problem 1 transport corporation has just released its annual report for calendar yea 4352229

 

PROBLEM

1.Transport Corporation has just released its annual report for calendar year 2007. Disclosed therein is a wide variety of financial information that has been captured and processed by the accounting system. For each piece of information below, indicate on which financial statement it is reported by putting a check mark in the appropriate column. If an item is sometimes reported on two statements, choose the statement where it is ALWAYS reported.

Information ItemIncome StatementBalance

SheetStatement of

Cash Flows

a.New investments into the business by owners during this period

b.Credit sales (uncollected)

c.Amount of profit earned during the current accounting period

d.Total amount of depreciation taken on assets during current period

e.Total depreciation taken on an asset since it was purchased

f.Amount still owed to the bank at the end of the period

g.Total cash dividends paid to owners this period

h.Amount paid back to the bank during the period

i.Amount of inventory on hand at end of the accounting period

j.Amount paid in cash to buy equipment during the period

2.Jaime’s Home Repair uses the following accounts in its accounting system. Place a mark in the appropriate column to indicate the type of account.

AssetLiabilityEquityRevenueExpense

a.Supplies Expense

b.Owners' investment

c.Cash

d.Sales

e.Utilities Expense

f.Bonds Payable

g.Depreciation Expense

h.Cost of Goods Sold

i.Equipment

j.Retained earnings

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