Homework Answers
LO3. ----------?
1). Source documents:
A source document is the original record containing the details to
substantiate a transaction entered in an accounting system. For
example, a company's source document for the recording of
merchandise purchased is the supplier's invoice supported by the
company's purchase order and receiving ticket.
2). Journal:
In accounting and bookkeeping, a journal is a record of financial
transactions in order by date. Traditionally, a journal has been
defined as the book of original entry. A journal entry, into
accounting, is the logging of a transaction in accounting journal
items. The journal entry can consist of several recordings, each of
which is either a debit or a credit. The total of the debits must
equal the total of the credits or the journal entry is said to be
"unbalanced".
3). Posting:
Posting in accounting is when the balances in sub-ledgers and the
general journal are shifted into the general ledger. Posting only
transfers the total balance in a sub-ledger into the general
ledger, not the individual transactions in the sub-ledger.
What are the steps for journalizing and posting:
Step 1: Identify the accounts and the account type.
Step 2: Decide if each account increases or decreases using the
rules of debits and credits.
Step 3: Record transactions in the journal using journal
entries.
Step 4: Post the journal entry to the ledger. Step 5: Determine
whether the accounting equation is in balance.
LO4. ------------?
A) What is trial balance?
Trial Balance is a list of closing balances of ledger accounts on a
certain date and is the first step towards the preparation of
financial statements. It is usually prepared at the end of an
accounting period to assist in the drafting of financial
statements.
LO5. -------------?
Debt Ratio = Total Liabilities /
Total assets
Make sure you use the total liabilities and the total assets in your calculation. The debt ratio shows the overall debt burden of the company—not just the current debt.
Add Answer to:
Emphasis Heading 2 Heading 3 LO3. How do you record transactions? a) In your own words,...
1) in your own words, describe how we (as accountants) know the correct way to record...
1) in your own words, describe how we (as accountants) know the correct way to record transactions? 2) Pick one of the following acronyms: SEC, FASB, GAAP, IFRS. tell us what it stands for and briefly describe it in your own words. 3) How the "TIME PERIOD ASSUMPTION " applies to financial accounting in your own words? 4) prepaid expenses and unearned revenue are two types of accounts that students have a hard time conceptualizing. choose one of these accounts...
LO4. How do you analyze a transaction? a) In your own words, what is transaction? b)...
LO4. How do you analyze a transaction? a) In your own words, what is transaction? b) Which accounts would be affected by each of the following transactions and identify if the account would increase or decrease. i) The business receives cash from John Jones in exchange for capital Example: Cash (Increase) and Jones, Capital (Increase) ii) The company paid cash for land iii) Performed services for clients on account iv) Purchased Office Supplies on account
Chapter 14 Long-Term Liabilities Directed Reading Guide LO1. How are long-term notes payable and mortgages payable...
Chapter 14 Long-Term Liabilities Directed Reading Guide LO1. How are long-term notes payable and mortgages payable accounted for? In your own words, what is a long-term liability? Long term-liabilities are liabilities that do not need to be paid within one year or within the entity’s operating cycle, whichever is longer. Both long-term notes payable and mortgages payable are common long-term liabilities. To record the purchase of a building for $150,000, paying $100,000 in cash and signing a 30-year mortgage...
Concept Review (a) In your own words, define “Revenues.” Explain how revenues are different from “gains.”...
Concept Review (a) In your own words, define “Revenues.” Explain how revenues are different from “gains.” (b) What is performance obligation and how is it related to revenue recognition? (c) In general, what incentives do managers have to make self-serving revenue recognition choices?
You are operating your accounting firm. Your first client had the following transactions in April 20x7:...
You are operating your accounting firm. Your first client had
the following transactions in April 20x7:
Borrowed $10,000 from the bank.
Purchased $2,250 of computer equipment for cash.
Paid $750 cash for this month’s rent.
Purchased $1,500 of office supplies on credit. It is expected
that these supplies will last for 3 months.
Billed $500 to customers for services rendered during
April.
Paid cash for the $1,500 balance owed to the vendor from
Transaction 4.
Collected $450 cash of the...
The Four Steps in the Accounting Process You are operating your accounting firm. Your first client...
The Four Steps in the Accounting Process
You are operating your accounting firm. Your first client had
the following transactions in April 20x7:
Borrowed $10,000 from the bank.
Purchased $2,250 of computer equipment for cash.
Paid $750 cash for this month's rent.
Purchased $1,500 of office supplies on credit. It is expected
that these supplies will last for 3 months.
Billed $500 to customers for services rendered during
April.
Paid cash for the $1,500 balance owed to the vendor from...
I need new and unique answers, please. (Use your own words, don't copy and paste), Please...
I need new and unique answers, please. (Use your own
words, don't copy and paste), Please Use your keyboard
(Don't use handwriting) Thank you..
Question 1- The trial balance of Makkah Inc: Credit Debit 15,000 Account title Cash Account payable Retained earnings Total 10,000 5,000 15,000 15,000 Makkah, Inc., completed the following transactions during April 2016: a. Received $18,200 and issued ordinary shares. b. Purchased $200 office supplies on account. C. Paid $15,200 cash for land to use as a...
2. What is meant by concurrent audits and how it could be achieved? 3. In your own words, differentiate between COSO an...
2. What is meant by concurrent audits and how it could be achieved? 3. In your own words, differentiate between COSO and COBIT in terms of their purpose and application. Why do organizations need to apply both of them not only one. (write 200 words).
LOL. What are merchandising operations a) List and describe the operating cycle of a merchandising business:...
LOL. What are merchandising operations a) List and describe the operating cycle of a merchandising business: b) In your own words, define Cost of Goods Sold? c) In your own words, define Gross Profit and how is it calculated? a) What is the difference between the period and perpetual inventory systems? LO2. How are purchases of merchandise inventory recorded in a perpetual inventory system a) Using the perpetual system, Journalize for: a) the purchase of merchandise inventory of $1,000 on...
For your main Discussion post, list at least one of each transaction related to all of...
For your main Discussion post, list at least one of each transaction related to all of the following business events: Purchase of goods or services for cash Providing services for cash Providing services on account Purchase of goods or services on account Payment of a previously recorded expense Receipt of a previously recorded revenue earned Be sure to explain your logic in the analysis of your business transactions and do not repeat examples from the textbook. Also, list the type...
LO4. How do you analyze a transaction? a) In your own words, what is transaction? b) Which accounts would be affected by each of the following transactions and identify if the account would increase or decrease. i) The business receives cash from John Jones in exchange for capital Example: Cash (Increase) and Jones, Capital (Increase) ii) The company paid cash for land iii) Performed services for clients on account iv) Purchased Office Supplies on account
You are operating your accounting firm. Your first client had
the following transactions in April 20x7:
Borrowed $10,000 from the bank.
Purchased $2,250 of computer equipment for cash.
Paid $750 cash for this month’s rent.
Purchased $1,500 of office supplies on credit. It is expected
that these supplies will last for 3 months.
Billed $500 to customers for services rendered during
April.
Paid cash for the $1,500 balance owed to the vendor from
Transaction 4.
Collected $450 cash of the...
The Four Steps in the Accounting Process
You are operating your accounting firm. Your first client had
the following transactions in April 20x7:
Borrowed $10,000 from the bank.
Purchased $2,250 of computer equipment for cash.
Paid $750 cash for this month's rent.
Purchased $1,500 of office supplies on credit. It is expected
that these supplies will last for 3 months.
Billed $500 to customers for services rendered during
April.
Paid cash for the $1,500 balance owed to the vendor from...
I need new and unique answers, please. (Use your own
words, don't copy and paste), Please Use your keyboard
(Don't use handwriting) Thank you..
Question 1- The trial balance of Makkah Inc: Credit Debit 15,000 Account title Cash Account payable Retained earnings Total 10,000 5,000 15,000 15,000 Makkah, Inc., completed the following transactions during April 2016: a. Received $18,200 and issued ordinary shares. b. Purchased $200 office supplies on account. C. Paid $15,200 cash for land to use as a...
LOL. What are merchandising operations a) List and describe the operating cycle of a merchandising business: b) In your own words, define Cost of Goods Sold? c) In your own words, define Gross Profit and how is it calculated? a) What is the difference between the period and perpetual inventory systems? LO2. How are purchases of merchandise inventory recorded in a perpetual inventory system a) Using the perpetual system, Journalize for: a) the purchase of merchandise inventory of $1,000 on...
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