Part I: Complete the following homework problems from the end of the chapters: E1-4, E1-5, E1-6, E1-9

Part II: Complete the following homework problems from the end of the chapters: E2-1, E2-2, E2-4, E2-7, E2-17, and P2-3A

Exercise 1-4 Learning the language of business _ c1 L C2 2 C3 Match each of the numbered descriptions 1 through 5 with the term or phrase it best reflects. Indicate your answer by writing the letter A through H for the term or phrase in the blank provided. A. Audit B. GAAP C. Ethics D. FASB E. SEC F. Public accountants G. Net income H. IASB 1. An assessment of whether financial statements follow GAAP. 2. Amount a business earns in excess of all expenses and costs associated with its sales and revenues. 3. A group that sets accounting principles in the United States. 4. Accounting professionals who provide services to many clients. 5. Principles that determine whether an action is right or wrong.Exercise 1-5 Identifying ethical terminology ' C3 D A Match each of the numbered descriptions 1 through 7 with the term or phrase it best reflects. Indicate your answer by writing the letter A through G for the term or phrase in the blank provided. A. Ethics B. Fraud triangle C. Prevention D. Internal controls E. Sarbanes-Oxley Act F. Audit G. Dodd-Frank Act 1. Requires the SEC to pay whistleblowers. 2. Examines whether financial statements are prepared using GAAP; it does not ensure absolute accuracy of the statements. 3. Requires documentation and verification of internal controls and increases emphasis Page 29 on internal control effectiveness. 4. Procedures set up to protect company property and equipment, ensure reliable accounting, promote efficiency, and encourage adherence to policies. 5. A less expensive and more effective means to stop fraud. 6. Three factors push a person to commit fraud: opportunity, pressure, and rationalization. 7. Beliefs that distinguish right from wrong.Exercise 16 Distinguishing business organizations [13 C4 The following describe several different business organizations. Determine whether each description best refers to a sole proprietorship (SP), partnership (P), corporation (C), or limited liability company (LLC). a. b. Micah and Nancy own Financial Sen-ices, which pays a business income tax. Micah and Nancy do not have personal responsibility for the debts of Financial Services. Riley and Kay own Speedy Packages, a courier service. Both are personally liable for the debts of the business. IBC Services does not have separate legal existence apart from the one person who owns it. Trent Company is owned by Trent Malone= who is personally liable for the company's debts. Ownership of Zander Company is divided into 1,0 00 shares of stock. The company pays a business income tax. Physio Products does not pay income taxes and has one owner. The owner has unlimited liability for business debt. AJ Company pays a business income tax and has two owners. J effy Auto is a separate legal entity from its owner5 but it does not pay a business income tax. Exercise 19 Using the accounting equation .111 Answer the following questions. H inf: Use the accounting equation. a. At the beginning of the year, Addison Company's assets are $300=000 and its equity is $100,000. During the year= assets increase 580,000 and liabilities increase 350,000. 1What is the equity at yearend? 1). Office Store Co. has assets equal to 8123.000 and liabilities equal to $43000 atyearend. lWhat is the equity for Ithf'ice Store Co. at yearend? c. At the beginning of the year, Quaker Company's liabilities equal 870,000. During the year, assets increase by 300.000= and at yearend assets equal $190.000. Liabilities decrease 55,000 during the year. lWhat are the beginning and ending amounts of equity? Check :-_-:u Beg. eo-'t'-,-. SEC-CDC Exercise 2-1 Steps in analyzing and recording transactions L C1 Order the following steps in the accounting process that focus on analyzing and recording transactions. a. Prepare and analyze the trial balance. b. Analyze each transaction from source documents. C. Record relevant transactions in a journal. d. Post journal information to ledger accounts.Exercise 2-16 Preparing an income statement U c3 5 p3 Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company's records show the following selected accounts and amounts for the month of August. Use this information to prepare an August income statement for the business. Cash $25-360 Accounts receivable 22,360 Office supplies 5,250 Land 44,000 Office equipment 20,000 Accounts payable 10,500 Common stock 102,000 Dividends 6,000 Consulting fees earned 27,000 Rent expense 9,550 Salaries expense 5,600 Telephone expense 860 Miscellaneous expenses 520 Check Net income, $10,470 Exercise 2-17 Preparing a statement of retained earnings & P3 Use the information in ' Exercise 2-16 to prepare an August statement of retained earnings for Page 73 Help Today. The Retained Earnings account balance at August 1 was So. Hint: Net income for August is $10,470.Exercise 2-2 Identifying and classifying accounts L C2 Enter the number for the item that best completes each of the descriptions below. 1. Asset 2. Equity 3. Account 4. Liability 5. Three a. Balance sheet accounts are arranged into general categories. b. Common Stock and Dividends are examples of accounts. c. Accounts Payable and Note Payable are examples of accounts. d. Accounts Receivable, Prepaid Accounts, Supplies, and Land are examples of accounts. e. A(n) is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item.Exercise 24 Identifying type and normal balances of accounts [ElJ 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) enter debit (Dru) or credit (Ct) to identify the kind of entry that would increase the account balance. a. Land 1'). Cash c. Legal Expense d. Prepaid Insurance 3. Accounts Receivable f. Dividends g. License Fee Revenue 11. Unearned Revenue i. Fees Earned j. Equipment k. Notes Payable 1. Common Stock Exercise 2? Preparing general journal entries P1 Prepare general journal entries for the following transactions of a new company called PoseforPics. Use the following [partial]: chart of accounts: Cash; Office Supplies; Prepaid Insurance; Photography.? Equipment; Common Stock; Photograph}? Fees Earned; and Utilities Expense. Aug. 1 Madison Harris, the owner; invested 865500 cash and 333500 of photography equipment in the company in exchange for common stock. 2 The company paid $2,100 cash for an insurance polio;r covering the next 24 months. The company purchased office supplies for $880 cash. (.11 so The company received 83331 cash in photography fees earned. 31 The company paid 3 .75 cash for August utilities. Problem 2-3A Preparing and posting journal entries; preparing a trial balance L' c3 5 c4 2 A1 P1 P2 Denzel Brooks opened a web consulting business called Venture Consultants and completed the following transactions in March. . 1 Brooks invested $150,000 cash along with $22,000 in office equipment in the company in exchange for common stock. 2 The company prepaid $6,ooo cash for six months' rent for an office. Hint: Debit Prepaid Rent for $6,000. 3 The company made credit purchases of office equipment for $3,ooo and office supplies for $1,200. Payment is due within 10 days. 6 The company completed services for a client and immediately received $4,000 cash. The company completed a $7,500 project for a client, who must pay within 30 days. 12 The company paid $4,200 cash to settle the account payable created on March 3. 19 The company paid $5,000 cash for the premium on a 12-month insurance policy. Hint: Debit Prepaid Insurance for $5,000. 22 The company received $3,500 cash as partial payment for the work completed on March 9. 25 The company completed work for another client for $3,820 on credit. 29 The company paid a $5,100 cash dividend 30 The company purchased $600 of additional office supplies on credit. 31 The company paid $500 cash for this month's utility bill. Required 1. Prepare general journal entries to record these transactions (use the account titles listed in part 2). 2. Open the following ledger accounts-their account numbers are in parentheses (use the balance column format): Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); Common Stock (307); Dividends (319); Services Revenue (403); and Utilities Expense (690). Post the journal entries from part 1 to the ledger accounts and enter the balance after each posting. 3. Prepare a trial balance as of the end of March. Check (2) Ending balances: Cash, $136,700; Accounts Receivable, $7,820; Accounts Payable, $600 (3) Total debits, $187,920