accounting

Homework Week 2

Exercise E1-1

SEC – K
Audit – G
Sole Proprietorship – I
Corporation – E
Accounting – A
Accounting Entity – D
Audit Report – J
Cost Principle – F
Partnership – C
FASB – L
IASB – H
Unit of Measure – B
GAAP – N
IFRS – M

E1-2

Accounts receivable – Asset
Cash and cash equivalents – Asset
Net sales – Revenue
Notes payable – Liability
Taxes payable – Liability
Retained earnings – Stockholders’ Equity
Cost of products sold – Expense
Marketing, administrative and other operating expenses – Expense
Income taxes – Expense
Accounts payable – Liability
Land – Asset
Property, plant and equipment – Asset
Long term debt – Liability
Inventories – Asset
Interest expense – Expense

E1-3

Notes payable to banks – Liability
General and administrative – Expense
Accounts payable – Liability
Dividends payable – Liability
Retained earnings – Stockholders’ Equity
Cash and cash equivalents – Asset
Accounts receivable – Asset
Provision for income taxes – Expense
Cost of goods sold – Expense
Machinery and equipment – Asset
Net sales – Revenue
Inventories – Asset
Marketing, selling and advertising – Expense
Buildings – Asset
Land – Asset
Income taxes payable – Liability
Distribution and warehousing costs – Expense
Investments (in other companies) – Asset

E1-11

Henshelwood Limitd Income Statement For the Month of January 2013

Total Revenues $ 448,500.00 Less: Total expenses (excluding income tax) $ 283,500.00
Pretax income $ 165,000.00 Less: Income tax expense $ 51,750.00
Net Income $ 113,250.00

Henshelwood Limited Balance Sheet At January 31st, 2013 Assets Assets
2013
Cash 97,725.00
Receivables from customers 51,750.00
Merchandise inventory 144,900.00
Total Assets 294,375.00

Liabilities Liabilities
2013