Chapter 1 & 2 Homework Chapter One Answer the below questions: 1. What is the fundamental accounting equation? 2. What is the largest item in the 'Cost and Expense' category below? What is its per Source and Dlsposition of the Industry Dotlar Revenues Rooms Food and Beverage Other Operated Departments Rentals and Other Income Total 695 24.8 1.3 100.0% Costs and Expenses Salaries, Wages, and Benefits Operating Expenses Cost ol Sales Property taxes and Insurance Management Feas Total 44.0% 35. DE 6.5 . 100.0% 3. What is the difference between cost basis and accrual basis accounting? 4. What does GAAP stand for? 5. Name and describe one of the GAAP. 6. Accounting has six branches, describe the managerial accounting branch. Chapter Two 1. Name 2 limitations of the balance sheet. 2. Put the below in order of liquidity: Accounts Receivable, Cash, Marketable Securities, Inventories 3. Explain the difference between a current asset and a long-tem asset? 4. Explain the difference between a current liability and a long-term liability? 5. Write the formula to calculate the current ratio. What does it represent? Excel Problems 1. Using the excel sheet prepare a common-size balance sheet for tab 1. Hint: common-size can also be called "vertical analysis and breaks down each entry in the balance sheet to a percentage. 2. Using the excel sheet prepare calculate the below for tab 2: a Working Capital on December 31, 20x1 b. Working Capital on December 31, 20x2 cDollar difference in working capital from 20x1 to 20x2 d. Percent difference in working capital from 20x1 to 20x2 Hint: to calculate working capital, you must know total current assets and total current liabilities. I Wells Fargo - Perso... (26 unread) - morfe... Google Translate We ltal RSITV Of HOUSTON AutoSave Off - Chapter 2 Excel Problems(2) (1) - Pic File Home Insert Page Layout Formulas Data Review View PROTECTED VIEW Be careful files from the Internet can contain viruses. Unless you need to edit, it's Help A1 f ASSETS -011 B C D E $12,500 $15,000 $2,500 $30,000 pte $120,000 $800,000 $50,000 ($125,000) $845,000 $875,000 A 1 ASSETS 2 Current Assets: 301 3 Cash 41- 4 Accounts Receivable Fial 5 Cleaning Supplies 6 Total Current Assets 2 7 8 Long-Term Assets: 9 Property and Equipment 10 Land es 11 Building 12 Furnishings and Equipment 13 Less: Accumulated Depreciation 123 14 Total Long-Term Assets 15 130 16 Total Assets 17 3/0 18 LIABILITIES 19 Current Liabilities: 3/120 Notes Payable 21 Accounts Payable 312 22 Wages Payable 23 Total Current Liabilities 24 25 Long-Term Liabilities: 26 Mortgage Payable 0/127 Total Long Term Liabilities 28 3/1 29 Total Liabilities 30 OWNER'S EQUITY 32 Owner's Equity: 11/ 33 R. Mountain, Capital at January 1, 20X1 34 Net Income for 20X1 717 35 Owner's Equity $23,700 $8,000 $300 $32,000 312 0/0 $420,000 $420,000 $452.000 101 31 $384,500 $38,500 $423,000 71/36 37 Total Owner's Equity $423,000 1/ 38 Tab 1 Tab 2 11 Ready ADD COMMENTS A B D E 10 Land 11 Building -0 12 Furnishings and Equipment 1- 13 Less: Accumulated Depreciation al 14 Total Long-Term Assets 15 C $120,000 $800,000 $50,000 ($125,000) $845,000 16 Total Assets $875,000 17 $23,700 $8,000 $300 $32,000 18 LIABILITIES 19 Current Liabilities: S 20 Notes Payable 21 Accounts Payable pte 22 Wages Payable 123 23 Total Current Liabilities 24 730 25 Long-Term Liabilities: 26 Mortgage Payable 9/0 27 Total Long-Term Liabilities 28 09/1 29 Total Liabilities $420,000 $420,000 $452,000 30 09/2 31 OWNER'S EQUITY 32 Owner's Equity: 9/2 33 R. Mountain, Capital at January 1, 20X1 70/0 34 Net Income for 20x1 35 Owner's Equity $384,500 $38,500 $423,000 10/1 36 37 Total Owner's Equity $423,000 10/1 38 $875,000 39 Total Liabilities and Owner's Equity 010/ 40 41 1 11/ 42 211/43 44 3 11/45 46 4 11/47 Tab 1 Tab 2 1511/ Ready ADD COMMENTS Comments For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 When finished, make sure to click Submit