Accounting Assignment

Chapter 1:

• Exercise E1-1

Urlacher Company performs the following accounting tasks during the year.

I______Analyzing and interpreting information.

I______Classifying economic events.

C______Explaining uses, meaning, and limitations of data.

_R_____Keeping a systematic chronological diary of events.

_I____Measuring events in dollars and cents.

R______Preparing accounting reports.

Determine effect of transactions

on basic accounting equation.

_R_____Reporting information in a standard format.

_I_____Selecting economic activities relevant to the company.

_C_____Summarizing economic events.

Accounting is “an information system that identifies, records, and communicates the economic

events of an organization to interested users.”

Instructions

Categorize the accounting tasks performed by Urlacher as relating to either the identification

(I), recording (R), or communication (C) aspects of accounting.

• Exercise E1-5

Meredith Cleaners has the following balance sheet items.

Accounts payable liability

Accounts receivable Asset

Cash Asset

Notes payable liability

Cleaning equipment asset

Salaries payable liability

Cleaning supplies asset

Common stock stockholders equity

Instructions

Classify each item as an asset, liability, or stockholders’ equity

• Exercise E1-12

The following information relates to Linda Stanley Co. for the year 2008.

Retained earnings, January 1, 2008 $ 48,000 Advertising expense $ 1,800

Re Dividends during 2008 6,000 Rent expense 10,400

Service revenue 62,500 Utilities expense 3,100

Salaries expense 30,000

Instructions

After analyzing the data, prepare an income statement and a retained earnings statement for the

year ending December 31, 2008.

INCOME STATEMENT

Revenues

Service reavenues 62,500

Expenses

Advertising expense...