Accounting notes

Angela Howard operates her own catering service. Summary financial data for July are presented in equation form as follows. Each line designated by a number indicates the effect of a transaction on the equation. Each increase and decrease in owner’s equity, except transaction (5), affects net income. Assets 5 Liabilities 1 Owner’s Equity Cash 1 Supplies 1 Land 5 Accounts Payable 1 Angela Howard, Capital − Angela Howard, Drawing 1 Fees Earned − Expenses Bal. 30,000 2,000 80,000 12,000 1...

Each of the following items is shown in the financial statements of Exxon Mobil Corporation. 1. Accounts payable 2. Cash equivalents 3. Crude oil inventory 4. Equipment 5. Exploration expenses 6. Income taxes payable 7. Investments 8. Long-term debt 9. Marketable securities 10. Notes and loans payable 11. Notes receivable 12. Operating expenses 13. Prepaid taxes 14. Sales 15. Selling expenses a. Identify the financial statement (balance sheet or income statement) in which each item would appear....

The now defunct Enron Corporation, once headquartered in Houston, Texas, provided products and services for natural gas, electricity, and communications to wholesale and retail customers. Enron’s operations were conducted through a variety of subsidiaries and affiliates that involved transporting gas through pipelines, transmitting electricity, and managing energy commodities. The following data were taken from Enron’s financial statements: In millions Total revenues $100,789 Total costs an...

a Using the income statement for Sunset Travel Service shown in Practice Exercise 1-4A, prepare a statement of owner’s equity for the current year ended April 30, 2014. Craig Daws, the owner, invested an additional $75,000 in the business during the year and withdrew cash of $66,000 for personal use. Craig Daws, capital as of May 1, 2013, was $300,000. b Using the income statement for Sentinel Travel Service shown in Practice Exercise 1-4B, prepare a statement of owner’s equity for the cur...

The following is a list of well-known companies. 1. Alcoa Inc. 2. Boeing 3. Caterpillar 4. Citigroup Inc. 5. CVS 6. Dow Chemical Company 7. eBay Inc. 8. FedEx 9. Ford Motor Company 10. Gap Inc. 11. H&R Block 12. Hilton Hospitality, Inc. 13. Procter & Gamble 14. SunTrust 15. Walmart Stores, Inc. a. Indicate whether each of these companies is primarily a service, merchandise, or manufacturing business. If you are unfamiliar with the company, use the Internet to locate the company’s home page or ...

Question: Describe how the following business transactions affect the three elements of the accounting equation. a. Invested cash in business. b. Paid for utilities used in the business. c. Purchased supplies for cash. d. Purchased supplies on account. e. Received cash for services performed.

Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from First Federal Bank. The bank requested financial statements from Rhino Enterprises as a basis for granting the loan. Colleen has told her accountant to provide the bank with a balance sheet. Colleen has decided to omit the other financial statements because there was a net loss during the past year. In groups of three or four, discuss the following questions: 1. Is Colleen behaving in a professional manner by omi...

Following are the amounts of the assets and liabilities of Oriental Travel Agency at December 31, 2014, the end of the current year, and its revenue and expenses for the year. The capital of Sung Kim, owner, was $450,000 on January 1, 2014, the beginning of the current year. During the current year, Sung withdrew $25,000. Accounts payable $ 115,000 Rent expense $150,000 Accounts receivable 370,000 Supplies 20,000 Cash 210,000 Supplies expense 14,000 Fees earned 1,100,000 Utilities expense 79,000...

Four different proprietorships, Juliet, Kilo, Lima, and Mike, show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount of owner’s equity, are summarized as follows: Total Assets Total Liabilities Beginning of the year $ 600,000 $150,000 End of the year 1,125,000 500,000 On the basis of the above data and the following additional information for the year, determine the net income (or loss) of each company for the year. (Hint: First determine the...

A fertilizer manufacturing company wants to relocate to Yellowstone County. A report from a fired researcher at the company indicates the company’s product is releasing toxic by-products. The company suppressed that report. A later report commissioned by the company shows there is no problem with the fertilizer. Should the company’s chief executive officer reveal the content of the unfavorable report in discussions with Yellowstone County representatives? Discuss.