Session:2 Introduction to Financial Statements
Exercise Set A
Principles of Accounting, Volume 1: Financial Accounting | Leadership Development – Micro-Learning Session
Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/principles-financial-accounting
EA 1
LO 2.1For each independent situation below, calculate the missing values.
EA 2.
LO 2.1For each independent situation below, calculate the missing values for owner’s equity
EA 3.
LO 2.1For each independent situation below, calculate the missing values.
EA 4.
LO 2.1For each independent situation below, place an (X) by the transactions that would be included in the statement of cash flows.
| Transaction | Included |
|---|---|
| Sold items on account | |
| Wrote check to pay utilities | |
| Received cash investment by owner | |
| Recorded wages owed to employees | |
| Received bill for advertising |
EA 5.
LO 2.2For each of the following items, identify whether the item is considered current or noncurrent, and explain why.
| Item | Current or Noncurrent? |
|---|---|
| Cash | |
| Inventory | |
| Machines | |
| Trademarks | |
| Accounts Payable | |
| Wages Payable | |
| Owner, Capital | |
| Accounts Receivable |
EA 6.
LO 2.2For the items listed below, indicate how the item affects equity (increase, decrease, or no impact.
| Item | Increase? Decrease? or No Impact? |
|---|---|
| Expenses | |
| Assets | |
| Gains | |
| Liabilities | |
| Dividends |
EA 7.
LO 2.2Forest Company had the following transactions during the month of December. What is the December 31 cash balance?
EA 8.
LO 2.2Here are facts for the Hudson Roofing Company for December.
Assuming no investments or withdrawals, what is the ending balance in the owners’ capital account?
EA 9.
LO 2.3Prepare an income statement using the following information for DL Enterprises for the month of July 2018.
EA 10.
LO 2.3Prepare a statement of owner’s equity using the information provided for Pirate Landing for the month of October 2018.
EA 11.
LO 2.3Prepare a balance sheet using the following information for the Ginger Company as of March 31, 2019.