Accounting help need done in a couple hours

Chapter 1 Homework

Due Week 1 and worth 10 points

Directions: Answer the following four questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your homework assignment using the homework assignment link in the course shell.

E1-1

Here is a list of words or phrases discussed in this chapter:

1. Corporation

2. Creditor

3. Accounts receivable

4. Partnership

5. Stockholder

6. Common stock

7. Accounts payable

8. Auditor’s opinion

Instructions:

Match each word or phrase with the best description of it.

______ (a)	An expression about whether financial statements conform with generally accepted accounting principles.
______ (b)	A business that raises money by issuing shares of stock.
______ (c)	The portion of stockholders’ equity that results from receiving cash from investors.
______ (d)	Obligations to suppliers of goods.
______ (e)	Amounts due from customers.
______ (f)	A party to whom a business owes money.
______ (g)	A party that invests in common stock.
______ (h)	A business that is owned jointly by two or more individuals but does not issue stock.

E1-4

This information relates to Molina Co. for the year 2014.

Retained earnings, January 1, 2014	$67,000
Advertising expense	1,800
Dividends	6,000
Rent expense	10,400
Service revenue	58,000
Utilities expense	2,400
Salaries and wages expense	30,000

Instructions:

After analyzing the data, prepare an income statement and a retained earnings statement for the year ending December 31, 2014.

E1-8

The following items and amounts were taken from Motte Inc.’s 2014 income statement and balance sheet.

______ Cash	$ 84,700	______ Accounts receivable	$ 88,419
______ Retained earnings	123,192	______ Sales revenue	584,951
______ Cost of goods sold	438,458	______ Notes payable	584,951
______ Salaries and wages expense	115,131	______ Accounts payable	49,384
______ Prepaid insurance	7,818	______ Service revenue	4,806
______ Inventory	64,618	______ Interest expense	1,882

Instructions:

a) In each, case, identify on the blank line whether the item is an asset (A), liability (L), stockholder’s equity (SE), revenue (R), or expense (E) item.

b) Prepare an income statement for Motte Inc. for the year ended December 31, 2014.

E1-12

This information is for Dyckman Corporation for the year ended December 31, 2014.

Cash received from lenders	$20,000
Cash received from customers	50,000
Cash paid for new equipment	28,000
Cash dividends paid	8,000
Cash paid to suppliers	16,000
Cash balance 1/1/14	12,000

Instructions

(a) Prepare the 2014 statement of cash flows for Dyckman Corporation.

(b) Suppose you are one of Dyckman’s creditors. Referring to the statement of cash flows, evaluate Dyckman’s ability to repay its creditors.