Chapter 1 LAB Practice M1-4 through M1-10 Make index cards, list Account Name on one side and

the solution on the other . For

example, exercises M1-4 through M1-8, ask you to classify as an Asset, Liability, Stockholders Equity, Revenue or Expense. M1-4 1. Accounts Payable- Liability. You can eliminate the duplicates. The point of these short exercises is to build your recognition of account name titles and their classification. This is used throughout the course and you wont have a card to remind you.

M1-14 Preparing an Income Statement, Statement of Retained Earnings, and Balance Sheet
The following accounts are taken from the December 31, 2007, financial statements of Southwest Airlines, Inc. See page 30 for numbers Prepare an income statement for the year ended December 31, 2007. Revenues

1. Prepare a statement of retained earnings for the period ended December 31, 2007..

2. Prepare a balance sheet at December 31, 2007. Assets Liabilities

Total Liabilities Stockholders Equity

Total Equity Total Liab & Equity

E1-3 Preparing a Balance Sheet P31

Required: 1. Prepare the balance sheet as of November 1, 2008, solving for the missing amount. Assets Liabilities

Total Liabilities Stockholders Equity

Total Equity Total Liab & Equity Acc 2013 Chapter 1 Lab/Practice, 3 edition
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E1-4 Completing a Balance Sheet and Inferring Net Income p. 31

Required: 1. Complete the following balance sheet as December 31, 2009 Assets Liabilities

Total Liabilities Stockholders Equity

Total Equity Total Liabilities & Equity 2. Using the retained earnings equation and an opening balance of $0, compute the amount of net income for the year ended December 31, 2009.

4. Assuming that Reader Direct generates net income of $3,000 and pays dividends of $2,000 in 2010, what is the ending retained earnings balance at December 31, 2010?

E1-5 Labeling and Classifying Business Transactions.

The following items relate to business transactions involving K Swiss, Inc. Identify the account title for each item and classify the item as Asset, Liability, Stockholders Equity, Revenue or Expense Description Account Title Classification Coins and Currency Amounts K Swiss owes its suppliers Amounts K Swiss can collect from customers Amounts owed to bank for a loan to buy a building Property on which buildings will be built Amounts distributed from profits to stockholders Amounts earned by K-Swiss by selling watches Unused paper in K-Swiss head office Cost of paper used up during month Amounts contributed to K-Swiss by stockholders

E 1-9 Preparing an Income Statement and Balance Sheet p33

Revenues

Expenses

Acc 2013 Chapter 1 Lab/Practice, 3 edition

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Assets

Liabilities

Total Liabilities Stockholders Equity

Total Equity Total Liabilities & Equity

CP1-1 Preparing an Income Statement, Statement of Retained Earnings, and Balance Sheet p 36
1. Prepare an income statement for the year 2009. TIP: Begin by classifying each account as asset, liability, stockholders' equity, revenue, or expense. Then use the format shown in the chapter for presenting an income statement.

Revenues

Expenses

2. Prepare a statement of retained earnings for the year ended December 31, 2009. TIP: Because this is the first year of operations, the beginning balance in retained earnings will be zero.

3. Prepare a balance sheet at December 31, 2009. TIP: The balance sheet reports the ending retained earnings balance from the statement of retained earnings. Assets Liabilities

Total Liabilities Stockholders Equity

Total Equity Total Liab & Equity

CP1-2 Interpreting the Financial Statements Refer to CP1-1.

1. Evaluate whether the company was profitable. 2. Evaluate whether the company could have paid a greater amount for dividends. 3. Evaluate whether the company is financed mainly by creditors or stockholders.

Acc 2013 Chapter 1 Lab/Practice, 3 edition

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PA1-1 Preparing an Income Statement, Statement of Retained Earnings, and Balance Sheet
1. Prepare an income statement for the year 2010.

Revenues

Expenses

2. Prepare a statement of retained earnings for the year ended December 31, 2010.

3. Prepare a balance sheet at December 31, 2010. Assets Liabilities

Total Liabilities Stockholders Equity

Total Equity Total Liabilities & Equity

PA1-2 Interpreting the Financial Statements

Refer to PA1-1. Required: 1. Evaluate whether the company was profitable. 2. Evaluate whether the company could have paid a greater amount for dividends. 3. Evaluate whether the company is financed mainly by creditors or stockholders.

PA1-3 Preparing an Income Statement, Statement of Retained Earnings, and Balance Sheet
1. Prepare an income statement for the year 2006.

Revenues

Expenses

Acc 2013 Chapter 1 Lab/Practice, 3 edition

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2. Prepare a statement of retained earnings for the year ended December 31, 2006

3. Prepare a balance sheet at December 31, 2006. Assets Liabilities

Total Liabilities Stockholders Equity

Total Equity Total Liabilities & Equity 4. Statement of cash flows will be covered in Chapter 12 PB1-1 Preparing an Income Statement & Balance Sheet (On your Own) Follow PA-1 as a guide

Revenues

Expenses

1. Prepare a statement of retained earnings for the year ended December 31, 2008.

2. Prepare a balance sheet at December 31, 2008. Assets Liabilities

Total Liabilities Stockholders Equity

Total Equity Total Liabilities & Equity

Acc 2013 Chapter 1 Lab/Practice, 3 edition

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