Determine the effect of several transactions on assets, liabilities, and owner’s equity. 4.27 Balance Sheet. Using accounting records prepare a balance sheet and determine the balance of the owner’s equity account. 4.28 Balance Sheet. Using accounting records prepare a balance sheet for a business and determine the balance of the cash and owner’s equity account.
[pic] Chronological flow of activities (Business Process): 1. Customer delivers…………. 2. 2. a) List the specific items of information that are usually gathered at the POS (Point of Sale terminal or cash register) and recorded when a customer checks out (excluding obtaining the identity of the customer which is covered in Q3)? b) What are three important uses of this information at
7- Prepare financial statements; income statements, retained earnings statements, balannce sheets. Financial staments, income statements, retained earning statements and balance sheets are prepared to report the bottom line, year end (fiscal) earnings and financial standing to investors and company owners.
The disclosure shows the loss contingency and states the estimate of loss. Before the company issues the financial statement and after the enterprise’s financial statement is done, the company can impair an asset or incur the liability. Disclosure of loss contingencies helps the company to keep its financial statements not being misleading. When the disclosure is necessary, the company must report the loss contingency in financial statements with a given estimate of the mount of loss. Reference Financial Accounting Standards Board (2010).Statement of Financial Accounting Standards No.
A pro forma cash receipt is a document narrating incoming payments from debtors or receivables and is issued by the business or creditor (Cash Receipts Function, 2011). Function of Cash Receipts Cash receipts give a quick snapshot of particular debtors and respective repayments, thus, helping the business to recognize the source of cash inflows with respect to receivables within the accounted date range (LexisNexis, 2013). I 2. Company’s Cheque to Supplier Next you are to prepare a company cheque to pay a supplier called Shakers Ltd the amount of an invoice that has a gross total of £3,250.00. You are paying the invoice within the credit terms and are entitled to a cash discount of 2%.
Accrual and Cash Accounting XACC 290 October 5, 2014 Jana Rideout Accrual and Cash Accounting Introduction In business, there are many different forms and standards to accounting. These standards are governed by rules, laws, regulations and accurate accountability of a particular business account. There are some general differences between general and commercial basis accounting principles, also differences between accrual and cash basis accounting. Those differences will be looked at here. General and Commercial Basis Accounting Principles Generally accepted accounting principles (GAAP) state the standard framework of guidelines for financial accounting used in any given jurisdiction; commonly known as standard accounting practice or accounting standards.
* Journalize Transactions – Part of the transaction process, transaction data is entered on the J1 page of the General Journal. * Post to Ledger Accounts – This is used to transfer the journal entries to the ledger accounts; providing balances in various accounts. * Prepare a Trial Balance – Credits and Debits are totaled in order to determine equity before adjustments. The account balances and titles are listed in the order as they appear in the ledger. * Journalize and Post Adjusting Entries – On page J2 of the General Journal expenses incurred and revenues earned, not recorded on daily entries, are recorded.
d. cash investing and financing transactions during the period. 2. The statement of cash flows a. must be prepared on a daily basis. b. summarizes the operating, financing, and investing activities of an entity. c. is another name for the income statement.
Phase 1 Task 2: Individual Project Applied Managerial Accounting ACCT614-1204A-01 Colorado Technical University Professor: Tracie Edmond Donna Smith 10/15/2012 ABSTRACT: In this assignment I am a “corporate business financial analyst” and I will be discussing the essential financial information, such as explaining the basic financial statements and the type of information that each statement contains, and how this information is used and why it is necessary for the Board of Directors and executive management team with essential financial information on the management of the enterprise. MEMO: 10/15/2012 COMPANY: The Sparklin Automotive Company (SAC) TO: The Board of Directors and Executive Management Team TOPIC: Basic Financial Statements and Accounting Information FROM: Donna Smith In this memo is a list of the basic financial statements, including the information that is needed for each statement, and what this information is used for. These statements will help you to understand these financial statements and the necessary information that is needed for each statement. There are many factors to consider in planning, controlling, and decision making processes. There are several reasons to review and compare the different sections of the company’s financial statements, which are explained within this documentation.
Hammersmith Tools Limited The underlying accounting policies have been applied in the preparation of the financial statements of Hammersmith Tools Ltd. Statement of Accounting Policies For the Year ending 31 December 2011 1. Purpose The purpose of the following statement of Accounting policies is to act as a guide to non-accounting employees on basic accounting procedures that are employed in the company while determining the overall profits of the company. 2. Basis of Preparation The financial statements are prepared in accordance with the applicable law and under the convention of Historical cost.