Given below are the daily balances in the accounts of the Alta Loma Company.Assuming only one transaction occurred each day, explain the nature of each transaction on May 1 to May 10. $\begin{array}{lrrrrrr}&& \text { Accts. } & && \text { Accts. } & \text { Owners' } \\ &\text { Cash } & \text { Rec. } & \text { Inv. }&\text { Equip.} & \text { Payable } & \text { Equity }\\\hline \text { Beg. Bal. } & \$ 1,250 & \$ 500 & \$ 1,125 & \$ 3,000 & \$ 1,750 & \$ 5,250 \\ \text { May 1 } & 1,250 & 500 & 1,325 & 3,000 & 1,950 & 5,250 \\ \text { May 2 } & 1,400 & 350 & 1,325 & 3,000 & 1,950 & 5,250 \\ \text { May 3 } & 1,225 & 350 & 1,325 & 3,000 & 1,775 & 5,250\\ \text { May 4 } & 1,600 & 350 & 1,325 & 3,000 & 1,775 & 5,625 \\ \text { May 5 } & 1,375 & 350 & 1,325 & 3,575 & 2,125 & 5,625 \\ \text { May 6 } & 1,375 & 350 & 1,200 & 3,575 & 2,000 & 5,625 \\ \text { May 7 } & 1,450 & 700 & 1,200 & 3,150 & 2,000 & 5,625\\ \text { May 8 } & 1,200 & 700 & 1,200 & 3,150 & 2,000 & 5,375 \\ \text { May 9 } & 1,175 & 700 & 1,225 & 3,150 & 2,000 & 5,375 \\ \text { May 10 } & 1,175 & 700 & 1,225 & 3,425 & 2,000 & 5,650 \end{array}$

May 1 Alta Loma Company acquired $200 of

The following information was extracted from the accounting records of Plum Company: \[\begin{array} { l r } \text { Beginning Paid-In Capital } & \$ 87,000 \\ \text { Beginning Retained Earnings } & \$ 211,000 \\ \text { Beginning Assets } & \$ 455,000 \end{array}\] During the period assets increased by $150,000, revenues were $200,000, and expenses were $165,000.The owners made no additional investments. The amount of Plum Company's liabilities at the end of the period is _____.

A) $157,000 B) $272,000 C) $150,000 D) $ 45,000 A) $157,000 B) $272,000 C) $150,000 D) $ 45,000

Exam 15: Basic Accounting: Concepts, Techniques, and Conventions

Given below are the daily balances in the accounts of the Alta Loma Company.Assuming only one transaction occurred each day, explain the nature of each transaction on May 1 to May 10. Accts. Accts. Owners' Cash Rec. Inv. Equip. Payable Equity Beg. Bal. \ 1,250 \ 500 \ 1,125 \ 3,000 \ 1,750 \ 5,250 May 1 1,250 500 1,325 3,000 1,950 5,250 May 2 1,400 350 1,325 3,000 1,950 5,250 May 3 1,225 350 1,325 3,000 1,775 5,250 May 4 1,600 350 1,325 3,000 1,775 5,625 May 5 1,375 350 1,325 3,575 2,125 5,625 May 6 1,375 350 1,200 3,575 2,000 5,625 May 7 1,450 700 1,200 3,150 2,000 5,625 May 8 1,200 700 1,200 3,150 2,000 5,375 May 9 1,175 700 1,225 3,150 2,000 5,375 May 10 1,175 700 1,225 3,425 2,000 5,650

(Essay)

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Question 41

The cost recovery concept carries asset balances forward because their costs are expected to be recovered in future periods.

(True/False)

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Question 42

A magazine publisher sells annual subscriptions.The distribution of the monthly issue affects the firm by increasing_____.

(Multiple Choice)

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Question 43

_____ is an example of an implicit transaction.

(Multiple Choice)

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Question 44

Increases in revenues do not affect stockholders' equity.

(True/False)

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Question 45

The predicted sales value of a long-lived asset at the end of its useful life

(Short Answer)

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Question 46

Sacramento Company owns a fixed asset with an original cost of $100,000.Magic Company estimates it will use the asset for 4 years, at which time the asset can be sold for $10,000.The book value of the asset after three years of use is_____.

(Multiple Choice)

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Question 47

San Diego Company paid $36,000 for May, June, July, and August rent in advance.The company recorded this transaction by increasing the balance in the Prepaid Rent account.The balance in the Prepaid Rent account as of July 1 is_____.

(Multiple Choice)

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Question 48

An organization that joins two or more individuals together as co-owners

(Short Answer)

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Question 49

Unearned revenue decreases stockholders' equity.

(True/False)

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Question 50

The following information was extracted from the accounting records of Plum Company: Beginning Paid-In Capital \ 87,000 Beginning Retained Earnings \ 211,000 Beginning Assets \ 455,000 During the period assets increased by $150,000, revenues were $200,000, and expenses were $165,000.The owners made no additional investments. The amount of Plum Company's liabilities at the end of the period is _____.

(Multiple Choice)

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Question 51

The acquisition of inventory for cash will _____.

(Multiple Choice)

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Question 52

The _____ adjusting entry increases expenses and increases liabilities.

(Multiple Choice)

5.0/5

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Question 53

Distinctions between paid-in capital and retained earnings are rarely made for_____.

(Multiple Choice)

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Question 54

Assume that Pacer Company's paid-in capital at the beginning of the period was $475,000.Pacer Company's total revenues and total expenses were $890,000 and $550,000, respectively.A dividend of $70,000 was declared and paid to shareholders.Pacer Company's net income is_____.

(Multiple Choice)

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Question 55

The entity's economic obligations to nonowners isare) called _____.

(Multiple Choice)

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Question 56

Financial statements for proprietorships and partnerships rarely make distinctions between paid-in capital and retained earnings.

(True/False)

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Question 57

Depreciation is computed on_____.

(Multiple Choice)

4.9/5

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Question 58

Excess of revenues over expenses results in a profit.

(True/False)

5.0/5

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Question 59

A cash payment of accounts payable does not affect stockholders' equity.

(True/False)

4.8/5

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Question 60

The cost recovery concept carries asset balances forward because their costs are expected to be recovered in future periods.

A magazine publisher sells annual subscriptions.The distribution of the monthly issue affects the firm by increasing_____.

_____ is an example of an implicit transaction.

Increases in revenues do not affect stockholders' equity.

The predicted sales value of a long-lived asset at the end of its useful life

Sacramento Company owns a fixed asset with an original cost of $100,000.Magic Company estimates it will use the asset for 4 years, at which time the asset can be sold for $10,000.The book value of the asset after three years of use is_____.

San Diego Company paid $36,000 for May, June, July, and August rent in advance.The company recorded this transaction by increasing the balance in the Prepaid Rent account.The balance in the Prepaid Rent account as of July 1 is_____.

An organization that joins two or more individuals together as co-owners

Unearned revenue decreases stockholders' equity.

The acquisition of inventory for cash will _____.

The _____ adjusting entry increases expenses and increases liabilities.

Distinctions between paid-in capital and retained earnings are rarely made for_____.

Assume that Pacer Company's paid-in capital at the beginning of the period was $475,000.Pacer Company's total revenues and total expenses were $890,000 and $550,000, respectively.A dividend of $70,000 was declared and paid to shareholders.Pacer Company's net income is_____.

The entity's economic obligations to nonowners isare) called _____.

Financial statements for proprietorships and partnerships rarely make distinctions between paid-in capital and retained earnings.

Depreciation is computed on_____.

Excess of revenues over expenses results in a profit.

A cash payment of accounts payable does not affect stockholders' equity.

Managerial Accounting, the Business Organization, and Professional Ethics

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and an Introduction to Activity-Based Costing

Relevant Information and Decision Making With a Focus on Pricing Decisions

Relevant Information and Decision Making: Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Costing and Process-Costing Systems

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

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