Reference no: EM131613407

Exercise Ch 1 - Ex 2

Exercise Ch 1- Ex 5

January 1 Assets

A. Compute the change in owner's equity during the year by using the accounting equation.
2. Assume that there were no owner investments or withdrawals during the year. What is the probable cause of the change in owner's equity from part (a)?
3. Assume that there were no owner investments during the year. If the owner withdrew $17,000, determine and compute the company's net income or net loss.
4. If owner investments and withdrawals amounted to $13,000 and $2,000, respectively, determine whether the company operated profitably during the year.

Exercise Ch 1- Ex 8

Ch 1 Pb 3

Ch 1 Pb 5

Ch 2 Ex 3

Ch 2 Ex 4

Exercise

This is a review of chapter one, exercise two. As you can see on the screen, they have listed about 12 accounts with amounts, and are asking three questions down below. What are total assets-- two, total liabilities-- and three, net income?

So first of all, we have to label each of these accounts as to what major group it belongs to-- asset, liability, owner's equity, revenue, or expense. Let's do that first. Let's look at accounts payable. Remember, liabilities is what you owe, and accounts payable is something you owe. So we'll label that a liability.

Accounts receivable is something you own-- assets, something you own. That's the amount of money people owe you. So we'll label that an asset also.

Now all expense is easy, because the last name is labeled expense. So we'll label that as an expense. And let's go down and cheat a little bit here and label all the ones that say expense. So that makes it a little easier for us.

OK, let's go back up to building. Building is certainly something we own, so let's label that as an asset. Cash, something else we own-- asset. Revenue, that's also easy because most of revenue accounts have a last name of revenue or income. So we'll label that revenue. Land, something else we own. That's an asset.

Loan payable, ooh, something we owe-- which will we don't want to pay, but we have to. So we'll label that as a liability. So once we have labeled all these, what we need to do now is go through and add up each of these accounts.

And you can see on the screen, I have entered the formula for total assets, if you look up top in the formula bar. I've added the four accounts together. Accounts receivable of $14,800, building of $30,000, the cash $7,400, and the land of $18,000. That's all assets, all the items we own. So my total down here is $70,200.

I did the same with total liabilities. I went up and created a formula, that you can see. We only have two, though. The accounts payable $3,200 and that loan payable of $40,000. They also want us to calculate the net income, and in order to do that we have to total the revenues. And that's right here. We only had one revenue, a pre- revenue of $56,900. However, we had about six expenses, and you can see by the formula up here, I want to have added all the expenses.

Now in order to get net income, we have to subtract expenses from the revenue, so you can see here I subtracted the $49,300 expenses from the revenue of $56,900 to get net income of $7,600. So there's your answer. Total assets we calculated at $70,200. Total liability is $43,200, and we calculated net income of $7,600 by totaling all the revenues and subtracting all the expenses. So that's it for chapter one, exercise two, for Accounting 205.

Guidance Report

Now we'll view the Guidance Report with you today. The Guidance Report is your document that you will use to submit each weekly assignment. It is composed of four areas.

Area One is the audio/video for the exercise or problem. Area Two is the information about the accounts that were used in the original video, and the book numbers that were used in the video. Area Three are the changed numbers that you will use based upon your course start date. And Area Four is the area for your answers for the exercise or problem. Let's go over this in a little bit more detail.

Area One is the audio/video exercise, 2 in this example. And this is a three to five minute video which completes the problem or exercise using the book numbers, which are represented in Part Two.

Part Three shows you what numbers you need to change, and for which accounts. In this example, in the video, they used the book numbers for Building 30,000. If your course start date is in January or February, you would change that number to 32,200. Same with Fee Revenue, from 56,900 to 60,100. And Loan Payable from 40,000 to 44,200.

The numbers are changed because the video uses the book problem and the book answers, so for you to complete the problem, the numbers have been changed for key accounts. And then once you complete the problem, you can place your answers in the noted area. Once completed, just submit the Guidance Report to your instructor for grading.

Let's go through the steps, and we'll use Week One, Chapter 1, Exercise 2 as an example. First, listen to the Guidance Report video. Use Firefox. Internet Explorer seems not to work. Next, listen to the video below for the exercise or problem. The video completes the problems using the book numbers.

Three, open the book to the end of the chapter and review the first assignment. For example, Chapter 1, Exercise 2. I would print the exercise, and then open up the Guidance Report and ascertain which numbers have to be changed, and mark through those numbers on the printed exercise. Rework the problem with the changes, and place your answers on the Guidance Report. Don't alter the Guidance Report. Submit the Guidance Report using the Assignment Submission tab below.

Now, let's go through each step. OK. Step 1, listen to the Guidance Report video. The Guidance Report is located in Week One, under Assignments, and there it is right there. Week One Guidance Report. I would click on the link below, here, and that will give you a full screen of the Guidance Report.

OK. Step 2, listen to the video of the exercise or problem. Back to the course, you notice right underneath the Guidance Report is the video for Chapter 1, Exercise 2. And again, click on the blue link below for a full screen.

Number 3, open the book to the end of the chapter. Let's go through that. On the left hand menu, you'll see Course Materials. Click on that. Click on the Text. Click on the download arrow on the upper right, and now you have several choices here. Audio, Kindle, PDF, Text. So click on the PDF, Chapter 1. Download that. And then you'll see the book appear. Chapter 1.

And I would go to the end of the chapter, and there's Chapter 1, Exercise 2, Basic computations. Go ahead and highlight that. Hit Control-C. Copy it. Open a Word document, a new Word document, and paste it in the new Word document, and print it out.

Now, here is the Chapter 1, Exercise 2 in a Word document. Now, go back to the course. Week One. Click on Assignments. Scroll down, and you will see the Guidance Report. Click on the Guidance Report. Now, looking at the Guidance Report, we see over here our Chapter 1, Exercise 2. Three numbers have been changed. Building, Fee Revenue, Loan Payable. And I've listed the original amounts in the book.

Now, if your course date starts July or August, you would change those numbers to what I have here. The Building would change from 30,000 to 38,800. Fee Revenue would change to 69,700. Loan Payable will change to 56,800.

I would go back to your Word document, and mark through those numbers, as you can see on the screen, and then rework the problem. Once you've reworked the problem, then you need to insert your answers into the Guidance Report, and your answers would go down below here, right underneath Your Answers Based Upon the Course Start Date. And then submit that using the Assignment Submittal tab underneath Assignment.

So that's it. Thank you very much.

Attachment:- week one.xlsx