need help with accounting homework 495265

Name: _____________________________________ 1. Describe and explain the three major areas of accounting? 2. What types of people or organizations are interested in financial information about a firm, and why are they interested in this information? 3. What are the three types of business entities, and how do they differ? 4. What is the function of the Securities and Exchange Commission, and what is the purpose of the Financial Accounting Standards Board? 5. John Jones owns Acme Personnel Services. At the beginning of February, his firm’s financial records showed the following assets, liabilities, and owner’s equity: Cash $14,500 Accounts Payable $12,000 Accounts Receivable $ 9,000 John Jones, Capital $16,000 Supplies $ 1,600 Revenue $ 8,500 Office Furniture $ 7,500 Expenses $ 4,250 Set up an equation using the balances given above. Record the effects of the following transactions in the equation. (Use plus, minus, and equals signs.) Record new balances after each transaction has been entered. Prove the equality of the two sides of the final equation in the space provided below. 6. Sally McMillan is opening a tax preparation service on November 1, which will be called Sally’s Tax Service. Sally plan to open the business by depositing $6,000 cash into a business checking account. The following assets will also be owned by the business: Furniture (fair market value of $2,000), and a computer and printer (fair market value of $4,400). There are no outstanding debts of the business as it is formed. Prepare a balance sheet for November 1, 2003, for Sally’s Tax Service by entering the correct balances in the appropriate accounts. (You will need to use the accounting equation to compute owner’s equity.) ) Indicate whether each of the following accounts normally has a debit balance or a credit balance: (circle the correct answer) Accounts Payable Debit…