Learning Objectives 3, 4: Using the accounting equation; preparing a balance
Amounts of the assets and liabilities of Mary Burke Banking Company, as of August 31,
2012, are given as follows. Also included are revenue and expense
Tort and Tort Reform
Tort reform is a controversial issue affecting big corporations, the medical community, the
legal community, and most of all victims of unfortunate accidents, injury, or medical
malpractice. Does tort reform restrict consum
1. A record of increases and decreases in a specific asset, liability, equity, revenue, or
expense item is called?
a. Accounts Receivable
b. General Ledger
2. The left side of an account abbreviated Dr; an entry that increa
Positive reinforcement is any pleasant or desirable consequence that follows a response and
increases the probability that the response will be replaced. For example, a mother that gives
her daughter praise for finishing her homework is an example of posi
Lohr, Steve. Digital Revolutionaries: The Men and Women Who Brought Computing to Life.
New York Times 2009.
Steve Lohr delivers an interesting sequence on the history of computers in his book Digital
Revolutionaries: The Men and Women Who Brought Computin
Personality: A persons characteristic patterns of behaving, thinking, and feeling.
Conscious: The thoughts, feelings, sensations, or memories of which a person is aware at any given moment.
Preconscious: The thoughts, feelings, and memories that a person
Puberty and adolescence is not the same thing. Puberty is a period of rapid physical growth and
change that culminates in sexual maturity. Adolescence is the developmental stage that begins at
puberty and encompasses the period from the end of childhood t
The Stroop effect is an interesting demonstration showing the brains reaction time when it deals with
conflicting information. I thought the activity was fun, but was also challenging because it forced me to
really think about what I was going to answer a
1. Recurring steps performed each accounting period, starting with analyzing transactions and
continuing through the post closing trial balance. The steps in preparing financial statements.
a. Accounting cycle.
b. Accounting period
2. Balance sh
1. The length of time covered by financial statements
a. Time period
b. Accounting period or reporting period.
2. Uses the adjusting process to recognize revenue when earned and expenses when incurred
a. Accrual basis accounting.
b. Cash basis a
Delivery Van Depreciation
Total Miles Driven
Depreciation Per Unit
1/2/2012 $ 18,600
McMahon Music Co.
Comparitive Income Statements
Years Ended December 31, 2012 and 2011
Cost of Goods
Selling and General Expenses
Income Tax Expense
Colonel Sporting Goods
23-Apr Cash (3,000 x $14.50)
Common Stock (3,000 x $1)
Paid-in Capital in excess of par-common (3,000 x $13.50)
Common Stock (3,200x$1)
Paid-in Capital in excess of par-common
An accountant made the following adjustments at December 31,
the end of the accounting period:
Prepaid insurance, beginning, $400. Payments for
insurance during the period, $1,200. Prepaid insurance,
1-Apr Received $19,800 and issued common stock
2-Apr Purchased $200 of office supplies on account
4-Apr 14,300 cash for land to use as a building site
6-Apr Performed service for customers and received cash of $2,600
9-Apr Paid $100 on accounts payable
Honeyglazed Hams, Inc.
Cost of goods sold
Selling, Admin and General expenses
Income tax expense
Learning Objective 4: Preparing an income statement and a statement of
This exercise should be used with Exercise 1-21A. Refer to the data of Mary
Burke Banking Company in Exercise 1-21A.
Prepare the income statem
In October of 2012, Good Morning America reported on a case on what authorities in Las
Vegas called one of the worst cases of hoarding they had seen. Kenneth Epstein lived in a
duplex in a retirement community in Sun City near Las Vegas. Authorities had i