In-class Activities (1)
Air & Sea Travel recorded revenue of $3,000
earned on account by providing travel service
for clients.
How much the business's cash and total assets
after the transaction? Name the business's
asset.
In-class Activities (2)
Generally Accepted Accounting Principles (GAAP)
are formulated by the
1.Institute of Management Accountants (IMA)
2.American Institute of Certified Public
Accountants (AICPA)
3.Securities and Exchange Commission (SEC)
4.Financial Accounting Standard Board (FASB)
In-class Activities (3)
Dana Woody practiced accounting with a partnership for 5 years. Recently
he opened his own accounting firm, which he operates as a proprietorship.
The name of the new entity is Dana Woody, Accounting. Dana
experienced the following events in Feb and Mar 2021.
Feb 4: Received $75,000 cash from former accounting partners
Feb 7: Paid $300 cash for letterhead stationary for the new office
Feb 10: Purchased office furniture for the office, he agreed to pay the
account payable, $7,000 in March.
In-class Activities (3)
Feb 15: Sold personal investment in amazon.com stock, which he had
owned for several years, receiving $50,000 cash.
Feb 17: Deposit the $50,000 cash from he sale of the Amazon stock in his
personal bank account.
Feb 25: Paid office rent for $1,000.
Feb 27: Finish tax hearings on behalf of a client and submitted a bill for
accounting services, $5,000. He expected to collected from the client in
the next fortnight.
Calculate Net income/loss for February based on Cash and Accrual Basis
In-class Activities (4)
Rina opens an apartment-locator business near a college campus. She is the
sole owner of the proprietorship, which she names Campus Apartment
Locators. During her first month of operations, April 2021, the business
completes the following transactions:
Apr 2: Rina invested $35,000 of personal funds to start the business.
Apr 4: Purchases on account office supplies costing $350, which will be paid
in May.
Apr 6: Pays cash of $30,000 to acquire a lot next to the campus. She intends
to use the land as a future building site for the business office.
Apr 12: Locates apartments for clients and receives cash of $2,000.
In-class Activities (4)
Apr 20: Pays $2,500 of personal funds for a vacation.
Apr 24: Pays cash expense for office rent, $400, and utilities, $100.
Apr 28: Sells office supplies to antlers business for its cost of $150.
Apr 30: Locates apartments for clients and receives $2,500. She expects to
receive this in next fortnight.
May 2: Withdraws cash of $1,500 for personal use.
Calculate Net income/loss for April based on cash and accrual basis
