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Viet Nguyen
Professor Hinojosa
Essentials of Accounting
March 2, 2012
Week 1 Assignment
Chapter 1 E1-3
Accounts payable and accrued liabilities| ___L__| __O___| Accounts receivable| ___A__| ___O__|
Property, plant, and equipment| __A___| ___I__|
Food and beverage operations revenue| ___R__| __O___|
Golf course operations revenue| __R___| __O___|
Inventory| ___A__| __O___|
Long-term debt| __L___| __F___|
Office and general expense| __E___| __O___|
Professional fees expense| ___E__| __O___|
Wages and benefits expense| ___E__| ___O__|

Chapter 1 P1-3
(a) ECKERSLEY SERVICE CO.
Income Statement
For the Month Ended June 30, 2010

Revenues
Revenue $7,000
Expenses
Wage expense $1,400
Supplies expense 1,000
Gas and oil expense 600  
Advertising expense 400  
Utilities expense 300  
Total expenses 3,700 
Net income $3,300

ECKERSLEY SERVICE CO.
Retained Earnings Statement
For the Month Ended June 30, 2010

Retained earnings, June 1 $       0
Add:
  Net income 3,300 
3,300 
Less:   Dividends 2,000 
Retained earnings, June 30 $1,300

ECKERSLEY SERVICE CO.
Balance Sheet
June 30, 2010

Assets
Cash $   4,600
Accounts receivable 4,000  
Supplies 2,400  
Equipment 29,000 
Total assets $40,000

Liabilities and Stockholders’ Equity
Liabilities
Notes payable $12,000
Accounts payable 500   
Total liabilities $12,500
Stockholders’ equity
Common stock 26,200 
Retained earnings 1,300   27,500 
Total liabilities and stockholders’ equity $40,000

(b) Eckersley had a very successful first month, earning $3,300 or a 47% return on revenues of $7,000.   Its net income represents a 13% return on the initial investment ($3,300 ÷ $26,200).

Chapter 2 E2-1
Chapter 2 P2-4
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