Balance Sheet and External Users
Khalid Al Mulla
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213102097
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Assignment 1
BE1-1
Presented below is the basic accounting equation (in thousands). Determine the missing amounts. Assets = Liabilities + Equity 90,000 = 50,000 + 40,000 110,000 = 40,000 + 70,000
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94,000 = 41,000 + 53,000
BE1-5
Indicate whether each of the following items is an asset (A), liability (L), or part of equity (E).
(A) Accounts receivable
(L) Salaries and wages payable
(A) Equipment
(A) Supplies
(E) Owner 's capital
(L) Notes payable
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BE1-8
Classify each of the following items as dividends (D), revenue (R), or expense (E).
(E) Advertising expense
(R) Service revenue
(E) Insurance expense
(E) Salaries and wages expense
(D) Owner 's Drawings
(R) Rent revenue
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(E) Utilities expense
E1-1
Jenks Company performs the following accounting tasks during the year.
(C) Analyzing and interpreting information.
(R) Classifying economic events.
(C) Explaining uses, meaning, and limitations of data.
(R) Keeping a systematic chronological diary of events.
(R) Measuring events in dollars and cents.
(C) Preparing accounting reports.
(C) Reporting information in a standard format.
( I )Selecting economic activities relevant to the company.
(R) Summarizing economic events.
Accounting is “an information system that identifies, records, and communicates the economic events of an organization to interested users.”
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Instructions
Categorize the accounting tasks performed by Jenks as relating to either the identification (I), recording (R), or communication (C) aspects of accounting.
E1-2 (a) The following are users of financial statements.
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213102097
-------------------------------------------------
Assignment 1
BE1-1
Presented below is the basic accounting equation (in thousands). Determine the missing amounts. Assets = Liabilities + Equity 90,000 = 50,000 + 40,000 110,000 = 40,000 + 70,000
-------------------------------------------------
94,000 = 41,000 + 53,000
BE1-5
Indicate whether each of the following items is an asset (A), liability (L), or part of equity (E).
(A) Accounts receivable
(L) Salaries and wages payable
(A) Equipment
(A) Supplies
(E) Owner 's capital
(L) Notes payable
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BE1-8
Classify each of the following items as dividends (D), revenue (R), or expense (E).
(E) Advertising expense
(R) Service revenue
(E) Insurance expense
(E) Salaries and wages expense
(D) Owner 's Drawings
(R) Rent revenue
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(E) Utilities expense
E1-1
Jenks Company performs the following accounting tasks during the year.
(C) Analyzing and interpreting information.
(R) Classifying economic events.
(C) Explaining uses, meaning, and limitations of data.
(R) Keeping a systematic chronological diary of events.
(R) Measuring events in dollars and cents.
(C) Preparing accounting reports.
(C) Reporting information in a standard format.
( I )Selecting economic activities relevant to the company.
(R) Summarizing economic events.
Accounting is “an information system that identifies, records, and communicates the economic events of an organization to interested users.”
-------------------------------------------------
Instructions
Categorize the accounting tasks performed by Jenks as relating to either the identification (I), recording (R), or communication (C) aspects of accounting.
E1-2 (a) The following are users of financial statements.