Acc 205 Week 1 Question Paper
ACCT 205 Wk 1 Dis. 1
E1-21 & E1-26 Question E1-21
KEY: A/R = Accounts Receivable A/P = Accounts Payable
Indicate the effects of the following business transactions on the accounting equation of a Blockbuster Video location.
a. Received cash of $10,000 from the owner, who was investing in the business. Answer: Increase asset (Cash) Increase owner’s equity (Capital
b. Earned video rental revenue on account, $1200. Answer: Increase asset (Accounts Receivable) Increase owner equity (Rental Revenue)
c. Purchased office furniture on account, $600 Answer: Increase asset (Off. Furniture) Increase liability (A/P)
d. Received cash on account $300. Answer: Increase asset (Cash) …show more content…
Compute UPS’s net income for 2004. Revenue $32 billion - Expenses $29 billion = $3 billion
2. Did UPS’s owners’ equity increase or decrease during 2004? UPS owners equity increased. Asset $33 billion – Liabilities $17 billion = $16 billion. By how much? 2004 year end assets was $33 billion minus 2003 year end assets of $30 billion equals an increase of $3 billion.
3. How would you rate UPS’s performance for 2004? I would rate UPS’s performance for the year 2004 as Good. Give your reason. Profit is the difference between the amount earned and the amount spent for your business in buying, operating, or product, if at the end of the year you have more than what you started out with, you have made a profit and that is always good. E2-15 & P2-31A
Exercise E2-15
Link Back to Chapter 1 (Accounting Equation). Bob’s Cream Soda makes specialty soft drinks. At the end of 2008, Bob’s had total assets of $180,000 and liabilities totaling $100,000.
1. Write the company’s accounting equation, and label each amount as a debit or a credit. | | | | | | | | | | | | | | | | | | | |
Debit Credit Credit Assets = Liabilities + Owner’s Equity $180,000 = $100,000 +
E1-21 & E1-26 Question E1-21
KEY: A/R = Accounts Receivable A/P = Accounts Payable
Indicate the effects of the following business transactions on the accounting equation of a Blockbuster Video location.
a. Received cash of $10,000 from the owner, who was investing in the business. Answer: Increase asset (Cash) Increase owner’s equity (Capital
b. Earned video rental revenue on account, $1200. Answer: Increase asset (Accounts Receivable) Increase owner equity (Rental Revenue)
c. Purchased office furniture on account, $600 Answer: Increase asset (Off. Furniture) Increase liability (A/P)
d. Received cash on account $300. Answer: Increase asset (Cash) …show more content…
Compute UPS’s net income for 2004. Revenue $32 billion - Expenses $29 billion = $3 billion
2. Did UPS’s owners’ equity increase or decrease during 2004? UPS owners equity increased. Asset $33 billion – Liabilities $17 billion = $16 billion. By how much? 2004 year end assets was $33 billion minus 2003 year end assets of $30 billion equals an increase of $3 billion.
3. How would you rate UPS’s performance for 2004? I would rate UPS’s performance for the year 2004 as Good. Give your reason. Profit is the difference between the amount earned and the amount spent for your business in buying, operating, or product, if at the end of the year you have more than what you started out with, you have made a profit and that is always good. E2-15 & P2-31A
Exercise E2-15
Link Back to Chapter 1 (Accounting Equation). Bob’s Cream Soda makes specialty soft drinks. At the end of 2008, Bob’s had total assets of $180,000 and liabilities totaling $100,000.
1. Write the company’s accounting equation, and label each amount as a debit or a credit. | | | | | | | | | | | | | | | | | | | |
Debit Credit Credit Assets = Liabilities + Owner’s Equity $180,000 = $100,000 +