Exam 2: Analyzing Business Transactions

The transactions listed below took place at the Mitchell Advertising Agency.These transactions affected the following accounts.Indicate the accounts affected and use plus and minus to show the changes caused by each transaction. Purchased furniture on credit

Identify the account below that is classified as an asset account and would appear on the left side of the accounting equation.

Which financial statement is reported as of a specific date?

When cash is collected from accounts receivable,the total amount of assets increases.

The debts or obligations of a business are known as its ___________________.

The expenses for a period are reported on the balance sheet.

The Balance Sheet heading includes each of the following except:

The entire process of analyzing,recording,and reporting business transactions is based on the fundamental accounting equation.

At the end of the first month of operations for SloMo Delivery Service,the business had the following accounts: Accounts Receivable,$1,200;Prepaid Insurance,$500;Equipment,$36,200 and Cash,$40,650.On the same date,SloMo owed the following creditors: Simpson Supply Company,$12,000;Allen Office Equipment,$9,500. The total amount of Liabilities is

Cullen Beatty plans to start a consulting business-Cullen Consulting Services.In preparation to do this,on April 1,2016,he invested $50,000 in cash and $19,000 in equipment,and opened an account at Office Plus by purchasing $1,500 in office supplies which is due by the end of the month.He then signed a one-year lease agreement on an office building for $6,000,paying the full amount in advance. Cullen would like an explanation of the accounting for his business actions as of April 1,2016.Explain the terms and interactions between the categories on a Balance Sheet.

The income statement shows revenue,___________________,and net income or net loss for a period of time.

The figure below shows the transactions for Sawyer Architecture Services during June.Greg Sawyer opened this business on June 1 with a capital investment of $72,000 (Transaction 1). Prepare the statement of owner's equity for Sawyer Architecture Services for the month ended June 30,2016.

At the end of the first month of operations for SloMo Delivery Service,the business had the following accounts: Accounts Receivable,$1,200;Prepaid Insurance,$500;Equipment,$36,200 and Cash,$40,650.On the same date,SloMo owed the following creditors: Simpson Supply Company,$12,000;Allen Office Equipment,$9,500. The total assets for the SloMo Delivery Service are

Total assets of Douglas Fuhr Furniture Co.are $36,000 and the total liabilities are $12,000.What is the amount of the owner's equity?

The transactions listed below took place at the Mitchell Advertising Agency.These transactions affected the following accounts.Indicate the accounts affected and use plus and minus to show the changes caused by each transaction. The owner made an additional investment of cash

When equipment is purchased on credit,

Choose the option below that reflects the correct order in which to prepare the three financial statements

When cash is paid to a creditor,the firm's liabilities decrease.

The financial statement that is prepared first is

On June 1,Donna Banhil established Solo Services,a voice consulting service.Enter the following transactions for June in the table below using + and - to indicate increases or decreases: