Accounting
Accounting: Week 2 Assignment 1
Corriene Power
ACC201: Principles of Financial Accounting
Mrs. Regina Ivory
December 19, 2010
1
Accounting
2
3-22
Identifying product and period costs
Indicate whether each of the following is a product or a period (selling and administrative) cost
a.
b.
c.
d.
e.
f.
g.
h.
i.
Transportation-in – product cost
Insurance on the office building – period cost
Office supplies – product cost
Costs incurred to improve the quality of goods available for sale- product cost
Goods purchased for resale- product cost
Salaries of salespersons – period cost
Advertising costs – period cost
Rent expense – period cost
Salary of the company president – period cost
3-25 2012 D&L Enterprises
Cash
$8,400
Inventory
$2,000
Common Stock
$8,000
Retained Earnings
$2,400
Assets
=
Event
Cash
Accts
Inventory
Rec.
Beginnin 8,400
2,000
g Balance
1.
(500)
5,600 +
500
2.
(400)
3.
(5096)
(104)
4.
9,000
5.
(840)
Mdse
Inv.
Liabilities +
+ Accts
Pay.
Stockholders’ Equity
Common + Retained
Stock
Earnings
8,000
2,400
5600
Asset
Exchange
Asset USE
Asset use
(400)
(5096)
(104)
(6,000)
9,000
(6000)
(840)
520
(600)
(163.20)
520
6.
7.
8.
Totals
(600)
7996.80
(416)
9784.80
(163.20)
(7996.80)
0
2116
0
8,000
(416)
3900.80
Asset
Exchange
Asset Use
Asset Use
Asset
Source
NA
Accounting
Rev
1.
2.
3.
4. 9,000
Income Statement
- Expenses
Cash Flow
=
Net Income
(500)
(5096)
6000
5. (840)
(520)
6.
600
9,000
(6000)
(840)
520
(600)
416
6496
(163.20)
(416)
1500.80
7. (163.20)
8.
Totals: 7996.8
Income Statement
D & L Enterprises
For year ending Dec. 31, 2012
Sales Revenue:
7996.80
Cost of Goods Sold:
6496
Gross Margin:
1500.80
Less operating exp.:
0
Net Income:
1500.80
(600)
7996.80
1800.80
3
Accounting
D & L Enterprises
Statement of Changes in Stockholders’ Equity
Beginning common Stock :
8,000
Ending Common Stock:
8,000
Beginning Retained Earnings:
2,400
Plus Net Income:
1500.80
Ending Retained Earnings:
3,900.80
Total Stockholders’ Equity:
11,900.80
`
D & L Enterprises
Balance Sheet
Assets
Cash:
9,784.80
Accts. Receivable:
0
Merchandise Inventory:
2116
Total Assets:
11,900.80
Liabilities:
Accounts Payable:
0
Stockholders’ Equity:
Common Stock:
8,000
Retained Earnings:
3900.80
Total Liabilities and Stockholders’ Equity:
11,900.80
4
Accounting
D & L Enterprises
Statement of Cash Flows
Operating Activities:
Inflow From customers:
7996.80
Outflow For Inventory:
(5512)
Outflow for Transportation Out:
(1100)
Net Cash from Operating Activities:
Plus Beginning Cash Balance:
8400
Ending Cash balance:
9784.80
5