Assignment Week 2 Question 1 1. Baseball stadiums vary in age, style, size, and in many other ways. Fans might think of the size of the stadium in terms of the number of seats; while the player might measure the size of the stadium by the distance from the homplate to the centerfield fence. Note: CF = distance from homeplate to centerfield fence. Using the Excel add-in construct your scatter diagram with the data set provide below.   Seats CF 38805 420 41118 400 56000 400 45030 400 34077 400 40793 400 56144 408 50516 400 40615 400 48190 406 36331 434 43405 405 48911 400 50449 415 50091 400 43772 404 49033 407 47447 405 40120 422 41503 404 40950 435 38496 400 41900 400 42271 404 43647 401 42600 396 46200 400 41222 403 52355 408 45000 408 Is there a relationship between these two measurements for the “size” of the 30 Major League Baseball stadiums? a. Before you run your scatter diagram answer the following: What do you think you will find? Bigger fields have more seats? Smaller fields have more seats? No relationship exists between field size and number of seats? A strong relationship exists between field size and number of seats? Explain. b. Construct a scatter diagram and include it in your answer. c. Describe what the scatter diagram tells you, including a reaction to your answer in (a). Question 2 2. Place a pair of dice in a cup, shake and dump them out. Observe the sum of dots. Record 2, 3, 4, _ , 12. Repeat the process 25 times. Using your results, find the relative frequency for each of the values: 2, 3, 4, 5, _ , 12. BUAD 212: Financial Accounting II Homework Assignment 2 Financial Accounting II Homework Assignment 2 1. Draw a diagram of the first three steps in the accounting cycle. Then, explain to me the meaning of the three steps, and why they are important? 2. Selected accounts from the general ledger of the Express Lawnmower Service follow. Analyze the following transactions and indicate by number what accounts should be debited and credited for each transaction. 101 Cash 111 Accounts Receivable 121 Supplies 131 Equipment 202 Accounts Payable 301 Thomas Jefferson, Capital 401 Fees Income 511 Rent Expense 514 Salaries Expense 517 Utilities Expense Transactions: 1. Issued a check for $1,700 to pay the monthly rent. 2. Purchased supplies for $1,000 on credit. 3. Collected $4,800 from credit customers. 4. Collected services for $3,900 in cash. 5. Performed services for $3,900 in cash. 6. Issued a check for $1,500 to pay a creditor on account. 7. Purchased new equipment for $2,150 and paid for it immediately by check. 8. Provided services for $5,600 on credit. 9. Sent a check for $600 to the utility company to pay the monthly bill. 10. Gave a cash refund of $180 to a customer because of a lost package (customer had previously paid in cash.) Attach additional paper if necessary to the examination for completion of problem. 3. Tell me why it is important to ...

1. Assignment Week 2
Question 1
1. Baseball stadiums vary in age, style, size, and in many other
ways. Fans might think of the size of the stadium in terms of the
number of seats; while the player might measure the size of the
stadium by the distance from the homplate to the centerfield
fence. Note: CF = distance from homeplate to centerfield fence.
Using the Excel add-in construct your scatter diagram with the
data set provide below.
Seats
CF
38805
420
41118
400
56000
400
45030
400
34077
400
40793
400
56144
408

2. 50516
400
40615
400
48190
406
36331
434
43405
405
48911
400
50449
415
50091
400
43772
404
49033
407
47447
405
40120
422

3. 41503
404
40950
435
38496
400
41900
400
42271
404
43647
401
42600
396
46200
400
41222
403
52355
408
45000
408
Is there a relationship between these two measurements for the

4. “size” of the 30 Major League Baseball stadiums?
a. Before you run your scatter diagram answer the following:
What do you think you will find? Bigger fields have more seats?
Smaller fields have more seats? No relationship exists between
field size and number of seats? A strong relationship
exists between field size and number of seats? Explain.
b. Construct a scatter diagram and include it in your answer.
c. Describe what the scatter diagram tells you, including a
reaction to your answer in (a).
Question 2
2. Place a pair of dice in a cup, shake and dump them out.
Observe the sum of dots. Record 2, 3, 4, _ , 12. Repeat the
process 25 times. Using your results, find the relative frequency
for each of the values: 2, 3, 4, 5, _ , 12.
BUAD 212: Financial Accounting II
Homework Assignment 2
Financial Accounting II
Homework Assignment 2
1.
Draw a diagram of the first three steps in the accounting cycle.
Then, explain to me the meaning of the three steps, and why
they are important?
2.
Selected accounts from the general ledger of the Express
Lawnmower Service follow. Analyze the following transactions
and indicate by number what accounts should be debited and
credited for each transaction.
101 Cash

5. 111 Accounts Receivable
121 Supplies
131
Equipment
202
Accounts Payable
301 Thomas Jefferson, Capital
401
Fees Income
511
Rent Expense
514
Salaries Expense
517 Utilities Expense
Transactions:
1.
Issued a check for $1,700 to pay the monthly rent.
2.
Purchased supplies for $1,000 on credit.

6. 3.
Collected $4,800 from credit customers.
4.
Collected services for $3,900 in cash.
5.
Performed services for $3,900 in cash.
6.
Issued a check for $1,500 to pay a creditor on account.
7.
Purchased new equipment for $2,150 and paid for it
immediately by check.
8.
Provided services for $5,600 on credit.
9.
Sent a check for $600 to the utility company to pay the monthly
bill.
10.
Gave a cash refund of $180 to a customer because of a lost
package (customer had previously paid in cash.)
Attach additional paper if necessary to the examination for
completion of problem.

7. 3.
Tell me why it is important to record transactions in the general
ledger, and to prepare compound journal entries?
4.
Tell me why it is important to post journal entries to general
ledger accounts, and to correct errors made in the journal or
ledger?
5.
What are three situations you might encounter in which you
need to “follow” the audit trail?
6.
Tell me why it is important to complete a trail balance on a
worksheet, and why it is important to prepare adjustments for
unrecorded business transactions?
7. Tell me why if you skip the adjustment process, how will this
affect the financial statements?
8.
Determine the necessary end-of-June adjustments for Black and
Company:
A.
On June 1, 2003, Black and Company, a new firm, paid $7,200
rent in advance for a six-month period. The $7,200 was debited
to the Prepaid Rent account.
B.
On June 1, 2003, the firm bought supplies for $1,950. The
$1,950 was debited to the Supplies account. An inventory of
supplies at the end of June showed that items costing $700 were
on hand.
C.

8. On June 1, 2003, the firm bought equipment costing $24,000.
The equipment has an expected useful life of ten years and no
salvage value. The firm will use the straight-line method of
depreciation.
9.
The trial balance of Harding Company as of February 28, 2003,
appears below:
A.
Record the trial balance in the Trail Balance section of the
worksheet.
B.
Complete the worksheet by making the following adjustments:
Supplies on hand at the end of the month, $1,600; expired rent,
$1,800; depreciation expense for the period, $500.
Harding Company Worksheet (Partial)
Month Ended February 28, 2003
AccountTrial BalanceAdjustments
DebitCreditDebitCredit
Cash
$37,000
Accounts Receivable
$4,600

9. Supplies
$2,400
Prepaid Rent
$21,600
Equipment
$28,000
Accumulated Deprec. – Equip.
Accounts Payable
$6,000
Robert Harding, Capital
$67,000
Robert Harding, Drawing
$2,000
Fees Income

10. $27,000
Deprec. Expense – Equip.
Rent Expense
Salaries Expense
$3,600
Supplies Expense
Utilities Expense
$800
------------------------------------------
Totals
$100,000
$100,000
Analyze: Why do you think the account Accumulated

11. Depreciation – Equipment has a zero balance on the trial
balance shown?
10.
Why is it important to complete the worksheet, and prepare an
income statement, statement of owner’s equity, and balance
sheet from the completed worksheet. And, why is it important
to journalize and post the adjusting entries?
11.
Three years ago, the Renton Technical College bought a
delivery truck for $55,000. The truck has no salvage value and
a five-year useful life. What is the book value of the truck at
the end of three years. You must show all work.
12.
Give me the full and complete definition of net income, as it
relates to a completed worksheet. Why is net income
important?
13.
Give me the reason(s) why it is important to journalize and post
closing entries?
14.
Please tell me, and describe, the four steps in the closing
process?
15.
Describe why it is important to prepare a post-closing trial
balance. Then, tell me why it is important to interpret financial
statements. And finally, why is it important to review the steps
in the accounting cycle?
16.
Illustrate, describe, and explain the accounting cycle?

12. 17.
If you owned or managed a business, how often would you want
financial statements prepared? Why?
18.
On which financial statement would you find the answer to each
question:
-
What were the total fees earned this month?
-
How much money is owed to suppliers?
-
Did the business make a profit?
-
Is there enough cash to purchase new equipment?
-
What were the expenses?
-
Do customers owe money to the business?
19.
On December 31, 2002, the ledger of McAllister and Williams
Company contained the following account balances:
Cash
$28,000

13. Jerold McAllister, Drawing
$12,000
Accounts Receivable
$2,200
Fees Income
$42,500
Supplies
$1,800
Equipment
$15,000
Depreciation Expense
$1,500

14. Salaries Expense
$14,000
Accumulated Depreciation
$2,500
Supplies Expense
$2,000
Accounts Payable
$3,000
Telephone Expense
$1,800
Jerold McAllister, Capital
$23,100
Utilities Expense
$4,600

15. All accounts have normal balances. Journalize the closing
entries. Use 4 as the general journal page number.
20.
From the following, identify the accounts that will appear on
the post-closing trail balance:
A.
Cash
Account Receivable
Supplies
Capital Account
Equipment
Accumulated Depreciation
Accounts Payable
Owner’s Equity
Sharon Black, Capital

16. Fees Income
Sharon Black, Drawing
Depreciation Expense
Salaries Expense
Supplies Expense
Utilities Expense
Advertising Expense
B.
Now, the following are the steps in the accounting cycle.
Arrange the steps in the proper sequence:
Journalize the transactions.
Interpret the financial information.
Record the closing entries.
Prepare a worksheet.
Analyze the transactions.
Prepare financial statements.
Record adjusting entries.
Prepare a post-closing trial balance.

17. Post the journal entries.