Need some help

Exercise 2-3 Identifying a ledger and chart of accounts LO C3 Select the item that best completes each of the descriptions below. Chart Source document a. A collection of accounts and account balances is referred to as an) b. A(n) __ , such as a bank statement, is objective evidence of transactions and their amounts. c. A_ of accounts is a list of all accounts a company uses, not including account balances. d. Increases and decreases in a specific asset, liability, equity, revenue, or expense are recorded in a(n). e. A complete record of all transactions made by an organization is kept in a(n). Journal Account General ledger Exercise 2-2 Identifying and classifying accounts LO C2 Select the item that best completes each of the descriptions below. a. A(n) is a resource owned or controlled by a company. b. Balance sheet accounts are arranged into general categories. c. Common Stock and Dividends are examples of_ accounts. d. A(n) _ is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item. is a record of accounts used by a organization. Following are the transactions of Sustain Company June 1 T. James, owner, invested $13,000 cash in Sustain Company in exchange for common stock. 2 The company purchased $6,000 of furniture made from reclaimed wood on credit. 12-month insurance policy on the reclaimed furniture. 4 The company billed a customer $5,000 in fees earned from preparing a sustainability report. 12 The company paid $6,000 cash toward the payable from the June 2 furniture purchase. 20 The company collected $5,000 cash for fees billed on June 4. Sustain Company in exchange for common stock. 30 The company received $7,000 cash from a client for sustainability services for the next 3 months. Prepare general journal entries for the above transactions. View transaction list Journal entry worksheet 2 3 4 5 6 7 8 T. James, owner, invested $13,000 cash in Sustain Company in exchange for common stock Note: Enter debits before credits. Date General Journal Debit Credit June 01 Exercise 2-4 Identifying type and normal balances of accounts LO C4 For each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense; (2) identify the normal balance of the account; and (3) select debit (Dr.) or credit (Cr.) to identify the kind of entry that would increase the account balance Type of Account Normal Balance Increase (Dr. or Cr.) Account a. Land b. Cash c. Legal Expense d. Prepaid Insurance e. Accounts Receivable f. Dividends g. License Fee Revenue h. Uneamed Revenue i. Fees Eamed i Equipment k Notes Payable 1. Common Stock Aug. 1 Madison Harris, the owner, invested $12,750 cash and $54,825 of photography equipment in the company in exchange for common stock 2 The company paid $2,400 cash for an insurance policy covering the next 24 months. pany purchased office supplies for $2,423 cash. 20 The company received $2,150 cash in photography fees earned. 31 The company paid $872 cash for August utilities. Prepare general journal entries for the above transactions. View transaction list Journal entry worksheet 2 3 4 5 Madison Harris, the owner, invested $12,750 cash and $54,825 of photography equipment in the company in exchange for common stock. Note: Enter debits before credits. Date General Journal Debit Credit Aug 01 Record entry Clear entry View general journal Company Dreamworks Pixar Universal Expenses Total Assets $32,000 $ 65,000 82,000 155,000 17,000 78,000 Net Income Total Liabilities $29,000 $ 50, 700 42,000 148,000 6,000 22,880 a. Compute the debt ratio for each of the three companies. (Round your answers to 2 decimal places.) Debt Ratio Company Dreamworks Pixar Universal b. Which company has the most financial leverage? Largest financial leverage Exercise 2-15 Computing net income LO A1 A corporation had the following assets and liabilities at the beginning and end of this year. Beginning of the year End of the year Assets $147,000 191,500 Liabilities $63,019 77,558 a. Owner made no investments in the business, and no dividends were paid during the year. b. Owner made no investments in the business, but dividends were $1,500 cash per month. c. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock. d. Dividends were $1,500 cash per month, and the owner invested an additional $35,000 cash in exchange for common stock. Determine net income or net loss for the business during the year for each of the above separate cases: (Decreases in equity should be indicated with a minus sign.) a. b. C. d. Beginning of the year-Equity Owner investments Dividend Net income (loss) End of the year-Equity I Exercise 2-3 Identifying a ledger and chart of accounts LO C3 Select the item that best completes each of the descriptions below. Chart Source document a. A collection of accounts and account balances is referred to as an) b. A(n) __ , such as a bank statement, is objective evidence of transactions and their amounts. c. A_ of accounts is a list of all accounts a company uses, not including account balances. d. Increases and decreases in a specific asset, liability, equity, revenue, or expense are recorded in a(n). e. A complete record of all transactions made by an organization is kept in a(n). Journal Account General ledger Exercise 2-2 Identifying and classifying accounts LO C2 Select the item that best completes each of the descriptions below. a. A(n) is a resource owned or controlled by a company. b. Balance sheet accounts are arranged into general categories. c. Common Stock and Dividends are examples of_ accounts. d. A(n) _ is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item. is a record of accounts used by a organization. Following are the transactions of Sustain Company June 1 T. James, owner, invested $13,000 cash in Sustain Company in exchange for common stock. 2 The company purchased $6,000 of furniture made from reclaimed wood on credit. 12-month insurance policy on the reclaimed furniture. 4 The company billed a customer $5,000 in fees earned from preparing a sustainability report. 12 The company paid $6,000 cash toward the payable from the June 2 furniture purchase. 20 The company collected $5,000 cash for fees billed on June 4. Sustain Company in exchange for common stock. 30 The company received $7,000 cash from a client for sustainability services for the next 3 months. Prepare general journal entries for the above transactions. View transaction list Journal entry worksheet 2 3 4 5 6 7 8 T. James, owner, invested $13,000 cash in Sustain Company in exchange for common stock Note: Enter debits before credits. Date General Journal Debit Credit June 01 Exercise 2-4 Identifying type and normal balances of accounts LO C4 For each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense; (2) identify the normal balance of the account; and (3) select debit (Dr.) or credit (Cr.) to identify the kind of entry that would increase the account balance Type of Account Normal Balance Increase (Dr. or Cr.) Account a. Land b. Cash c. Legal Expense d. Prepaid Insurance e. Accounts Receivable f. Dividends g. License Fee Revenue h. Uneamed Revenue i. Fees Eamed i Equipment k Notes Payable 1. Common Stock Aug. 1 Madison Harris, the owner, invested $12,750 cash and $54,825 of photography equipment in the company in exchange for common stock 2 The company paid $2,400 cash for an insurance policy covering the next 24 months. pany purchased office supplies for $2,423 cash. 20 The company received $2,150 cash in photography fees earned. 31 The company paid $872 cash for August utilities. Prepare general journal entries for the above transactions. View transaction list Journal entry worksheet 2 3 4 5 Madison Harris, the owner, invested $12,750 cash and $54,825 of photography equipment in the company in exchange for common stock. Note: Enter debits before credits. Date General Journal Debit Credit Aug 01 Record entry Clear entry View general journal Company Dreamworks Pixar Universal Expenses Total Assets $32,000 $ 65,000 82,000 155,000 17,000 78,000 Net Income Total Liabilities $29,000 $ 50, 700 42,000 148,000 6,000 22,880 a. Compute the debt ratio for each of the three companies. (Round your answers to 2 decimal places.) Debt Ratio Company Dreamworks Pixar Universal b. Which company has the most financial leverage? Largest financial leverage Exercise 2-15 Computing net income LO A1 A corporation had the following assets and liabilities at the beginning and end of this year. Beginning of the year End of the year Assets $147,000 191,500 Liabilities $63,019 77,558 a. Owner made no investments in the business, and no dividends were paid during the year. b. Owner made no investments in the business, but dividends were $1,500 cash per month. c. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock. d. Dividends were $1,500 cash per month, and the owner invested an additional $35,000 cash in exchange for common stock. Determine net income or net loss for the business during the year for each of the above separate cases: (Decreases in equity should be indicated with a minus sign.) a. b. C. d. Beginning of the year-Equity Owner investments Dividend Net income (loss) End of the year-Equity