Generally Accepted Accounting Principles and Owners Equity

Fundamental Concepts Professor Deanna McKenzie Accounting Module Practice Questions disclose Date 1 . Identify the Assets, Liabilities and Owners Equity below Assets Liabilities Owners equity hand truck Accounts due Retained Earnings Wages Payable Cash Salaries Payable Equipment Pre paid Rent Land Note Payable Office Supplies make Furniture Prepaid Insurance Accounts receivable Common Stock 2. first rudiment Company issued common stock and genuine $4000. Please complete the history equation below Assets 4,000 = Liabilities + Owners Equity + 4,000 3.ABC Company then purchased Office supplies on Account for $200. Please complete the accounting equation below (after the purchase) money 4,000 = Liabilities + Owners Equity Office Supplies 200 Accounts Payable 200 + 4,000 4. a) The owners of XYZ Corporation received $5000 from Mr. Brown and issued him common stock. The family then borrowed $20,000 from the bank and purchased a preservation truck (cash) for $7000. What type of acc ounts on the balance sheet (Categories) are alter? Owners Equity Liabilty b) List the specific accounts affected and the amounts.Common Stock 5,000 Cash 18,00020-7+3) Notes rake Truck 7,000 c) Write the Accounting Equation below 5. A company generates $200,000 in revenue in 2011, the gross profit was recorded as $175,000. What their cost of Goods sold? ANSWER 25,000 200,000 -COGS 175,000 6. XYZ Companys total outgos for 2001 was $450,000. The net Income recorded was $100,000. How often did they generate in revenues? ANSWER 550,000 Revenue -450,000 1 oo,ooo 7. Stewarts Company purchased an summation with useful life of 5 grades for $40000. The salvage value of the asset is $5000.Using the straight line depreciation method a) How much is the asset depreciated by each year? ANSWER7K 40,000-5,000 35,000 b) What is the depreciation expense at year 4? 7K c) What is the accumulated depreciation at the end of year 3? 21 K d) What is the value of the asset at the end of year 4? 12K 8 . Company A purchased an equipment to print T-shirts. This equipment cost $30,000 and is expected to sojourn useful for 7 years. The residual value of the equipment is $2000. Find the depreciation expense and the accumulated depreciation after 5 years.