Acc/280 Week 2 Individual Exercise Answers

EXERCISE 1-1

C Analyzing and interpreting information.

R Classifying economic events.

C Explaining uses, meaning, and limitations of data.

R Keeping a systematic chronological diary of events.

R Measuring events in dollars and cents.

C Preparing accounting reports.

C Reporting information in a standard format.

I Selecting economic activities relevant to the company.

R Summarizing economic events.

EXERCISE 1-5

Asset Liability Stockholders’ Equity

Cash Accounts payable Common stock

Cleaning equipment Notes payable

Cleaning supplies Salaries payable

Accounts receivable

EXERCISE 1-12

LINDA STANLEY CO.

Income Statement

For the Year Ended December 31, 2008

Revenues

Service revenue...................................................... $62,500

Expenses

Salaries expense.................................................... $30,000

Rent expense.......................................................... 10,400

Utilities expense..................................................... 3,100

Advertising expense.............................................. 1,800

Total expenses................................................ 45,300

Net income....................................................................... $17,200

LINDA STANLEY CO.

Retained Earnings Statement

For the Year Ended December 31, 2008

Retained earnings, January 1.......................................................... $48,000

Add: Net...