初级管帐学演习Chapter 1.docVIP

SUMMARY PROBLEM FOR YOUR REVIEW Jill Smith opens an apartment-location business near a college campus. She is the sole owner of the proprietorship, which she names Campus Apartment Locators. During the first month of operations, July 19x1, Smith engages in the following transactions: Smith invests $35,000 of personal funds to start the business. She purchases on account office supplies costing $350. Smith pays cash of $30,000 to acquire a lot next to the campus. She intends to use the land as a future building site for her business office. Smith locates apartments for clients and receives cash of $1,900. She pays $100 on the account payable she created in Transaction (b). She pays $2,000 of personal funds for a vacation. She pays cash expenses for office rent, $400, and utilities, $100. The business sells office supplies to another business for its cost of $150. Smith withdraws cash of $1,200 for personal use. Required Analyze the preceding transactions in terms of their effects on the accounting equation of Campus Apartment Locators. Use Exhibit 1-6 as a guide, but show balance only after the last transaction. Prepare the income statement, statement of owner’s equity, and balance sheet of the business after recording the transactions. Use Exhibit 1-8 as a guide. SELF-STUDY QUESTIONS Test your understanding of the chapter by marking the best answer for each of following questions: 1. The organization that formulates generally accepted accounting principles is American institute of Certified Public Accountants (AICPA) Internal Revenue Service Financial Accounting Standards Board (FASB) Institute of Management Accountants (IMA) 2.Which of the following forms of business organization is an “artificial person” and must obtain legal approval from a state to conduct business? A. Law firm B. Proprietorship C. Partnership D. Corporation You have purchased some unclaimed freight for $10,000 and can sell it immediately for $15,000. What accounting concept or princi