3. expenses incurred 6. Dividends Principles and Assumptions 1. Match each of the following scenarios with the accounting principle or accounting assumption that it best illustrates Scenario Account Although GGE Enterprises Inc. received a good deal on a used truck, the amount recorded in the accounting records is the amount the company paid, not the amount the truck was actually worth. Thomas Company records sales for the month along with the expenses incurred to produce the sales. GGE Enterprises records a deposit received from a customer for work to be performed later in the month. The customer is billed for the remaining amount after the work is complete, and the customer's payment is recorded Several years after Thomas Company purchased new office equipment, the company's accounting records still show the original purchase price. The accounting records of Thomas Company are in dollars, not euros, although the Ohio-based company is owned by a German firm, The home of Rob Elliot, the owner of GGE Enterprises Inc., is not listed among the company's assets. Thomas Company provides earnings information to investors at the end of every quarter. Despite several years of falling sales, Thomas Company continues to forecast sales and make strategic plans to raise revenues and cut expenses. 2. Thomas Company has decided to purchase a company vehicle. The accountant was given all of the purchase details. Financial Statements A business will construct its financial statements in a particular order because they are interrelated. This means that ite financial statement can have compounding effects on the overall financial position of a company, Which of the following is one reason the statement of stockholders' equity is prepared after the income statement? ions ving scenarios with the accounting principle or accounting assumption that it best illustrates. Accounting Principle or Assumption s Inc, received a good deal on a used truck, the amount recorded in the e amount the company paid, not the amount the truck was actually worth es sales for the month along with the expenses incurred to produce the sales. a deposit received from a customer for work to be performed later in the month. or the remaining amount after the work is complete, and the customer's payment mas Company purchased new office equipment, the company's accounting records urchase price of Thomas Company are in dollars, not euros, although the Ohio-based company firm. the owner of GGE Enterprises Inc, is not listed among the company' assets. ides earnings information to investors at the end of every quarter. of falling sales, Thomas Company continues to forecast sales and make strategic es and cut expenses. as decided to purchase a company vehicle. The accountant was given all of the purchase details, which should be used to record the vehicle in the ts Puct its financial statements in a particular order because they are interrelated. This means that items formulated in an earlier statement fred into the an have compounding effects on the overall financial position of a company ng is one reason the statement of stockholders equity prepared after the income statement? US is owned by a German firm. The accounting records of Thomas Company are in dollars, not euros, athough the Ohio-based company The home of Rob Ellot, the owner of GGE Enterprises Inc., is not listed among the company's assets. Thomas Company provides earnings information to investors at the end of every quarter. Despite several years of falling sales. Thomas Company continues to forecast sales and make strategie 2. Thomas Company has decided to purchase a company vehicle. The accountant was given all of the purchase details. Which should be used to record the vehicle in the accounting records? plans to raise revenues and cut expenses Financial Statements A business will construit is financial statements in a particular order because they are interrelated. This means that irama formulated in an earlier statement feed into the subsequent statements, and financial statement can have compounding affects on the overall financial position of a company Which of the following is one reason the statement of stockholders' couty is prepared after the income statement? Which of the following a one reason the statement of stockholders' equity is prepared before the balance sheet? GGE Enterprises Inc. On November 1 of the current yeac Robot invested $35.000 of cut to form a comporten, GGE Enterprises Inc. in exchange for shares of common to No other common stock was After a very succentul frat month of operation, thered as of November 30 were reported at $5.000. Alteration have been red into the continguon for the month balances for selected items on December 31 follow. On date, the financial statements were prepared. The balance sheet rented total of 354 400 and total stockholders out of 539.620 Accounts Common Retained Fees Wages Rent Supplies Utilities Miscellaneous Cash Supplies Land Payable Stock Earnings Dividends Earned Expense Expense Expense Expense Expense 57.100 $16.250 $5.000 $5.500 $27.000 56.350 34.600 $1205 3400 Review the following coestion. In cate which financial) set the desired formados. Enter the amount reported bent RECURSOS DEL Fees GE Enterprises Inc. November of the contas Rob Elliot invented $31.000 of his shto forma corporion, GOE Enterprises Inc. in exchange for share common wok. Ne other common work was during November December for a very sucre month of the retainings as of November 30 were reported 59.000. artisteban entered into the ring coustion for the month of December the anding aces for when on December 1 fl. On that does the financial mata were prepared. The balance sheet reported total of 14.400 and total stockholders' equity of $99.6.20 Accounts Common Retained Wages Rent Supplies uits Miscellaneous Cat Supplies and Paveble Stock Earnings Dividends Farned Expense pense Expense Expense Expense 7 $7,100 $16,230 $5.000 $5.500 $27.000 $6,350 54.600 51 205 5400 the fog tons Indicate which financial report the desired information Enter the amount reported on the findent Select "i" "Norobelow.dropdown) Statement Balance Income Stockholder Sheet Statement Equity Amount What is the reported for total table and scholars alty on December 12 14 What is the ledigunt reported on December 31 14 How much does ODE Enterprise the wordson Hasibughby Do Enterprises Inc 14 By Maecenas o decrease during the period Wist of proftolos denn December On November 1 of the After a very successful first month of operations, the retained earnings as of November 30 were reported at $5,000 balances for selected items on December 31 follow. On that date, the financial statements were prepared. The balar Accounts Common Retained Fees Wages Rent Supple Cash Supplies Land Payable Stock Earnings Dividends Earned Expense Expense Expen ? $7,100 $16,250 ? $5,000 $5,500 $27,000 $6,350 ? $4,600 Review the following questions. Indicate which financial statement(s) report the desired information. Enter the amou (Select "Yes" or "No" from the below dropdowns.) 2 Balance Sheet Incon Statem 1. What is the amount reported for total liabilities and stockholders' equity on December 31 2. What is the retained earnings amount reported on December 31? 3. How much does GGE Enterprises Inc. owe to its creditors? 4. How much cash is being held by GGE Enterprises Inc.? 5. By what amount did retained earnings increase or decrease during the period? 6. What is the amount of profit or loss during December 7. What were the total expenses for December? 8. How much was paid for rent? vested $31,000 of his cash to form a corporation, GGE Enterprises Inc., in exchange for shares of common stock. No other common stock the retained earnings as of November 30 were reported at $5,000. After all transactions have been entered into the accounting equation ow. On that date, the financial statements were prepared. The balance sheet reported total assets of $54,400 and total stockholders' equi non Retained Fees Wages Rent Supplies Utilities Miscellaneous Ek Earnings Dividends Earned Expense Expense Expense Expense Expense $5,000 $5,500 $27,000 $6,350 ? $4,600 $1,205 $400 financial statement(s) report the desired information. Enter the amount reported on the financial statement. s.) Balance Sheet Income Statement Statement of Stockholders Equity Amount ilities and stockholders' equity on Sorted on December 31? 4 ee to its creditors? terprises Inc.? Encrease or decrease during the period? 5 ring December 5 ember? 5