following to answer questions 23 - 28 The company provides food delivery services to construction sites. At the end of the year, the company reports the following amounts: Cash $42,000 Accounts payable $20,000 Salaries expense 200,000 Garage/Office 749,000 Salaries payable 15,000 Service revenue 952,000 Paper supplies used 12,000 Maintenance expense 45,000 Paper supplies 1,000 Food expense 500,000 Food trucks 250,000 Note payable 350,000 In addition, the company had common stock of $200,000 at the beginning of the year and issued an additional $100,000 of stock during the year. The company also had retained earnings of $312,000 at the beginning of the year and declared $150,000 in dividends during the year. 23. $ Determine Net Income 24. $ Determine ending Common Stock 25. S Determine ending Retained Earnings 26.5 Determine Total Assets 27. $. Determine Total Liabilities 28. $ Determined Total Stockholders' Equity es) Focus #34 Use the following to answer questions 29 - 32 Match the four underlying assumptions of Generally Accepted Accounting Principles with its description Assumption Description 29. Economic entity a in the absence of information to the contrary, it is anticipated that a business entity will continue to operate indefinitely 30 Going concern b. The economic life of a company can be divided into artificial time intervals for financial reporting, 31 Periodicity c. A common denominator is needed to measure all business activities 32 Monetary unit d. Economic events can be identified with a particular economic body Use the following to answer questions 33 - 40 Income Statement Statement of stockholders' Equity Revenues Common stock Retained earnings Expenses: Beginning $300,000 $225,000 Salaries $425,000 Issuance #35 Administrative 258,000 Net income 124,000 Utilities 18.000 Dividends #36 Total expenses 701.000 Ending $325.000 $300,000 Net income 133 Balance Sheet Assets Llabilities Cash $75,000 Accounts payable $44,000 A/R 39,000 Note payable 485.000 Supplies 10,000 Total liabilities $529,000 Prepaid rent 12,000 StockholdersEquity Equipment 415,000 Common stock 7 Building 140 Retained earnings Total stockholders' equity N3Z Total assets Totall, and SE 38 Lisabilities 33. S. Net Income 37.5 Stockholders' Equity 34.5 Revenue 38. S Total L & SE 35. S Issuance: 39. 5. Total Assets 36. $ Dividends: 40. $ Building #34 Use the following to answer questions 29 - 32 Match the four underlying assumptions of Generally Accepted Accounting Principles with its description Assumption Description 29. Economic entity a in the absence of information to the contrary, it is anticipated that a business entity will continue to operate indefinitely 30 Going concern b. The economic life of a company can be divided into artificial time intervals for financial reporting, 31 Periodicity c. A common denominator is needed to measure all business activities 32 Monetary unit d. Economic events can be identified with a particular economic body Use the following to answer questions 33 - 40 Income Statement Statement of stockholders' Equity Revenues Common stock Retained earnings Expenses: Beginning $300,000 $225,000 Salaries $425,000 Issuance #35 Administrative 258,000 Net income 124,000 Utilities 18.000 Dividends #36 Total expenses 701.000 Ending $325.000 $300,000 Net income 133 Balance Sheet Assets Llabilities Cash $75,000 Accounts payable $44,000 A/R 39,000 Note payable 485.000 Supplies 10,000 Total liabilities $529,000 Prepaid rent 12,000 StockholdersEquity Equipment 415,000 Common stock 7 Building 140 Retained earnings Total stockholders' equity N3Z Total assets Totall, and SE 38 Lisabilities 33. S. Net Income 37.5 Stockholders' Equity 34.5 Revenue 38. S Total L & SE 35. S Issuance: 39. 5. Total Assets 36. $ Dividends: 40. $ Building