1、SUMMARY PROBLEM FOR YOUR REVIEWJill Smith opens an apartment-location business near a college campus. She is the sole owner of the proprietorship, which she names Campus Apartment Locators. During the first month of operations, July 19x1, Smith engages in the following transactions:A. Smith invests
2、$35,000 of personal funds to start the business.B. She purchases on account office supplies costing $350.C. Smith pays cash of $30,000 to acquire a lot next to the campus. She intends to use the land as a future building site for her business office.D. Smith locates apartments for clients and receiv
3、es cash of $1,900.E. She pays $100 on the account payable she created in Transaction (b).F. She pays $2,000 of personal funds for a vacation.G. She pays cash expenses for office rent, $400, and utilities, $100.H. The business sells office supplies to another business for its cost of $150.I. Smith wi
4、thdraws cash of $1,200 for personal use.Required1.Analyze the preceding transactions in terms of their effects on the accounting equation of Campus Apartment Locators. Use Exhibit 1-6 as a guide, but show balance only after the last transaction.2.Prepare the income statement, statement of owners equ
5、ity, and balance sheet of the business after recording the transactions. Use Exhibit 1-8 as a guide.SELF-STUDY QUESTIONSTest your understanding of the chapter by marking the best answer for each of following questions:1. The organization that formulates generally accepted accounting principles isA.
6、American institute of Certified Public Accountants (AICPA)B. Internal Revenue ServiceC. Financial Accounting Standards Board (FASB)D. Institute of Management Accountants (IMA)2.Which of the following forms of business organization is an “artificial person” and must obtain legal approval from a state
7、 to conduct business?A. Law firm B. Proprietorship C. Partnership D. Corporation3.You have purchased some unclaimed freight for $10,000 and can sell it immediately for $15,000. What accounting concept or principle governs the amount at which to record the goods you purchased?A. Entity concept B. Rel
8、iability principle C. Cost principle D. Going-concern concept4.The economic resources of a business are calledA. Assets B. Liabilities C. Owners Equity D. Receivables5.A business has assets of $140,000 and liabilities of $60,000.How much is its owners equity?A. $0 B. $80,000 C. $140,000 D.200,0006.T
9、he purchase of office supplies on account willA. Increase an asset and increase a liability.B. Increase an asset and increase owners equity.C. Increase one asset and decrease another asset.D. Increase an asset and decrease a liability.7.The performance of service for a customer or client and immedia
10、te receipt of cash willA. Increase one asset and decrease another assetB. Increase an asset and increase owners equityC. Decrease an asset and decrease a liabilityD. Increase an asset and increase a liability8. The payment of an account payable willA. Increase one asset and decrease another assetB.
11、Decrease an asset and decrease owners equityC. Decrease an asset and decrease a liabilityD. Increase an asset and increase a liability9. The report of assets, liabilities, and owners equity is called theA. Financial statement B. Income statementC. Balance sheet D. Statement of owners equity10. The f
12、inancial statements that are dated for a time period ( rather than a specific time ) are theA. Balance sheet and income statementB. Balance sheet and statement of owners equityC. Income statement, statement of owners equity, and statement of cash flowsD. All financial statements are dated for a time period
