Part 1: UniRoad Consulting Co. spent $420,000 in research and development on January 1, 20X7. UniRoad Consulting Consulting Co. should record this rent payment as follows (we'll call this the CORRECT ENTRY). 1/1/20X7 Dr. Research and Development expense Cr. Cash $420,000 $420,000 However, the accountant at the company recorded the following journal entry (we'll call it the WRONG ENTRY). Assume that Capitalized R&D asset is a long-term asset. 1/1/20X7 Dr. Capitalized R&D asset $420,000 Cr. Cash $420,000 Question 1: Analyze how this CORRECT ENTRY and the WRONG ENTRY affect the following three ratios. Assume all ratios were previously less than 1 and ignore tax effect. A 1 Ratio 2 3 Current ratio 4 Debt-to-Asset ratio 5 Earnings per share B C The impact of the CORRECT ENTRY and the WRONG ENTRY Under the CORRECT ENTRY, the Under the WRONG ENTRY, the overall ratio overall ratio

On February 13, Scanlon Co. paid $1,530 to repair the transmission on one of its delivery vans. In addition, Scanlon paid $45 to install a GPS system in its van. Question Content Area Journalize the entries for the transmission. If an amount box does not require an entry, leave it blank. DateAccount Debit Credit February 13 Question Content Area Journalize the entry for GPS system expenditures. If an amount box does not require an entry, leave it blank. DateAccount Debit Credit February 13

N1. Account

Transaction: Laker Co. pays $3,900 on account for tools bought earlier. Required: For the transaction above, complete the following: (a) Select the accounts that are affected (there will be at least two). (b) Are the selected accounts increased or decreased? (c) What is the dollar amount of change in the accounts? (d) If Retained Earnings is selected, choose the reason that it has changed. Cash Account Accounts Receivable Supplies Tools Accounts Payable Capital Stock Which accounts are affected? Is the account increased or decreased? Increase Decrease OO Increase Decrease Increase Decrease Increase Decrease Increase Decrease Increase Decrease What is the amount of transaction? $0 $0 $0 $ 6A $0 Why has Retained Earnings changed?