Ac550 Week 1

CA1-1

1. True

2. False – Disclosure requirements must also be followed.

3. True

4. False – Due process must still be granted so that interested parties can make their views known.

CA1-3

1. D

2. D

3. D

4. A

5. A

6. B

7. D

8. B

E2-5

A. gains, losses

B. liabilities

C. investments by owners, comprehensive income

D. distributions to owners

E. comprehensive income

F. assets

G. comprehensive income

H. revenues, expenses

I. equity

J. revenues

K. distributions to owners

L. comprehensive income

E2-7

A. Historical cost principle

B. Full disclosure principle

C. Matching principle

D. Materiality

E. Industry practices

F. Economic entity assumption

G. Full disclosure principle

H. Revenue recognition principle

I. Full disclosure principle

J. Matching principle

K. Economic entity assumption

L. Periodicity assumption

M. Matching principle

N. Historical cost principle

O. Matching principle

E3-1

April 2 Cash $30,000

Equipment $14,000

Owner’s Capital $44,000

April 2 No transaction

April 3 Supplies $700

Accounts Payable $700

April 7 Rent Expense $600

Cash $600

April 11 Accounts Recv. $1100

Revenue $1100

April 12 Cash $3200

Unearned Revenue $3200

April 17 Cash $2300

Revenue $2300

April 21 Insurance Exp. $110

Cash $110

April 30 Salaries Exp. $1160

Cash $1160

April 30 Supplies Exp. $120

Supplies $120

April 30 Equipment $5100

Capital $5100

E3-5

1. Depreciation Expense $750

Accum. Depreciation $750

2. Unearned Rent Revenue $2100

Rent Revenue $2100

3. Interest Expense $500

Interest Payable $500

4. Supplies Expense $2150

Supplies $2150

5. Insurance Expense $900

Prepaid Insurance $900

P3-1

a.

Cash Furniture and Equipment

Sept. 1 20,000 Sept. 4 680 Sept. 2 17,280

8 1,690 5 942

20 980 10 430

18 3,600 Yasunari Kawabata, Capital

19 3,000 Sept. 19 3,000 Sept. 1 20,000...