Mgmt 210 Activities 1.5

Activities 1.5

I. Exercise 1-1 Types of Business Activities, p. 36

Financing 1. Issued shares of stock to each of the four owners.

Investing 2. Purchased two limousines.

Operating 3. Paid rent for first month for use of garage.

Financing 4. Obtained loan from local bank.

Operating 5. Received cash from customer for trip to the airport.

Operating 6. Paid driver first week’s wages.

Investing 7. Purchased 500-gallon fuel tank.

II. Exercise 1-12 Accounting Principles and Assumptions, p. 39

1. Going concern

2. Cost principle

3. Economic entity

4. Monetary unit

5. Time period

III. Exercise 1-15 Users of Accounting Information and the Financial Statements, p. 40

USER | FINANCIAL STATEMENT |

Stockholder | IS |

Banker | BS |

Supplier | BS |

Stockholder | RE |

Advertising account manager | SCF |

Banker | BS |

IV. Problem 1-5 Income Statement, Statement of Retained Earnings, and Balance Sheet, p. 4

1)

MAPLE PARK THEATRES CORP.

INCOME STATEMENT

FOR THE MONTH ENDED SEPTEMBER 30, 2010

Revenues: |

Ticket sales $95,100 |

Concessions revenue 60,300 |

Total revenue $155,400 |

Expenses: |

Rent expense—movies $50,600 |

Cost of concessions sold 23,450 |

Advertising expense 14,500 |

Salaries and wages expense 46,490 |

Water, gas, and electricity...