And Practice Problems from Connect for Chapter 3

 Assignments – ◦ Due 9/27/15  Chapter 3 Homework (Connect) – unlimited attempts  This assignment will take extra time – 2 to 3 hours, plan accordingly.  Materia Chapter 3 – (Webcourses) – Unlimited attempts  Participation questions for Chapter 3 (Webcourses) – 1 attempt  Learn Smart – 5 points Extra Credit for Block 1 (Chapters 1 -3) ends Sunday, September 27 th at 11:59 PM ◦ Due 10/11/15  SEC Financial Statement Project (Webcourses) – 1 attempt  Exam 1 – September 28th – 30th from 7 AM – 11:59 PM CBA Testing Center BA2 room #104 or Satellite Campus Satellite campus - COBA Pass required  oUCF Valencia Osceola  oUCF Valencia West  oUCF Sanford/Lake Mary (Seminole State College)  oUCF Cocoa (East Florida State College) COBA Pass:  Tutoring Lab Schedule  Exam Review – Friday September 25 th BA1 #107 from 1 PM – 3:00 PM - recorded

Hoya Corporation reports the following amounts: Assets = $12,000; Liabilities = $2,000; Stockholders' equity = $10,000; Dividends = $2,000; Revenues = $15,000; and Expenses = $11,000. What is the net income?

The December 31, 2012, unadjusted trial balance for Demon Deacons Corporation is presented below. Accounts Debit Credit Cash $ 9,600 Accounts receivable 15,100 Prepaid rent 8,400 Supplies 3,000 Unearned revenue $ 1,800 Common stock 9,000 Retained earnings 4,200 Service revenue 49,200 Salaries expense 28,100$64,200 At year-end, the following additional information is available: 1. The balance of Prepaid Rent, $8,400, represents payment on October 31, 2012, for rent from November 1, 2012, to April 30, The balance of Unearned Revenue, $1,800, represents payment in advance from a customer. By the end of the year, $400 of the services have been provided. 3. An additional $400 in salaries is owed to employees at the end of the year but will not be paid until January 4, The balance of Supplies, $3,000, represents the amount of office supplies on hand at the beginning of the year. By the end of 2012, only $610 of supplies remains. Record Journal entries and complete the adjusted trial balance

The balance of Prepaid Rent, $8,400, represents payment on October 31, 2012, for rent from November 1, 2012, to April 30, 2013.

The balance of Unearned Revenue, $1,800, represents payment in advance from a customer. By the end of the year, $400 of the services have been provided.

An additional $400 in salaries is owed to employees at the end of the year but will not be paid until January 4, 2013.

. The balance of Supplies, $3,000, represents the amount of office supplies on hand at the beginning of the year. By the end of 2012, only $610 of supplies remains.

1.Definitions in Blue throughout the 3 chapters (i.e. the definitions for Block 1 that were the basis for the definitions quiz – about 35% of the exam). 2.Accounting Equation - Illustration 2-9 pg Account name, definition, category, which financial statement, normal balance 1.For example, Cash in an Asset on the Balance Sheet with a Debit normal balance 2.Understanding how the transactions we have completed impact the accounting equation. 3.6 steps for External Transactions 4.Steps for Internal Transactions 5.Financial Statements and the key accounts (areas) with each statement. 1.Relationship between statements 6.Entire Accounting Cycle The exam consists of 50 multiple choice questions, which means that you will not actually be preparing any of the financial statements or preparing a trial balance as we have done in class or you have done in your Connect homework. Please concentrate on the above items and not on memorizing the formats of the trial balances or financial statements.

Remember Accounting Equation and understand transactions through it. Watch the dates… Write the Accounting Equation down on the scrap paper provided in Testing Lab as soon as you sit down. Use T Accounts during the exam starting from the original transaction!

 Learn Smart  Study Groups  Flash Cards for def., normal balance, financial statement.(Materia)  Tutor – if needed

Permanent Accounts Temporary Accounts

Measuring External Transactions 2-38

During the Month Transactions End of the Month Transactions

 Chapter 1 ◦ Two functions of accounting ◦ How to measure business activity through Accounting Equation ◦ Forms of businesses ◦ Financial statements and relationships – You will not have to prepare a financial statement, but understand the process. ◦ Income Statement  Statement of Stockholders’ Equity  Balance Sheet  Cash Flow – Three categories  Operating  Investing  Financing ◦ Roles of regulations in financial Accounting – GAAP, SEC, and FASB ◦ Auditor responsibility ◦ Management responsibility ◦ Review – self- study questions pg #’s 2,3,4,5,6,8

Chapter 2  Effects of external transactions on Accounting Equation  Debits and credits for accounting equation ◦ Normal balances for accounts we are using ◦ *** Illustration 2-9 pg. 56***  Record journal entry  Post transaction to T account in general ledger  Trial balance (unadjusted) – definition and how it is prepared  Review – self- study questions pg. 71 – All

Chapter 3  Revenue Recognition Principle  Matching Principle  Accrual versus cash accounting  Adjusting entries – prepared at the end of an accounting period ◦ Prepaid expenses ◦ Depreciation expense  Accumulated depreciation – contra asset account  Book value ◦ Unearned revenue ◦ Accrued expenses – salaries, interest, etc.  Adjusted trial balance  Financial statements – NOT preparation, just understanding the flow of information, order of preparation, and which accounts belong to which financial statement ◦ Income statement ◦ Statement of Stockholders’ Equity ◦ Classified Balance Sheet  Current assets  Current liabilities  Closing entries ◦ Temporary accounts ◦ Permanent accounts  Review – self- study questions pg. 109 – All