please see attached document for chapter 1 accounting.

QUIZ # 1A 1 of 5 https://xlitemprod.pearsoncmg.com/api/v1/print/accounting Student: _____________________ Date: _____________________ Instructor: Patricia Rowe Course: BUSAC 186- Financial Accounting - Fall 2016 Assignment: QUIZ # 1A 1. Identify the accounting concept, assumption, or principle that best applies to each of the following situations: a. Burger King, the restaurant chain, sold a store location to McDonald's. How can Burger King determine the sale price of the storeby a professional appraisal, Burger King original cost, or the amount actually received from the sale? b. General Motors wants to determine which division of the companyChevrolet or GMCis more profitable. c. Inflation has been around 5.5% for some time. Woodlake Realtors is considering measuring its land values in inflation-adjusted amounts. d. You get an especially good buy on a laptop, paying only $300 when it normally costs $800. What is your accounting value for this laptop? a. Burger King, the restaurant chain, sold a store location to McDonald's. How can Burger King determine the sale price of the storeby a professional appraisal, Burger King original cost, or the amount actually received from the sale? (1) b. General Motors wants to determine which division of the companyChevrolet or GMCis more profitable. (2) c. Inflation has been around 5.5% for some time. Woodlake Realtors is considering measuring its land values in inflation-adjusted amounts. (3) d. You get an especially good buy on a laptop, paying only $300 when it normally costs $800. What is your accounting value for this laptop? (4) (1) (2) (3) (4) Entity assumption Going-concern assumption Historical cost principle Entity assumption Going-concern assumption Historical cost principle Entity concept Going-concern assumption Historical cost principle Entity assumption Going-concern principle Historical cost principle Reliability principle Stable-monetary-unit assumption Reliability principle Stable-monetary-unit assumption Reliability principle Stable-monetary-unit assumption Reliability principle Stable-monetary-unit assumption 10/2/2016 4:55 PM QUIZ # 1A 2 of 5 2. https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 1. If you know the assets and the owners' equity of a business, how can you measure its liabilities? Give the equation. 2. Use the accounting equation to show how to determine the amount of a company's owners' equity. How would your answer change if you were analyzing your own household or a single IHOP restaurant? 1. If you know the assets and the owners' equity of a business, how can you measure its liabilities? Give the equation. (1) - (2) = Liabilities 2. Use the accounting equation to show how to determine the amount of a company's owners' equity. Start by determining the accounting equation to show how to determine the amount of a company's owners' equity. (3) - (4) = Owners' equity How would your answer change if you were analyzing your own household or a single IHOP restaurant? A. If you were analyzing your own household you would not include assets in the calculation. B. If you were analyzing your own household you would not include liabilities in the calculation. C. The equation to solve for equity would not change if you were analyzing your own household or a IHOP's restaurant. D. If you were analyzing your own household you would not use the accounting equation to perform your analysis. (1) (3) Assets Dividends Expenses Investments Liabilities Owners' equity Revenue (2) Assets Dividends Expenses Investments Liabilities Owners' equity Revenue (4) Assets Dividends Expenses Investments Liabilities Owners' equity Revenue Assets Dividends Expenses Investments Liabilities Owners' equity Revenue 10/2/2016 4:55 PM QUIZ # 1A 3 of 5 https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 3. Apply your understanding of the relationships among the financial statements to answer these questions. a. How can a business earn large profits but have a small balance of retained earnings? b. Give two reasons why a business can have a steady stream of net income over a five-year period and still experience a cash shortage. c. If you could pick a single source of cash for your business, what would it be? Why? d. How can a business be unprofitable several years in a row and still have plenty of cash? a. How can a business earn large profits but have a small balance of retained earnings? (1) will cause retained earnings to be low. (2) and (3) b. Give two reasons why a business can have a steady stream of net income over a five-year period and still experience a cash shortage. can result in a cash shortage even if net income has been high. c. If you could pick a single source of cash for your business, what would it be? Why? The single best source of cash for a business is (4) the (5) . This source of cash is best because it results from of the business. (6) should be the main source of cash for a business. d. How can a business be unprofitable several years in a row and still have plenty of cash? (7) , (8) experienced losses. (1) , and (9) Paying a settlement from a large legal issue Paying cash for equipment can bring in cash even when the company has (2) Paying large dividends (3) paying off debts selling properties (6) Investing activities Financing activites (5) investing activities financing activites operating activities (7) Operating activities (8) Heavy collecting activity Heavy investing activity (4) issuing company bonds Heavy borrowing activity issuing company bonds sales of stock Borrowing money Collecting money Investing in new equipment increasing the sales amount issuing stock to stockholders core operations of the business trading the company's accounts receivables (9) building property financing mutual funds selling land, buildings and equipment 10/2/2016 4:55 PM QUIZ # 1A 4 of 5 https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 4. For each of the following questions, indicate which financial statement would most likely be used to provide the information. Use the following abbreviations: Income statement (I), Statement of retained earnings (R), Balance sheet (B), and Statement of cash flows (C). (Fill in all of the boxes before checking your answers.) a. How well did the company perform during the year? (1) c. Did the company declare a dividend during the year? (3) b. Why did the company's retained earnings change during the year? (2) d. How much in total debt does the company have? (4) e. How much cash did the company generate and spend during the year? (5) f. What assets does the company have? (6) g. How much cash was generated by operating activities? (7) h. What were the company's net sales for the year? (8) i. What is the company's financial position at the end of the year? (1) (6) I R B I R B C (2) C (7) I R B I R B C (3) C (8) I R B I R B C (4) C (9) (9) I R B I R B C (5) I R B C C 10/2/2016 4:55 PM QUIZ # 1B 1 of 16 https://xlitemprod.pearsoncmg.com/api/v1/print/accounting Student: _____________________ Date: _____________________ Instructor: Patricia Rowe Course: BUSAC 186- Financial Accounting - Fall 2016 Assignment: QUIZ # 1B 1. At December 31, 2016, Robbins Products has cash of $17,000, receivables of $21,000, and inventory of $83,000. The company's equipment totals $183,000. Robbins owes accounts payable of $26,000 and long-term notes payable of $173,000. Common stock is $35,500. Requirement Prepare Robbins's balance sheet at December 31, 2016, complete with its proper heading. Use the accounting equation to compute retained earnings. Review Only Click the icon to see the Worked Solution. Start with the heading and then complete the assets section of the statement. Finally complete the liabilities and stockholders' equity section of the statement. (Classify the balance sheet by selecting the proper title on all applicable subtotal or total lines. If a box is not used in the table leave the box empty; do not select a label or enter a zero.) (1) (2) Current assets: Assets (4) (3) Liabilities Current liabilities: (13) (5) Long-term liabilities: (7) (15) (14) (6) (8) (9) (16) (11) (18) (17) (10) (19) (12) (1) (2) Stockholders' equity Robbins Products Adjusted Trial Balance Balance Sheet Income Statement Statement of Cash Flows Statement of Retained Earnings December 31, 2016 Year Ended December 31, 2016 Robbins Products Adjusted Trial Balance Balance Sheet Income Statement Statement of Cash Flows Statement of Retained Earnings December 31, 2016 Year Ended December 31, 2016 10/2/2016 4:57 PM QUIZ # 1B 2 of 16 (3) (4) (5) (6) (7) (8) (9) (10) (11) https://xlitemprod.pearsoncmg.com/api/v1/print/accounting Robbins Products Adjusted Trial Balance Balance Sheet Income Statement Statement of Cash Flows Statement of Retained Earnings December 31, 2016 Year Ended December 31, 2016 Accounts payable Cash Common stock Equipment Inventory Investment Long-term notes payable Other assets Prepaid expenses Receivables Retained earnings Accounts payable Cash Common stock Equipment Inventory Investment Long-term notes payable Other assets Prepaid expenses Receivables Retained earnings Accounts payable Cash Common stock Equipment Inventory Investment Long-term notes payable Other assets Prepaid expenses Receivables Retained earnings Accounts payable Cash Common stock Equipment Inventory Investment Long-term notes payable Other assets Prepaid expenses Receivables Retained earnings Total assets Total current assets Total liabilities Accounts payable Cash Common stock Total liabilities and stockholders' equity Total stockholders' equity Equipment Inventory Investment Long-term notes payable Other assets Prepaid expenses Receivables Retained earnings Accounts payable Cash Common stock Equipment Inventory Investment Long-term notes payable Other assets Prepaid expenses Receivables Retained earnings Accounts payable Cash Common stock Equipment Inventory Investment Long-term notes payable Other assets Prepaid expenses Receivables Retained earnings 10/2/2016 4:57 PM QUIZ # 1B 3 of 16 (12) (13) (14) (15) (16) (17) (18) (19) https://xlitemprod.pearsoncmg.com/api/v1/print/accounting Total assets Total current assets Total liabilities Total liabilities and stockholders' equity Total stockholders' equity Accounts payable Cash Common stock Equipment Inventory Investment Long-term notes payable Other assets Prepaid expenses Receivables Retained earnings Accounts payable Cash Common stock Equipment Inventory Investment Long-term notes payable Other assets Prepaid expenses Receivables Retained earnings Total assets Total liabilities Total liabilities and stockholders' equity Total stockholders' equity Accounts payable Cash Common stock Equipment Inventory Investment Long-term notes payable Other assets Prepaid expenses Receivables Retained earnings Accounts payable Cash Common stock Equipment Inventory Investment Long-term notes payable Other assets Prepaid expenses Receivables Retained earnings Total assets Total liabilities Total liabilities and stockholders' equity Total assets Total liabilities Total liabilities and stockholders' equity Total stockholders' equity Total stockholders' equity 10/2/2016 4:57 PM QUIZ # 1B 4 of 16 https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 2. Amounts of the assets and liabilities of Mimi Mac Realty Company, as of July 31, 2016, are given as follows. Also included are revenue, expense, and selected stockholders' equity figures for the year ended on that date (amounts in millions): 1(Click the icon to view the account balances.) Requirement 1. Construct the balance sheet of Mimi Mac Realty Company at July 31, 2016. Use the accounting equation to compute ending retained earnings. Review Only Click the icon to see the Worked Solution. Start with the heading and then complete the rest of the statement. (Classify the balance sheet by selecting the proper title on all applicable subtotal or total lines. Enter amounts in millions to one decimal place, X.X. If a box is not used in the balance sheet, leave the box empty; do not select a label or enter a zero.) (1) (2) (3) (Amounts in millions) Current assets: Liabilities Assets (5) (14) (7) (16) (15) (6) (17) (8) (9) (10) (18) (12) (20) (19) (11) (21) (13) 1: Data Table Total revenue Receivables Common stock ................... $ .................... Current liabilities Interest expense ................. .................. ................. Salary and other employee expenses . . Long-term liabilities (1) Stockholders' Equity ............... Mimi Mac Realty Company Balance Sheet Income Statement 24.5 Investment assets (long-term) . . $ 0.6 Property and equipment, net . . . 2.7 Other expenses ............ 23.8 Retained earnings, beginning . . 0.8 Retained earnings, ending . . . . 13.6 Cash ................... 102.1 Other assets (long-term) Statement of Cash Flows Statement of Retained Earnings July 31, 2016 Month Ended July 31, 2016 ..... 135.4 1.9 5.6 16.2 ? 1.8 9.6 Year Ended July 31, 2016 10/2/2016 4:57 PM QUIZ # 1B 5 of 16 (2) (3) (5) (6) (7) (8) https://xlitemprod.pearsoncmg.com/api/v1/print/accounting Mimi Mac Realty Company Balance Sheet Income Statement Statement of Cash Flows Statement of Retained Earnings July 31, 2016 Month Ended July 31, 2016 Year Ended July 31, 2016 Mimi Mac Realty Company Balance Sheet Income Statement Statement of Cash Flows Statement of Retained Earnings July 31, 2016 Month Ended July 31, 2016 Year Ended July 31, 2016 Interest expense Investment assets (long-term) Long-term liabilities Net income Other assets (long-term) Other expenses Property and equipment, net Receivables Interest expense Investment assets (long-term) Long-term liabilities Net income Other assets (long-term) Other expenses Property and equipment, net Receivables Interest expense Cash Investment assets (long-term) Common stock Long-term liabilities Current liabilities Net income Retained earnings Revenue Salary and other employee expenses Total revenue Other assets (long-term) Other expenses Property and equipment, net Receivables Cash Common stock Current liabilities Retained earnings Revenue Salary and other employee expenses Total revenue Cash Common stock Current liabilities Retained earnings Revenue Salary and other employee expenses Total revenue Total assets Total current assets Total current liabilities (4) Total liabilities Total liabilities and stockholders' equity Total stockholders' equity 10/2/2016 4:57 PM QUIZ # 1B 6 of 16 (9) https://xlitemprod.pearsoncmg.com/api/v1/print/accounting Interest expense Cash Investment assets (long-term) Common stock Long-term liabilities Current liabilities Net income Retained earnings Revenue Salary and other employee expenses Total revenue Other assets (long-term) Other expenses Property and equipment, net Receivables (10) Interest expense Investment assets (long-term) Long-term liabilities Net income Other assets (long-term) Other expenses Property and equipment, net Receivables (11) Interest expense Investment assets (long-term) Long-term liabilities Net income Other assets (long-term) Other expenses Property and equipment, net Receivables Interest expense Investment assets (long-term) Long-term liabilities Net income Other assets (long-term) Other expenses Property and equipment, net Receivables Cash Common stock Current liabilities Retained earnings Revenue Salary and other employee expenses Total revenue Cash Common stock Current liabilities Retained earnings Revenue Salary and other employee expenses Total revenue (12) Cash Common stock Current liabilities Retained earnings Revenue Salary and other employee expenses Total revenue (13) Total assets Total current assets Total current liabilities Total liabilities Total liabilities and stockholders' equity Total stockholders' equity 10/2/2016 4:57 PM QUIZ # 1B 7 of 16 https://xlitemprod.pearsoncmg.com/api/v1/print/accounting (14) Interest expense Cash Investment assets (long-term) Common stock Long-term liabilities Current liabilities Net income Retained earnings Revenue Salary and other employee expenses Total revenue Other assets (long-term) Other expenses Property and equipment, net Receivables (15) Interest expense Investment assets (long-term) Long-term liabilities Net income Other assets (long-term) Other expenses Property and equipment, net Receivables (16) Interest expense Investment assets (long-term) Long-term liabilities Net income Other assets (long-term) Other expenses Property and equipment, net Receivables Cash Common stock Current liabilities Retained earnings Revenue Salary and other employee expenses Total revenue Cash Common stock Current liabilities Retained earnings Revenue Salary and other employee expenses Total revenue (17) (18) Total assets Total current assets Total current liabilities Total liabilities Total liabilities and stockholders' equity Total stockholders' equity Interest expense Cash Investment assets (long-term) Common stock Long-term liabilities Current liabilities Net income Retained earnings Revenue Salary and other employee expenses Total revenue Other assets (long-term) Other expenses Property and equipment, net Receivables 10/2/2016 4:57 PM QUIZ # 1B 8 of 16 https://xlitemprod.pearsoncmg.com/api/v1/print/accounting (19) Interest expense Cash Investment assets (long-term) Common stock Long-term liabilities Current liabilities Net income Retained earnings Revenue Salary and other employee expenses Total revenue (20) (21) Total assets Total current assets Total current liabilities Total assets Total current assets Total current liabilities Other assets (long-term) Other expenses Property and equipment, net Receivables Total liabilities Total liabilities and stockholders' equity Total stockholders' equity Total liabilities Total liabilities and stockholders' equity Total stockholders' equity 10/2/2016 4:57 PM QUIZ # 1B 9 of 16 https://xlitemprod.pearsoncmg.com/api/v1/print/accounting 3. Carl Hamlet is a realtor. He organized the business as a corporation on August 16, 2017. The business received $90,000 cash from Hamlet and issued common stock. Consider the following facts as of August 31, 2017. 2 (Click the icon to view the facts.) Requirements 1. Prepare the balance sheet of the real estate business of Carl Hamlet Realtor, Inc., at August 31, 2017. 2. Does it appear that the realty business can pay its debts? How can you tell? 3. Identify the personal items given in the preceding facts that should not be reported on the balance sheet of the business. Review Only Click the icon to see the Worked Solution. Requirement 1. Prepare the balance sheet of the real estate business of Carl Hamlet Realtor, Inc., at August 31, 2017. (Do not classify the balance sheet into current and long-term sections. If a box is not used in the balance sheet leave the box empty; do not select a label or enter a zero.) (1) (2) (3) Assets (4) (12) (5) Liabilities (13) (6) (14) (7) (8) (15) (10) (17) (9) Stockholders' Equity (16) (11) (18) Requirement 2. Does it appear that the realty business can pay its debts? How can you tell? The business (19) pay its debt, as assets are (20) liabilities. Requirement 3. Identify the personal items given in the preceding facts that should not be reported on the balance sheet of the business. (If a box is not used in the table leave the box empty; do not select a label or enter a zero.) (21) Personal financial information of Carl Hamlet (22) (23) (24) (25) 2: More Info 10/2/2016 4:57 PM QUIZ # 1B https://xlitemprod.pearsoncmg.com/api/v1/print/accounting a. Hamlet has $16,000 in his personal bank account and $40,000 in the business bank account. c. Hamlet acquired business furniture for $18,000 on August 24. Of this amount, the business owes $12,000 on accounts payable at August 31. b. d. e. f. g. (1) (2) (3) (4) (5) 10 of 16 Hamlet owes $2,300 on a personal charge account at a local department store. Office supplies on hand at the real estate office total $4,000. Hamlet's business owes $130,000 on a note payable for some land acquired for a total price of $159,000. Hamlet's business spent $15,000 for a Realty Group franchise, which entitles him to represent himself as an agent. Realty Group is a national affiliation of independent real estate agents. This franchise is a business asset. Hamlet owes $166,000 on a personal mortgage on his personal residence, which he acquired in 2012 for a total price of $427,000. Carl Hamlet Realtor, Inc. Balance Sheet Income Statement Statement of Cash Flows Statement of Retained Earnings August 31, 2017 Month Ended August 31, 2017 Year ended August 31, 2017 Carl Hamlet Realtor, Inc. Balance Sheet Income Statement Statement of Cash Flows Statement of Retained Earnings August 31, 2017 Month Ended August 31, 2017 Year ended August 31, 2017 Carl Hamlet Realtor, Inc. Balance Sheet Income Statement Statement of Cash Flows Statement of Retained Earnings August 31, 2017 Month Ended August 31, 2017 Year ended August 31, 2017 Common stock Franchise Furniture Land Mortgage payable Notes payable Office supplies Real estate Total stockholders' equity Common stock Franchise Furniture Land Mortgage payable Notes payable Office supplies Real estate Total stockholders' equity Accounts payable Accounts receivable Cash Retained earnings Total assets Total liabilities Total liabilities and stockholders' equity Accounts payable Accounts receivable Cash Retained earnings Total assets Total liabilities Total liabilities and stockholders' equity 10/2/2016 4:57 PM QUIZ # 1B 11 of 16 (6) (7) (8) (9) https://xlitemprod.pearsoncmg.com/api/v1/print/accounting Common stock Mortgage payable Accounts payable Franchise Notes payable Accounts receivable Furniture Office supplies Cash Land Real estate Retained earnings Total stockholders' equity Total assets Total liabilities Total liabilities and stockholders' equity Common stock Franchise Furniture Land Mortgage payable Notes payable Office supplies Real estate Total stockholders' equity Common stock Franchise Furniture Land Mortgage payable Notes payable Office supplies Real estate Total stockholders' equity Common stock Franchise Furniture Land Mortgage payable Notes payable Office supplies Real estate Total stockholders' equity Accounts payable Accounts receivable Cash Retained earnings Total assets Total liabilities Total liabilities and stockholders' equity Accounts payable Accounts receivable Cash Retained earnings Total assets Total liabilities Total liabilities and stockholders' equity Accounts payable Accounts receivable Cash Retained earnings Total assets Total liabilities Total liabilities and stockholders' equity (10) Common stock Mortgage payable Accounts payable Franchise Notes payable Accounts receivable Furniture Office supplies Cash Land Real estate Retained earnings Total stockholders' equity Total assets Total liabilities Total liabilities and stockholders' equity 10/2/2016 4:57 PM QUIZ # 1B (11) https://xlitemprod.pearsoncmg.com/api/v1/print/accounting Common stock Mortgage payable Accounts payable Franchise Notes payable Accounts receivable Furniture Office supplies Cash Land Real estate Retained earnings Total stockholders' equity Total assets Total liabilities Total liabilities and stockholders' equity (12) Common stock Mortgage payable Franchise Notes payable Furniture Office supplies Land Real estate Total stockholders' equity (13) Common stock Mortgage payable Franchise Notes payable Furniture Office supplies Land Real estate Total stockholders' equity (14) Common stock Mortgage payable Franchise Notes payable Furniture Office supplies Land Real estate Total stockholders' equity Accounts payable Accounts receivable Cash Retained earnings Total assets Total liabilities Total liabilities and stockholders' equity Accounts payable Accounts receivable Cash Retained earnings Total assets Total liabilities Total liabilities and stockholders' equity Accounts payable Accounts receivable Cash Retained earnings Total assets Total liabilities Total liabilities and stockholders' equity (15) 12 of 16 Common stock Mortgage payable Accounts payable Franchise Notes payable Accounts receivable Furniture Office supplies Cash Land Real estate Retained earnings Total stockholders' equity Total assets Total liabilities Total liabilities and stockholders' equity 10/2/2016 4:57 PM QUIZ # 1B https://xlitemprod.pearsoncmg.com/api/v1/print/accounting (16) Common stock Mortgage payable Accounts payable Franchise Notes payable Accounts receivable Furniture Office supplies Cash Land Real estate Retained earnings Total stockholders' equity Total assets Total liabilities Total liabilities and stockholders' equity (17) Common stock Mortgage payable Franchise Notes payable Furniture Office supplies Land Real estate Total stockholders' equity (18) Common stock Mortgage payable Franchise Notes payable Furniture Office supplies Land Real estate Total stockholders' equity Accounts payable Accounts receivable Cash Retained earnings Total assets Total liabilities Total liabilities and stockholders' equity Accounts payable Accounts receivable Cash Retained earnings Total assets Total liabilities Total liabilities and stockholders' equity (19) (22) (24) 13 of 16 can cannot (20) greater than less than (21) Charge Account Franchise Furniture Charge Account Franchise Furniture Mortgage payable Notes payable Personal cash Residence (23) Charge Account Franchise Furniture Mortgage payable Notes payable Personal cash Residence (25) Mortgage payable Notes payable Personal cash Residence Charge Account Franchise Furniture Mortgage payable Notes payable Personal cash Residence Charge Account Franchise Furniture Mortgage payable Notes payable Personal cash Residence 10/2/2016 4:57 PM