Frontier Sports sells hunting and fishing equipment and provides guided hunting and fishing trips. Frontier Sports is owned and operated by Wally Schnee, a well-known sports enthusiast and hunter. Wally's wife, Helen, owns and operates Blue Sky Boutique, a women's clothing store. Wally and Helen have established a trust fund to finance their children's college education. The trust fund is maintained by First Bank in the name of the children, Anna and Conner. For each of the following transactions, identify which of the entities listed should record the transaction in its records.
1. Wally paid a breeder's fee for an English springer spaniel to be used as a hunting guide dog.
2. Helen paid her dues to the YWCA.
3. Helen purchased two dozen spring dresses from a Denver designer for a special spring sale.
4. Helen deposited a $3,500 personal check in the trust fund at First Bank.
5. Wally paid for an advertisement in a hunters' magazine.
6. Helen authorized the trust fund to purchase mutual fund shares.
7. Wally paid for dinner and a movie to celebrate their tenth wedding anniversary.
8. Helen donated several dresses from inventory for a local charity auction for the benefit of a women's abuse shelter.
9. Wally received a cash advance from customers for a guided hunting trip.
10. Wally paid a local doctor for his annual physical, which was required by the workmen's compensation insurance policy carried by Frontier Sports.
Hector Lopez is the owner and operator of Centillion, a motivational consulting business.
b. $710,000
At the end of its accounting period, December 31, 2007, Centillion has assets of $950,000 and liabilities of $300,000. Using the accounting equation and considering each case independently, determine the following amounts:
a. Hector Lopez, capital, as of December 31, 2007.
b. Hector Lopez, capital, as of December 31, 2008, assuming that assets increased by $150,000 and liabilities increased by $90,000 during 2008.
c. Hector Lopez, capital, as of December 31, 2008, assuming that assets decreased by $75,000 and liabilities increased by $27,000 during 2008.
d. Hector Lopez, capital, as of December 31, 2008, assuming that assets increased by $125,000 and liabilities decreased by $48,000 during 2008.e. Net income (or net loss) during 2008, assuming that as of December 31, 2008, assets were $1,200,000, liabilities were $195,000, and there were no additional investments or withdrawals.
Each of the following items is shown in the financial statements of ExxonMobil Corporation
Each of the following items is shown in the financial statements of ExxonMobil Corporation.
1. Accounts payable 9. Marketable securities
2. Cash equivalents 10. Notes and loans payable
3. Crude oil inventory 11. Notes receivable
4. Equipment 12. Operating expenses
5. Exploration expenses 13. Prepaid taxes
6. Income taxes payable 14. Sales
7. Investments 15. Selling expenses
8. Long-term debt
a. Identify the financial statement (balance sheet or income statement) in which each item would appear.
b. Can an item appear on more than one financial statement?
c. Is the accounting equation relevant for ExxonMobile Corporation?
Following are the amounts of the assets and liabilities of pedigree travel agency oat december 31, 2008, at the end of the current year, and its revenue and expenses for the year. The capital of Shiann Ott, owner, was $115,000 on January 1, 2008, the beginning of the current year. During the current year, Shiann withdrew $40,000.
- Account payable - $12,500
- Accounts receivable - 42,300
- Cash - 180,000
- Fees earned - 250,000
- Misc espense - 1,500
- Rent expense $25,000
- supplies - 2,700
- Supplies expense - 2,800
- Utilities expense - 18,200
- Wages expense - 65,000
Instructions:
1. Prepare an income statement for the current year ended December 31, 2008.
2. Prepare a statement of owner's equity for the current year ended December 31, 2008.
2. Prepare a balance sheet as of December 31, 2008.