ACC280_WK2_Excercises - E1-1 Urlacher Company performs the...

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___C___Analyzing and interpreting information. ___I___Classifying economic events. ___C___Explaining uses, meaning, and limitations of data. ___R___Keeping a systematic chronological diary of events. ___C___Measuring events in dollars and cents. ___C___Preparing accounting reports. ___R___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 events of an organization to interested users.” Instructions Categorize the accounting tasks performed by Urlacher as relating to either the identification(I), recording (R), or communication (C) aspects of accounting. Instructions: Classify each item as an asset, liability, or stockholders' equity. Accounts Payable (Liabilities) Cash (Asset) Cleaning equipment (Asset) Cleaning Supplies (Asset) Accounts receivable (Stockholders Equity) Notes payable (Liabilities) Saleries payable (Liabilities) Common Stock (Stockholders Equity) Retained earnings, January 1, 2008 $ 48,000 Dividends during 2008 $6000 Service revenue 62,500 Salaries expense 30,000 Advertising expense $ 1,800 Rent expense 10,400 Utilities expense 3,100 Instructions After analyzing the data, prepare an income statement and a retained earnings statement for the year ending December 31, 2008 Linda Stanley Co. Income Statement For the Year Ending December 31, 2008 Revenues Service Revenue $62,500 Expenses Salaries expense $30,000 Advertising expense 1,800 Rent expense 10,400 Utilities expense 3,100 Total Expenses 45,300 Net Income $17,200 Linda Stanley Co.
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