CHAPTER 3 ANALYZING BUSINESS TRANSACTIONS USING T ACCOUNTS
|
|
- Patricia Eaton
- 6 years ago
- Views:
Transcription
1 CHAPTER 3 ANALYZING BUSINESS TRANSACTIONS USING T ACCOUNTS Chapter Opener: Thinking Critically or would have increased and Equity or the Service Revenue account would have also increased. The equation would increase by the same amount on both sides. (Assets would increase and Owners Equity would increase.) Fast Facts Mobile data traffic on AT&T s network grew more than 20,000 percent, more than doubling in 2011 alone. Mobile data speeds on AT&T s network increased dramatically. The download speeds available on AT&T s 4G LTE network today are more than 50X faster than AT&T s 2G network five years ago. The number of smartphones, tablets and other advanced mobile Internet devices on AT&T s network soared to more than 43 million. Total mobile data connections on AT&T s network more than doubled to more than 74 million, and mobile data revenues increased 5X, from just over $4 billion to more than $22 billion. AT&T s total wireless subscribers grew nearly to 107 million in 2012, and AT&T s wireless revenues increased 17.8 percent. Managerial Implications: Thinking Critically Answers will vary but could include the following: is overstated and checks bounce. The credit rating of the business is affected. The business loses customers because payments on account are not recorded properly. Discussion Questions Note to instructor: These questions are designed to check students understanding of new terms, concepts, and procedures presented in the chapter. 1. Written records for all assets, liabilities, and owner s equity of a business. 2. Adding the figures on both sides of the account and subtracting the smaller total from the larger total. 3. a. debit b. credit c. credit d. credit e. debit 4. To provide a classified list of the names and numbers of a firm s accounts. 5. Order in which they appear on financial statements. Balance sheet accounts listed first, followed by income statement accounts. 6. Additional accounts can be added when needed. 7. Permanent account balances are carried forward to start a new accounting period. Temporary account balances are transferred to a summary account at the end of the period and are zero at the start of a new accounting period. 8. a, b, h, i, k: temporary c, d, e, f, g, j, l: permanent 9. Debit: entry on the left side of an account. Credit: entry on the right side of an account. 10. Payment of rent in advance affords the right to occupy the facility the number of months covered by the payment. 11. Each transaction produces at least two effects. distribution in any manner. 3-1
2 EXERCISE 3.1 Equipment 19,000 46,000 James Wilson, Capital 24,200 40,800 EXERCISE 3.2 Equipment (1) 90,000 (2) 30,000 (2) 30,000 (3) 9,000 (4) 3,800 (5) 3,000 Advertising Expense (3) 9,000 (4) 3,800 Supplies Denise Carswell, Capital (5) 3,000 (1) 90,000 EXERCISE Credit 5. Debit 2. Debit 6. Debit 3. Credit 7. Debit 4. Credit 8. Debit EXERCISE Credit, Credit, Debit 2 Debit, Debit, Credit 3 Debit, Debit, Credit 4 Credit, Credit, Debit 5 Credit, Credit, Debit distribution in any manner. 3-2
3 EXERCISE 3.5, $160,300 Dr., $7,000 Dr. Supplies, $46,000 Dr. Equipment, $80,000 Dr., $80,000 Cr. Wade Wilson, Capital $190,000 Cr., $40,000 Cr. Telephone Expense, $700 Dr. Salaries Expense, $11,000 Dr. Wade Wilson, Drawing, $5,000 Dr. EXERCISE 3.6 ACCOUNT NAME Supplies Equipment Wade Wilson, Capital Wade Wilson, Drawing Salaries Expense Telephone Expense Totals Housing Locators Trial Balance December 31, 2016 DEBIT CREDIT Housing Locators Income Statement Month Ended December 31, 2016 Revenue Expenses Salaries Expense Telephone Expense Total Expenses Net Income distribution in any manner. 3-3
4 EXERCISE 3.7 Housing Locators Statement of Owner's Equity Month Ended December 31, 2016 Wade Wilson, Capital, Dec. 1, 2016 Net Income for December Less Withdrawals for December Increase in Capital Wade Wilson, Capital, Dec. 31, Housing Locators Balance Sheet December 31, 2016 Assets Liabilities Supplies Owner's Equity Equipment Wade Wilson, Capital Total Assets Total Liabilities & Owner's Equity distribution in any manner. 3-4
5 EXERCISE 3.8 Three Brothers Moving Company Chart of Accounts Account Number Account Name Account Number Account Name ASSETS OWNER'S EQUITY Trey Calhoun, Capital Trey Calhoun, Drawing 121 Office Supplies REVENUE 131 Prepaid Rent Office Equipment EXPENSES LIABILITIES 511 Salaries Expense Utilities Expense 517 Telephone Expense distribution in any manner. 3-5
6 PROBLEM 3.1A 1. Hunter Thompson, Capital + 21, , Equipment + 10,000-10, Office Furniture + 1,700-1, Office Equipment + 3, , Office Equipment + 11, , Nancy Fowler, Drawing + 6,000-6, Delivery Truck + 37, , ,500-3,500 Analyze: Transactions 1 and 6 directly affect the owner's equity account. distribution in any manner. 3-6
7 PROBLEM 3.2A 1. Gloria Williams, Capital + 70, , Office Furniture + 17,000-17, Office Equipment +1,050 +1, Automobile + 17,000-17, Gloria Williams, Capital + 11, , Office Equipment + 4, , ,050-1, Gloria Williams, Drawing + 5,000-5,000 Analyze: All transactions affected asset accounts. distribution in any manner. 3-7
8 PROBLEM 3.3A 1. Office Supplies + 3,000-3, , , Rent Expense + 5,000-5, , , ,000-2, Salaries Expense + 4,600-4, Telephone Expense , , Office Supplies + 1, , Salaries Expense + 4,600-4,600 distribution in any manner. 3-8
9 PROBLEM 3.3A (continued) ,000-3, , ,100 Analyze: $17,780 in cash was spent in June. PROBLEM 3.4A (a) + 160,000 (b) - 6,000 (f) + 14,000 (h) - 7,000 (d) + 8,200 (c) - 16,720 (n) + 16,000 (o) - 8,000 (h) + 7,000 (e) - 1,250 Bal. 15,000 (m) + 14,500 (g) - 13,000 (o) + 8,000 (i) - 4,000 (k) - 20,000 (l) - 9,400 (p) - 2,900 (q) (r) - 1,220 Bal. 113,510 (s) - 9,000 Office Equipment Office Furniture (g) + 38,000 (c) + 16,720 (k) + 40,000 (j) + 5,800 Bal. 78,000 Bal. 22,520 Horace Brock, Capital (p) - 2,900 (g) + 25,000 (a) + 160,000 (j) + 5,800 (k) + 20,000 Bal. 47,900 distribution in any manner. 3-9
10 PROBLEM 3.4A (continued) Horace Brock, Drawing Rent Expense (s) + 9,000 (d) + 8,200 (b) + 6,000 (f) + 14,000 (m) + 14,500 (n) + 16,000 Bal. 52,700 Utilities Expense Salaries Expense Telephone Expense (r) + 1,220 (l) + 9,400 (e) + 1,250 Miscellaneous Expense (i) + 4,000 (q) Bal. 4,700 Analyze: The company owes $47,900 (accounts payable). distribution in any manner. 3-10
11 PROBLEM 3.5A Horace Brock, Landscape Consultant Trial Balance June 30, 2016 ACCOUNT NAME Office Equipment Office Furniture Horace Brock, Capital Horace Brock, Drawing Miscellaneous Expenses Rent Expense Salaries Expense Telephone Expense Utilities Expense Total DEBIT CREDIT Revenue Expenses Miscellaneous Expenses Rent Expense Salaries Expense Telephone Expense Utilities Expense Total Expenses Net Income Horace Brock, Landscape Consultant Income Statement Month Ended June 30, distribution in any manner. 3-11
12 PROBLEM 3.5A (Continued) Horace Brock, Landscape Consultant Statement of Owner's Equity Month Ended June 30, 2016 Horace Brock, Capital, June 1, Net Income for June Less Withdrawals for June Increase in Capital Horace Brock, Capital, June 30, Horace Brock, Landscape Consultant Balance Sheet June 30, 2016 Assets Liabilities Office Equipment Owner's Equity Office Furniture Horace Brock, Capital Total Assets Total Liabilities & Owner's Equity Analyze: The net increase in owner's equity during the month of June was $21,130. distribution in any manner. 3-12
13 PROBLEM 3.1B 1. Equipment + 32,000-32, Gloria Bahamon, Drawing + 8,000-8, Equipment + 6,000-6, Delivery Truck + 24,000-24, ,200-7, Office Equipment + 10, , Kevin Fralicks, Capital + 40, , ,000-3,000 Analyze: The transactions that affect the liability accounts are transactions 5, 6 and 8. distribution in any manner. 3-13
14 PROBLEM 3.2B 1. Royce West, Capital + 40, , Shop Equipment + 3,600-3, Store Equipment + 2, , Truck + 20,000-20, Shop Equipment Royce West, Capital + 6, , Store Equipment + 5, , Royce West, Drawing + 3,200-3,200 Analyze: The transactions that affect the cash account are transactions 1, 2, 4, 7, and 8. PROBLEM 3.3B 1. Rent Expense + 7,500-7,500 distribution in any manner. 3-14
15 PROBLEM 3.3B (continued) , , Salaries Expense + 6,800-6, , , Telephone Expense + 1,580-1, ,000-8, Telephone Expense , , Utilities Expense Gasoline Expense + 1,590-1, ,250-6,250 distribution in any manner. 3-15
16 PROBLEM 3.3B (continued) ,400 +9,400 Analyze: The total cash collected for during the month was $14, PROBLEM 3.4B (a) + 140,000 (b) - 7,800 (f) + 11,280 (h) - 5,400 (d) +10,500 (c) - 38,500 (n) +6,500 (p) - 4,200 (h) + 5,400 (e) - 1,850 Bal. 8,180 (m) + 7,450 (i) - 3,800 (p) + 4,200 (j) - 1,590 (k) - 11,400 Office Furniture (l) - 18,900 (g) +6,500 (o) (r) Bal. 73,843 (s) - 8,000 Office Equipment Automobile (k) + 22,800 (c) + 38,500 (q) + 6,880 Bal. 29,680 Conner McAllister, Capital (i) - 3,800 (g) + 6,500 (a) + 140,000 (k) + 11,400 (q) +6,880 Bal. 20,980 distribution in any manner. 3-16
17 PROBLEM 3.4B (continued) Conner McAllister, Drawing Rent Expense (s) + 8,000 (d) + 10,500 (b) + 7,800 (f) + 11,280 (m) +7,450 (n) + 6,500 Bal. 35,730 Auto Expense Utilities Expense Salaries Expense (e) + 1,850 (j) + 1,590 (l) + 18,900 (r) +900 Bal. 2,750 Telephone Expense (o) Analyze: Credit customers owe the company $8,180 (). distribution in any manner. 3-17
18 PROBLEM 3.5B Conner McAllister, Counselor and Attorney at Law Trial Balance April 30, 2016 ACCOUNT NAME DEBIT CREDIT Automobile Office Equipment Office Furniture Conner McAllister, Capital Conner McAllister, Drawing Auto Expense Rent Expense Salaries Expense Utilities Expense Telephone Expense Total Conner McAllister, Counselor and Attorney at Law Income Statement Month Ended April 30, 2016 Revenue Expenses Auto Expense Rent Expense Salaries Expense Utilities Expense Telephone Expense Total Expenses Net Income distribution in any manner. 3-18
19 PROBLEM 3.5B (continued) Conner McAllister, Counselor and Attorney at Law Statement of Owner's Equity Month Ended April 30, 2016 C. McAllister, Capital, April 1, 2016 Net Income for April Less Withdrawals for April Decrease in Capital C. McAllister, Capital, April 30, ( ) Conner McAllister, Counselor and Attorney at Law Balance Sheet April 30, 2016 Assets Liabilities Automobile Office Equipment Owner's Equity Office Furniture Conner McAllister, Capital Total Assets Total Liabilities & Owner's Equity Analyze: The net decrease in owner's equity during the month of April was $4,277. distribution in any manner. 3-19
20 CRITICAL THINKING PROBLEM 3.1 Bal. 1,000 Equipment and Tools 6,000 2,000 2,300 2,000 1,200 3,600 1, , Truck Jack Walls, Capital 3,600 6,000 1,200 2,300 1,000 Bal. 4,500 Salary Expense Gasoline Expense Advertsing Expense 1, distribution in any manner. 3-20
21 CRITICAL THINKING PROBLEM 3.1 (continued) Elegant Lawn Care Income Statement Three Months Ended August 31, 2016 Revenue Expenses Salary Expense Gasoline Expense Advertising Expense Total Expenses Net income Elegant Lawn Care Statement of Owner's Equity Three Months Ended August 31, 2016 Jack Wells, Capital, June 1, Net Income for June-August Jack Wells, Capital, Jaugust 31, Elegant Lawn Care Balance Sheet August 31, 2016 Assets Liabilities Equipment/Tool Owner's Equity Truck Jack Wells, Capital Total Assets Total Liabilities & Owner's Equity Jack is better off than he would have been had he left his money in the savings account. He earned a profit of $2,900 from his Elegant Lawn Care business, compared to approximately $90.00 in interest his money would have earned over the three summer months (assuming a bank interest rate of 6%; $6, /12). Jack needs to look beyond his current checking account balance of $1,000 and realize that this balance will increase to $3,300 when he collects the $2,300 still owed to him. He also owns a truck and power mowers that he could sell for additional cash. distribution in any manner. 3-21
22 CRITICAL THINKING PROBLEM 3.2 Office Furniture (a) + 40,000 (b) - 4,000 (f) + 3,120 (i) - 4,260 (c) + 4,600 (d) + 9,100 (c) - 4,600 (0) + 4,300 (p) - 1,800 (j) 1,090 (i) + 4,260 (e) Bal. 1,360 Bal. 5,690 (m) +4,600 (g) (p) + 1,800 (h) -1,100 (k) - 8,000 (l) (n) (q) - 5,000 Bal. 33,820 (r) -1,200 Office Equipment John Arrow, Capital (g) (l) (g) (a) + 40,000 (j) +1,090 Bal. 1,040 John Arrow, Drawing Advertising Expense (q) + 5,000 (d) + 9,100 (b) + 4,000 (f) + 3,120 (m) + 4,600 (o) + 4,300 Bal. 21,120 Utilities Expense Salaries Expense Telephone Expense (n) +920 (k) (e) +420 Miscellaneous Expense (h) +1,100 (r) +1,200 Bal. 2,300 distribution in any manner. 3-22
23 CRITICAL THINKING PROBLEM 3.2 (continued) ACCOUNT NAME Office Furniture Office Equipment John Arrow, Architect Trial Balance January 31, 2016 DEBIT CREDIT John Arrow, Capital John Arrow, Drawing Advertising Expense Utilities Expense Salaries Expense Telephone Expense Miscellaneous Expense Totals Revenue Expenses Advertising Expense Utilities Expense Salaries Expense Telephone Expense Miscellaneous Expense Total Expenses Net Income John Arrow, Architect Income Statement Month Ended January 31, distribution in any manner. 3-23
24 CRITICAL THINKING PROBLEM 3.2 (continued) John Arrow, Architect Statement of Owner's Equity Month Ended January 31, 2016 John Arrow, Capital, January 1, Net Income for January Less Withdrawals for January Increase in Capital John Arrow, Capital, January 31, John Arrow, Architect Balance Sheet January 31, 2016 Assets Liabilities Office Furniture Owner's Equity Office Equipment John Arrow, Capital Total Assets Total Liabilities & Owner's Equity Analyze: Assets ($41,520) = Liabilities ($1,040) + Owner's Equity ($40,480) distribution in any manner. 3-24
25 SOLUTIONS TO BUSINESS CONNECTIONS Managerial Focus: 1. Net income (or net loss) for the period. 2. Reduce expenses; increase sales volume or raise sales prices. 3. Review of financial records containing cash available, amounts due, and dates due. 4. Provide summaries of: a. Income Statement revenues and expenses, b. Balance Sheet assets, liabilities, and owner s equity. Ethical Dilemma: Do not open the account New Expenses without approval from the controller. You must identify what expenses will be put into that account. If the account is not monitored, the clerk might enter personal expenses, which would not be appropriate. Financial Statement Analysis: 1. Financial data, operational information, plans for the future. 2. $4.4 billion. 3. $3,538,353 of cash, cash equivalents, and short-term investments were on hand at December 31, Financial results are relatively the same. GAAP net income was $832,775 or fiscal year 2012 compared to $ in fiscal year Adobe is targeting revenue of $950 million to $1 billion for the first quarter of Teamwork: All companies would have a cash account and accounts payable. A plumbing service would have accounts receivable whereas a clothing store would also have a credit card receivable. Both grocery store and clothing store would have inventory. All would have wages expense except the real estate would have sales commission. All would have office supplies expense. Depending on whether the company owned the building most would have rent expense. Internet Connection: For Fiscal Year 2012, Honeywell is the most profitable, and has the most cash and assets. distribution in any manner. 3-25
26 SOLUTIONS TO PRACTICE TEST Part A True-False 1. TRUE 2. TRUE 3. FALSE 4. FALSE 5. FALSE 6. TRUE 7. FALSE 8. FALSE 9. TRUE 10. FALSE 11. TRUE 12. TRUE 13. TRUE 14. TRUE 15. TRUE Part B Matching 1. i 2. c 3. h 4. f 5. b 6. d 7. e 8. g 9. a Part C Completion 1. trial balance 2. normal balance 3. footing 4. transposition 5. slide distribution in any manner. 3-26
CHAPTER 2 ANALYZING TRANSACTIONS DISCUSSION QUESTIONS
Financial and Managerial Accounting 14th Edition Warren SOLUTIONS MANUAL Full clear download (no formatting errors) at: https://testbankreal.com/download/financial-managerial-accounting-14thedition-warren-solutions-manual/
More informationCHAPTER 2 ANALYZING BUSINESS TRANSACTIONS
Chapter Opener: Thinking Critically CHAPTER 2 ANALYZING BUSINESS TRANSACTIONS The individuals in charge of keeping track of these transactions at Southwest as well as in other companies, are known as accountants.
More informationChapter 2 Analyzing Transactions
1 Chapter 2 Analyzing Transactions Chapter 2 Analyzing Transactions From Chapter 1: The Accounting Equation Assets = Liabilities + Owner's Equity Assets = Liabilities + Capital Drawing + Revenues - Expenses
More informationFull file at
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1) A journal entry is a record of an event that has a financial impact on the business that can be reliably measured. 1)
More informationCHAPTER 2 ANALYZING BUSINESS TRANSACTIONS
Chapter Opener: Thinking Critically CHAPTER 2 ANALYZING BUSINESS TRANSACTIONS Answers will vary but students should recognize that happy employees are more productive and present a positive image to the
More informationAnalyzing the Accounting Equation
Learning Objectives LO1 Show the relationship between the accounting equation and a T account. LO2 Identify the debit and credit side, the increase and decrease side, and the balance side of various accounts.
More informationChapter 2 Review of the Accounting Process
Intermediate Accounting 8th Edition Spiceland Solutions Manual Full Download: http://testbanklive.com/download/intermediate-accounting-8th-edition-spiceland-solutions-manual/ Chapter 2 Review of the Accounting
More informationFinancial Accounting, 6Ce (Harrison) Chapter 2 Recording Business Transactions. 2.1 Describe common types of accounts
Financial Accounting, 6Ce (Harrison) Chapter 2 Recording Business Transactions 2.1 Describe common types of accounts 1) Interest payable, income tax payable and salary payable are all examples of: A) accrued
More informationChapter 2 MULTIPLE CHOICE
Objectives: 1. Setting up and organizing a chart of accounts. 2. Recording transactions in T accounts according to the rules of debit and credit. 3. Preparing a trial balance. 4. Preparing financial statements
More informationChapter 2 Review of the Accounting Process
Intermediate Accounting 9th Edition Spiceland Solutions Manual Full Download: http://testbanklive.com/download/intermediate-accounting-9th-edition-spiceland-solutions-manual/ Chapter 2 Review of the Accounting
More informationThe McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
1-1 2012 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 3 1 Analyzing Business Transactions Using T Accounts Section 1: Transactions That Affect Assets, Liabilities, and Owner s
More informationChapter 2 Analyzing Transactions
1 Chapter 2 Analyzing Transactions Chapter 2 Analyzing Transactions From Chapter 1: The Accounting Equation Assets = Liabilities + Owner's Equity Assets = Liabilities + Capital Drawing + Revenues - Expenses
More informationAccounting for Business Transactions QUESTIONS
Financial and Managerial Accounting 7th Edition Wild Solutions Manual Full Download: http://testbanklive.com/download/financial-and-managerial-accounting-7th-edition-wild-solutions-manual/ Chapter 2 Accounting
More informationChapter 2 Review of the Accounting Process
Chapter 2 Review of the Accounting Process QUESTIONS FOR REVIEW OF KEY TOPICS Question 2 1 External events involve an exchange transaction between the company and a separate economic entity. For every
More informationChapter 2. Recording Business Transactions
Chapter 2 Recording Business Transactions Questions 1. The basic shortcut device of accounting is the T-account. It resembles the letter T, and its left side is called the debit side and its right side
More informationChapter 2 Review of the Accounting Process
Chapter 2 Review of the Accounting Process QUESTIONS FOR REVIEW OF KEY TOPICS Question 2 1 External events involve an exchange transaction between the company and a separate economic entity. For every
More informationCHAPTER 2 Solutions ANALYZING AND RECORDING BUSINESS TRANSACTIONS
Principles of Financial Accounting 12th Edition Needles Solutions Manual Full Download: http://testbanklive.com/download/principles-of-financial-accounting-12th-edition-needles-solutions-manual/ CHAPTER
More informationDebits and Credits: Analyzing and Recording Business Transactions
2 Debits and Credits: Analyzing and Recording Business Transactions ANSWERS TO DISCUSSION QUESTIONS AND CRITICAL THINKING/ETHICAL CASE 1. A ledger is a group of accounts that records in monetary value
More informationCHAPTER 2 ANALYZING TRANSACTIONS
CHAPTER 2 ANALYZING TRANSACTIONS EYE OPENERS 1. An account is a form designed to record changes in a particular asset, liability, owner s equity, revenue, or expense. A ledger is a group of related accounts.
More informationFull file at Chapter 2: Analyzing Business Transactions
Chapter 2: Analyzing Business Transactions TRUE/FALSE 1. When a company receives a product previously ordered, a recordable transaction has occurred. T PTS: 1 OBJ: LO1 KEY: business transactions 2. When
More informationCHAPTER 2 Solutions MEASUREMENT CONCEPTS: RECORDING BUSINESS TRANSACTIONS
CHAPTER 2 Solutions MEASUREMENT CONCEPTS: RECORDING BUSINESS TRANSACTIONS Discussion Questions DQ1. DQ2. DQ3. DQ4. DQ5. DQ6. DQ7. DQ8. All equipment needs normal repairs. These are considered an ongoing
More informationDebits and Credits: Analyzing and Recording Business Transactions
2 Debits and Credits: Analyzing and Recording Business Transactions ANSWERS TO DISCUSSION QUESTIONS AND CRITICAL THINKING/ETHICAL CASE 1. A ledger is a group of accounts that record in monetary value data
More informationChapter 2 Review of the Accounting Process
Chapter 2 Review of the Accounting Process AACSB assurance of learning standards in accounting and business education require documentation of outcomes assessment. Although schools, departments, and faculty
More informationACCT1115. Review Package - Quiz 1. Fall 2013 SOLUTION
ACCT1115 Review Package - Quiz 1 Fall 2013 SOLUTION Page 1 of 16 Review EAM Part I Multiple Choice Circle the best answer. 1) Which of the following will cause a decrease in net worth? a) Buying assets
More informationSolution Manual for College Accounting 12th Edition by Jeffrey Slater 2 Debits and Credits: Analyzing and Recording Business Transactions
Solution Manual for College Accounting 12th Edition by Jeffrey Slater 2 Debits and Credits: Analyzing and Recording Business Transactions Chapter 2: Debits and Credits: Analyzing and Recording Business
More informationT Accounts, Debits and Credits, Trial Balance, and Financial Statements
2 T Accounts, s and s, Trial Balance, and Financial Statements TEACHING OBJECTIVES 1. To introduce the T account form 2. To introduce debit and credit 3. To introduce the function and preparation of a
More informationDebits and Credits CHAPTER
chapter-3.qxd 3//0 3:48 PM Page 45 3 CHAPTER Debits and Credits As you learned in the last chapter, accountants use the accounting equation to analyze a firm s transactions and determine the effects of
More informationThe Accounting Cycle Reporting Financial i Results
51 52 The Accounting Cycle Reporting Financial i Results Chapter 5 To prepare an income statement, a statement of retained earnings, and a balance sheet. LO1 Adjusted Trial Balance Cash $ 3,925 Accounts
More informationHeintz & Parry. 20 th Edition. College Accounting
Heintz & Parry 20 th Edition College Accounting Chapter 3 The Double-Entry Framework 1 Define the parts of a T account. SHAPED LIKE a T Debit Credit Debit means Left Debit Credit Credit means Right Abbreviation
More informationon the land. be treated as an expense of the business. company should credit an unearned revenues account for the amount charged to the customer.
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1) The first step in the accounting cycle is transaction analysis. 2) An account is a detailed record of increases and
More informationFundamental Accounting Principles
SOLUTIONS MANUAL to accompany Fundamental Accounting Principles 14 th Canadian Edition by Larson/Jensen Prepared by: Tilly Jensen, Athabasca University Wendy Popowich, Northern Alberta Institute of Technology
More informationAccounting Basics, Part 1
Accounting Basics, Part 1 Accrual, Double-Entry Accounting, Debits & Credits, Chart of Accounts, Journals and, Ledger Part 1 What s Here Introduction Business Types Business Organization Professional Advice
More informationHorngren's Financial & Managerial Accounting, 5e (Miller) Chapter 1 Accounting and the Business Environment. Learning Objective 1-1
Horngren's Financial & Managerial Accounting, 5e (Miller) Chapter 1 Accounting and the Business Environment Learning Objective 1-1 1) Accounting is the information system that measures business activities,
More informationTHE ACCOUNTING INFORMATION SYSTEM
2 THE ACCOUNTING INFORMATION SYSTEM DISCUSSION QUESTIONS 1. The conceptual framework of accounting is the collection of general concepts that logically flow from the objective of financial reporting to
More informationFUNDAMENTAL ACCOUNTING (100) Secondary
Page 1 of 11 Contestant Number: Time: Rank: FUNDAMENTAL ACCOUNTING (100) Secondary REGIONAL 2016 CONCEPT KNOWLEDGE: True/False (20 @ 2 points each) Multiple Choice (25 @ 2 points each) APPLICATION KNOWLEDGE:
More informationDo you subscribe to any magazines? Most of us subscribe
C H A P T E R 3 The Adjusting Process AP Photo/Jeff Kravitz M A R V E L E N T E R T A I N M E N T, I N C. Do you subscribe to any magazines? Most of us subscribe to one or more magazines such as Cosmopolitan,
More informationAfter studying this chapter, you should be able to: adjusted account balances.
4 Completing the Accounting Cycle 1 After studying this chapter, you should be able to: 1. Describe the flow of accounting information from the unadjusted trial balance into the adjusted trial balance
More informationCHAPTER 2. The Recording Process. Brief 2, 3, 4, 5, 6, 7, 8, 9, 14 10, , 7 11, 12, 13, 14, 16
CHAPTER 2 The Recording Process ASSIGNMENT CLASSIFICATION TABLE Study Objectives Questions Brief Exercises Exercises A Problems B Problems 1. Explain what an account is and how it helps in the recording
More informationCh.2 A Review of the Accounting Cycle
Ch.2 A Review of the Accounting Cycle 1. Basic steps in the accounting process (accounting cycle) 2. Analyze transactions and make and post journal entries 3. Make adjusting entries, produce financial
More informationFUNDAMENTAL ACCOUNTING (100) Secondary
Page 1 of 11 Contestant Number: Time: Rank: FUNDAMENTAL ACCOUNTING (100) Secondary REGIONAL 2017 CONCEPT KNOWLEDGE: True/False (15 @ 2 points each) Multiple Choice (25 @ 2 points each) APPLICATION KNOWLEDGE:
More informationCHAPTER 3 Adjusting the Accounts
Solutions Manual Financial and Managerial Accounting, 2nd Edition Weygandt Kimmel Kieso Completed Instant download SOLUTIONS MANUAL for Financial and Managerial Accounting, 2nd Edition by Jerry J. Weygandt,
More informationFUNDAMENTAL ACCOUNTING (01)
13 Pages Contestant Number Time Rank FUNDAMENTAL ACCOUNTING (01) Regional 2009 Multiple Choice (30 @ 2 points each) Account Identification (39 @ 1 point each) Production Portion Problem 1: Journalizing
More informationPROBLEM 3-2B. (a) J1 Date Account Titles Ref. Debit Credit May 31 Insurance Expense Prepaid Insurance...
PROBLEM 3-2B (a) J1 Date Account Titles Ref. Debit Credit May 31 Insurance Expense... 722 190 Prepaid Insurance... ($2,280 X 1/12) 130 190 31 Supplies Expense... Supplies ($2,200 $)... 631 126 1,450 1,450
More informationChapter 3 The Adjusting Process
Instant download and all chapters Solution Manual Horngren s Financial Managerial Accounting 4th Edition Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura https://testbankdata.com/download/solution-manual-horngrens-financialmanagerial-accounting-4th-edition-tracie-l-nobles-brenda-l-mattison-ella-maematsumura/
More informationChapter 1: Accounting and the Business Environment
Chapter 1: Accounting and the Business Environment 1.1-1 Accounting is the information system that measures business activity, processes the data into reports, and communicates the results to decisions
More informationChapter 4: Completing the Accounting Cycle. Learning Objective 2 Prepare financial statements from adjusted account balances.
1 Chapter 4 Completing the Accounting Cycle Chapter 4: Completing the Accounting Cycle Learning Objective 2 Prepare financial statements from adjusted account balances. From chapter 3 NetSolutions Adjusted
More informationSolution manual for Accounting 26th Edition by Warren CHAPTER 2 ANALYZING TRANSACTIONS
Solution manual for Accounting 26th Edition by Warren Link full download: http://testbankcollection.com/download/solution-manual-for-accounting-26thedition-by-warren CHAPTER 2 ANALYZING TRANSACTIONS DISCUSSION
More informationFinancial Statements and Closing Entries for a Merchandising Business
Ch.10 Financial Statements and Closing Entries for a Merchandising Business o Prepare financial statements for a merchandising business o Journalize adjusting and closing entries for a merchandising business
More informationChapter 2 Recording Business Transactions
Horngren's Accounting, The Financial Chapters 11th Edition Solutions Manual Miller-Nobles Solutions Manual, Answer key, Instructor's resource Manual, Try It Solutions, Working Papers Solutions are include.
More informationExercises. 2) Owners Equity is ( ) (1). Occurs when Revenues exceed Expenses. (2) Debts owed by a business, (3). The excess of Assets over Liabilities
Exercises 1 Please answer the following questions 1 Please explain Assets 2 Please explain Liabilities 3 Please explain Owner Equity 4 Please explain Revenues 5 Please explain Expenses 2 Please select
More informationBusiness Accounts. That sounds a little confusing. All the accounts of a business are grouped together in a ledger.
Business Accounts An account is a location within an accounting system in which the increases and decreases in a specific asset, liability, or owner s equity are recorded and stored. That sounds a little
More informationChapter 4: Completing the Accounting Cycle
1 Chapter 4 Completing the Accounting cycle Chapter 4: Completing the Accounting Cycle Learning Objective 1 Describe the financial statements of a proprietorship and explain how they interrelate. Financial
More informationCash. Laundry Equipment. Hilda Dinero, Capital Oct. 31 Clos. 1,000 Oct. 31 Bal. 18, Clos. 12, Bal. 30,200
1, 3, 6. Oct. 31 Bal. 1,450 Cash Laundry Supplies Oct. 31 Bal. 3,750 Oct. 31 Adj. 2,800 31 Adj. Bal. 950 Prepaid Insurance Oct. 31 Bal. 2,400 Oct. 31 Adj. 2,000 31 Adj. Bal. 400 Oct. 31 Bal. 54,500 Laundry
More informationAssessment Schedule 2017 Accounting: Prepare financial information for an entity that operates accounting subsystems (91176)
NCEA Level 2 Accounting (91176) 2017 page 1 of 7 Assessment Schedule 2017 Accounting: Prepare financial information for an entity that operates accounting subsystems (91176) Marking Instructions applied
More informationAdjustments, Financial Statements and the Quality of Earnings
Adjustments, Financial Statements and the Quality of Earnings Chapter 4 Accounting Cycle 4-2 1 Unadjusted Trial Balance Listing of all the balance sheet and income statement accounts, usually in financial
More informationChart of Accounts. Chart of Accounts
Chart of Accounts A company s Chart of Accounts is a list of all Asset, Liability, Equity, Revenue, and Expense accounts included in the company s General Ledger. The number of accounts included in the
More informationDo not turn this page until the start signal is given!
UNIVERSITY INTERSCHOLASTIC LEAGUE ACCOUNTING EXAM Invitational 2018-A Contestant # Team # Do not turn this page until the start signal is given! All answers MUST be written on your answer sheet. Either
More informationNCEA LEVEL 1 ACCOUNTING
NCEA LEVEL 1 ACCOUNTING By Elizabeth Pitu (Updated April 2011) BOOK 3 & Balance Day Adjustments, & Interpretation ANSWER BOOK Achievement Standard 90978 External 5 credits Subject reference: Accounting
More informationSOLUTIONS TO EXERCISES SET B
SOLUTIONS TO EXERCISES SET B EXERCISE 5-1B 1 False. Measuring net income for a merchandiser is conceptually the same as measuring net income for a service company. 2. True. 3. False. For a merchandiser,
More information3) Managerial accounting focuses on information for external decision makers. Answer: FALSE
Horngren's Financial & Managerial Accounting, 4e (Nobles) Chapter 1 Accounting and the Business Environment Learning Objective 1-1 1) Accounting is the information system that measures business activities,
More informationAdjusting the Accounts
HOSP 1860 (Financial Acct) Learning Centre Adjusting the Accounts Anytime we prepare financial statements or reach the end of an accounting period, there are account adjustments that need to be made to
More informationAnalyzing and Recording Transactions QUESTIONS
Chapter 2 Analyzing and Recording Transactions QUESTIONS 1. a. Common asset accounts: cash, accounts receivable, notes receivable, prepaid expenses (rent, insurance, etc.), office supplies, store supplies,
More informationSOLUTIONS Learning Goal 8
Learning Goal 8: Prepare Closing Entries S1 Learning Goal 8 Multiple Choice 1. d 2. a 3. b 4. d Because the dividends account is closed directly into the retained earnings account, not into income summary.
More information4/9/2012. Recording Transactions. Learning Objectives (LO) LO 1 Double-Entry System. LO 1 Double-Entry System. LO 1 Double-Entry System
4/9/212 Recording Transactions CHAPTER 3 Learning Objectives (LO) After studying this chapter, you should be able to 1. Use double-entry accounting 2. Describe the five steps in the recording process 3.
More informationFundamental Accounting Principles
Last revised: January 23, 2016. SOLUTIONS MANUAL to accompany Fundamental Accounting Principles 15 th Canadian Edition by Larson/Jensen/Dieckmann Revised for the 15 th Edition by: Praise Ma, Kwantlen Polytechnic
More informationHUM 211: Principles of Accounting Lecture 03: The Recording Process
Chapter 2 HUM 211: Principles of Accounting Lecture 03: The Recording Process Masud Jahan Department of Science and Humanities Military Institute of Science and Technology 2011 Learning Objective To identify
More informationFUNDAMENTAL ACCOUNTING (01)
14 Pages Contestant Number Time Rank FUNDAMENTAL ACCOUNTING (01) Regional - 2007 Multiple Choice (30 @ 3 points each) Account Identification (15 @ 3 points each) Production Portion Problem 1: Financial
More informationIntroduction to Depository Institutions
Introduction to Depository Institutions Advanced Level What is a Depository Institution? Depository institution businesses that provide financial services What is the name of one depository institution
More informationDSST Principles of Financial Accounting
DSST Principles of Financial Accounting Time 120 Minutes 76 Questions For each question below, choose the best answer from the choices given. 1. Which of the following are periodic reports created to convey
More informationSavings Tools. Take Charge of Your Finances Financial Literacy
Savings Tools Take Charge of Your Finances Financial Literacy To Develop a Savings Fund: Determine how much money is appropriate for a savings fund Determine which savings tools in which to place money
More informationCHAPTER 3. Adjusting the Accounts 6, 7 1 8, 9, 10, 11, 12, 13, 18, 19, , 18 6A 12, 13 14, 15
CHAPTER 3 Adjusting the Accounts ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! Exercises A Problems B Problems *1. Explain the time period assumption. *2. Explain
More informationGraded Project. Lesson 1: Business Accounting and You OVERVIEW INSTRUCTIONS
Lesson 1: Business Accounting and You OVERVIEW The focus of this project is for the student to keep a set of books through an accounting period to perform the following functions: Set up the books of accounting
More informationDEBITS AND CREDITS: ANALYZING AND RECORDING BUSINESS TRANSACTIONS
DEBITS AND CREDITS: ANALYZING AND RECORDING BUSINESS TRANSACTIONS 2-1 Chapter 2 Learning Objectives 1. Setting up and organizing a chart of accounts. 2. Recording transactions in T accounts according to
More informationThe Expanded Ledger: Revenue, Expense, and Drawings
Revenue, Expense, and Drawings Remember the following before proceeding to the next slide!! Up until now, we have been recording transactions to the Capital account in the Owner s Equity section. Here
More informationa) Post-closing trial balance c) Income statement d) Statement of retained earnings
Note: The formatting of financial statements is important. They follow Generally Accepted Accounting Principles (GAAP), which creates a uniformity of financial statements for analyzing. This allows for
More informationFINANCIAL ACCOUNTING PRINCIPLES (BAT4M) FINAL EXAMINATION
Canadian International Matriculation Programme Sunway College FINANCIAL ACCOUNTING PRINCIPLES (BAT4M) FINAL EXAMINATION Date : 5 December 2017 Time Length Lecturer : 8:30 a.m. 10:30 a.m. : 2 hours : Ms
More informationBuy The Complete Version of This Book at Booklocker.com:
Accounting and bookkeeping text with student working papers and solutions. How to Do Accounting I with student working papers and solutions Buy The Complete Version of This Book at Booklocker.com: http://www.booklocker.com/p/books/4709.html?s=pdf
More informationAnalyzing and Recording Transactions QUESTIONS
Chapter 2 Analyzing and Recording Transactions QUESTIONS 1. a. Common asset accounts: cash, accounts receivable, notes receivable, prepaid expenses (rent, insurance, etc.), office supplies, store supplies,
More informationAcct 151A Week 7, Chap 6. Instructor: Michael Booth Cabrillo College
Acct 151A Week 7, Chap 6 Instructor: Michael Booth Cabrillo College McGraw-Hill 2007 The McGraw-Hill Companies, Inc. All rights reserved. Closing Entries and the Postclosing Trial Balance Closing Entries
More informationIn addition, sample interview questions for the position are enclosed for your review and information.
July 31, 2014 City of Mount Pleasant Tennessee Ms. Holly Alsup Finance Director 100 Public Square Mount Pleasant, Tennessee 38474 VIA ELECTRONIC MAIL Dear Ms. Alsup: Responsive to your request, the following
More informationCHAPTER 4 EXERCISES: SET B. E4-1B The trial balance columns of the worksheet for Lamar Company at June 30, 2017, are as follows.
CHAPTER 4 EXERCISES: SET B E4-1B The trial balance columns of the worksheet for Lamar Company at June 30, 2017, are as follows. Complete the worksheet. LAMAR COMPANY Worksheet for the Month Ended June
More informationChapter 2--Analyzing Transactions
Chapter 2--Analyzing Transactions Student: 1. Accounts are records of increases and decreases in individual financial statement items. 2. A chart of accounts is a listing of accounts that make up the journal.
More informationAccounting 1A Class Notes Chapter 3 The Adjusting Process
Source Documents General Journal General Ledger Trial Balance Adjusting Entries Difference between TRANSACTIONS and ADJUSTMENTS Transactions occur through-out the accounting cycle and normally involve
More informationFUNDAMENTAL ACCOUNTING (100) Secondary
Page 1 of 12 FUNDAMENTAL ACCOUNTING (100) Secondary REGIONAL 2015 Multiple Choice & Short Answer Section: Contestant Number: Time: Rank: Multiple Choice (25 @ 2 points each) Account Classification (10
More informationFull file at
CHAPTER 2 QUESTIONS 1. The accounting system generates a variety of reports for use by various decision makers. Among the most common are generalpurpose financial statements, management reports, tax returns,
More informationPresented by: Meredith Mostochuk, CBA
Presented by: Meredith Mostochuk, CBA Types of Businesses Definition of a Business: An organization in which goods and services are exchanged for one another, or for money, on the basis of their perceived
More informationAccounting I BBA 2. Quiz No. 1. Registration No. Signature. Instructions. (Not to Turn the Title Page Prior to Instructions)
Registration No Signature BBA 2 Quiz No. 1 Instructions Please read the following instructions carefully before attempting any question: Write your student Registration No. and Signature; Failure to do
More informationAccounting for. Sole Proprietorship. 1 Identify the differences in equity accounts between a corporation and a sole proprietorship.
appendix F Accounting for Sole Proprietorships study objectives After studying this appendix, you should be able to: 1 Identify the differences in equity accounts between a corporation and a sole proprietorship.
More informationChapter 2--Analyzing Transactions
Chapter 2--Analyzing Transactions Student: 1. Accounts are records of increases and decreases in individual financial statement items. 2. A chart of accounts is a listing of accounts that make up the journal.
More informationLearning Objectives. LO1 Journalize and post closing entries for a service business organized as a proprietorship.
Learning Objectives LO1 Journalize and post closing entries for a service business organized as a proprietorship. Lesson 8-1 Need for Permanent and Temporary Accounts Accounts used to accumulate information
More informationDo not turn this page until the start signal is given!
UNIVERSITY INTERSCHOLASTIC LEAGUE ACCOUNTING EXAM Invitational 2016-A Contestant # Team # Do not turn this page until the start signal is given! All answers MUST be written on your answer sheet. Either
More informationCHAPTER 2 QUESTIONS. revenue, and expense accounts of the
CHAPTER 2 QUESTIONS 1. The accounting system generates a variety of reports for use by various decision makers. Among the most common are generalpurpose financial statements, management reports, tax returns,
More informationExtra Practice for Block 1
Extra Practice for Block 1 Source: Harrison, Walter T., Jr., and Charles T. Horngren. Financial Accounting. 3rd ed. Boston: Pearson, 2008. Print. Custom Edition. Chapter 1 p.26-27 1. Which of the following
More informationChapter 2--Analyzing Transactions
Chapter 2--Analyzing Transactions Student: 1. Accounts are records of increases and decreases in individual financial statement items. 2. A chart of accounts is a listing of accounts that make up the journal.
More informationAssessment Questions
learning outcomes 1 Describe the purpose of accounting 2 Describe the balance sheet and the income statement 3 Define an accounting period 4 Explain how the accounting equation works 5 Explain accrual-based
More informationAccounting 1A Class Notes Chapter 2 Analyzing Transactions. Chart of Accounts 1. Assets. Liabilities. 3. Owners Equity. Revenue. 5.
Chart of Accounts 1. Assets 2. Liabilities 3. Owners Equity 4. Revenue 5. Expense T- ACCOUNTS Title, Debit on the Left and Credit on the right Foot both sides (if more than one entry) Balance on the side
More informationWatch the Bottom Line
Thinkstock images/comstock/thinkstock Objective Watch the Bottom Line istockphoto/thinkstock Last winter, Tucker and Ian started a lawn-mowing and snow-shoveling service. Although they did well initially,
More informationChapter 2. Transaction Analysis. Ethics Check. (5-10 min.) EC 2-1. a. Due care b. Integrity c. Due care d. Objectivity and independence
Chapter 2 Transaction Analysis Ethics Check (5-10 min.) EC 2-1 a. Due care b. Integrity c. Due care d. Objectivity and independence Copyright 2017 Pearson Education Inc. Chapter 2 Transaction Analysis
More informationLearning Objective. LO1 Prepare an income statement for a merchandising business organized as a corporation.
Learning Objective LO1 Prepare an income statement for a merchandising business organized as a corporation. Lesson 16-1 Uses of Financial Statements LO1 A corporation prepares an income statement and a
More informationFUNDAMENTAL ACCOUNTING (01) Regional 2013
Page 1 of 11 Contestant Number Time Rank FUNDAMENTAL ACCOUNTING (01) Secondary Regional 2013 Multiple Choice Account Identification Problem 1 Journalizing Problem 2 Income Statement Problem 3 Closing Entries
More information