Short excerise S1-3 & S1-5 need answers

Accounting and the Business Environment 33 CHAPTER 1 Learning Objective 2 51-2 Determining organizations that cover accounting Suppose you are starting a business wholly Shirts, to imprint logos on -shirts. In organizing the business and setting up its accounting records, you take your information to a CPA to prepare financial statements for the bank. Name the organization that covers the majority of the guidelines that the CPA will use to prepare financial statements for Wholly Shirts. What are those guidelines called Learning Objective 2 S1-3 Identifying types of business organizations Chloe Michaels plans on opening Chloe Michaels Floral Designs. She is considering the various types of business organizations and wishes to organize her business with unlimited life and wants owners of the business to not be held personally liable for the business'debts. Additionally, Chloe wants the business to be a separate taxable entity. Which type of business organization will meet Chloe's needs best? Learning Objective 2 S1-4 Identifying types of business organizations You would like to start a cellular telephone equipment service business. You are considering organizing the business as a sole proprietorship. Identify the advantages and disadvantages of owning a sole proprietorship Learning Objective 2 S1-5 Applying accounting assumptions and principles Michael McNamee is the proprietor of a property management company Apartment Exchange, near the campus of Pensacola State College. The business has cash of $8,000 and furniture that cost $9,000 and has a market value of $13,000. The business debts include accounts payable of $6,000. Michael's personal home is valued at $400,000, and his personal bank account has a balance of $1,200. Consider the accounting principles and assumptions discussed in the chapter, and identify the principle or assumption that best matches the situation: a. Michael's personal assets are not recorded on the Apartment Exchange's balance sheet b. The Apartment Exchange records furniture at its cost of $9,000, not its market value of $13,000 c. The Apartment Exchange reports its financial statements in US dollars. d. Michael expects the Apartment Exchange to remain in operation for the foresccable future. Learning Objective 3 S1-6 Using the accounting equation Thompson Handyman Services has total assets for the year of $18,400 and total liabilities of $9,050 Requirements 1. Use the accounting equation to solve for equity. 2. If next year assets increased by $4,300 and equity decreased by $3,850, what would be the amount of total liabilities for Thompson Handyman Services