1) What is the Accounting equation?
2) Where do expenses fall under the accounting equation?
3) Where does Accounts Receivable fall under the accounting equation?
4) What are the four financial statements and in what order do you complete them?
5) What is the journal entry for the following transaction: The owner of Grantham Landscaping, LLC took
out a loan from the local bank in the amount of $8,525.
6) There is a monthly bill from the utility company which bills $300 per month. This month, the invoice
was never received. Please provide a journal entry to accrue for this expense.
7) Dave’s Plumbing, LLC performed plumbing services and billed for the services in the amount of 6,000,
however, the client has not issued payment on the invoice. Please provide a journal entry to accrue for
this revenue.
8) There were 500 boxes of paperclips in the office’s supply closet at the beginning of the month. At the
end of the month, there were 250 boxes left. The amount of boxes cost $3 per box. Please record a
journal entry for this adjustment.
9) If Grantham Landscaping, LLC mowed a yard for $5,500 in March 2014, but did not get paid for
mowing the yard until July 2014. Under CASH BASE accounting, when would this revenue be corded?
10) If Grantham Landscaping, LLC mowed a yard for $5,500 in March 2014, but did not get paid for
mowing the yard until July 2014. Under ACCRUAL BASE accounting, when would this revenue be
corded?
11) What are the three characteristics that qualifies an asset as a Plant Asset?
12) A truck which is purchased by Grantham Landscaping, LLC was purchased for $30,000, is expected to
be used by the company for 10 years, and the salvage value is $5,000. What is the amount which will be
depreciated on the books annually?
13) A truck which is purchased by Grantham Landscaping, LLC was purchased for $30,000, is expected to
be used by the company for 10 years, and the salvage value is $5,000. What is the amount which will be
in the “Accumulated Depreciation” amount for this truck after 5 years?
14) A truck which is purchased by Grantham Landscaping, LLC was purchased for $30,000, is expected to
be used by the company for 10 years, and the salvage value is $5,000. What is the journal entry to
record the depreciation 3 years after the truck was purchased?
15) Where does the account “Accumulated Depreciation” fall under the accounting equation?
16) -A truck which is purchased by Grantham Landscaping, LLC was purchased for $30,000, is expected to
be used by the company for 10 years, and the salvage value is $5,000.

-After 10 years, Grantham Landscaping, LLC has decided to sell the truck in a private party sell for $4,000
as that is the best price it be sold for in the amount time the company has allowed itself to dispose of
the property.
-Please provide a journal entry which will account for the loss in disposing of the plant asset (the truck).
17) -A truck which is purchased by Grantham Landscaping, LLC was purchased for $30,000, is expected to
be used by the company for 10 years, and the salvage value is $5,000.
-After 10 years, Grantham Landscaping, LLC has decided to sell the truck in a private party sell for $8,000
as that is the best price it be sold for in the amount time the company has allowed itself to dispose of
the property.
-Please provide a journal entry which will account for the gain in disposing of the plant asset (the truck).
18) Define the term “Intangible Asset”.
19) For equipment, the accountant will depreciate the cost of the item over a period of time. For a
natural resource, the accountant will __________ cost of the item over a period of time.
20) For equipment, the accountant will depreciate the cost of the item over a period of time. For an
intangible asset, the accountant will __________ cost of the item over a period of time.