Accounting has its own vocabulary and basic relationships. Match the accounting terms at the left with the corresponding definition or meaning at the right.

$$\begin{matrix} \text{\_\_\_\_ 1. Debit } & \text{ A. Always an asset }\\ \text{ \_\_\_\_ 2. Expense} & \text{B. Side of an account where increases are recorded}\\ \text{\_\_\_\_ 3. Net income } & \text{C. Record of transactions }\\ \text{\_\_\_\_ 4. Ledger } & \text{D. The cost of operating a business; a decrease in stockholder’s equity}\\ \text{\_\_\_\_ 5. Posting} & \text{E. Grouping of accounts }\\ \text{\_\_\_\_ 6. Normal balance } & \text{F. Copying data from the journal to the ledger }\\ \text{\_\_\_\_ 7. Payable } & \text{G. Revenues – Expenses }\\ \text{ \_\_\_\_ 8. Journal } & \text{H. Always a liability}\\ \text{\_\_\_\_ 9. Receivable } & \text{I. Left side of an account}\\ \text{\_\_\_\_ 10. Owners’ equity } & \text{ J. Assets – Liabilities }\\ \end{matrix}$$

Match the accounting terms with the corresponding definitions.

1. Posting
2. Account
3. Debit
4. Journal
5. Chart of accounts
6. Trial balance
7. Normal balance
8. Ledger
9. Credit
10. Compound journal entry

a. A detailed record of all increases and decreases that have occurred in a particular asset, liability, or equity during a period b. The record holding all the accounts of a business, the changes in those accounts, and their balances c. A journal entry that is characterized by having multiple debits and/or multiple credits d. A record of transactions in date order e. Left side of a T-account f. Side of an account where increases are recorded g. Transferring amounts from the journal to the ledger h. Right side of a T-account i. A list of all accounts with their balances at a point in time j. A list of all accounts with their account number

For each of the following accounts, identify whether that item is an asset, liability, or equity account.

a. Accounts payable
b. Sales revenue
c. Cash
d. Bonds payable
e. Common stock
f. Accounts receivable
g. Equipment
h. Salaries payable
i. Inventory
j. Retained earnings

Cedar Point is an amusement park in Sandusky, Ohio, owned by Cedar Fair Entertainment Company. Over 3.5 million people visit Cedar Point each year between May and October. It covers 364 acres and has more than 150 rides and attractions, including 16 roller coasters. Cedar Point is the second oldest continuously operating amusement park in the United States (the oldest is Lake Compounce in Connecticut). Millions of events occur at Cedar Point each year. The following items are possible events:

May 1: Sell admission tickets, $150,000, cash May 3: Purchase merchandise inventory,$9,000, on account May 6: Rent lockers to guests, $700, cash May 8: Sign a letter of intent to switch electric suppliers starting in June May 15: Pay employees,$92,000, cash May 18: Make an offer of employment for a new position in the Merchandise & Games office May 20: Borrow money from the bank by signing a six-month note, of $400,000

Requirements

1. What criteria does an event have to meet to qualify as a financial transaction? Identify which of the listed events are financial transactions.
2. Journalize each of the transactions.
3. Indicate how the company’s assets, liabilities, and equity would be impacted by each transaction.

The following information relates to the intangible assets of University Testing Services (UTS): a. On January 1, 2018, UTS completed the purchase of Heinrich Corporation for $3,510,000 in cash. The fair value of the net identifiable assets of Heinrich was$3,200,000. b. Included in the assets purchased from Heinrich was a patent valued at $82,250. The original legal life of the patent was 20 years; there are 12 years remaining, but UTS believes the patent will be useful for only seven more years. c. UTS acquired a franchise on July 1, 2018, by paying an initial franchise fee of$333,000. The contractual life of the franchise is 9 years. 1. Record amortization expense for the intangible assets at December 31, 2018. 2. Prepare the intangible asset section of the December 31, 2018, balance sheet.

The process of transferring information from the journal to the individual general ledger accounts is called a. journalizing b. carrying forward c. transferring d. posting

Kinkaid Co. is incorporated at the beginning of this year and engages in a number of transactions. The following journal entries impacted its stockholders’ equity during its first year of operations.

1. Explain the transaction(s) underlying each journal entry (a) through (d). 2. How many shares of common stock are outstanding at year-end? 3. What is the amount of minimum legal capital (based on par value) at year-end? 4. What is the total paid-in capital at year-end? 5. What is the book value per share of the common stock at year-end if total paid-in capital plus retained earnings equals $695,000?

Below are amounts (in millions) from three companies' annual reports.

$$\begin{matrix} \text{ } & \text{Beginning Accounts Receivable} & \text{Ending Accounts Receivable} & \text{Net Sales}\\ \hline \text{WalCo} & \text{$\$ 1,815$} & \text{$\$ 2,762$} & \text{$\$ 322,427$}\\ \text{TarMart} & \text{$\$ 6,166$} & \text{$\$ 6,694$} & \text{$\$ 67,878$}\\ \text{CostGet} & \text{$\$ 629$} & \text{$\$ 665$} & \text{$\$ 68,963$}\\ \end{matrix}$$

For each company, calculate the receivables turnover ratio and the average collection period (rounded to one decimal place). Which company appears most efficient in collecting cash from sales?

Use the Second Fundamental Theorem of Calculus to find F’(x). F(x) = ∫ _0^x t cos t dt

Identify the degree of comparison of the underlined modifier by writing P for positive degree, C for comparative degree, or S for superlative degree.

This recipe is $\underline{\text{simpler}}$ than the other one because there are fewer steps.

(Calculus required) What happens to the angle $\theta$ in part (a) as the dimension of $R^n$ approaches $+\propto$ ?

Saltwater Trade Mart has recently had lackluster sales. The rate of inventory turnover has dropped, and the merchandise is gathering dust. At the same time, competition has forced Saltwater’s suppliers to lower the prices that Saltwater will pay when it replaces its inventory. It is now December 31, 2012, and the current replacement cost of Saltwater’s ending inventory is $85,000 below what Saltwater actually paid for the goods, which was$270,000. Before any adjustments at the end of the period, the Cost of Goods Sold account has a balance of $790,000. a. What accounting action should Saltwater take in this situation? b. Give any journal entry required. c. At what amount should Saltwater report Inventory on the balance sheet? d. At what amount should the company report Cost of Goods Sold on the income statement? e. Discuss the accounting principle or concept that is most relevant to this situation.

The Montvilles purchased 350 shares of Software Design Inc. stock at $\small \$20 \frac{3}{4}$ and sold 3 years later at $\small \$17 \frac{7}{8}$. They paid a 1.25% sales commission when they purchased the stock and paid a 3.25% sales commission when they sold. What was the profit or loss from the sale?

During 2018, Able Network, Inc., which designs network servers, earned revenues of $820 million. Expenses totalled$520 million. Able collected all but $20 million of the revenues and paid$610 million on its expenses.

a. Under accrual accounting, what amount of revenue should Able report for 2018? How does the revenue principle help to answer this question?