AC 501 Unit 1 Solutions to HW problems - AC 501 Solutions to Unit 1 HW problems EXERCISE 2-7(1520 minutes(a(b(c(d(e(f(g(h(i(j 6 5 7 2 11 1 4 10 9 3

AC 501 Unit 1 Solutions to HW problems - AC 501 Solutions...

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AC 501 Solutions to Unit 1 HW problems EXERCISE 2-7 (15 20 minutes) (a) 6. Matching principle. (b) 5. Historical cost principle. (c) 7. Full disclosure principle. (d) 2. Going concern assumption. (e) 11. Conservatism. (f) 1. Economic entity assumption. (g) 4. Periodicity assumption. (h) 10. Industry practices. (i) 9. Materiality. (j) 3. Monetary unit assumption. EXERCISE 2-8 (20 25 minutes) (a) Historical cost principle. (j) Full disclosure principle. (b) Conservatism. (k) Matching principle. (c) Full disclosure principle. (l) Economic entity assumption. (d) Matching principle. (m) Periodicity assumption. (e) Materiality. (n) Matching principle. (f) Industry practices. (o) Materiality. (g) Economic entity assumption. (p) Historical cost principle. (h) Full disclosure principle. (q) Conservatism. (i) Revenue recognition principle. (r) Matching principle. EXERCISE 3-1 (15–20 minutes) Apr. 2 Cash .................................................................... 32,000 Equipment .......................................................... 14,000 Beverly Crusher, Capital ........................... 46,000 2 No entry—not a transaction. 3 Supplies .............................................................. 700 Accounts Payable ...................................... 700
7 Rent Expense ..................................................... 600 Cash ............................................................. 600 11 Accounts Receivable ......................................... 1,100 Service Revenue ......................................... 1,100 12 Cash .................................................................... 3,200

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