Reference no: EM132363267
Question
1. Choose the account types to form the expanded accounting equation. Begin the equity section with Contributed Capital + Retained Earnings. Then, identify whether the item increases, '+', or decreases, '-', equity.
Account type:
Common Stock, Cash, Dividends, Accounts Receivable, Accounts Payable, Revenues, Expenses, Unearned Revenues, Assets, Liabilities
__________ + or - __________ + or - __________ + or - __________ + or - __________ + or - __________
2. Enter the missing value to balance the equation.
__________ = 14,000 + 43,000 - 26,000+39,000 - 25,000
1,000 = __________ + 10,000 - 32,000 + 21,000 - 17,000
29,000 = 35,000 + ________ - 5,000 + 39,000 - 49,000
3. Identify the part of the expanded accounting equation for each account title as a: Asset, Common Stock, Dividends, Expense, Liability, Revenue, Common Stock
Office Furniture: _______________
Common Stock: _______________
Dividends: _______________
Utilities Expense: _______________
Rent Payable: _______________
Service Revenue: _______________
4. Label the DR (debit), CR (credit), NB (normal balance), and "+" or "-".
Office Furniture: _______________ "Debit", or "Normal Balance", or "Credit" _______ "+" or "-".
Common Stock: _______________ "Debit", or "Normal Balance", or "Credit" _______ "+" or "-".
Dividends: _______________ "Debit", or "Normal Balance", or "Credit" _______ "+" or "-"
Advertising Expense: _______________ "Debit", or "Normal Balance", or "Credit" _______ "+" or "-".
Utilities Payable: _______________ "Debit", or "Normal Balance", or "Credit" _______ "+" or "-".
Service Revenue: _______________ "Debit", or "Normal Balance", or "Credit" _______ "+" or "-".
5. Using the expanded accounting equation, calculate and enter the answers for each question. You will need to use the answers you calculate for beginning and ending equity to answer the rest of the questions. ( Show your work)
Assets Liabilities
Beginning of Year: $27,000 $16,000
End of Year: $61,000 $26,000
1) What is the equity at the beginning of the year?
Beginning Equity __________
2) What is the equity at the end of the year?
Ending Equity __________
3) If the company issues common stock of $8,600 and pay dividends of $43,200, how much is net income (loss)?
Net Income (Loss) __________
4) If net income is $1,000 and dividends are $7,200, how much is common stock?
Common Stock __________
5) If the company issues common stock of $18,000 and net income is $15,000, how much is dividends?
Dividends __________
6) If the company issues common stock of $41,300 and pay dividends of $3,400, how much is net income (loss)?
Net Income (Loss) __________