Mastery Problem: Introduction

to$$Accounting$$and$$BusinessThe Accounting EquationThe foundation for the accounting system and the$$financial

statements$$is the accounting equation. Select the terms that

complete the accounting equation.For each of the following items, indicate the element of the

accounting equation to which it

belongs:$$Assets$,$Liabilities$$or$$Stockholders$\text{'}$

Equity.$($Select "Yes" or $"$No$"$ from the below dropdowns.$)$TransactionsConsider the following transactions for Thomas Company and their

effect on the accounting equation. Place the cursor on each

transaction for transaction details. Determine the new balance for

each component of the accounting equation resulting from the

transaction. $($You will not need to enter the amount of each

transaction, only the balance$$after$$the

transaction.$)$ If an amount box does not require an entry, leave it

blank.Principles and Assumptions$1.$ Match each of the following scenarios with

the$$accounting principle$$or$$accounting

assumption$$that it best illustrates$\mathrm{.}2.$ 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?$$Financial StatementsA business will construct its financial statements in a

particular order because they are interrelated. This means that

items formulated in an earlier statement feed into the subsequent

statements, and changes to items on one 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?$$Which of the following is one reason the statement of

stockholders'equity is prepared before the balance sheet?$$GGE Enterprises Inc.On November $1$ of the current year, Rob Elliot invested $$31,000$

of his cash to form a$$corporation$,$ GGE Enterprises Inc., in

exchange for shares of common stock. No other common stock was

issued during November or December. After a very successful first

month of operations, the retained earnings as of November $30$ were

reported at $$5,000.$ After all transactions have been entered into

the accounting equation for the month of December, the ending

balances for selected items on December $31$ follow. On that date,

the financial statements were prepared. The balance sheet reported

total assets of $$52,400$ and total stockholders' equity of

$$38,565.$Review the following questions. Indicate which financial

statement$($s$)$ report the desired information. Enter the amount

reported on the financial statement.$($Select "Yes" or $"$No$"$ from the below dropdowns.$)$