...Week 6 Individual Estimating Inventory and Preparing Multiple-Step and Single-Step Income Statements Assignment Guidelines: Problem 5-4A **Please see assignment in text on pg. 212 for complete directions. 1. Compute the company’s net sales for the year. 2. Compute the company’s total cost of merchandise purchased for the year. 3. Prepare a multiple-step income statement that includes separate categories for selling expenses and for general and administrative expenses. 4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses. Part 1 Net Sales $212.00 | Sales Discount ($3,250) | Sales Returns ($14,000) | Net Sales $94,750 | | | | | Part 2 - Invoice Cost of Merchandise Purchased $91,000 | Discounts Received ($1,900) | Purchase Returns and Allowances ($4,400) | Costs of Transportation-in $3,900 | Total Cost of Merchandise Purchased $88,600 | | | | Part 3 BizKid Company | Income Statement | Year Ended August 31, 2005 | | Sales $212,000 | Less...
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...Hewlett-Packard | Preparing Balance Sheets and Statements. | Checkpoint 4 | | Cocina Williams | 1/17/2013 | | Preparing balance sheets and statements Checkpoint 4 By Cocina Williams Due 01/17/2013 Acc225/Donald Huntley Quick Study 4-2 pg. 156 List the following steps of the accounting cycle in their proper order: a. Preparing the post-closing trial balance. b. Posting the journal entries. c. Journalizing and posting adjusting entries. d. Preparing the adjusted trial balance. e. Journalizing and posting closing entries. f. Analyzing transactions and events. g. Preparing the financial statements. h. Preparing the unadjusted trial balance. i. Journalizing transactions and event F. Analyzing transactions and events. I. Journalizing transactions and events. B. Posting the journal entries. H. Preparing the unadjusted trial balance. C. Journalizing and posting adjusted entries. D. Preparing the adjusted trial balance. G. Preparing the financial statements. E. Journalizing and posting the closing entries. A. Preparing the post-closing trial balance. Exercise 4-4 Pg. 159 WEBB TRUCKING COMPANY Balance Sheet December 31, 2005 Assets Current assets Cash......................................................... $ 7,000 Accounts receivable ..................................... 16,500 Office supplies........................................... 2,000 Total current assets...................................... 25,500...
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...CheckPoint: Preparing an Income Statement Resources:Ch. 3 of Understanding Financial Statements, andmultistep_template.xls Complete Problem 3.10 on p. 109 (Ch. 3). Use multistep_template.xls to prepare a multiple-step income statement. Write a 200- to 300-word summary analyzing the implications of profitability and the net income of the company. Home Work Hour aims to provide quality study notes and tutorials to the students of ACC 230 Week 3 CheckPoint in order to ace their studies. ACC 230 WEEK 3 CHECKPOINT To Download this course, visit this link http://www.nerdypupil.com/product/acc-230-week-3-checkpoint/ Or email us at support@nerdypupil.com ACC 230 WEEK 3 CHECKPOINT CheckPoint: Preparing an Income Statement Resources:Ch. 3 of Understanding Financial Statements, andmultistep_template.xls Complete Problem 3.10 on p. 109 (Ch. 3). Use multistep_template.xls to prepare a multiple-step income statement. Write a 200- to 300-word summary analyzing the implications of profitability and the net income of the company. Home Work Hour aims to provide quality study notes and tutorials to the students of ACC 230 Week 3 CheckPoint in order to ace their studies. ACC 230 WEEK 3 CHECKPOINT To Download this course, visit this link http://www.nerdypupil.com/product/acc-230-week-3-checkpoint/ Or email us at support@nerdypupil.com ACC 230 WEEK 3 CHECKPOINT CheckPoint: Preparing an Income Statement Resources:Ch. 3 of Understanding Financial Statements, andmultistep_template...
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...Rocky Mountain Chocolate Factory Inc.— Preparing Financial Statements Teaching Notes: This case introduces students to the preparation of financial statements. Students are required, first, to consider the industry in which Rocky Mountain Chocolate Factory operates and determine the kinds of line items that would appear on the company’s balance sheet. Thus, the case encourages students to consider the broader business environment in which the company operates. The case gets students to use a spreadsheet to capture a series of chronological transactions. Students are required to record journal entries for both transactions and accounting adjustments. Students use the information from the spreadsheet to prepare a balance sheet and an income statement. The case provides guidance on how a spreadsheet should be set up so that students get immediate feedback about their progress. The case includes a suggested spreadsheet and recommends that income statement transactions NOT be posted directly to Retained earnings. The spreadsheet has subtotals for the unadjusted and pre- and post-closing trial balances. Facility with spreadsheets is a must for business professionals. Acquiring those skills takes time and practice. Thus, students ought to be discouraged, in our opinion, from photocopying the casebook spreadsheet and writing in the journal entries by hand in lieu of using a computerized spreadsheet. We use this case to reinforce the difference between cash-basis and accrual accounting...
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...305 Week 9 Quiz 6 - Strayer University NEW ACC 305 Week 9 Quiz 6 TRUE FALSE—Conceptual 1. The primary purpose of the statement of cash flows is to provide cash-basis information about the company’s operating, investing, and financing activities. 2. The statement of cash flows provides information to help investors and creditors assess the cash and noncash investing and financing transactions during the period. 3. Companies classify some cash flows relating to investing or financing activities as operating activities. 4. The first step in the preparation of the statement of cash flows is to determine the net cash flow from operating activities. 5. The net increase (decrease) in cash reported on the statement of cash flows should reconcile the beginning and ending cash balances reported in the comparative balance sheets. 6. Under the accrual basis of accounting, net income is usually the same as net cash flow from operating activities. 7. A company can convert net income to net cash flow from operating activities through either the direct method or the indirect method. 8. The direct method, also called the reconciliation method, reports cash receipts and cash disbursements from operating activities. 9. The indirect method adjusts net income for items that affected reported net income but did not affect cash. 10. The FASB encourages the use of the indirect method over the direct method. 11. When...
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...items are included in operating activities on the Statement of Cash Flows? Cash received from Customers, Interest & Dividends, Trading Securities Cash paid to Vendors, Suppliers, Interest, Taxes, Trading Securities What items are included in investing activities on a Statement of Cash Flows? Cash received: Sale of PP&E, Sale of Investments, Loan Principle Cash paid: Loans, Acquisitions, AFS or HTM Securities, Taxes, Trading Securities What items are included in Financing Activities in a Statement of Cash Flows? Cash received: Issuance of Stock, Issuance of Debt Cash paid: Dividends What is the direct method for a Statement of Cash Flows? Starts with Income from Continuing Operations Adjusts for changes in accounts like A/R, A/P, Inventory and non-cash revenues, expenses, gains, losses If used, the Indirect Method must also be shown What is the Indirect Method for a Statement of Cash Flows? Starts with Net Income Adjusts for changes in accounts like A/R, A/P, Inventory and non-cash revenues, expenses, gains, losses What is the primary purpose of statement of cash flows? To provide relevant information about the enterprise's cash receipts and cash payments during a period Is the purchase of cash equivalent using cash reported on the statement of cash flows? No - purchase of cash equivalent using cash is NOT an outflow of cash and therefore does not get reported on Statement of cash flows. Where would the collection...
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...The Four Basic Financial Statements By Stain Baba [Course] [Instructor] [Due Date] The Four Basic Financial Statements Managers of businesses can be considered as stewards who have been entrusted with the responsibility of the day to day running of business activities. In this regard, they are expected to report back to those who appointed them and to other relevant stakeholders on how well they have executed their assigned task(s). One of the established ways of reporting to owners of the company and other stakeholders is through the use of financial statements, which can be used to ascertain the level of effectiveness and efficiency with which the managers have handled the affairs of the company and at the same time, give a concise view of the financial health of the company. Financial statements are records of the financial activities of the of a business enterprise or any other entity (Kimmel, Weygandt & Kieso, 2010). The aim of a preparing a financial statement is to track and present the financial activities of a business entity in a way that enables users of such records to as much as possible, understand the financial position of the of the company at any given time.Financial statements include; the balance sheet, income statement, cashflow statement and statements of shareholders equity. These four set of financial statements are considered to be the basic financial statements typically produced by profit making companies (U.S...
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...ledger, preparing the trial balances and financial statements. Usually, an accounting cycle of the company begins when a business transaction take place and finishes the accounting cycle when the financial statements are prepared. The period of the accounting...
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...entries, preparation of financial statements, multiple step income statement. Chapter 1: Purpose (objective) of financial accounting; cash vs accrual accounting (net operating cash flow vs. net income); history of standard setting – SEC, AICPA (formerly AIA), CAP, APB, FASB; process of standard setting (graphic 1-4); global accounting standards – IASC, IASB, IFRS, Covergence project; Sarbanes-Oxley Act 2002 – Key provisions; Conceptual framework – objective of financial reporting, qualitative characteristics (Graphic 1-7)- fundamental and enhancing qualitative characteristics, practical boundaries to achieving qualitative characteristics, elements of financial statements (Graphic 1-8 on page 27); Recognition and measurement concepts – assumptions, broad accounting principles. Chapter 2: Basic accounting equation, double entry system; Accounting Processing cycle – all steps 56; should know how to make journal entries, post journal entries to T-accounts, preparing unadjusted trial balance 64, adjusting journal entries 66 (all types), preparing adjusted trial balance, preparing financial statements, closing entries, post closing trial balance. Chapter 3: Balance Sheet – uses and limitations; Classification – Asset (current vs. non current), Liab. (current vs. noncurrent), Stockholders’ equity, should know how to prepare a classified balance sheet; Disclosure notes; managements’ responsibility – responsibility for fairness of financial statements and responsibility for reporting...
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...Chapter 12 The Statement of Cash Flows 12.1 Learning Objective 12-1 1) The statement of cash flows is presented for a period of time. Answer: FALSE Diff: 1 LO: 12-1 AICPA Bus Persp: Legal/Regulatory AICPA Functional: Reporting 2) The statement of cash flows is an optional statement that can be prepared along with the income statement, balance sheet, and statement of retained earnings. Answer: FALSE Diff: 1 LO: 12-1 AICPA Bus Persp: Legal/Regulatory AICPA Functional: Reporting 3) The statement of cash flows shows the relationship of assets to cash flows. Answer: FALSE Diff: 1 LO: 12-1 AICPA Bus Persp: Legal/Regulatory AICPA Functional: Reporting 4) For reporting purposes, a company must prepare both an income statement and a statement of cash flows. Answer: TRUE Diff: 1 LO: 12-1 AICPA Bus Persp: Legal/Regulatory AICPA Functional: Reporting 5) Cash equivalents do NOT include highly liquid short-term investments. Answer: FALSE Diff: 1 LO: 12-1 AICPA Bus Persp: Legal/Regulatory AICPA Functional: Reporting 6) A statement of cash flows indicates the sources and uses of cash at a point in time. Answer: FALSE Diff: 1 LO: 12-1 AICPA Bus Persp: Legal/Regulatory AICPA Functional: Reporting 7) The statement of cash flows will NOT help predict future cash flows. Answer: FALSE Diff: 1 LO: 12-1 AICPA Bus Persp: Legal/Regulatory AICPA Functional: Reporting 8) When preparing a statement of cash flows, cash...
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...accounting cycle on business progress, important financial statements and their importance. The accounting cycle consists of the following steps: Opening accounts in the ledger with the opening balance; identifying and recording transactions events occurred during the accounting year;...
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...this assignment is mainly talk about the indirect method for the cash flow statement. The key issues to be discussed in this assignment is about whether the option of using the indirect method of cash flow reporting is beneficial to the users of general purpose financial reports in Australia. Furthermore, the reasons for harmonization, accounting standard AASB 107 Statement of Cash Flows and the Conceptual Framework will also be discussed. In AASB 107, cash flow is defines as inflows of the cash and cash equivalents and ‘cash’ as cash on hand and demand deposits. (AASB 107, 2011) The statement of cash flow can be done using indirect method and direct method. Both methods have the three same categories which is cash flow from operating activities, investing activities and financing activities. However, the different between these methods are the ways that we calculate the net cash flow from the section operating activities. AASB 107 state that an entity using direct method shall report cash flows from operating activities are the major classes of gross cash receipts and gross cash payments are disclosed. For indirect method, profit or loss is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments, and items of income or expense associated with investing or financing cash flows. It also means reconciling from net income to cash provided by operating activities. (James collines,eHow Contributer...
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...M1-6 | | | | | | | | | | | Matching Financial Statement Items to Balance Sheet and Income Statement Categories | | | | | | | Answer | Statement | | | | 1 | Accounts Receivable | | | | | | | 2 | Selling and Administrative Expenses | | | | | | 3 | Cash | | | | | | | | | 4 | Equipment | | | | | | | | 5 | Advertising Expense | | | | | | | 6 | Sales Revene | | | | | | | | 7 | Notes Payable | | | | | | | | 8 | Retained Earnings | | | | | | | | 9 | Accounts Payable | | | | | | | | | | | | | | | | | | | A = | Assets | | | | | | | | | L = | Liabilities | | | | | | | | SE = | Stockholders' Equity | | | | | | | R = | Revenue | | | | | | | | | E = | Expense | | | | | | | | | IS = | Income Statement | | | | | | | | BS = | Balance Sheet | | | | | | M1-9 | | | | | | | | | | | | Matching Financial Statement Items to the Four Basic Financial Statements | | | | | | | | | | | | | | | | Element | | | Financial Statement | | | | Answer | 1 | Cash Flows from Financing Activitiies | A | Balance Sheet | | | | 2 | Expenses | | | | B | Income Statement | | | | 3 | Cash Flows from Investing Activities | C | Statement of Retained Earnings | | 4 | Assets | | | | D | Statement of Cash Flows | | | 5 | Dividends | | | | | | | | | 6 | Revenues...
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...my experience in making the report. Despite several constraints, I gave my all efforts to make this report a meaningful one. I hope you will get the report as informative and accept my report. Sincerely yours, Acknowledgement At the very beginning of my report, I would like to pay my worship and gratefulness to the praiseworthy Almighty Allah who graces me to accomplish this report. I would like to offer my gratitude to our honorable Dean Sir, Prof. Dr. Milan Kumar Bhattacharjee, who gave us the opportunity & also for his kind supervision and providing necessary guidelines in preparing this report. I am also thankful to Ali Arshad Chowdhury, Lecturer of “Premier University” , faculty of Business Studies. Who helped me in abundant conducts to make this report more meaningful. Finally, I thank all the persons who have directly or indirectly contributed in preparing this report & to the Authors of all the books which I have followed to prepare this project. I would like to thanks my friends who helped me throughout making me this report. Preface After completing our academic life, we are going to start a much broader practical life. Our thoughts will no more reflect by imagined mirror, so we have to face the reality. Bachelor of...
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...in the case of the income statement is sales units. The important thing to remember in preparing a flexible budget is that if an amount, cost or revenue, was variable when the original budget was prepared, that amount is still variable and will need to be recalculated when preparing a flexible budget. If, however, the cost was identified as a fixed cost, no changes are made in the budgeted amount when the flexible budget is prepared. It’s important to remember in preparing a flexible budget is that if an amount, cost or revenue, was variable when the original budget was prepared, that amount is still variable and will need to be recalculated when preparing a flexible budget. If cost was identified as a fixed cost, and no changes are made in the budgeted amount when the flexible budget is prepared. Differences may occur in fixed expenses, but they are not related to changes in activity within the relevant range. When preparing budget reports, it is important to include in the report the items the manager can control. If a manager is only responsible for a department's costs, to include all the manufacturing costs or net income for the company would not result in a fair evaluation of the manager's performance. If, however, the manager is the Chief Executive Officer, the entire income statement should be used in evaluating performance. Companies use the cost volume profit analysis to determine what changes in costs and volume affect the company’s net income. Cost volume profit...
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