TUTORIAL 1_QUESTIONS
QUESTION 1
Indicate in the space by letter whether each statement below applies to a sole proprietorship (S),
partnership (P), or corporation (C). More than one answer may be appropriate.
____
____
____
____
____
____
a.
b.
c.
d.
e.
f.
Simple to establish. S &p
Shared control. p
Easy to transfer ownership. SX
No personal liability. c
Tax advantage. S&p
Easier to raise funds. c
C
QUESTION 2
Indicate which of these items is an asset (A), liability (L) or equity (E) account.
__a_____ (1) Supplies
___e____ (2) Dividends
___a____ (3) Buildings
___l____ (4) Note Payable
__l_____ (5) Taxes Payable
QUESTION 3
Classify each of these items as an asset (A), liability (L), or equity (E).
___a__1.
___l__2.
___e__3.
___a__4.
___e__5.
___a__6.
__l___7.
___a__8.
Accounts receivable
Accounts payable
Share capital-ordinary
Supplies
Utilities expense
Cash
Note payable
Equipment
QUESTION 4
Determine the missing items.
Assets = Liabilities + Equity
RM85,000 RM52,000
(a)
(b)
RM28,000 RM34,000
RM89,000
(c)
RM55,000
1
QUESTION 5
Use the accounting equation to answer the following questions.
1. Force 10 Sails Co. has total assets of RM120,000 and total liabilities of RM65,000. What is
equity?
2. Marcy Fun Center has total assets of RM225,000 and equity of RM105,000. What are total
liabilities?
3. Franco’s Restaurant has total liabilities of RM50,000 and equity of RM75,000. What are total
assets?
QUESTION 6
Presented below are items for Wilson Company at December 31, 2019.
Accounts payable
RM45,000
Accounts receivable
36,000
Cash
27,000
Equipment
62,000
Share capital-ordinary
30,000
Notes payable
50,000
Compute each of the following:
1. Total assets.
2. Total liabilities.
QUESTION 7
Use the following information for questions 1-5
O' Hara Company began operations on December 1, 2019. Presented below is selected
information related to O' Hara Company at December 31, 2019.
Equipment
Cash
Service Revenue
Rent Expense
Accounts Payable
Share Capital-ordinary
RM 80,000
28,000
216,000
26,000
32,000
56,000
Utilities Expense
Accounts Receivable
Salaries and Wages Expense
Notes Payable
Dividends
1. At December 31, 2019, assets total C
a. RM108,000.
b. RM140,000.
c. RM162,000.
d. RM194,000.
2
RM 12,000
54,000
94,000
20,000
30,000
3
2. At December 31, 2019, liabilities total b
a. RM32,000.
b. RM52,000.
c. RM74,000.
d. RM82,000.
3. Net income for the month of December is b
a. RM54,000.
b. RM84,000.
c. RM112,000.
d. RM132,000.
4. Retained earnings at December 31, 2019 is c
a. RM30,000.
b. RM44,000.
c. RM54,000.
d. RM110,000.
5. Equity at December 31, 2019, is d
a. RM296,000.
b. RM242,000.
c. RM186,000.
d. RM110,000.
QUESTION 8
Use the following information for questions 1-5
EI Greco Corporation began operations on January 1, 2019. Presented below is selected
information related to EI Greco at December 31, 2019.
Equipment
Cash
Service Revenue
Rent Expense
Accounts Payable
Share Capital-Ordinary
Supplies
RM290,000
84,000
648,000
78,000
44,000
168,000
30,000
Utilities Expense
Accounts Receivable
Salaries and Wages Expense
Notes Payable
Dividends
Salaries and Wages Payable
Advertising Expense
4
RM36,000
82,000
242,000
96,000
90,000
16,000
40,000
1. The statement of financial position at December 31, 2019 reports total assets of
a. RM320,000.
b. RM404,000.
c. RM456,000.
d. RM486,000.
2. The statement of financial position at December 31, 2019 reports total liabilities of
a. RM60,000.
b. RM120,000.
c. RM156,000.
d. RM238,000.
3. Net income (loss) reported on the income statement for the month of December is A
a. RM252,000.
b. RM180,000.
c. RM162,000.
d. RM96,000.
4. Retained earnings reported on the statement of financial position at December 31, 2019 is
a. RM330,000.
b. RM252,000.
c. RM168,000.
d. RM162,000.
5. The statement of financial position at December 31, 2019 reports equity of
a. RM420,000.
b. RM330,000.
c. RM180,000.
d. RM162,000.
5
QUESTION 9
Sleep Dream is a private camping ground near the Boulder Peak Recreation Area. It has compiled
the following financial information as of December 31, 2019.
Services revenues (from camping fees)
Sales revenues (from general store)
Accounts payable
Cash
Equipment
RM132,000
8,000
25,000
13,000
108,000
Dividends
Notes payable
Administrative expenses
Supplies
Share capital
Retained earnings
(1/1/2019)
RM8,000
50,000
133,000
2,500
40,000
5,000
Instructions
(a) Determine net income from Sleep Dream for 2019.
(b) Prepare a retained earnings statement and a statement of financial position for Sleep Dream
as of December 31, 2019.
QUESTION 10
Identify the impact on the accounting equation of each of the following transactions.
1. Purchase office supplies on account. r
2. Paid secretary weekly salary. r
3. Purchased office furniture for cash. r
4. Received monthly utility bill to be paid at later time. liability
QUESTION 11
Selected transactions for Tall Timber Tree Service are listed below.
1. Made cash investment to start the business.
2. Paid for monthly advertising.
3. Purchased supplies on account.
4. Billed customers for services performed.
5. Paid cash dividends.
6. Received cash from customers billed in (4).
7. Incurred utilities expense on account.
8. Purchased additional supplies for cash.
9. Received cash from customers when service was performed.
Instructions
6
List the numbers of the above transactions and describe the effect of each transaction on assets,
liabilities, and owner’s equity.
For example, the first answer is: (1) Increase in assets and increase in equity.
QUESTION 12
Identify whether the following items would be reported on the Statement of profit or loss (SPL) or
statement of financial position (SOFP).
1. Cash
2. Service Revenue
3. Notes Payable
4. Interest Expense
5. Accounts Receivable
QUESTION 13
Analyze the transactions of a business organized as a proprietorship described below and indicate
their effect on the basic accounting equation. Use a plus sign (+) to indicate an increase and a minus
sign (–) to indicate a decrease.
Assets
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Received cash for services rendered.
Purchased office equipment on credit.
Paid employees' salaries.
Received cash from customer in
payment on account.
Paid telephone bill for the month.
Paid for office equipment purchased
in transaction 2.
Purchased office supplies on credit.
Paid dividends.
Obtained a loan from the bank.
Billed customers for services rendered.
=
Liabilities
+
Equity
+_______
+_______
-_______
________
+_______
________
+_______
________
- _______
+ -_____
-_______
________
________
+_______
- _______
-_______
+_______
-_______
+_______
+_______
-_______
+_______
________
+_______
________
________
________
-_______
________
+_______
7
QUESTION 14
Indicate in the space provided by each item whether it would appear on the Statement of profit or
loss (SPL), Statement of Financial Position (SOFP), or Retained Earnings Statement (RES):
a. _____ Service Revenue
g. ___Accounts Receivable
b. _____ Utilities Expense
h. ___Retained Earnings (ending)
c. _____ Cash
i.
d. _____ Accounts Payable
j.
__ Advertising Expense
e. _____ Supplies
k.
__ Dividends
f. _____ Salaries and Wages Expense
l.
__ Notes Payable
___ Equipment
revenue 和 expense 只是 SPL
purchase 和 sales （wages）没有 balance cd bd 只写成 SPL （因为只有 SPL 对面那一侧
有记录）
在 trial balance 与 ledger 对应（SPL 的对面那一侧）
RES 里只有 RE 和 DIVIDENDS
剩下的都是 SOFP
QUESTION 15
Use the following information to calculate for the year ended December 31, 2019 (a) net income
(net loss), (b) ending retained earnings, and (c) total assets.
Supplies
RM 1,000
Operating expenses
12,000
Accounts payable
9,000
Accounts receivable
3,000
Beginning retained earnings
5,000
Revenues
Cash
Dividends
Notes payable
Equipment
8
RM21,000
13,000
1,000
1,000
6,000
QUESTION 16
Bill Phinnes decides to open a cleaning and laundry service near the local college campus that will
operate as a corporation. Analyze the following transactions for the month of June in terms of their
effect on the basic accounting equation. Record each transaction by increasing (+) or decreasing (–
) the dollar amount of each item affected. Indicate the new balance of each item after a transaction
is recorded. It is not necessary to identify the cause of changes in equity.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
Issued ordinary shares in exchange for RM20,000 cash on June 1.
Purchased laundry equipment for RM5,000 paying RM3,000 in cash and the remainder due
in 30 days.
Purchased laundry supplies for RM1,200 cash.
Received a bill from College News for RM300 for advertising in the campus newspaper.
Cash receipts from customers for cleaning and laundry amounted to RM1,500.
Paid salaries of RM200 to student workers.
Billed the Lion Soccer Team RM200 for cleaning and laundry services.
Paid RM300 to College News for advertising that was previously billed in Transaction 4.
Paid dividends of RM700.
Incurred utility expenses for month on account, RM150.
Cash
1
2
3
4
5
6
7
8
9
10
Account
Receivable
+20000
-3000
-1200
Supplies
Equipment
+5000
Account
payable
Share
capital
+20000
Retained
earnings
+2000
+1200
+300
+1500
-200
+200
-300
-700
-300
+1500
-200
+200
-300
+150
9
-700
-150
QUESITON 17
Kinney’s repair Ltd., was started on May 1. A summary of May transactions is presented below.
1. Shareholders invested RM10,000 cash in the business in exchange for ordinary shares.
2. Purchased equipment for RM 5,000 cash.
3. Paid RM400 cash for May office rent.
4. Paid RM700 cash for supplies.
5. Incurred RM250 of advertising costs in the Daily News on Account.
6. Received RM4,700 in cash from customers for repair service.
7. Declared and paid RM1,000 cash dividend.
8. Paid part-time employee salary RM1,000.
9. Paid utility bill RM160.
10. Performed repair service worth RM980 on account.
11. Collected cash of RM120 for services bill in transaction (10).
Instructions
a) Prepare a tabular analysis of the transactions, using the following column headings: Cash,
Accounts Receivable, Supplies, Equipment, Accounts Payable, Share Capital and Retained
Earnings (with separate columns for Revenues, Expenses, and Dividends.).
b) From an analysis of the Retained Earnings columns, compute the net income or net loss for May.
ASSETS
Date Cash
LIABILITIES
Account Supplies Equipment = Notes Accounts Share
Receivable
Payable Payable Capital
1 +1w
2 -5k
3 -400
4 -700
5
6 +4700
7 -1000
8 -1k
9 -160
10
+980
11 +120 -120
EQUITY
RETAINED EARNINGS
Rev
Exp
Div
+1w
+5k
-400
+700
+250
-250
+4.7k
-1k
-1k
-160
+980
10
Question 18
Matt Stiner started a delivery service, Stiner Deliveries Ltd., on June 1 2019. The following
transactions occurred during the month of June.
June 1 Shareholders invested RM10,000 cash in the business in exchange for ordinary
shares.
2 Purchased a used van for deliveries for RM14,000. Matt paid RM2,000 cash and
signed a note payable for the remaining balance.
3 Paid RM500 for office rent for the month.
5 Performed services worth RM4,800 on account.
9 Declared and paid RM300 in cash dividends.
12 Purchased supplies for RM150 on account.
15 Received a cash payment of RM1,250 for services performed on June 5.
17 Purchased gasoline for RM100 on account.
20 Received a cash payment of RM1,500 for services performed.
23 Made a cash payment of RM500 on the note payable.
26 Paid RM250 for utilities.
29 Paid for the gasoline purchased on account on June 17.
30 Paid RM1,000 for employee salaries.
Instructions
Show the effects of the previous transactions on the accounting equations using the following
format.
ASSETS
Date Cash
1
+1w
2
-2k
3
-500
LIABILITIES
Account Supplies Equipment = Notes Accounts Share
Receivable
Payable Payable Capital
EQUITY
RETAINED EARNINGS
Rev
Exp
Div
+1w
+1.4w
+1.2w
-500
11
5
9
+4.8k
-300
-300
12
15
+4.8k
+150
+1250
+150
-1250
17
+100
20
+1500
23
-500
26
-250
29
-100
30
-1k
-1500
-100
+1500
-500
+250
-250
-100
-1k
20 题主观代入导致错 还在复读吗？？？
12
Question 19
Mandy Arnold opened a law office, Mandy Arnold, Attorney at Law Ltd., on July 1, 2019. In July 31,
the balance of the relevant accounts showed Cash RM4,000, Accounts Receivable RM1,500,
Supplies RM500, Equipment RM5,000, Accounts Payable RM4,200, Share capital RM6,000, and
Retained Earnings RM800. during August, the following transactions occurred.
1. Collected RM1,400 of accounts receivable due from clients.
2. Paid RM2,700 cash for accounts payable due.
3. Recognized revenue of RM7,900 of which RM3,000 is collected in cash and the balance is due in
September.
4. Purchased additional office equipment for RM1,000 paying RM400 in cash and the balance due
in September.
5. Paid salaries RM3,000, rent for August RM900 and advertising expense RM350.
6. Declared and paid a RM450 cash dividend.
7. Received RM2,000 from Standard Federal Bank; the money was borrowed on a 4-month note
payable.
8. Incurred utility expenses for month on account RM210.
Instruction
Prepare a tabular analysis of the August transactions beginning with July 31 Balances. The column
heading should be as follows: Cash + Accounts Receivable + Supplies + Equipment = Notes Payable
+ Share Capital +Retained Earnings + Revenue – Expenses – Dividends
ASSETS
Date Cash
LIABILITIES
Account Supplies Equipment = Notes Accounts Share
Receivable
Payable Payable Capital
1
+1400 -1400
2
-2700
3
+3000 +4900
4
-400
5
-4250
开写)
6
-450
7
+2000
8
EQUITY
RETAINED EARNINGS
Rev
Exp
Div
-2700
+7900
+1000
+600
-4250( 要 分
-450
+2000
+210
13
-210