Question

1. Identify each of the following useither internal or external use of accounting information Payroll Manager ni President's Secretary Raw Material Videos Social Security Administrat Health Insurance Provider Managerial Accountant Indicate whether each of the following represents an act lisbility of owner's equity Ka u nts payable wages expense counts receivable ke) withdrawal land 2. Identify each of the following as an (1) increase in owner's equity, or a (2) decrease in IR owner's equity Fees Earned Wesse Isi Withdrawal Lawn Care Revenu silnvestment Supplies lixpense 7. The accountant for Franklin Corporation prepared the following list of account balance from the company's records for the year ended December 31, 2011 $165.000 Cash Resale 14,000 Selling Expres 44,00 42,000 Common Steck 12 c ants Payable 12.00 rest Income Ilsalaries & Wiges Tense 40 O l of Sales 51.000 22,000 paid p es 2.000 e Taxes Payable 5.00 Income The Expend 18.000 Notes Payable Determine the Total Assets at the end of 2011 for Franklin Corp b. Determine the Total Liabilities at the end of 2011 for Franklin Carp

Answer 1

1.

a. Payroll Manager - Internal user

b.Bank - External user

c. President's Secretary - External user

d. Raw Material Vendor - External user

e. Social Security administrator - Internal user

f. Health Insurance Provider - External user

g. Managerial Accountant - Internal user

1.

a. Accounts Payable - Liability

b. Wage Expense - Liability

c. Capital - Owners Equity

d. Accounts Receivable - Asset

e. Withdrawal - Asset

f. land - Asset

2.

a. Fee Earned - Increase in Owners Equity

b. wage Expense - Decrease in Owners equity

c. Withdrawal - Decrease in Owners equity

d. Lawn care Revenue - Increase in Owners Equity

e. Investment - Increase in Owners Equity

f. Supplies Expense - Decrease in Owners equity

7a .

Total assets = 14000++42000+22000+30000+17000+2000

= 127,000

7b.

Total Liabilities = 12000+20000+5000

= 37000