Chapter 1 Homework Submit your answers in CANVAS before it is due When Inputting your answers in CANVAS do not include S signs or commas in your answers. DO NOT include words in your answer unless specifically asked. Use the following information to answer questions 1-10 For each item, determine the type of account (Asset, Liability, Stockholder's Equity, Dividends, Revenue or Expense) and the type of activity Operating Investing or Financing When answering the question, Input ONLY the first letter, for examples of the answer was Liability Input Las the Item Type of Account ALSE, D, Ror Type of Activity OLF Borrowed from the bank Provided services to a customer Used cleanings supplies to clean store Issued stock to owners Purchased land Use the following to answer questions 11-14 TR Corp reports the following amounts at the end of the year: Common stock Expenses Assets Revenues Dividends Liabilities $300,000 250,000 900,000 395,000 100,000 425,000 Calculate net income Calculate stockholders' equity at the end of the period. 13. $__ Calculate ending retained earnings: 14. $_ Calculate beginning retained earnings: Chapter 1 Spring 2020 Page 1-10 Use the following to answer questions 15-19 TM, Inc., had the following account balances at the end of December $150,000 30.000 400,000 60.000 Dividends Supplies Accounts payable Common stock Cash Utilities expense Salaries expense Service revenue Beginning Retained earnings Equipment 345,000 520,000 145,000 What were total expenses for the year? _Calculate their net income for the year. Calculate their ending balance in Retained Earnings. _What is their balance in stockholder's equity on 12/31 19.5 What is the balance of the Equipment account. Use the following to answer questions 20-22 Determine ending retained earnings for years 1, 2 and 3. At the beginning of year 1, the retained earnings had a $0 balance. Year Net Income Dividends Retained Earnings $50,000 $10,000 20.90,000 85,000 50,000 21. $ 35,000 145,000 100,000 22.5 45,000 Page 1-11 Chapter 1 Spring 2020 Use the following to answer questions 23-28 On-the-Go Foods provides food delivery services to construction sites. At the end of the year, the com the following out $30,000 Accounts payable $12.000 Food trucks 300,000 Garage/Office 734.000 Maintenance expense 33,000 Salaries expense 175,000 Note payable 150.000 Salaries payable 15.000 Service revenue 650,000 Paper supplies used Food expense 3 . Paper supplies In addition, the company had common stock of $500,000 at the beginning of the year and issued an additional $100,000 of stock during the year. The company also had retained earnings of $225,000 at the beginning of the year and declared $75,000 in dividends during the year. Determine Net Income Determine ending Common Stock Determine ending Retained Earnings Determine Total Assets _Determine Total Liabilities Determined Total Stockholders' Equity Chapter 1 Spring 2020 Page 1-12 Use the following to answer questions 29-12 Watch the four underlying assumptions of Generally accepted Accounting Principles with its description Assumption Economie entity a Going concern b. Description in the absence of information to the contrary, it is anticipated that a business entity will continue to operate Indefinitely The economic life of a company can be divided into artificial time intervals for financial reporting A common denominator is needed to measure all business activities Economic events can be identified with a particular economic body Periodicity c. Monetary unit d Use the following to answer questions 33 - 40 Income Statement Revenues Expenses Salaries 5456.000 Administrative 245.000 Utilities 8.000 Total expenses Net income Statement of Stockholders' Equity Common stock Retained earnings Beginning S450,000 $321,000 335 Net income 210.000 Dividends 336 Ending 500.000 $501.000 209.000 Balance Sheet Cash $14,000 250,000 $264,000 Supplies Prepaid rent Equipment Building $25,000 30,000 #37 2,000 207,800 1.000.000 Accounts payable Notes payable Total liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total Land SE Total assets 33.5 Revenue: 31.5. Supplies 34.5 Net Income: Total Assets: Issuance: Stockholders' Equity $_ Dividends: _Total L & SE: Chapter 1 Spring 2020 Page 1-13