Urlacher Company performs the following accounting tasks during the year.
___C___Analyzing and interpreting information.
___R___Classifying economic events.
___C___Explaining uses, meaning, and limitations of data.
___R___Keeping a systematic chronological diary of events.
___R__Measuring events in dollars and cents.
___C___Preparing accounting reports.
___C___Reporting information in a standard format.
___I___Selecting economic activities relevant to the company.
___R___Summarizing economic events.
Accounting is “an information system that identifies, records, and communicates the economic
events of an organization to interested users.”
Categorize the accounting tasks performed by Urlacher as relating to either the identification
(I), recording (R), or communication (C) aspects of accounting.
Meredith Cleaners has the following balance sheet items.
Accounts payable - liability
Accounts receivable - asset
Cash Notes payable - liability
Cleaning equipment - asset
Salaries payable - liability
Cleaning supplies - asset Common stock - equity
Classify each item as an asset, liability, or stockholders’ equity.
Selected transactions for D. Reyes, Inc., an interior decorating firm, in its first month of
business, are as follows.
Jan. 2 Invested $10,000 cash in the business in exchange for common stock.
3 Purchased used car for $4,000 cash for use in business.
9 Purchased supplies on account for $500.
11 Billed customers $1,800 for services performed.
16 Paid $200 cash for advertising.
20 Received $700 cash from customers billed on January 11.
23 Paid creditor $300 cash on balance owed.
28 Declared and paid a $1,000 cash dividend.
For each transaction indicate the following.
(a) The basic type of account debited and credited (asset,...