January 13th, 2009

Chapter 2 Assignment

S2-5

accte100-ch2s5

S2-9

accte100-ch2s91

accte100-ch2s92

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The total assets is $95,000; total liabilities is $39,000 and the net income is $38,000 in June.

S2-11

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E2-15
a. (1) because cash ⊂ asset.
b. (3) because Fleming’s personal funds are not included in the company’s assets.
c. (3) because both cash and land ⊂ asset.
d. (1) but adds a payable to liability.
e. (3) because both cash and building ⊂ asset.
f. (1) because cash ⊂ asset.
g. (2) because cash ⊂ asset.
h. (1) because equipment ⊂ asset.
i. (1) because inventories ⊂ asset.
j. (2) because 1. dividends decreases retained earning & 2. lower owners’ equity means lower assets.

E2-20

accte100-ch2e201

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The Yellow Pages Advertising, Inc brings $10,700 cash into next period.
The total liabilities is $30,600.

E2-23

accte100-ch2e23

P2-49A

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Amusement Specialties’ total assets is $296,000; total liabilities is $150,000; net income is $26,000.

To compute each amount, you have to classify all items in the trial balance to asset, liabilities and shareholder’s equity (includes revenue, expense, dividend and common stock). The net income or net loss equals the total revenues minus the total expenses.

According to the income statement, the Amusement Specialties is in a quite good financial position and worth for investment.

P2-50A

accte100-ch2p50a1

accte100-ch2p50a2

accte100-ch2p50a3

accte100-ch2p50a4

Accounting Homework

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Chapter 1 Assignment

P1- 45A

1.

2. The Image Runner is actually in a better financial position. The erroneous balance sheet report shows the total shareholders’ equity of $65,600 but it should be $90,700. A higher shareholders’ equity shows a better financial position.

3. Because we don’t know the current value of the equipment so we couldn’t put it in the balance sheet. Utilities expense, advertising expense, salary expense and interest expense should be in an income statement.

Accounting Homework

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