Wk 2, Ch. 1, 2, & 7 Textbook Exercises

Wk 2, Ch. 1, 2, & 7 Textbook Exercises -...

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Exercise E1-1: Urlacher Company performs the following accounting tasks during the year. C Analyzing and interpreting information. R Classifying economic events. C Explaining uses, meaning, and limitations of data. R Keeping a systematic chronological diary of events R Measuring events in dollars and cents. C Preparing accounting reports. C Reporting information in a standard format. I Selecting economic activities relevant to the company. C Summarizing economic events. Accounting is “an information system that identifies, records, and communicates the economic ev Instructions: Categorize the accounting tasks performed by Urlacher as relating to either the ident
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vents of an organization to interested users.” tification (I), recording (R), or communication (C) aspects of accounting.
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Exercise E1-5 : Meredith Cleaners has the following balance sheet items. Accounts payable Liability Cash Asset  Cleaning equipment  Stockholders’ equity  Cleaning supplies  Stockholders’ equity  Accounts receivable Asset Notes payable Salaries payable Liability  Common stock Stockholders’ equity  Instructions: Classify each item as an asset, liability, or stockholders’ equity.  Liability  
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Exercise E1-12 The following information relates to Linda Stanley Co. for the year 2008. Retained earnings, January 1, 2008    $48,000  Advertising expense  $1,800  Dividends during 2008 6,000 Rent expense  10,400 Service revenue  62,500 Utilities expense   3,100 Salaries expense  30,000 Instructions: After analyzing the data, prepare an income statement and a retained earnings             Linda Stanley Co.            Income Statement     For the Year ending 2008 Revenues  Service revenue    $62,500.00  Expenses Salaries expense   $30,000.00  Rent expense   $10,400.00  Advertising expense   $1,800.00  Utilities expense    $3,100.00        Total expenses  $45,300.00  Net income  $17,200.00              Linda Stanley Co. Retained Earnings Statement      For the Year ending 2008 Retained earnings, January 1, 2008   $48,000.00  Add: Net income  $17,200.00   $65,200.00  Less: Dividends  $6,000.00  Retained earnings, December 31, 2008  $59,200.00 
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s statement for the year ending December 31, 2008.
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 E1-13 Mary Close is the bookkeeper for Mendez Company. Mary has been trying to get the ba              Mendez’s balance sheet is shown on page 37.      Instructions: Prepare a correct balance sheet.
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Wk 2, Ch. 1, 2, & 7 Textbook Exercises -...

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