Accounting - 1.course
Example 1: Compute the missing amount in the accounting equation for each company
(amounts in billions):
Example 2: Classify following items as an Asset, a Liabilitiy, an Owners’ Equity, a Revenues
or a Expenses
Asset Liabilities Owner's Equity Revenues Expenses
Account payable
Accounts and notes receivables
Capital
Cash
Common stock
Company sales
Dividends
Equipment
Income taxes payble
Intangible assets
Inventories
Investments
Land
Licence
Long-term debt
Prepaid expenses
Printer
Rent expense
Retained earnings
Salaries and wages payable
Salary expense
Service revenues
Short-term borrowings (notes
payable)
Short-term investments
Supplies
Utility expenses
Withdrawals
Intangibles assets are assets with no physical form, such as patents and trademarks
Example (HW) 3: Classify the following items as an Asset, a Liability or Owners‘ Equity
Example 4: Identifying items with the appropriate financial statement using the following
abbrevations: Income statement, Owners‘ Equity Statement, Balance Sheet
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Dividends
Salary expense
Inventory
Sales revenue
Net income
Cash
Account payable
Common stock
Interest revenue
Long-term debt
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Income tax payable
Income tax expense
Retained earnings
Total assets
Revenues
Selling, general and administrative
expenses
 Current liabilities
 Net income
Example 5: Danielle Stone, the manager of Image Runner, Inc., prepared the company’s
balance sheet while the accountant was ill. The balance sheet contains some errors. Stone
knew that the balance sheet should balance, so she plugged in the stockholders‘ equity amount
needed to achieve this balance. The stockholders‘ equity is not correct. All other amounts are
accurate.
Example 6: Another balance sheet with errors:
Example 7: Prepar all three financial statements (Income statement, owner’s equity statement
and balance sheet). The assets and liabilities of Post Oak, Inc., as of December 31, 2012, and
revenues and expenses for the year ended on that date are listen here. Retained Earnings was $
111,000 and dividens totaled $ 42,000 for the year.
Example 8: Another:
Retained earning were $ 10,000 and dividends totaled $ 50,000 for the year.
Example (HW 9): Amounts of the assets, liabilities, revenues and expenses of Maxwell
Company, as od December 31, 2012, are given as follows (amounts in millions). Prepar all
three financial statements (the Income Statement, The Owners‘ Equity Statement and the
Balance Sheet).
Example (HW) 10: Compute the mission amount (?) for each company – amounts in millions