Distinction between financial and managerial accounting.

I just started Accounting 220 and I am looking for tutor to help me through the semester. Below you will find the Homework for week 1. Thanks

Chapter 1

Professor Pacioli was recently asked the following five questions by his aspiring accounting students. Prepare a summary of the professor’s reply to each question.

(a) Professor, I cannot quite put my finger on it, but your name has a familiar ring to it . . .why is that?

(b) Professor, I have no interest in being a bookkeeper. Why should I study accounting?

(c) Professor, I am not sure I understand why there is a distinction between financial and managerial accounting. If you are accounting for one business, how can there possibly be two separate approaches?

(d) Professor, haven’t computers and modern information systems made accountants obsolete?

(e) Professor, I am interested in becoming a CPA. What do I need to do, apply to the FASB?

2. Determine whether each of the following items is an: Asset Liability Revenue Expense Owners’ equity Other

(a) Cash

(b) Dividend to shareholders

(c) Land

(d) Accounts payable

(e) Capital stock

(f ) Notes payable

(g) Accounts receivable

(h) Salaries

(i) Rent

(j) Cost of utilities used

(k) Customer order not yet filled

(l) The value of completed services provided to customers

(m) Obligation to pay for utilities consumed

3. Indicate the impact (increase/decrease/no change) for each of the following transactions on total assets, liabilities, and owners’ equity.

(a) Paid the current month’s rent.

(b) Provided services to customers for cash.

(c) Provided services to customers on account.

(d) Recorded receipt of an electric bill to be paid next month.

(e) Paid an electric bill received in a prior month.

(f ) Purchased land for cash.

(g) Purchased equipment in exchange for a note payable (loan).

(h) Collected a previously recorded account receivable.

(i) Purchased a building by paying 20% in cash and agreeing to

pay the remainder over future years.

(j) Declared and paid a dividend to shareholders.

4. Goudar Bloodcare is a blood donation center where eligible donors give a pint of blood about once every other month. Assess each of the following to decide if Goudar should record the item as an asset, a liability, a revenue, or expense.

(a) The monthly fee paid to maintain Goudar’s website.

(b) Needles, bags, plastic bandages, etc. that were used to collect blood.

(c) Needles, bags, plastic bandages, etc. that will be used in the future to collect blood.

(d) Amounts received from hospitals to pay for the blood products.

(e) A loan that is owed to a bank.

(f ) The building and equipment that serves as the home office for Goudar.

(g) Amounts owed to a printing company that prepared T-shirts that were given away at a recent

blood drive campaign.

(h) The salaries of employees of Goudar.

5. Magee Corporation provided the following summary balance sheet information:

Dec. 31, 20X1 Dec. 31, 20X2

Total assets $1,500,000 $2,300,000

Total liabilities 700,000 1,400,000

Compute net income for the year ending December 31, 20X2, under each of the following independent scenarios:

(a) Magee paid no dividends, and no additional capital was raised via share issuances.

(b) Magee paid $100,000 in dividends, and no additional capital was raised via share issuances.

(c) Magee paid no dividends, but raised $250,000 via issuances of additional shares of stock.

(d) Magee paid $100,000 in dividends, and raised $250,000 via issuances of additional shares of stock.

6.CUE Corporation was formed at the beginning of 20X2, and presents the following incomplete financial statements for three years. CUE has requested your help in completing the missing values for each year.

Begin by solving the unknowns in the 20X2 year, and work forward to subsequent years. Remember that