Chapter 1: Q2DQ. (page 29)
Question: Technology is increasingly used to process accounting data. Why then must we study and understand accounting?
Accounting data can be in the form of journals, ledgers, etc. which can be used with proper knowledge of accounting.
Over 30 million students worldwide already upgrade their learning with Vaia!
All the tools & learning materials you need for study success - in one app.
Get started for free
Key financial figures for Apple’s fiscal year ended September 26, 2015, follow.
Key Figure \( Millions
Liabilities + Equity . . . . . . . . . . . \)290,479
Net income . . . . . . . . . . . . . . . . . 53,394
Revenues . . . . . . . . . . . . . . . . . . 233,715
Required 1. What is the total amount of assets invested in Apple?
What does the concept of objectivity imply for the information reported in financial statements? Why?
A start-up company often engages in the following activities during its first year of operations. Classify each of the following activities into one of the three major activities of an organization. F. Financing I. Investing O. Operating
1. Providing client services. 2. Obtaining a bank loan. 3. Purchasing machinery. 4. Research for its products. 5. Supervising workers. 6. Shareholders investing money in business. 7. Renting office space. 8. Paying utilities expenses.
Define (a) assets, (b) liabilities, (c) equity, and (d) net assets.
Rivera Roofing Company, owned by Reyna Rivera, began operations in July and completed these transactions during that first month of operations.
July 1 Reyna Rivera invested \(80,000 cash in the company in exchange for its common stock.
2 The company rented office space and paid \)700 cash for the July rent.
3 The company purchased roofing equipment for \(5,000 by paying \)1,000 cash and agreeing to pay the \(4,000 balance in 30 days.
6 The company purchased office supplies for \)600 cash.
8 The company completed work for a customer and immediately collected \(7,600 cash for the work.
10 The company purchased \)2,300 of office equipment on credit.
15 The company completed work for a customer on credit in the amount of \(8,200.
17 The company purchased \)3,100 of office supplies on credit.
23 The company paid \(2,300 cash for the office equipment purchased on July 10.
25 The company billed a customer \)5,000 for work completed; the balance is due in 30 days.
28 The company received \(8,200 cash for the work completed on July 15.
30 The company paid an assistant’s salary of \)1,560 cash for this month.
31 The company paid \(295 cash for this month’s utility bill.
31 The company paid \)1,800 cash in dividends to the owner (sole shareholder).
Required 1. Create the following table similar to the one in Exhibit 1.9.
Use additions and subtractions within the table to show the dollar effects of each transaction on individual items of the accounting equation. Show new balances after each transaction.
What do you think about this solution?
We value your feedback to improve our textbook solutions.
