Session:2 Introduction to Financial Statements
Problem 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
PB 1.
LO 2.1The following information is taken from the records of Rosebloom Flowers for the year 2019.
- Calculate net income or net loss for January.
- Calculate net income or net loss for February.
- Calculate net income or net loss for March.
- For each situation, comment on how a stakeholder might view the firm’s performance. (Hint: think about the source of the income or loss.)
PB 2.
LO 2.1Each situation below relates to an independent company’s Owners’ Equity.
- Calculate the missing values.
- Based on your calculations, make observations about each company.
PB 3.
LO 2.1The following information is from a new business. Comment on the year-to-year changes in the accounts and possible sources and uses funds (how were the funds obtained and used).
PB 4.
LO 2.1Each of the following situations relates to a different company.
- For each of these independent situations, find the missing amounts.
- How would stakeholders view the financial performance of each company? Explain.
PB 5.
LO 2.2For each of the following independent transactions, indicate whether there was an increase, decrease, or no impact on each financial statement element.
| Transaction | Assets | Liabilities | Owners’ Equity |
|---|---|---|---|
| Received cash for sale of asset (no gain or loss) | |||
| Cash distribution to owner | |||
| Cash sales | |||
| Investment by owners | |||
| Owe vendor for inventory purchase |
PB 6.
LO 2.2Mateo’s Maple Syrup had the following transactions during the month of February, its first month in business.
Complete the chart to determine the ending balances. As an example, the first transaction has been completed. Note: negative amounts should be indicated with minus signs (–).
(Hints: 1. each transaction will involve two financial statement elements; 2. the net impact of the transaction may be $0.)
PB 7.
LO 2.2Using the information in Exercise 2.6, determine the amount of revenue and expenses for Mateo’s Maple Syrup for the month of February.