1.Rick Mercer started a sole proprietorship (business) called Gander Fish. The following transactions

occurred:

a. Rick Mercer, the owner of Gander Fish, invested $40,000 cash and office equipment worth $35,000

into the business.

b. Gander Fish paid the monthly utilities bill of $1,500.

c. Gander Fish provided $29,500 of consulting services for a customer who paid with cash.

d. Gander Fish purchased $4,500 of office supplies on credit.

e. Gander Fish performed $17,500 of consulting services for a customer who promised to pay within

30 days.

f. Gander Fish paid the assistant's salary of $4,500.

g. Gander Fish received a $4,300 partial payment for the services provided in (e).

h. $1,800 was withdrawn from Gander Fish by Rick Mercer, the owner.

i. Gander Fish purchased a $75,000 building by using $9,000 cash from the business account and

signing a note with the bank for the balance.

j. Gander Fish paid $1,400 towards the purchase in (d).

Required

On the tabular analysis form provided, record the above transactions. Use additions and subtractions signs to

show the transactions effects on the elements of the accounting equation.

Show new totals after each transaction.

Determine the final total for each item and verify that the equation is in balance.

2.match

(A) Matching Concept (H) Elements of the Financial Statement

(B) Partnership (I) Accounting Standards for Private Enterprises

(C) Notes Payable (J) Expenses

(D) Cash Flow Statement (K) International Financial Reporting

Standards

(E) Revenue Recognition Principle (L) Ethics

(F) Proprietorship (M) Prepaid expenses

(G) Generally accepted accounting principles (N) Accounting

Question 2 on the next page

(1) The accounting term that prescribes when a cost incurred by a business should be recognized

as an expense. (2)

Asset created when a business pays cash for costs incurred in advance to being used or

consumed.

(3) Assets, liabilities, owner's equity, revenue, expenses. (4) The cost of assets consumed, or service used in a company's ordinary business activities.

(5) A business owned by one person.

(6) Set of accounting rules that includes procedures, concepts and standards for reporting

accounting transactions.

(7)

The standard of conduct by which actions are judged as right or wrong, honest or

dishonest, fair or not fair.

(8) An association of two or more persons to carry on as co-owners of a business for profit.

(9) A set of rules used by global companies for financial reporting mostly by publicly accountable

businesses but also for certain private businesses. (10)

The information system that identifies, records, and communicates the economic events of an

organization to a wide variety of interested users.