Session:2 Introduction to Financial Statements
Exercise Set B
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
EB 1.
LO 2.1For each independent situation below, calculate the missing values.
EB 2.
LO 2.1For each independent situation below, calculate the missing values for Owner’s Equity.
EB 3.
LO 2.1For each independent situation below, calculate the missing values.
EB 4.
LO 2.1For each of the following independent situations, place an (X) by the transactions that would be included in the statement of cash flows.
| Transaction | Included |
|---|---|
| Purchased supplies with check | |
| Received inventory (a bill was included) | |
| Paid cash to owner for withdrawal | |
| Gave cash donation to local charity | |
| Received bill for utilities |
EB 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? |
|---|---|
| Inventory | |
| Buildings | |
| Accounts Receivable | |
| Cash | |
| Trademarks | |
| Accounts Payable | |
| Wages Payable | |
| Common Stock |
EB 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? |
|---|---|
| Revenues | |
| Gains | |
| Losses | |
| Drawings | |
| Investments |
EB 7.
LO 2.2Gumbo Company had the following transactions during the month of December. What was the December 1 cash balance?
EB 8.
LO 2.2Here are facts for Hailey’s Collision Service for January.
Assuming no investments or withdrawals, what is the ending balance in the owners’ capital account?
EB 9.
LO 2.3Prepare an income statement using the following information for CK Company for the month of February 2019.
EB 10.
LO 2.3Prepare a statement of owner’s equity using the following information for the Can Due Shop for the month of September 2018.
EB 11.
LO 2.3Prepare a balance sheet using the following information for Mike’s Consulting as of January 31, 2019.