ACG 2021 Chapter Notes - Chapter 4: Accounts Payable, Current Liability, Trial Balance
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Is prepared directly from the adjusted trial balance columns: the expenses in the income statement are listed in order of size, beginning with the larger items, miscellaneous expense is the last item, regardless of its amount. State(cid:373)e(cid:374)t of ow(cid:374)e(cid:396)"s equity: the fi(cid:396)st ite(cid:373) p(cid:396)ese(cid:374)ted o(cid:374) the state(cid:373)e(cid:374)t of ow(cid:374)e(cid:396)"s e(cid:395)uity is the (cid:271)ala(cid:374)(cid:272)e of the ow(cid:374)e(cid:396)"s (cid:272)apital a(cid:272)(cid:272)ou(cid:374)t at the (cid:271)egi(cid:374)(cid:374)i(cid:374)g of the pe(cid:396)iod. Balance sheet: prepared directly from the adjusted trial balance columns, the ow(cid:374)e(cid:396)"s e(cid:395)uity a(cid:373)ou(cid:374)t is take(cid:374) f(cid:396)o(cid:373) the state(cid:373)e(cid:374)t of ow(cid:374)e(cid:396)"s e(cid:395)uity. Liabilities: the amounts the business owes to creditors, current liabilities and long-term liabilities, current liabilities- will be due within a short time and that are to be paid out of current assets. Notes payable, accounts payable, wages payable, interest payable, taxes payable, unearned fees: long-term liabilities- will not be due for a long time, reported below current liabilities.
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Using the data provided,please prepare a trial balance, an income statement, a statement ofchanges in owner's equity and a balance sheet. First, set up yourtrial balance by putting the accounts in the proper order, nextenter the amounts in the proper column and then input a formula tototal the columns. | ||
Begin by creating a trialbalance in the correct order. Then create the income statement, astatement of changes in owners equity and a balance sheet usingcell reference for the amounts. In the cell that you want theamount to appear, be sure to put the cell reference from the amounton the trial balance. Therefore, EVERY data entry (amount) into thefinancial statements will be a cell reference or a formula. (35points) | ||
Accounts payable | 45 | |
Accounts receivable | 57 | |
Accumulated depreciation | 50 | |
Cash | 10 | |
Depreciationexpense | 5 | |
Drawing | 7 | |
Equipment | 100 | |
Insuranceexpense | 1 | |
PrepaidInsurance | 5 | |
Repairexpense | 2 | |
Owners Equity(beginning) | 50 | |
Salariesexpense | 10 | |
Salaries payable | 30 | |
Service revenue | 25 | |
Utilitiesexpense | 3 |