ACC 100 Chapter Notes - Chapter 3: Deferral, Accounts Payable, Asset

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magentamallard935

4 Dec 2017

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Introduction to accounts: recognize the difference between events and transactions. An event is a business activity of importance to a business, For something to be an event it must be either measureable but not realized, or realized but not measurable. Events are never recorded in the accounting system. For an even to be a transaction, it must be measurable and realized. Transactions are recorded in the accounting system: analyze and record transactions using the critical and enhancing questions, record all transactions using account names. Leasing of a domain name with a credit card prepaid expense (an asset account) goes up, accounts payable (a liability account) go up. Purchase of a business license on credit card business license (an asset account; more specifically a long- lived, tangible asset) goes up, accounts payable (a liability account) go up. Cash contributions by owners (cid:272)ash (cid:894)a(cid:374) asset a(cid:272)(cid:272)ou(cid:374)t(cid:895) goes up, o(cid:449)(cid:374)e(cid:396)"s (cid:272)apital (cid:894)a(cid:374) e(cid:395)uity a(cid:272)(cid:272)ou(cid:374)t(cid:895) goes up.

Related Questions

Business owners are given a choice between using the cash basis of accounting and the accrual basis of accounting, which of the two methods do you believe they would choose? Based on your selected method, will the financial statements presented show a true representation of the company's performance? Why or why not?

A company fails to recognize revenue for services performed but not yet received. Which of the following types of accounts are involved: (a) asset, (b) liability, (c) revenue, or (d) expense? For the accounts selected, indicate whether it would be debited or credited in the entry.

In what order should the financial statements be prepared in? or does the order not matter?

The accountant for Newman Production services failed to record an adjusting entry of $5,000 for unpaid taxes. How will this impact the current year financial statements? Be sure to state the type of account (Asset, Liability, Owner's Equity, Revenue or Expense) and whether it will be understated or overstated.

burgundywallaby90

Explain what a transaction is; analyze the impact of business transactions on accounts; record [journalize and post] transactions in the books; construct and use a trial balance) You are a Certified Public Accountant âStudentâs name, Certified Public Accountantâ, and operate as a professional corporation (P.C.). Your business completed these transactions during the first part of August 2016:

Aug. 1 The P.C. received $20,000 cash from you, and issued you common stock.

2 Paid monthly office rent, $800

3 Purchased a computer on account for $2,500, with the computer expected to remain in service for five years.

4 Purchased office furniture for cash, $5,000, with the furniture projected to last for five years.

5 Purchased supplies on account, $800.

9 Performed tax service for a client on account, $1,500.

15 Received and paid utility expenses, $350.

20 Preformed consulting services and received cash for the full amount of $1,800.

LO USING EXCEL:

1. Journalize the transaction. Explanations are not required.

2. Post to the T-accounts. Key all items by date and determine the ending balance in each account. Denote an account balance on August 20, 2016, as Bal.

3. Prepare a trial balance at August 20, 2016.

Journal

Date

ACCOUNT TITLES AND EXPLANATION

DEBIT

CREDIT

Aug 1

Req. 2
Cash				Accounts Receivable
Aug. 1
				Bal.

Bal.	-

Supplies				Equipment

Bal.				Bal.

Furniture				Accounts Payable


Bal.						Bal.	-

Common Stock				Service Revenue


		Bal.	-			Bal.	-

Rent Expense				Utilities Expense

Bal.	-			Bal.	-

Req. 3
Student's Name, Certified Public Accountant, P.C.
Trial Balance
August 20, 2016
ACCOUNT						DEBIT	CREDIT
Cash
Accounts receivable
Supplies
Equipment
Furniture
Accounts payable
Common stock
Dividends
Service revenue
Rent expense
Utilities expense
Salary expense
Total						$ -	$ -

plumleopard605

During February of this year, H. Rose established Rose Shoe Hospital. The following asset, liability and owner's equity accounts are included in the charts accounts:

Cash Accounts Payable

Shop Equipment H. Rose, Capital

Store Equipment Income from Services

Office Equipment Advertising Expense

The following transactions occurred during the month of February:

a. Rose deposited $25000 cash in a bank account in the name of the business.

b. Bought shop equipment for cash, $1525, Ck.No 1000.

c. Bought advertising on account from Milland Company, $325.

d. Bought store shelving on account from Inger Hardwarde, $750.

e. Bought office equipment from Shara's Office Supply, $625, paying $225 in cash and placing the balance of acount, ck. no 1001.

f. Paid on accounnt to Inger hardware, $750, ck.no 1002.

g. Rose invested his personal leather working tools with a fair market value of $800 in the business.

h. Sold services for the month of February for cash, $250.

Required

1. Write the account classifications(Assets, Liabilities, Capital, Drawing, Revenue, Expense) in the fundamental accounting equation, as well as the plus and minus signs and Debit and Credit.

2. Write the account names on the T accounts under te classifications, place the plus and minus signs for each T account, label the debit and credit sides of the T accounts.

3. Record the amountsin the proper positions in te T accounts. write the letter next to each entry to identify the transaction.

4. Foot and balance the accounts.

Cash Balance: $22,750

ivoryllama342

ACC 100 Chapter Notes - Chapter 3: Deferral, Accounts Payable, Asset

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