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Ian Kitzel ACCT 2113 Daxon 201201120 AP1-1 1.a) Joint ownership. Good = cooperation/division of responsibilities.

Bad = possible problems with division of $ 1.b) Sole Prop. Good = Tony gets all benefits Bad = Suzie gets none (might go and create her own firm and compete with Tony 1.c) Corporation Good = high potential for growth because of investment Bad = might lose control over it at non-corporate level 2. Have to buy/rent building and land, procure a supplier for merchandise, organize a supply chain, hire and pay employees, invest in comouter software (logistics), utilize advertisement, etc. 3. Wage expenses, revenue (sales), rent/taxes, operation costs. 4. List of all expenses and revenues with a summary total revenue at end. AP 1-2 1.a. Total assets = $2,138,148 1.b. Total liabilities = $408,955 1.c. Total Shareholder Equity = $1,578,517 A-L=E? True! 2. Income = ??? 3.a. Net Income = $169,022 3.b. Net Sales = $2,990,520 4.a. Largest Inflow (inv.) = $7,630 4.b. Largest Outflow (inv.) = $127,419 4.c. Largest Inflow (fin.) = $119,805 4.d. Largest Outflow (fin.) = $82,985 5. Auditor = Ernst & Young LLP. Said that the amounts reported are correct (?) AP 1-3 1.a. Total assets = $488,903 1.b. Total liabilities = $134,644 1.c. Total Shareholder Equity = $354,259 A-L=E? True! 2. Income = ??? 3.a. Net Income = $127,303

3.b. Net Sales = $898,287 4.a. Largest Inflow (inv.) = $33,703 4.b. Largest Outflow (inv.) = $53,604 4.c. Largest Inflow (fin.) = $1,826 4.d. Largest Outflow (fin.) = $120,341 5. Auditor = Deloitte &Touche LLP Everything's all good AP 1-4 1. AE had larger total assets. 2. AE had larger total liabilities. Not always, because it's very possible to pay them off if income is sufficient. 3. If assets >> liabilities = more likely to lend money. If assets >,=,<,<< liabilities = less likely to lend money. 4. AE had larger net income. I don't know why that would mean it's more profitable. 5. Net income gives investors an idea of how productive a company is. Being the difference between revenues and expenses, the higher the net income, the more money the company is making. BE 1-2 1. B 2. A 3. C P 1-4 a. $4,500 b. $21,500 B 1-3 1. C B 1-4 1. E E 1-8 Equipment: ->Act. Pay Salaries: ->Notes Pay Land ->Stock Service Rev. Cash ->Equity $21,000 $2,000 $28,000 $15,000 $13,000 $10,000 $34,000 $5,000 $5,000 $67,000 Retained earnings = $69,000 $136,000 2. F 3. B 4. C 5. A 6. D 2. A 3. B E 1-1 1. B 4. B 2. C 5. C 3. A 6. A

7. B

Adventure Assignment! Both had: 1. Merchandise (Assets) 2. Signs (Assets) 3. Cameras (Expense) 4. Money in the registers (Revenue) 5. Wages (Liabilities to employees)