Survey of Accounting: Unit 3 Homework (E2-17, E2-18, E2-19, E2-21)

Survey of Accounting
Unit 3 Homework (E2-17, E2-18, E2-19, E2-21)E2-17 
After its first month of operation, the following amounts were taken from the 
accounting records of Polaris Realty Inc. as of November 30, 2011. 
Capital stock $25,000 
Notes payable $ 35,000 
Cash 38,000 
Rent expense 5,000 
Dividends 10,000 
Retained earnings 0 
Interest expense 2,000 
Salaries expense 65,000 
Land 42,000 
Sales commissions 120,000 
Miscellaneous expense 3,000 
Utilities expense 15,000 
Prepare an income statement for the month ending November 30, 2011.
E2-18 
Using the financial data shown in Exercise 2-17 for Polaris Realty Inc., prepare a
retained earnings statement for the month ending November 30, 2011.
E2-19 
Using the financial data shown in Exercise 2-17 for Polaris Realty Inc., prepare a 
balance sheet as of November 30, 2011.
E2-21 
Describe how the following transactions of Sun Microsystems, Inc. would affect the three elements of the accounting equation. 
a. Paid research and development expenses for the current year. 
b. Purchased machinery and equipment for cash. 
c. Received cash from issuing stock. 
d. Received cash from the issuance of long-term debt. 
e. Made cash sales. 
f. Paid selling expenses. 
g. Paid employee pension expenses for the current year. 
h. Received proceeds from selling a portion of manufacturing operations for a gain on the sale. 
i. Paid officer salaries. 
j. Paid taxes. 
k. Paid off long-term debt. 
l. Paid dividends.
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