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Exam 2: Analyzing Business Transactions

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Question 1

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The following information should be used for questions. The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction. $\begin{array}{|l|l|}\hline \text { Cash } & \text { K. Mitchell, Capital } \\\hline \text { Accounts Receivable } & \text { Revenue } \\\hline \text { Equipment } & \text { Expenses } \\\hline \text { Accounts Payable } & \\\hline\end{array}$ -Had a computer repaired; payment is due in 30 days

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Question 2

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The income statement shows:

A) revenue and owner's equity.
B) the results of operations for a period of time.
C) the total value of the business.
D) the financial position of a business on a specific date.

E) B) and C)
F) None of the above

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Question 3

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If assets are $8,000 and liabilities are $2,000, owner's equity is $10,000.

The balance sheet shows each of the following except the:

Ginger Yale Ice Company receives money from a customer on account. Recording this transaction will:

Funds taken from the business by the owner for personal use are called ________.

At the end of its first year of operations, Shapiro's Consulting Services reported net income of $27,000. They also had account balances of: Cash, $16,000; Office Supplies, $3,200; Equipment, $24,000 and Accounts Receivable, $8,000. The owner's total investment for this first year was $15,000 and the owner withdrew $2,000 for personal use. What are the total liabilities of Shapiro's Consulting Services at the end of the first year of operations?

The following information should be used for questions 99-100. Cullen Beatty plans to start a consulting business–Cullen Consulting Services. In preparation to do this, on April 1, 2019, he invested $56,000 in cash and $23,000 in equipment, and opened an account at Office Plus by purchasing $1,750 in office supplies which is due by the end of the month. He then signed a one-year lease agreement on an office building for $8,400, paying the full amount in advance. -Cullen would like an explanation of the accounting for his business actions as of April 1, 2019. Explain the terms and interactions between the categories on a Balance Sheet.

On September 1, Shawn Dahl established Whitewater Rentals, a canoe and kayak rental business. The following transactions occurred in the month of September and affected the following accounts: $\begin{array} { | l | l | } \hline \text { Cash } & \text { Accounts Payable } \\\hline \text { Accounts Receivable } & \text { Shawn Dahl, Capital } \\\hline \text { Office Equipment } & \text { Revenue } \\\hline \text { Canoe and Kayak Equipment } & \text { Expenses } \\\hline\end{array}$ Transactions 1. Shawn Dahl invested $50,000 in cash to open the business 2. Paid $14,200 in cash for the purchase of kayak and canoe equipment 3. Paid $2,200 in cash for rent expense 4. Purchased additional kayak and canoe equipment for $4,900 on credit 5. Received $4,600 in cash for kayak rentals 6. Rented canoes and kayaks for $3,400 on account 7. Purchased office equipment for $375 in cash 8. Received $1,350 in cash from credit clients 9. Shawn Dahl withdrew $1,800 in cash for personal expenses -Based on the information above, what is the fundamental accounting equation at the end of September for Whitewater Rentals?

Total assets of Douglas Fuhr Furniture Co. are $84,000 and the total liabilities are $37,000. What is the amount of the owner's equity?

The following information should be used for questions. The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction. $\begin{array}{|l|l|}\hline \text { Cash } & \text { K. Mitchell, Capital } \\\hline \text { Accounts Receivable } & \text { Revenue } \\\hline \text { Equipment } & \text { Expenses } \\\hline \text { Accounts Payable } & \\\hline\end{array}$ -The owner made an additional investment of cash

At the end of its first year of operations, Shapiro's Consulting Services reported net income of $27,000. They also had account balances of: Cash, $16,000; Office Supplies, $3,200, Equipment, $24,000 and Accounts Receivable, $8,000. The owner's total investment for this first year was $15,000 and the owner withdrew $2,000 for personal use. Calculate the ending balance to be reported on the Statement of Owner's Equity in the Owner's Capital account.

Owner's equity is:

Withdrawals by the owner are reported on the income statement.

The following information should be used for questions. The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction. $\begin{array}{|l|l|}\hline \text { Cash } & \text { K. Mitchell, Capital } \\\hline \text { Accounts Receivable } & \text { Revenue } \\\hline \text { Equipment } & \text { Expenses } \\\hline \text { Accounts Payable } & \\\hline\end{array}$ -Received cash from credit customers

The following information should be used for questions. The figure below shows the transactions for Sawyer Architecture Services during June. Greg Sawyer opened this business on June 1 with a capital investment of $78,000 (Transaction 1). -Prepare the statement of owner's equity for Sawyer Architecture Services for the month ended June 30, 2019.

The following information should be used for questions. The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction. $\begin{array}{|l|l|}\hline \text { Cash } & \text { K. Mitchell, Capital } \\\hline \text { Accounts Receivable } & \text { Revenue } \\\hline \text { Equipment } & \text { Expenses } \\\hline \text { Accounts Payable } & \\\hline\end{array}$ -Purchased Equipment on credit

The following information should be used for questions. The figure below shows the transactions for Sawyer Architecture Services during June. Greg Sawyer opened this business on June 1 with a capital investment of $78,000 (Transaction 1). -Prepare the balance sheet for Sawyer Architecture Services as of June 30, 2019.

The following information should be used for questions. The figure below shows the transactions for Sawyer Architecture Services during June. Greg Sawyer opened this business on June 1 with a capital investment of $78,000 (Transaction 1). -What was the net income or net loss for Sawyer Architecture Services for the month of June?

The following information should be used for questions. The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction. $\begin{array}{|l|l|}\hline \text { Cash } & \text { K. Mitchell, Capital } \\\hline \text { Accounts Receivable } & \text { Revenue } \\\hline \text { Equipment } & \text { Expenses } \\\hline \text { Accounts Payable } & \\\hline\end{array}$ -Performed services on credit