Problem set C PROBLEM 3-1C For each of the following entries‚ enter the letter of the explanation that most closely describes it in the space beside each entry. (You can use letters more than once.) A. To record receipt of unearned revenue. B. To record this period’s earning of prior unearned revenue. C. To record payment of an accrued expense. D. To record receipt of an accrued revenue. E. To record an accrued expense. F. To record an accrued revenue G. To record this period’s
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1. What is the most important difference between a corporation and all other organizational forms? 2. What does the phrase limited liability mean in a corporate context? 3. Which organizational forms give their owners limited liability? 4. What are the main advantages and disadvantages of organizing a firm as a corporation? 5. Explain the difference between an S corporation and a C corporation. 6. You are a shareholder in a C corporation. The corporation earns $2 per share before taxes
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Chapter 7 Accounting Information Systems Questions 1. What is the right side of an account called? 2. What is the left side of an account called? 3. An organizational scheme used to classify accounts as assets‚ liabilities‚ or owners’ equity is known as what? 4. What journal is used to record both the account(s) to be debited and the account(s) to be credited? 5. A collection of specific asset‚ liability and owners’ equity accounts in known as what? 6. What type
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PRAIRIE TECHNOLOGY PARTNERS Planning Memo December 31‚ 2011 We have been retained as continuing auditors for Prairie Technology Partners (PTP) for the year ending December 31‚ 2011 Engagement Objectives * Provide our report on the examination of PTP’s financial statements by February 5‚ with year-end fieldwork to begin January 14‚ 2012 * Issue our management letter comments by February 10
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1.. A company earned $3‚960 in net income for October. Its net sales for October were $22‚000. Its profit margin is: 1.8%. 18%. 180%. 556%. $18‚040 2. On June 30 of the current calendar year‚ Apricot Co. paid $8‚200 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. The adjusting entry on December 31 for Apricot would include: A debit to an
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SOLUTIONS TO EXERCISES EXERCISE 4-1 BRISCOE COMPANY Worksheet For the Month Ended June 30‚ 2008 Account Titles Trial Balance Adjustments Adj. Trial Balance Income Statement Balance Sheet Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash 2‚320 2‚320 2‚320 Accounts Receivable 2‚440 2‚440 2‚440 Supplies 1‚880 1‚580 300 300 Accounts Payable 1‚120 1‚120 1‚120 Unearned Revenue 240 140 100 100 Common Stock 3‚600 3‚600 3‚600 Service Revenue 2‚400 140 2‚540 2‚540 Salaries Expense 560 280 840 840
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PLANNING HORIZON a 1. The long-range time period‚ usually the next two to five years‚ over which the financial planning process focuses is known as the: a. planning horizon. b. planning strategy. c. planning agenda. d. short-run. e. current financing period. AGGREGATION b 2. The process by which smaller investment proposals of each of a firm’s operational units are added up and treated as one big project is known as: a. separation. b. aggregation. c. conglomeration. d. appropriation
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(10 min.) E 1-23 Req. 1 The owner’s equity increased during the year by $4‚000. Beginning owner’s equity: $19‚000 – $9‚000 = $10‚000 Ending owner’s equity : $27‚000 – $13‚000 = $14‚000 Change in owner’s equity: $14‚000 – $10‚000 = $4‚000 Req. 2 Owner’s equity can change three ways: Owner’s equity can increase through: Owner contributions and/or Net income Owner’s equity can decrease through:
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ACC 551 Midterm Exam Solution Follow the link below http://www.tutorialsguider.com/downloads/acc-551-midterm-exam-solution/ ACC 551 Midterm Exam Solution 1. Question :(TCO C) Under current accounting practice‚ intangible assets are classified as 2. Question :(TCO C) Which of the following intangible assets should not be amortized? 3. Question :(TCO C) The intangible asset goodwill may be 4. Question :(TCO C) ELO Corporation purchased a patent for $90‚000 on September 1‚ 2008. It had a useful
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Sunset Boards. Sunset Boards is a small company that manufactures and sells surfboards in Malibu. Tad Marks‚ the founder of the company‚ is in charge of the design and sale of the surfboards‚ but his background is in surfing‚ not business. As a result‚ the company’s financial records are not well maintained. The initial investment in Sunset Boards was provided by Tad and his friends and family. Because the initial investment was relatively small‚ and the company has made surfboards only for
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