Which is the best way to express the fundamental accounting equation?
Question 2
2.
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?
Question 3
3.
If the total assets of a business are $38 400.50 and the total liabilities are $12 595.20, what is the ownerâs equity?
Question 4
4.
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 ownerâs equity at December 31, 2021?
Question 5
5.
Which of the following items would not be classified as an asset of a business?
Question 6
6.
If dollar signs are used on a balance sheet, they should appear before
Question 7
7.
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 Sedoreâs Capital balance?
Question 8
8.
Property is best defined as
Question 9
9.
Under IFRS, the balance sheet is called
Question 10
10.
When presenting assets under IFRS, current assets are listed
A companyâs offices are located on property that the company owns. The market value of the property has increased by $15 000.
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Question 11
11.
A. Should the balance sheet be updated to include this $15 000 increase in assets? Explain.
1
Question 12
12.
B. Which accounting standard(s) affect this situation? (hint: 2.4)
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1
1
1
1
1
1
1
1
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John Pagoda owns and operates a service store called Kwik Cleaners in Dartmouth, Nova Scotia.
Question 25
25.
Calculate John Pagodaâs 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
Question 26
26.
Calculate Kwik Cleaners ASSETS
1
Question 27
27.
Calculate Kwik Cleaners LIABILITIES
1
Question 28
28.
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, 20â.
5
1
Question 30
30.
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.)
3, 2, 1, 4
1, 3, 2, 4
$25 000
$10 000
None of the above.
a current liability.
a long-term asset.
a classified balance sheet.
None of the above.
on the right side of the balance sheet.
None of the above.
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
Question 13
13.
A1. _______
Question 14
14.
A2. _______
Question 15
15.
Accounting Standards Board
Question 16
16.
C. _______
Question 17
17.
D. _______
Question 18
18.
E1. _______
Question 19
19.
E2. _______
Question 20
20.
F. _______
Question 21
21.
G. _______
Question 22
22.
H. _______
Question 23
23.
I1. _______
Question 24
24.
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 Kwik Cleaners EQUITY
Question 29
29.
Find and select five (5) errors found on Armstrongâs balance sheet. (HINT: there are 11 errors in total, but be aware that incorrect totals count only as one error)
Total assets, liabilities, and equity are incorrect.
Dollar signs are used incorrectly. There should only be dollar signs at the totals.
The mortgage of $30 000 should be listed under liabilities.
The first line of the heading should be Armstrong Hardware Store.
The amounts for Total Assets and Total Liabilities and Equity should appear on the
same line.
Household furniture is a personal asset and should not be listed as a business asset.
The title, G. Armstrong, Capital should replace Armstrong Hardware Store Equity.
Assets and Liabilities headings is incorrect.
The third line of the heading should be Armstrong Hardware Store.
Dollar signs are used incorrectly. The first amount in a column and the first amount beneath a single rule are the only ones that should have dollar signs.
Ownerâs Equity heading is omitted.
Assets are not listed in order of liquidity. Bank Balance should be listed first and the
supplies should appear before the building.
The final totals (Total Assets; Total Liabilities and Equity) on the balance sheet
should have a single rule above and double underline below.
The date should be May 1, 20â.
A/R is a personal asset and should not be listed as a business asset.
