1. Cost Concept

On February 22, Kountry Repair Service extended an offer of $200,000 for land that had been priced for sale at $250,000. On April 3, Kountry Repair Service accepted the sellers counteroffer of $230,000. On September 15, the land was assessed at a value of $185,000 for property tax purposes. On January 9 of the next year, Kountry Repair Service was offered $300,000 for the land by a national retail chain. At what value should the land be recorded in Kountry Repair Services records?

2. On May 19, Obermayer Repair Service extended an offer of $85,000 for land that had been priced for sale at $97,000. On June 4, Obermayer Repair Service accepted the seller's counteroffer of $92,000. On October 10, the land was assessed at a value of $138,000 for property tax purposes. On February 5 of the next year, Obermayer Repair Service was offered $147,000 for the land by a national retail chain. At what value should the land be recorded in Obermayer Repair Service's records?

3.Accounting Equation

Brock Hahn is the owner and operator of Dream-It LLC, a motivational consulting business. At the end of its accounting period, December 31, 2015, Dream-It has assets of $780,000 and liabilities of $150,000. Using the accounting equation, determine the following amounts:

a. Owner's equity as of December 31, 2015.? b. Owner's equity as of December 31, 2016, assuming that assets increased by $90,000 and liabilities increased by $25,000 during 2016?

4. John Joos is the owner and operator of Our Idol LLC, a motivational consulting business. At the end of its accounting period, December 31, 2013, Our Idol has assets of $504,000 and liabilities of $121,000. Using the accounting equation, determine the following amounts:

a. Owner's equity as of December 31, 2013? b. Owner's equity as of December 31, 2014, assuming that assets increased by $96,000 and liabilities increased by $29,000 during 2014?

5 Accounts (revenue and expense items)
Fees earned	$1,475,000
Office expense	320,000
Miscellaneous expense	28,000
Wages expense	885,000

Prepare an income statement for the year ended November 30, 2016. Refer to the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) will automatically appear if it is required. If a net loss is incurred, enter that amount as a negative number using a minus sign.

Labels

Expenses

For the Year Ended November 30, 2016

Amount Descriptions

Fees earned

Office expense

Miscellaneous expense

Net income

Net loss

Total expenses

Wages expense

Prepare an income statement for the year ended November 30, 2016. Refer to the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) will automatically appear if it is required. If a net loss is incurred, enter that amount as a negative number using a minus sign.

Ousel Travel Service

Income Statement

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6. Ratio of Liabilities to Owner's Equity

The following data were taken from Mesa Company's balance sheet:

	Dec. 31, 2016			Dec. 31, 2015
Total liabilities	$547,800			$518,000
Total owners equity	415,000			370,000

a. Compute the ratio of liabilities to owner's equity. Round your answers to two decimal places.

	Ratio of Liabilities to Owner's Equity
Dec. 31, 2016
Dec. 31, 2015

b. Has the creditor's risk increased or decreased from December 31, 2015, to December 31, 2016?

7.

ndicate whether each of the following companies are primarily a service, merchandise, or manufacturing business. If you are unfamiliar with the company, use the Internet to locate the company's home page or use the finance Web site of Yahoo.

1. Alcoa Inc.

2. Boeing

3. Caterpillar

4. Citigroup Inc.

5. CVS

6. Dow Chemical Company

7. eBay Inc.

8. FedEx

9. Ford Motor Company

10. Gap Inc.

11. H&R Block

12. Hilton Hospitality, Inc.

13. Procter & Gamble

14. SunTrust

15. WalMart Stores, Inc

8.Professional Ethics

A fertilizer manufacturing company wants to relocate to Yellowstone County. A report from a fired researcher at the company indicates the company's product is releasing toxic by-products. The company suppressed that report. A later report commissioned by the company shows there is no problem with the fertilizer.

What should the company's chief executive officer reveal about the content of the unfavorable report in discussions with Yellowstone County representatives?

a.Disclose only the second report with no comments.

b.Disclose both reports and point out deficiencies in the report of the fired researcher.

c.Disclose both reports, omitting the deficiencies that the fired researcher reported.

d.Disclose nothing.

9.

Business Entity Concept

Ozark Sports sells hunting and fishing equipment and provides guided hunting and fishing trips. Ozark Sports is owned and operated by Eric Griffith, a well-known sports enthusiast and hunter. Eric's wife, Linda, owns and operates Lake Boutique, a women's clothing store. Eric and Linda have established a trust fund to finance their children's college education. The trust fund is maintained by Missouri State Bank in the name of the children, Mark and Steffy.

For each of the following transactions, identify which of the entities listed below should record the transaction in its records. Lake Boutique Missouri State Bank Ozark Sports None of the entities

1. Linda authorized the trust fund to purchase mutual fund shares.

2. Linda purchased two dozen spring dresses from a St. Louis designer for a special spring sale.

3. Eric paid a breeder's fee for an English springer spaniel to be used as a hunting guide dog.

4. Linda deposited a $2,000 personal check in the trust fund at Missouri State Bank.

5. Eric paid a local doctor for his annual physical, which was required by the workmen's compensation insurance policy carried by Ozark Sports.

6. Eric received a cash advance from customers for a guided hunting trip.

7. Linda paid her dues to the YWCA.

8. Linda donated several dresses from inventory for a local charity auction for the benefit of a women's abuse shelter.

9. Eric paid for dinner and a movie to celebrate their twelfth wedding anniversary.

10. Eric paid for an advertisement in a hunters' magazine.

10. Accounting Equation

The total assets and total liabilities (in millions) of Green Mountain Coffee Roasters, Inc. and Starbucks Corporation follow:

	Green Mountain				Starbucks
Assets	$3,616				$8,219
Liabilities	1,345				3,110

Determine the owners' equity of each company.

Green Mountain Coffee Roasters' owners' equity	$ million
Starbucks' owners' equity	$ million

11. The total assets and total liabilities of Pat's Coffee & Tea Inc. and Pam's Corporation are shown below.

	Pat's Coffee & Tea Inc. (in millions)				Pam's Corporation (in millions)
Assets	$61,351				$59,510
Liabilities	26,994				28,565

Determine the owners' equity of each company.

Pat's Coffee & Tea Inc. owners' equity	$ million
Pam's Corporation owners' equity	$ million

12.

The total assets and total liabilities (in millions) of Dollar Tree Inc. and Target Corporation follow:

	Dollar Tree				Target Corporation
Assets	$2,329				$46,630
Liabilities	984				30,809

Determine the owners' equity of each company.

Dollar Tree's owners' equity	$ million
Target's owners' equity	$ million

13. The total assets and total liabilities of ThriftShop, Inc. and Bullseye Corporation are shown below.

	ThriftShop, Inc.				Bullseye Corporation
Assets	$13,192				$18,073
Liabilities	2,506				1,446

Determine the owners' equity of each company.

ThriftShop, Inc. owners' equity	$
Bullseye Corporation owners' equity	$

14. Accounting Equation

Determine the missing amount for each of the following:

	Assets	=	Liabilities	+	Owner's Equity
a.	$	=	$376,000	+	$895,000
b.	$1,375,000	=	$	+	$855,000
c.	$863,500	=	$211,000	+	$