Accounting Chapter One Quiz

Lynn Doyle is the owner and operator of Star LLC, a motivational consulting business. At the end of its accounting period, December 31, 2009, Star has assets of $650,000 and liabilities of $193,000. Using the accounting equation, determine the following amounts:  Calculate Owner’s equity, as of December 31, 2009

Indicate whether the following company is primarily a service, merchandise, or manufacturing business. WALMART

Indicate whether the following company is primarily a service, merchandise, or manufacturing business. Ford Motor Co.

Indicate whether the following company is primarily a service, merchandise, or manufacturing business. JetBlue

Chalet Sports sells hunting and fishing equipment and provides guided hunting and fishing trips. Chalet Sports is owned and operated by Cliff Owen, a well-known sports enthusiast and hunter. Cliff’s wife, Judy, owns and operates Joliet Boutique, a women’s clothing store. Cliff and Judy have established a trust fund to finance their children’s college education. The trust fund is maintained by City Bank in the name of the children, John and Morgan. For  the following transaction, identify which of the entities listed should record the transaction in its records. Cliff paid a local doctor for his annual physical, which was required by the workmen’s compensation insurance policy carried by Chalet Sports.

The total assets and total liabilities of Coca-Cola and PepsiCo are shown below.                                                         Coca-Cola (in mill.)       PepsiCo (in mill.)Assets                                                     $29,936                               $29,930Liabilities                                                  13,043                                  14,483   Determine the owners’ equity:     PepsiCo (in millions) $   _________________  

Determine the missing amount for each of the following:       Assets =   Liabilities +   Owners’ Equity $ 125,000 = $   _____________  + $ 39,500