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ACC 557 Week 1 Chapter 1 (E1 4 E1 7 E1 11 P1 2A) 100% Scored 2015 version

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WEEK 1

Chapter 1

E1-4

1. The accounting method used is Incorrect. Because the cost principle requires that assets (such as buildings) be recorded and reported at their cost.

2. The accounting method used is Correct. Because according to the monetary unit assumption requires that companies include in the accounting records only transaction data that can be expressed in terms of money be included in the accounting records. This assumption enables accounting to quantify (measure) economic events. The monetary unit assumption is vital to applying the cost principle

3. The accounting method used is Incorrect. Because according to The Economic Entity Assumption says that the activities of the entity are to be kept separate from the activities of its owner and all other economic entities. The business is accounted for separately from other business entities, including its owner. The reason for this is that separate information about each business is necessary for g

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ACC 557 Week 1 Chapter 1 (E1 4 E1 7 E1 11 P1 2A) 100% Scored 2015 version

  1. 1. ACC 557 Week 1 Chapter 1 (E1 4 E1 7 E1 11 P1 2A) 100% Scored Link : http://uopexam.com/product/acc-557-week-1-chapter-1-e1-4-e1-7-e1-11-p1-2a-100- scored/ Sample content WEEK 1 Chapter 1
  2. 2. E1-4 1. The accounting method used is Incorrect. Because the cost principle requires that assets (such as buildings) be recorded and reported at their cost. 2. The accounting method used is Correct. Because according to the monetary unit assumption requires that companies include in the accounting records only transaction data that can be expressed in terms of money be included in the accounting records. This assumption enables accounting to quantify (measure) economic events. The monetary unit assumption is vital to applying the cost principle 3. The accounting method used is Incorrect. Because according to The Economic Entity Assumption says that the activities of the entity are to be kept separate from the activities of its owner and all other economic entities. The business is accounted for separately from other business entities, including its owner. The reason for this is that separate information about each business is necessary for good decisions. Economic entity can be any organization or unit in society. E1-7 1. C 2. D 3. A 4. B 5. D 6. B 7. E 8. F E1-11 For (a)
  3. 3. Total assets (beginning of year) $ 97,000 Total liabilities (beginning of year) 85,000 a) Total stockholders’ equity (beginning of year) …… …………………………………… $12,000 For (b) Total stockholders’ equity (end of year) $ 40,000 Total stockholders’ equity (beginning of year) 12,000 Increase in stockholders’ equity $ 28,000 Total revenues $215,000 Total expenses 175,000 Net income $ 40,000 Increase in stockholders’ equity $ 28,000 Less: Net income $(40,000) Add: Dividends 24,000) (16,000 ) (b) Additional investment ……………………………………………………………………………………………. $12, 000 For (c) Total assets (beginning of year) $129,000 Total stockholders’ equity (beginning of year) 75,000
  4. 4. (c) Total liabilities (beginning of year)…………………………………………………………………………………$ 54,00 0 For (d) Total stockholders’ equity (end of year) $130,000 Total stockholders’ equity (beginning of year) 75,000 Increase in stockholders’ equity $ 55,000 Total revenues $100,000 Total expenses 55,000 Net income $ 45,000 Increase in stockholders’ equity $ 55,000 Less: Net income $(45,000) Additional investment (25,000) (70,000) (d) Dividends………………………………………………… ……………………………………………………………… $ 15,000 PROBLEM P1-2A a. DONAHUE VETERINARY CLINIC Cash + Accounts
  5. 5. Receivable + Supplies + Office Equipment = Notes Payable + Accounts Payable + Common Stock + Retained Earnings + Revenues –
  6. 6. Expenses – Dividends $ 9,000 –2,900 6,100 +1,300 7,400 –800 6,600 +2,500 9,100 –400 8,700 –2,800 5,900 000,000 5,900 +10,000
  7. 7. $15,900 + + + + + + + + + $1,700 00,000 1,700 –1,300 400 00,000 400 +4,800 5,200 00,000
  8. 8. 5,200 00,000 5,200 00,000 5,200 $5,200 + + + + + + + + + $600 0000 600 0000
  9. 9. 600 0000 600 0000 600 0000 600 0000 600 0000 600 $600 + + + + + + + +
  10. 10. + $ 6,000 000,000 6,000 000,000 6,000 +2,100 8,100 000,000 8,100 000,000 8,100 000,000 8,100 000,000 8,100 $ 8,100 = =
  11. 11. = = = = = = = +$10,000 +$10,000 + $3,600 –2,900 700 00,000 700 +1,300 2,000 00,000 2,000 00,000
  12. 12. 2,000 http://uopexam.com/product/acc-557-week-1-chapter-1-e1-4-e1-7-e1-11-p1-2a-100-scored/

Sample content WEEK 1 Chapter 1 E1-4 1. The accounting method used is Incorrect. Because the cost principle requires that assets (such as buildings) be recorded and reported at their cost. 2. The accounting method used is Correct. Because according to the monetary unit assumption requires that companies include in the accounting records only transaction data that can be expressed in terms of money be included in the accounting records. This assumption enables accounting to quantify (measure) economic events. The monetary unit assumption is vital to applying the cost principle 3. The accounting method used is Incorrect. Because according to The Economic Entity Assumption says that the activities of the entity are to be kept separate from the activities of its owner and all other economic entities. The business is accounted for separately from other business entities, including its owner. The reason for this is that separate information about each business is necessary for g

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