Acc/400

AccE1-3 The Mill Run Golf & Country Club details the following accounts in its financial

statements.

Instructions

(a) Classify each of the above accounts as an asset (A), liability (L), stockholders’ equity (SE), revenue (R), or expense (E) item.

(b) Classify each of the above accounts as a financing activity (F), investing activity (I),

or operating activity (O). If you believe a particular account doesn’t fit in any of these

activities, explain why.

(A) (B)

Accounts payable and accrued liabilities Liability Operating activity

Accounts receivable Asset Operating activity

Property, plant, and equipment Asset Investing activity

Food and beverage operations revenue Revenue Operating activity

Golf course operations revenue Revenue Operating activity

Inventory Asset Operating activity

Long-term debt Liability Financing activity

Office and general expense Expense Operating activity

Professional fees expense Expense Operating activity

Wages and benefits expense Expense Operating activity

E1-15 The summaries of data from the balance sheet, income statement, and retained

earnings statement for two corporations, Bates Corporation and Wilson Enterprises, are

presented below for 2007.

Instructions

Determine the missing amounts. Assume all changes in stockholders’ equity are due to

changes in retained earnings.

Bates Corporation Wilson Enterprises

Beginning of year

Total assets $110,000 $130,000

Total liabilities $80,000 (d) $40,000

Total stockholders’ equity (a) $30,000 $90,000

End of year

Total assets (b) $70,000 $180,000

Total liabilities $120,000 $55,000

Total stockholders’ equity $50,000...