E1-1: Financial Accounting Paper

E1-1 Urlacher Company performs the following accounting tasks during the year.
Communicates__Analyzing and interpreting information.
Records__Classifying economic events.
Communicates__Explaining uses, meaning, and limitations of data.
Records__Keeping a systematic chronological diary of events.
Records__Measuring events in dollars and cents.
Communicates__Preparing accounting reports.
Communicates__Reporting information in a standard format.
Identifies Identifies_Selecting economic activities relevant to the company.
Records__Summarizing economic events.
Accounting is “an information system that identifies, records, and communicates the economic events of an organization to interested

E1-5 Meredith Cleaners has the following
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.
a. Asset Credited/ Stock Holders Equity Debited
b. Debit cash / Credit Common Stock
c. Cash increased/
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.

Instructions
For each transaction indicate the following.
(a) The basic type of account debited and credited (asset, liability, stockholders’ equity).
(b) The specific account debited and credited (cash, rent expense, service revenue,
B1. Economic entity assumption E6. Matching principle
A2. Going concern assumption C7. Full disclosure principle
D3. Monetary unit assumption G8. Revenue recognition principle
F4. Time period assumption 9.