McDonald Music sells used CDs for $4.00 each. During the month of April, McDonald sold 7,650 CDs for cash and 13,220 CDs on credit. McDonald's cash collections in April included $30, 600 for the CDs sold for cash, $12,800 for CDs sold on credit during the previous. Heart failure with preserved ejection fraction (HFpEF) represents an important cardiovascular entity with increasing prevalence and relatively high mortality. The agreement about diagnostic algorithm for HFpEF is still missing. Echocardiographic approach remains the cornerstone in HFpEF diagnosis. Echocardiographic diastolic stress test provides numerous useful parameters that correlated well. EBook Calculator Cornerstone Exercise 4-17 (Algorithmic) Bank Reconciliation The accountant for Bellows Corp. Was preparing a bank reconciliation as of April 30. EtakeAssignmentSessionLocator-assignment-takeBinprogress-fabe Q eBook Calculator Cornerstone Exercise 4-17 (Algorithmic) Bank Reconciliation The accountant for Bellows Corp. Was preparing a bank reconciliation as of April 30.
You're finally getting your consulting business running. You took a big risk leaving a corporate job, and a year into it things are going great. The maze of self-employment is starting to make sense. You have a solid base of clients who trust you. You're the first person they call. So what's wrong?
Most of us are in pursuit of something. Whether as entrepreneurs out on our own or within a big organization, we're up to something—a work project, a self-improvement plan, a relationship goal. And when we're in pursuit, things sometimes get in the way.
We get into arguments with colleagues. We differ on our visions. The market changes and we have to adapt. Or we just burn out.
What happens when we run into challenges? Unfortunately, many of us immediately label it as a 'problem.' Then we sit and think about the problem all day, every day. We turn to other people and tell them all about our 'problem.' If they're feeling sorry for us, they might say, 'Wow, you have a problem. I've had a problem like that, too. I know this one guy who had a problem just like that.'
Related:7 Challenges Successful People Overcome
Cornerstone Exercise 4 17 (algorithmic) 17
Over time, the 'problem' becomes an actual problem.
Now instead of pursuing our passion, we're out to solve our problem.
We have it backward. Do we start building a house by installing the roof? When we find a crack running along the side of a house, do we run to get the paintbrush? Do we fret over which color to use to paint over the crack?
We immediately think of our foundation.
The same goes for business and life. The challenges we face are nearly always due to imbalances or weaknesses in our foundation. The moment we face a challenge, the first thing to do is a check one of the four cornerstones of our foundation.
The four cornerstones of all our great pursuits are Me, We, Do and Be.
Related: The 3 S's of Success (and How to Achieve Them)
1. The Me Cornerstone
This is what we casually call me, or myself. It is made up of our intellectual, philosophical and spiritual foundation. To check this cornerstone, we take some time alone and contemplate in solitude about what is holding us back. What do I really feel? What do I really think? Often in the chaos of professional life, we forget to look inside. There are great insights inside all of us, if only we take the time to listen. Routines that strengthen and maintain the Me cornerstone include setting aside time in the morning to reflect on our mission and the mission of our business.
2. The We Cornerstone
The We cornerstone is made up of others. It is our relationships and our connection to friends, family and colleagues. To check this cornerstone, we think about the people around us. Do they pass through your mind undisturbed, or is there a reaction—anger, envy or annoyance? If there is anything that needs to be said, we say it and move on. Internalized annoyance can often spread and affect our Me cornerstone. We just can't think straight. A simple chat can fix this. We can strengthen the We cornerstone by smiling, calling friends to see how they're doing and checking in with employees or colleagues.
3. The Do Cornerstone
This is the domain of action, where so many of us like to spend all of our time. But checking on this cornerstone is just as important as the rest. The Do cornerstone is not made up of fussing and busywork but of goal-directed, effective action aimed at improving our physical, financial and environmental condition. Our environmental condition includes the space around us. Is the office clean or cluttered? When was the last time you cleaned your car? A weak Do cornerstone shows up as bad health, debt and clutter. A strong Do cornerstone means that we are in shape, adding real value and keeping our spaces clean and pleasant.
4. The Be Cornerstone
Here is where we focus on the past and the future. Some problems are a result of spending too much time in this cornerstone, daydreaming or keeping records of our achievements without really achieving anything real. We check on this cornerstone by taking a step back and seeing where we are contributing to something bigger than our day-to-day work and ourselves. Some of the most difficult challenges come from a weak Be cornerstone. We lose our passion and our work appears meaningless. Routines that strengthen the Be cornerstone are simple and include keeping a calendar and a diary and maintaining a company or personal history.
It's About Balance
When we identify 'problems' and chase them, we are really obsessing over imbalances in one cornerstone and ignoring the other three. It seems counterintuitive, but the first step is to step away from the problem and make sure our four cornerstones are all strong and aligned.
When anything seems off-balance, count off on your fingers, '1, 2, 3, 4.'
- How is my Me cornerstone?
- What are my thoughts and feelings on this?
- Is this just a relationship problem that could be solved with a sincere talk?
- How about the bigger picture—am I working toward something greater than myself?
No building can stand on just one cornerstone. No person can succeed without a strong foundation.
Related:How Incredibly Successful People Think
SHORT ANSWER QUESTIONS, EXERCISES AND PROBLEMS
Questions:
➢ Accounting has often been called the language of business. In what respects would you agree with this description? How might you argue that this description is deficient?
➢ Define asset, liability, and stockholders' equity.
➢ How do liabilities and stockholders' equity differ? How are they similar?
➢ How do accounts payable and notes payable differ? How are they similar?
➢ Define revenues. How are revenues measured?
➢ Define expenses. How are expenses measured?
➢ What is a balance sheet? On what aspect of a business does the balance sheet provide information?
➢ What is an income statement? On what aspect of a business does this statement provide information?
➢ What information does the statement of retained earnings provide?
➢ Identify the three types of activities shown in a statement of cash flows.
➢ What is a transaction? What use does the accountant make of transactions? Why?
➢ What is the accounting equation? Why must it always balance?
➢ Give an example from your personal life that illustrates your use of accounting information in reaching a decision.
➢ You have been elected to the governing board of your church. At the first meeting you attend, mention is made of building a new church. What accounting information would the board need in deciding whether or not to go ahead?
➢ A company purchased equipment for $ 2,000 cash. The vendor stated that the equipment was worth $ 2,400. At what amount should the equipment be recorded?
➢ What is meant by money measurement?
➢ Of what significance is the exchange-price (or cost) concept? How is the cost to acquire an asset determined?
➢ What effect does the going-concern (continuity) concept have on the amounts at which long-term assets are carried on the balance sheet?
➢ Of what importance is the periodicity (time periods) concept to the preparation of financial statements?
➢ Describe a transaction that would:
- Increase both an asset and capital stock.
- Increase both an asset and a liability.
- Increase one asset and decrease another asset.
- Decrease both a liability and an asset.
- Increase both an asset and retained earnings.
- Decrease both an asset and retained earnings.
- Increase a liability and decrease retained earnings.
- Decrease both an asset and retained earnings.
- Identify the causes of increases and decreases in stockholders' equity
B) Accounting Exercises:
Exercise 1. Applying Basic Accounting Equation
Royals Palm, Inc. reports the following assets and liabilities. Compute the totals that would appear in the corporation's basic accounting equation (Assets = Liabilities + Stockholders' Equity (Capital Stock)).
Cash………………………….$55,000
Accounts Payable……………25,000
Office Supplies………………. 1, 500
Loan Payable………………….7,000
Accounts Receivable………….10,000
Answer:
| Assets | = Liabilities | + Stockholders' Equity |
Exercise 2. Applying Basic Accounting Equation
Dan and Den, Inc. reports the following assets and liabilities. Compute the totals that would appear in the corporation's basic accounting equation (Assets = Liabilities + Stockholders' Equity (Capital Stock)).
Cash………………………….$37,000
Accounts Payable……………15,000
Supplies……………………….1, 800
Loan Payable………………….9,000
Inventory……………………….12,000
Answer:
| Assets | = Liabilities | + Stockholders' Equity |
Exercise 3. Complete missing amounts in fundamental accounting equation for several businesses:
| Assets | = Liabilities | + Stockholders' Equity |
| 578,000 | 152,000 | |
| 25,000 | 180,500 | |
| 127,000 | 17,000 | |
| 269,000 | 45,000 | |
| 850,000 | 675,000 | |
| 250,000 | 657,450 |
Exercise 4. Perez Company had the following transactions during January:
1. Jan 1 Issued $100,000 in stock to owners in exchange for cash to start the business.
2. Jan 5 Borrowed $50,000 from the bank by signing a notes payable.
3. Jan 10 Purchase equipment by paying cash for $25,000.
3. Jan 15 Paid January rent of $2,400 for the office space (hint: since this is for January, record as rent expense)
Sandvox 2 8 5. 4. Jan 18 Performed services for customers and received cash immediately for $8,000.
5. Jan 20 Purchased $2,000 in supplies on account.
Prepare a transaction analysis for the January transactions. Remember to prove the accounting equation at the end.
| Assets = | Liability | + Equity | + Revenue | – Expense | ||||
| Transaction | Cash | Supplies | Equipment | Accounts Payable | Notes Payable | Common Stock | Service Revenue | Rent Expense |
| Jan 1 Issued stock to owners | ||||||||
| Jan 5 Borrowed money from bank | ||||||||
| Jan 10 Purchased equipment with cash | ||||||||
| Jan 15 Paid January rent | ||||||||
| Jan 18 Performed services | ||||||||
| Jan 20 Purchased supplies on account | ||||||||
| Balance: |
Exercise 5. On December 31, Bryniuk's Company, the accounting records showed the following information:
| Cash | 49,500 |
| Accounts Receivable | 125,000 |
| Supplies | 1,500 |
| Prepaid Insurance | 12,000 |
| Equipment | 70,000 |
| Building | 420,000 |
| Land | 111,500 |
| Accounts Payable | 80,000 |
| Notes Payable | 170,000 |
| Common Stock | 410,000 |
| Retained Earnings | 65,000 |
| Dividends | 20,000 |
| Service Revenue | 174,000 |
| Interest Revenue | 1,000 |
| Salaries Expense | 52,000 |
| Advertising Expense | 17,000 |
| Insurance Expense | 5,000 |
| Utilities Expense | 13,750 |
| Interest Expense | 2,750 |
Prepare the Income Statement for year ended December 31.
| Bryniuk's Company | |
| Income Statement | |
| For Year Ended December 31 | |
| Revenues: | . |
| Total Revenues | |
| Expenses: | |
| Total Expenses | |
| Net Income |
Exercise 6. Using the information from Exercise 5, prepare the Statement of Retained Earnings for December 31.
| Bryniuk's Company | |
| Statement of Retained Earnings | |
| For Year Ended December 31 | |
| Beginning Retained Earnings | $65,000 |
| Add: Net Income | |
| Subtract: Dividends | |
| Ending Retained Earnings |
Exercise 7. Using the information from Exercises 5 and 6, prepare the Balance Sheet for December 31.
| Bryniuk's Company | |
| Balance Sheet | |
| December 31 | |
| Assets | Liabilities and Equity |
| Total Liabilities | |
| Total Equity | |
| Total Assets | Total Liabilities and Equity |
Problem 1: Prepare the financial statements of RodCast Company using the following information:
| Accounts Payable | 43,100.00 |
| Accounts Receivable | 85,000.00 |
| Cash | 55,320.00 |
| Common Stock | 125,000.00 |
| Dividends | 28,000.00 |
| Machinery | 70,000.00 |
| Rent Expense | 24,000.00 |
| Retained Earnings | 70,000.00 |
| Salaries Expense | 65,000.00 |
| Service Revenue | 165,320.00 |
| Supplies | 2,350.00 |
| Trucks | 60,000.00 |
| Utilities Expense | 13,750.00 |
1. Classify each account by Account Type (Asset, Liability, Equity, Revenue or Expense) and which financial statement (income statement, statement of retained earnings, or balance sheet) it appears on.
| Account | Account Type | Financial Statement |
2. Prepare the Income Statement, Statement of Retained Earnings and Balance Sheet for the month ended October 31.
Comprehensive Problems Example:
Cornerstone Exercise 4 17 (algorithmic) Boston Whaler
Larson's Accounting Company has the following account balances: Cash, $5,000; Accounts Receivable, $2,000; Prepaid Rent $1,500; Supplies, $850; Equipment, $6,000; Trucks, $15,000; Accounts Payable, $2,500; Common Stock, $20,000; Retained Earnings $7,850. Business transactions during December are presented as follows:- Company received cash from clients for services, $4,500
- Larson paid to creditors $500,
- Paid office rent for the month of December, $750,
- Company billed client for accounting services on account, $5,200
- Supplies were purchased on account, $650,
- Company received cash from clients billed previously, $6,000
- Larson received an invoice for office equipment repair services from Office Extra for December (the invoice will be paid next month), $850,
- Larson paid monthly salaries, $2,700,
- Utilities expense were paid, $280,
- Miscellaneous expense were paid, $350,
- Dividends were paid, $550.
| Assets = | Liabilities | + Stockholders' Equity | + Net Income | |||||||||
| Cash | Accounts Receivable | Prepaid Rent | Supplies | Equipment | Trucks | Accounts Payable | Common Stock | + Retained Earnings | – Dividends | Revenue | – Expenses | Expense Type |
| Previous Balances | $5,000 | $2,000 | $1,500 | $850 | $6,000 | $15,000 | $2,500 | $20,000 | $7,850 | |||
| 1 | 4,500 | 4,500 | ||||||||||
| 2 | -500 | -500 | ||||||||||
| 3 | -750 | 750 | Rent expense | |||||||||
| 4 | 5,200 | 5,200 | ||||||||||
| 5 | 650 | 650 | ||||||||||
| 6 | 6,000 | -6,000 | ||||||||||
| 7 | 850 | 850 | Repair expense | |||||||||
| 8 | -2,700 | 2,700 | Salary expense | |||||||||
| 9 | -280 | 280 | Utilities expense | |||||||||
| 10 | -350 | 350 | Misc. expense | |||||||||
| 11 | -550 | 550 | ||||||||||
| Ending Balance: | $11,120 | $1,200 | $750 | $1,500 | $6,000 | $15,000 | $3,500 | $20,000 | $7,850 | $550 | $9,700 | $4,930 |
| Fees earned | $9,700 |
| Expenses: | |
| Rent Expense | $750 |
| Repair Expense | 850 |
| Wages Expense | 2700 |
| Utilities Expense | 280 |
| Miscellaneous expense | 350 |
| Total Expenses | $4,930 |
| Net Income ($9,700 – $4,930)= | $4,770 |
| Larson Inc., Retained Earnings, December 31 | $ 7,850 |
| Net income for the month | $4,770 |
| Less Dividends | – 550 |
| Increase in Stockholders' Equity | + 4,220 |
| Larson Inc., Retained Earnings, December 31 | $12,070 |
| Larson Company | |||
| Balance Sheet | |||
| Month Ended December 31 | |||
| Assets | Liabilities | ||
| Cash | $11,120 | Accounts Payable | $3,500 |
| Accounts Receivable | 1,200 | ||
| Prepaid Rent | 750 | Stockholders' Equity | |
| Supplies | 1,500 | Common Stock | 20,000 |
| Equipment | 6,000 | Retained Earnings | 12,070 |
| Trucks | 15,000 | ||
| Total Assets | $35,570 | Total Liabilities and Stockholders' Equity | $35,570 |
- Company received cash from clients for services, $7,500
- Cast 77 paid to creditors $600,
- Paid office rent for the month of December, $950,
- Company billed client for accounting services on account, $8,200
- Supplies were purchased on account, $450,
- Company received cash from clients billed previously, $4,200
- Cast 77 received an invoice for services from Copy Plus for December (the invoice will be paid next month), $550,
- Cast 77 paid monthly salaries, $4,700,
- Utilities expense were paid, $380,
- Miscellaneous expense were paid, $250,
- Paid for monthly insurance, $200
- Dividends were paid, $750.
- Apply the basic accounting equation (create a spreadsheet, please see comprehensive example) to complete a transaction analysis for each transaction (hint: enter the balances provided first).
- Prepare income statement at the end of December 31.
- Prepare statement of retained earnings equity at the end of December 31.
- Prepare balance sheet at the end of December 31.
