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BAF 3M 🚨 Ch. 2 Assignment A

Last updated about 1 year ago
30 questions
1

Which is the best way to express the fundamental accounting equation?

1

Johnson Storage Solutions has the following list of assets:
1. Supplies
2. Accounts Receivable
3. Cash
4. Building

Which is the correct order of assets on a classified balance sheet?

1

If the total assets of a business are $38 400.50 and the total liabilities are $12 595.20, what is the owner’s equity?

1

On December 31, 2020, a business had $150 000 in assets and $70 000 in liabilities. During the next year, assets increased by $70 000 and liabilities decreased by $20 000. What would be the owner’s equity at December 31, 2021?

1

Which of the following items would not be classified as an asset of a business?

1

If dollar signs are used on a balance sheet, they should appear before

1

Teresa Sedore has decided to close down her business and sell off her assets. Her Capital balance before liquidation is $30 000. Assets valued at $35 000 were sold for $16 000 in cash. The total liabilities of $5000 were paid in full. She paid the liquidator $1000. After the liquidation of her assets and liabilities, what would be Sedore’s Capital balance?

1

Property is best defined as

1

Under IFRS, the balance sheet is called

1

When presenting assets under IFRS, current assets are listed

A company’s offices are located on property that the company owns. The market value of the property has increased by $15 000.
1

A. Should the balance sheet be updated to include this $15 000 increase in assets? Explain.

1

B. Which accounting standard(s) affect this situation? (hint: 2.4)

Fill in the blank word bank:
Accounting Standards Board
assets
business entity
cash
cell address
continuing concern
creditors
formula
International Financial Reporting Standards
liquidity
net worth
owner
1
A1. _______
1
A2. _______
1
Accounting Standards Board
1
C. _______
1
D. _______
1
E1. _______
1
E2. _______
1
F. _______
1
G. _______
1
H. _______
1
I1. _______
1
12. _______
John Pagoda owns and operates a service store called Kwik Cleaners in Dartmouth, Nova Scotia.
12

Indicate whether each of the items listed below is an asset or a liability of his business by dragging the items to their appropriate titles.
If the item is neither, drag the item to 'neither'.

  • Mortgage on his service store
    $60 000
  • Delivery truck
    $22 000
  • Money owed to Home Hardware
    $2 000
  • Cash on hand
    $1 000
  • Household furniture
    $6 000
  • Money a customer owes
    $3 000
  • Mortgage on his house
    $30 000
  • Store equipment
    $8 000
  • The land and building where his store is located
    $240 000
  • A coffee dispenser placed in the store by a company that rents out equipment
    $2 500
  • A company automobile leased (rented) from J. Grayson Leasing Company
    $18 000
  • An old display counter that has no further dollar value
    $0
  • Asset
  • Liability
  • Neither
Calculate John Pagoda’s equity in Kwik Cleaners. Show calculations for Assets, Liabilities, and Equity. DO NOT make a balance sheet, just a rough calculation. Ex.

Assets: A+B+C=ASSETS
Liabilities: A+B+C=LIABILITIES
Equity: A-L=OE

Items that were 'neither' should not be included in this calculation.
1

Calculate Kwik Cleaners ASSETS

1

Calculate Kwik Cleaners LIABILITIES

1

Calculate Kwik Cleaners EQUITY

G. Armstrong is the new owner of Armstrong Hardware Store. He believes that he knows enough about accounting to prepare his first balance sheet, as illustrated below, before starting a business on May 1, 20–.
5

Find and select five (5) errors found on Armstrong’s balance sheet. (HINT: there are 11 errors in total, but be aware that incorrect totals count only as one error)

1

Which accounting standard has G. Armstrong violated? Explain.

You are finished here. The last two items tasks are to prepare balance sheets. Go back to Google Classroom and click the link to go to the Balance Sheets. (turn in the balance sheets when you're done.)