Classroom Exercises 1.18.23

School: West Virginia University - Course: ACCT 202 - Subject: Accounting

Sample Homework LO1Identify the Different Types of Businesses Define and identify Merchandiser, Manufacturer and Service Organization LO2Identify the Different Ownership Structures Recall the characteristics of Sole Proprietorships, Partnerships, Corporations and LLCs LO3Identify and Classify Business Activities Identify each activity for Anudu Hair Salon as an operating, investing, or financing activity Received $40,000 from its owners in exchange for Stock Purchased a barber's chair and sink for $35,000 LO4 Recall Accounting Information Systems and the Accounting Equation Match the statement with what each reports: Additional information regarding the financial statements Summary of all revenues minus all expenses during a period Summary of cash collected and cash paid during a period Changes in the amount of the owners' investment during a period Assets, liabilities and shareholders' equity at a specific point in time Use the accounting equation to solve for missing amounts: A=L+SE; SE = CS + RE If total assets equals $100,000 and total shareholders' equity equals $40,000, then total Identify if an account is an Asset, Liability or Shareholders' Equity account Inventory Cost of Goods Sold Interest Expense Interest Payable Retained Earnings LO5 Analyze Transactions Record transactions similar to Hot Diggity Dog (in class notes) and Sock Market (in text) Understand the effect of an error Show the effect of the entries below: Florist Gump, Inc.: Amount Purchased 10 vases @ $5 each Sold 6 vases at $8 each to customers for cash: Record the sale Record the cost of the salePaid $100 for advertising in the local paper Paid $200 for supplies to be used on customers over the next two months Received $500 from its customers

Purchased land for $900 by paying $200 and owing for the rest Repaid the loan plus $5 interest