...E4-2 Goode Company Worksheet For the month ended April 30th, 2008 Adjusted Trial Income Balance Statement Balance Sheet Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Cash 13,752 13,752 Accounts Receivable 7,840 7,840 Prepaid Rent 2,280 2,280 Equipment 23,050 23,050 Accumulated Depreciation 4,921 4,921 Notes Payable 5,700 5,700 Accounts Payable 5,672 5,672 Common Stock 25,000 25,000 Retained Earnings 5,960 5,960 Dividends 3,650 3,650 Service Revenue 15,590 15,590 Salaries Expense 10,840 10,840 Rent Expense 760 760 Depreciation Expense 671 671 Interest Expense 57 57 Interest Payable 57 57 Totals 62,900 62,900 12,328 15,590 50,572 47,310 Net Loss 3,262 3,262 -------- ...
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...Questions: 2. State two generally accepted accounting principles that relate to adjusting the accounts. Matching Principle and Accrual basis Matching Principle - This accounting principle requires companies to use the accrual basis of accounting. The matching principle requires that expenses be matched with revenues. For example, sales commissions expense should be reported in the period when the sales were made (and not reported in the period when the commissions were paid). Wages to employees are reported as an expense in the week when the employees worked and not in the week when the employees are paid. If a company agrees to give its employees 1% of its 2008 revenues as a bonus on January 15, 2009, the company should report the bonus as an expense in 2008 and the amount unpaid at December 31, 2008 as a liability. (The expense is occurring as the sales are occurring.) Accrual basis - of accounting (as opposed to the cash basis of accounting), revenues are recognized as soon as a product has been sold or a service has been performed, regardless of when the money is actually received. Under this basic accounting principle, a company could earn and report $20,000 of revenue in its first month of operation but receive $0 in actual cash in that month. 3. Rick Marsh, a lawyer, accepts a legal engagement in March, performs the work in April, and is paid in May. If Marsh’s law firm prepares monthly financial statements, when should it recognize revenue from this engagement...
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...E1-1 Urlacher Company performs the following accounting tasks during the year. ___C___Analyzing and interpreting information. ___R__Classifying economic events. ___C___Explaining uses, meaning, and limitations of data. ___R__Keeping a systematic chronological diary of events. ___R___Measuring events in dollars and cents. ___C___Preparing accounting reports. ___C___Reporting information in a standard format. ___I___Selecting economic activities relevant to the company. ___R___Summarizing economic events. E1-5 Meredith Cleaners has the following balance sheet items. Accounts payable - Liability Accounts receivable - Asset Cash - Asset Notes payable - Liability Cleaning equipment - Asset Salaries payable - Liability Cleaning supplies - Asset Common stock – Stockholders’ equity E1-12 The following information relates to Linda Stanley Co. for the year 2008. Income Statement Revenues: • Service Revenue 62,500 Expenses: • Salaries Expense 30,000 • Rent Expense 10,400 • Utilities Expense 3,100 • Advertising Expense 1,800 Total Expenses 45,300 Net Income 17,200 Retained Earnings Statement Retained Earnings, Jan 1, 2008 48,000 Add Net Income 17,200 65,200 Less Dividends 6,000 Retained Earnings, Dec 30, 2008 59,200 E1-13 Mary Close is the bookkeeper for Mendez Company. Mary has been trying to get the balance sheet of Mendez Company to balance. Mendez’s balance sheet is shown on page 37...
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...DQ1 What are the steps in completing the accounting cycle? Discuss the relationship between the amounts on the adjusted trial balance for an account and its ledger? Discuss the relationship of the adjusted trial balance and the amount on the financial statements? What is the effect on the financial statements of missing a step when completing the accounting cycle? There are nine steps to completing an accounting cycle which are: ϖ Analyze business Transactions ϖ Journalize the Transactions ϖ Post to ledger accounts ❖ Prepare a trial balance ❖ Journalize and post adjusting entries: Prepayments/Accruals ❖ Prepare an adjusted trial balance ❖ Prepare financial statements: Income statement Retained earnings statement Balance sheet ϖ Journalize and post closing entries ϖ Prepare a post-closing trial balance Account balances are transferred from the ledge onto the trial balance for review and adjustments, if necessary. The adjusted trial balance states a list of company’s accounts, and the balance of the account. A discrepancy found in the trial balance is adjusted to disclose accurate balance. After the account balances are entered onto the trial balance, the two columns are totaled. The totaled credit balance must be the same as the totaled debit balance; if not the trial balance is reviewed to find any errors in posting or journalizing. The...
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...Financial Statements The fundamental language of business is accounting which defines the flow of funds in clear terms so that it can be correctly understood and used for the good of the company. Accounting condenses information like funds paid or received by a business or a person and presents the information in reports and statements. Accounting that is to the point helps the business administration make precise decisions. Together with defining the four basic financial statements, I will explain how they are interrelated and why they are useful to all aspects of a business. Companies prepare four financial statements from the summarized accounting figures, each providing applicable financial information for in-house and external users. The first is an income statement which shows the revenues and expenses with the resulting net income or net loss of a company for a specified period of time. This statement lists revenues first, followed by expenses. This report does not include investment or dividend transactions between the stockholders and the business because it would be judged as a decrease in retained earnings which would decrease the stockholders’ equity. The income statement is sometimes referred to as a statement of operations, an earnings statement, or a profit and loss statement. The second financial statement is a retained earnings statement. This report summarizes the reasons why earnings increased or decreased during a specific period of time. The next...
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...ACC/280-Week 2 team assignment- Sandy’s portion (Amounts in millions) What were the company’s two largest current liabilities at the end of its 2 most recent annual reporting periods? Wal-Mart’s two largest current liabilities at the end of its two most recent annual reporting periods were: 2012-Accounts payable totaling $36,608 and Accrued liabilities totaling $18,154. 2011-Accounts payable totaling $33,676 and Accrued liabilities totaling $18,701. Accrued liabilities consisted of the following: Accrued wages and benefits, self-insurance and other. (1)Accrued wages and benefits include accrued wages, salaries, vacation, bonuses and other incentive plans. (2) Self-insurance consists of all insurance-related liabilities, such as workers’ compensation, general liability, vehicle liability, property and employee-related health care benefits. (3) Other accrued liabilities consists of various items such as accrued taxes, maintenance, utilities, advertising, interest, and severance liabilities. What were the company’s total liabilities at the end of its 2 most recent annual reporting periods? The company’s total liabilities at the end of fiscal year 2012 totaled: $62,300. For fiscal year 2011, Wal-Mart’s current liabilities totaled $58,603. Other liabilities that were included in this total were: Accrued income taxes, long-term debt due within one year, Obligations under capital leases due within one year and current liabilities of discontinued operations. ...
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...ADS460 2 QMT412 ECO415 LAW299 ACCOUNTING II INDUSTRIAL RELATIONS MANAGEMENT PRINCIPLES AND PRACTICES BUSINESS STATISTICS ECONOMICS BUSINESS LAW CO-CURRICULUM Jumlah CTU553 LAW503 BEL462 ACC180 ADM551 ETHNIC RELATIONS ADVANCED BUSINESS LAW READING AND CRITICAL THINKING FINANCIAL ACCOUNTING HUMAN RESOURCE MANAGEMENT THIRD LANGUAGE I 3 PRO458 CO-CURRICULUM PUBLIC RELATIONS SENARAI ELEKTIF 1 ADM510 ADS510 ADS402 QUALITY MANAGEMENT INTERNATIONAL RELATIONS SOCIAL MARKETING Jumlah 22 3 Unit Kredit 3 2 3 3 3 3 1 18 3 3 3 3 3 3 1 19 2 3 2 3 3 2 1 3 MOD PENGAJIAN : Bahagian Kod Kursus ADS410 CTU551 MAT112 1 CSC413 LAW245 ACC114 Faculty of Administrative Science and Policy Studies ©Universiti Teknologi MARA Year : 2009 CSC208 BEL422 LAW603 ACC280 4 ADM501 MANAGEMENT INFORMATION SYSTEM REPORT WRITING MALAYSIAN COMPANY LAW MANAGEMENT ACCOUNTING THIRD LANGUAGE II ORGANIZATIONAL BEHAVIOR SENARAI ELEKTIF 2 3 2 3 3 2 3 ADS557 ADS560 ADS517 INNOVATION MANAGEMENT SOUTHEAST ASIAN AFFAIRS ADVANCED INDUSTRIAL RELATIONS Jumlah 19 2 3 3 2 4 3 3 BEL432 ACC292 ACC394 BUSINESS PROFESSIONAL CORRESPONDENCE TAXATION I COMPANY ACCOUNTS THIRD LANGUAGE III ADM609 5 ADM602 COMPANY SECRETARIAL PRACTICE I INTERNATIONAL BUSINESS ENVIRONMENT SENARAI ELEKTIF 3 ADS659 ADS503 ADM653 ENVIRONMENTAL MANAGEMENT IN THE DEVELOPING COUNTRIES KNOWLEDGE MANAGEMENT SOCIAL SECURITY AND EMPLOYEE BENEFITS ADMINISTRATION Jumlah 20 3 4 4 3 5 3 3 ACC392 ADM657 ADM659 ADM650 ADS666 ADM658 6 ADS651...
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...ACC 280 Final Exam To Buy this Tutorial Copy & paste below link in your Browser http://www.homeworkmarket.com/content/acc-280-final-exam-4313877-2 This document of ACC 280 Final Exam includes: PART I 1) The accounting process is correctly sequenced as A. identification, communication, recording B. recording, communication, identification C. identification, recording, communication D. communication, recording, identification 2) Bookkeeping differs from accounting in that bookkeeping primarily involves which part of the accounting process? A. Identification B. Communication C. Recording D. Analysis 3) Generally accepted accounting principles are A. income tax regulations of the Internal Revenue Service B. standards that indicate how to report economic events C. theories that are based on physical laws of the universe D. principles that have been proven correct by academic researchers 4) The private sector organization involved in developing accounting principles is the A. Feasible Accounting Standards Body B. Financial Accounting Studies Board C. Financial Accounting Standards Board D. Financial Auditors' Standards Body 5) GAAP stands for A. Generally Accepted Auditing Procedures B. Generally Accepted Accounting Principles C. Generally Accepted Auditing Principles D. Generally Accepted Accounting Procedures 6) The four primary financial statements are A. the general...
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...Nordstrom Executive Summary This memo will provide a brief history and financial overview of Nordstrom, a high-end, quality clothing store operating in 28 states with more than 200 stores according to Nordstrom’s Business Wire press release on December 2, 2010 (Nordstrom, 2010). Additionally, an overview of the financial information includes specific details from the balance sheet, income statements, and statement of cash flow for 2007 through 2009 and any latest reporting for 2010. The statements are attached for reference. Company History Wallin & Nordstrom was founded in 1901 by John W. Nordstrom and Carl Wallin as a shoe store in downtown Seattle. John retired in 1928 and Carl a year later, both sold their shares to John’s sons. In 1963 Nordstrom expanded to include fine apparel, in 1966 they expanded further to include clothing for men and children and changed the name of the store to Nordstrom Best. Bruce Nordstrom, known as Mister Bruce by Nordstrom employees, took over in 1968 and can still be found in his office above the downtown flagship store even though Blake, Peter, and Eric Nordstrom currently run the company. In 1971 Nordstrom went public; in 1973 the name changed to Nordstrom, Inc. (Nordstrom, 2010). Stock Exchange And Audit Firm Nordstrom stock trades on the New York Stock Exchange under the ticker symbol JWN (New York Stock Exchange, 2010). Nordstrom stock has done well over the past decade, . oOn December 18, 2000 the closing price for Nordstrom...
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