Chapter 01 - Exercise 1-2 Code Description 1. Usually...

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Exercise 1-2 Code Description Principle E 1. Usually created by a pronouncement from an authoritative body. Specific accounting principle G 2. Requires financial statements reflect the assump-tion that the business continues operating. Going-concern principle A 3. Derived from long-used and generally accepted accounting practices. General accounting principle F 4. Requires financial statement information to be supported by evidence other than someone’s opinion or belief. Objectivity principle C 5. Requires every business to be accounted for separately from its owner or owners. Business entity principle D 6. Requires revenue to be recorded only when the earnings process is complete. Revenue recognition principle B 7. Requires information to be based on actual costs incurred in transactions. Cost principle
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Exercise 1-12 Cash + Accounts Receivable + Equip- ment = Accounts Payable + Maben, Capital - Maben, With- drawals + Revenue - Expenses a. +$50,000 + $10,000 = + $60,000 b. 1,600 ______ ______ $1,600 Bal. 48,400 + + 10,000 = + 60,000 1,600 c. _______ + 12,000 +$12,000 ______ _____ Bal. 48,400 + + 22,000 = 12,000 + 60,000 1,600 d. + 2,000 ______ _______ ______ + $2,000 _____ Bal. 50,400 + + 22,000 = 12,000 + 60,000 + 2,000 – 1,600 e. _______ + $7,000 ______ _______ ______ + 7,000 _____ Bal. 50,400 + 7,000 + 22,000 = 12,000 + 60,000 + 9,000 – 1,600 f. 8,000 ______ + 8,000 _______ ______ _____ _____ Bal. 42,400 + 7,000 + 30,000 = 12,000 + 60,000 + 9,000 – 1,600 g. 2,400 ______ ______ _______ ______ _____ 2,400 Bal. 40,000 + 7,000 + 30,000 = 12,000 + 60,000 + 9,000 – 4,000 h. + 5,000 - 5,000 ______ _______ ______ _____ _____ Bal. 45,000 + 2,000 + 30,000 = 12,000 + 60,000 + 9,000 – 4,000 i. 12,000 ______ ______ 12,000 ______ _____ _____ Bal. 33,000 + 2,000 + 30,000 = 0 + 60,000 + 9,000 – 4,000 j.
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This note was uploaded on 06/29/2008 for the course ACCT 220 taught by Professor William during the Spring '08 term at University of Findlay.

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Chapter 01 - Exercise 1-2 Code Description 1. Usually...

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