Michael McNamee is the proprietor of a property management company, Apartment Exchange, near the campus of Penscola State College. The business has cash of $8,000 and furniture that cost $9,000 and has a market value of $13,000. The business debts include accounts payable of $6,000. Michael's personal home isvalued at $400,000, and his personal bank account has a balance of $1,200. Identify the principle or assumption that best matches the situation:а.Michael's personal assets are not recorded on the Apartment Exchange's balance sheet.b.The Apartment Exchange records furniture at its cost of $9,000, not its market value of $13,000.The Apartment Exchange reports its financial statements in U.S. dollars.c.d.Michael expects the Apartment Exchange to remain in operations for the foreseeable future.a. Michael's personal assets are not recorded on the company's balance sheet:b. The company records furniture at its cost of $9,000, not its market value of $13.000:c. The company records its financial statements in U.S. dollars:d. Michael expects the company to remain in operations for the foreseeable future:

Economic Entity Assumption The "Economic entity assumption" provides that all the activities of the…

Michael McNamee is the proprietor of a property management company, Apartment Exchange, near the campus of Penscola State College. The business has cash of $8,000 and furniture that cost $9,000 and has a market value of $13,000. The business debts include accounts payable of $6,000. Michael's personal home is valued at $400,000, and his personal bank account has a balance of $1,200. Identify the principle or assumption that best matches the situation: a. Michael's personal assets are not recorded on the Apartment Exchange's balance sheet. The Apartment Exchange records furniture at its cost of $9,000, not its market value of $13,000. The Apartment Exchange reports its financial statements in U.S. dollars. d. Michael expects the Apartment Exchange to remain in operations for the foreseeable future. . Michael's personal assets are not recorded on the company's balance sheet: p. The company records furniture at its cost of $9,000, not its market value of $13,000: . The company records its financial statements in U.S. dollars: 1. Michael expects the company to remain in operations for the foreseeable future:

Michael McNamee is the proprietor of a property management company, Apartment Exchange, near the campus of Penscola State College. The business has cash of $8,000 and furniture that cost $9,000 and has a market value of $13,000. The business debts include accounts payable of $6,000. Michael's personal home is valued at $400,000, and his personal bank account has a balance of $1,200. Identify the principle or assumption that best matches the situation: a. Michael's personal assets are not recorded on the Apartment Exchange's balance sheet. The Apartment Exchange records furniture at its cost of $9,000, not its market value of $13,000. The Apartment Exchange reports its financial statements in U.S. dollars. d. Michael expects the Apartment Exchange to remain in operations for the foreseeable future. . Michael's personal assets are not recorded on the company's balance sheet: p. The company records furniture at its cost of $9,000, not its market value of $13,000: . The company records its financial statements in U.S. dollars: 1. Michael expects the company to remain in operations for the foreseeable future:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

X had started business with $2,00,000 in the beginning of the year. During the year, he borrowed $1,00,000 from Y. He further introduced $2,00,000 in the business. He also gave $50,000 as loan to his son. Goods given away as charity by him were $20,000. Profits earned by him were $2,50,000. He also withdraw $30,000 from the business. His capital at the end of the year would be__________.
I need help with this, Thank you
After researching the different forms of business organization, Natalie Koebel decides to operate “Cookie Creations” as a corporation. She then starts the process of getting the business running. In November 2022, the following activities take place. Nov. 8 Natalie cashes her U.S. Savings Bonds and receives $520, which she deposits in her personal bank account. 8 She opens a bank account under the name “Cookie Creations” and transfers $500 from her personal account to the new account in exchange for common stock. 11 Natalie pays $65 to have advertising brochures and posters printed. She plans to distribute these as opportunities arise. (Hint: Use Advertising Expense.) 13 She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $125 cash. 14 Natalie starts to gather some baking equipment to take with her when teaching the cookie classes. She has an excellent top-of-the-line food processor and mixer…
Mrs. C-hammer, the owner of Tura innovations, invests N$140 000 in her business. She also approaches a bank that lends her N$60 000. Calculate the value of her business. Answer:
Helen Hernandez, president of Double H Enterprises, applied for a $175,000 loan from Great Nations Bank. The bank requested financial statements as a basis for granting the loan. Helen instructed her accountant to provide the bank with a balance sheet, but to omit the other financial statements because her business incurred a net loss last year. Helen contends that as the owner of the business, it is her right to withhold certain financial statements from the bank. Do you agree with Helen? Why or why not? What type of information would banks require from a loan applicant and why would the loan officer request this information?
Let's find out what counts as money. We used a typical definition of money in our lectures: "a widely accepted means of payment." Under this definition, are people using "money" in the following transactions? If not, why not? A) Lucy sells her car to Karen for $5,000 cash. B) Lucy sells her car to Karen for $5,000 worth of old Bob Dylan records. C) Lucy sells her car to Karen for $5,000 in checking account balances (transferred by writing a check). D) Lucy sells her car to Karen by Karen promising $5,000 worth of auto detailing services over the next year. E) Lucy sells her car to Karen for $5,000 worth of Revolutionary War-era continental dollars.
Ann opened an Office Cleaning Service company on January 1, 2020. During 2020 she had the following transactions.(1) She started the business with investing $30,000 of her own money (business was organized as corporation)(2) She borrowed $40,000 from bank by issuing a 5-year note.(3) She purchased $15,000 of furniture and equipment- paid $5,000 cash and signed a note for the rest.(4) She purchased a truck for business use at $20,000 in cash.(5) During the year, provided $85,000 services to customers of which $71,000 was collected, the rest was not yet collected as of Dec. 31st.(6) During the year, she incurred $58,000 of salaries expense of which $2000 was still not paid as of Dec. 31st.(7) During the year, she paid $3000 interest on the note to the Bank(8) During the year, she took $3,000 as dividend.(9) During the year, she collected $150 interest from bank on company account(10)During the year, purchased $2000 of supplies in cash.(11)During the last week of the year, she…
Dean Winchester opened Ghost Cleaners on June 1, 2021. He is the sole owner of the corporation.During June, the following transactions were completed by Dean.1-Jun Invested $65,000 in exchange for common stock in Ghost Cleaners, Inc.1-Jun Purchased a used van for $12,000, paying $3,000 cash and the taking out a note payable for the rest.He plans to pay off the remaining balance on the van by June 1, 2022. The note has a 10% APRwith interest being payable at the end of every month. No principle payments are due until August 1, 2021.1-Jun Paid $1,800 cash on a 12-month insurance policy effective June 1, 2021.1-Jun Hired his brother, Sam, to help with the corporation. He will be paid $1,000 per month for now.5-Jun Purchased cleaning supplies for $1,500 on account.7-Jun Billed a client, F. Crowley, for services performed on June 7 in the amount of $3,000.8-Jun Paid $100 for gasoline for the van.12-Jun Paid $200 for maintenance on the van.15-Jun Incurred wages expense of $2,000.16-Jun…
P is a sole proprietor whose accounting records are incomplete. All the sales are cash sales and during the year $50,000 was banked, including $5,000 from the sale of a business car. He paid $12,000 wages in cash from the till and withdrew $2,000 per month as drawings. The cash in the till at the beginning and end of the year was $300 and $400 respectively. What was the value of P’s sales revenue for the year? A $80,900 B $81,000 C $81,100 D $86,100
You were hired by Mr. Brian Stevens to prepare his convenience store’s Statement of Financial Position. In order to prepare the statement, you identified the following assets and liabilities of Mr. Stevens: a. His convenience store has cash deposited in a bank account amounting to P50,000 b. His convenience store had a lot of uncollected sales from customers amounting to P75,000 c. The total amount of merchandise left inside the store is P30,000 d. He already paid one year’s rent in advance amounting to P12,000 e. The value of all the company’s furniture amounted to P100,000 f. He bought merchandise from his supplier amounting to P25,000 and the supplier agreed that payment can be made 2 months after year-end g. SSS, Philhealth and Pag-ibig Payables for his one employee totaled P5,000 h. The convenience store had outstanding liabilities to utility companies amounting to P3,000 i. He had a loan from the bank amounting to P50,000 to be paid in 3 years Requirement: Prepare a Statement…