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Urlacher Company performs the following accounting tasks during the year

E1-1
Urlacher Company performs the following accounting tasks during the year.
______Analyzing and interpreting information.
______Classifying economic events.
______Explaining uses, meaning, and limitations of data.
______Keeping a systematic chronological diary of events.
______Measuring events in dollars and cents.
______Preparing accounting reports.
______Reporting information in a standard format.
______Selecting economic activities relevant to the company.
______Summarizing economic events.
Accounting is an information system that identifies, records, and communicates the economic events of an organization to interested users.

Instructions
Categorize the accounting tasks performed by Urlacher as relating to either the identification
(I), recording (R), or communication (C) aspects of accounting.
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E1-5 Meredith Cleaners has the following balance sheet items.
Accounts payable
Accounts receivable
Cash
Notes payable
Cleaning equipment
Salaries payable
Cleaning supplies
Common stock

Instructions
Classify each item as an asset, liability, or stockholders' equity.
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E1-12 The following information relates to Linda Stanley Co. for the year 2008.

Retained earnings, January 1, 2008 $ 48,000
Advertising expense $ 1,800
Dividends during 2008 6,000
Rent expense 10,400
Service revenue 62,500
Utilities expense 3,100
Salaries expense 30,000

Instructions
After analyzing the data, prepare an income statement and a retained earnings statement for the year ending December 31, 2008.
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E1-13 Mary Close is the bookkeeper for Mendez Company. Mary has been trying to get the balance sheet of Mendez Company to balance.

MENDEZ COMPANY Balance Sheet December 31, 2008
Assets: Liabilities:
Cash $15,000 Accounts payable $20,000
Supplies 8,000 Accounts receivable (8,500)
Equipment 46,000 Common stock 50,000
Dividends 10,000 Retained earnings 17,500
Total assets $79,000 Total liabilities and stockholders' equity $79,000

Instructions
Prepare a correct balance sheet.

Solution Preview

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E1-1
Urlacher Company performs the following accounting tasks during the year.

When we record the transactions - implies analyze the transaction, see the monetary value and enter in the books, this is the recording activity
When we prepare/analyze/explain the results of recording the transactions, that is Communication activity.
Identification is to decide which events should be recorded.

______Analyzing and interpreting information. C
______Classifying economic events. R
______Explaining uses, meaning, and limitations of data. C
______Keeping a systematic chronological diary of events. R
______Measuring events in dollars and cents. R
______Preparing accounting reports. C
______Reporting information in a standard format. C
______Selecting economic activities relevant to the company. I
______Summarizing economic events. R
Accounting is “an information system that identifies, records, and communicates the economicevents of an organization to interested users.”

Instructions
Categorize the ...

Solution Summary

Urlacher Company performing accounting tasks during the year are examined.

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