Basic Accounting
Week One Exercise Assignment
Basic Accounting Equations
1. Concepts. Jean 's Marine Supply specializes in the sale of boating equipment and acces¬sories. Identify the Basic items that follow as an asset (A), liability (L), revenue (R), or expense (E) from the firm 's viewpoint. a. The inventory of boating supplies owned by the company. – Asset (A)
b. Monthly rental charges paid for store space. – Expense (E)
c. A loan owed to Citizens Bank. – Liability (L)
d. New computer equipment purchased to handle daily record keeping. – Asset (A)
e. Daily sales made to customers. – Revenue (R)
f. Amounts due from customers. – Asset (A)
g. Land owned by the company to be used as a future store site. – Asset (A)
h. Weekly salaries paid to salespeople. – Expense (E)
2. Basic computations. The following selected balances were extracted from the accounting records of Rossi Enterprises on December 31, 20X3:
Accounts Payable $3,200 Interest Expense $2,500
Accounts Receivable 14,800 Land 18,000
Auto Expense 1,900 Loan Payable 40,000
Building 30,000 Tax Expense 3,300
Cash 7,400 Utilities Expense 4,100
Fee Revenue 56,900 Wage Expense 37,500
a. Determine Rossi’s total assets as of December 31.
30000+18000+7400+56900+14800=$127100
b. Determine the company’s total liabilities as of December 31.
3200+1900+2500+40000+3300+4100+37500=$92500
c. Compute 20X3 net income or loss.
$34600 income
3. Balance sheet preparation. The following data relate to Preston Company as of December 31, 19XX:
Building $44,000 Accounts receivable $24,000
Cash 17,000 Loan payable 30,000
J. Preston, Owners Equity 65,000 Land 21,000
Accounts payable ?
Prepare a balance sheet as of December 31, 19XX. (See Exhibit 1.1 and 1.4)
Assets
Cash $17000
Accounts Receivable $24000
Building $44000
Land $21000
Total $106000
Liabilities and Owners equity
Liability
Loan $30000
Accounts payable?
Owner
Basic Accounting Equations
1. Concepts. Jean 's Marine Supply specializes in the sale of boating equipment and acces¬sories. Identify the Basic items that follow as an asset (A), liability (L), revenue (R), or expense (E) from the firm 's viewpoint. a. The inventory of boating supplies owned by the company. – Asset (A)
b. Monthly rental charges paid for store space. – Expense (E)
c. A loan owed to Citizens Bank. – Liability (L)
d. New computer equipment purchased to handle daily record keeping. – Asset (A)
e. Daily sales made to customers. – Revenue (R)
f. Amounts due from customers. – Asset (A)
g. Land owned by the company to be used as a future store site. – Asset (A)
h. Weekly salaries paid to salespeople. – Expense (E)
2. Basic computations. The following selected balances were extracted from the accounting records of Rossi Enterprises on December 31, 20X3:
Accounts Payable $3,200 Interest Expense $2,500
Accounts Receivable 14,800 Land 18,000
Auto Expense 1,900 Loan Payable 40,000
Building 30,000 Tax Expense 3,300
Cash 7,400 Utilities Expense 4,100
Fee Revenue 56,900 Wage Expense 37,500
a. Determine Rossi’s total assets as of December 31.
30000+18000+7400+56900+14800=$127100
b. Determine the company’s total liabilities as of December 31.
3200+1900+2500+40000+3300+4100+37500=$92500
c. Compute 20X3 net income or loss.
$34600 income
3. Balance sheet preparation. The following data relate to Preston Company as of December 31, 19XX:
Building $44,000 Accounts receivable $24,000
Cash 17,000 Loan payable 30,000
J. Preston, Owners Equity 65,000 Land 21,000
Accounts payable ?
Prepare a balance sheet as of December 31, 19XX. (See Exhibit 1.1 and 1.4)
Assets
Cash $17000
Accounts Receivable $24000
Building $44000
Land $21000
Total $106000
Liabilities and Owners equity
Liability
Loan $30000
Accounts payable?
Owner