Financial Accounting Chapters 1,2,3 Double Entry Accounting- each business transaction has dual effects. As a result, every transaction affects at least two accounts. One Debit and One Credit ACCOUNT | Debit | Credit | Assets | + | - | Expenses | + | - | Dividends or Withdrawals | + | - | Revenue | - | + | Liabilities | - | + | Capital | - | + | Retained Earnings | - | + | Normal Balance- side the account increases Contra Account- has a normal balance opposite of its companion
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Lemonade Stand Account Summary Report Olivia Amosun BUS 599 Introduction to Quantitative Principles October 13, 2014 Instructor Kurt Diesch The following report states the operating activities of the Lemonade Stand during season one. The journal, income statement and balance sheet will express the flow of funds in expenses and income including any gains or loss during the accounting period. Exhibit 1.1 Journal First Season |Date |Description
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Intermediate Financial Reporting 1 Q1: Journal entries Debit ($) Credit ($) 1/1 prepaid insurance (+A) 192,000 Cash (-A) 192,000 1/3 advertising expense (-SE) 2,000 Cash (-A) 2,000 1/5 cash (+A) 1,000,000 Common stock (+SE) 1,000,000 1/5 Building (+A) 700,000 Land (+A) 300,000 Common stock (+SE) 1,000,000 1/15 software
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some cases it will be decreased. We cannot conclude that Debit implies the increasing value and Credit implies the decreasing value. 3. Heath Precourt, a fellow student, contends that the double-entry system means each transaction must be recorded twice. Is Heath correct? Explain. He is Incorrect. Under the double-entry system, the two-sided effect of each transaction is recorded in appropriate accounts. According to the basic accounting equation, each transaction must affect two or more accounts
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Debits, Credits, and Inventory Costs Part 1: Double-Accounting Method of Recording When using the double-accounting system, also known as the double-entry method, each transaction on the General Journal and associated account activity catalog must be recorded at least into two accounts. The debit account, often on the left, is denoted by ‘Dr’ while the credit account, often on the right side, is denoted by ‘Cr’. The entries are made depending on the account type, which
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More Practice for the Final Exam Adjusting Entries Key _____ 1. Accruals occur when cash flows: A) Occur before expense recognition. B) Occur after revenue or expense recognition. C) Are uncertain. D) May be substituted for goods or services. Answer: B _____ 2. An example of a contra account is: A) Depreciation expense. B) Accounts receivable. C)
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Accrual and Cash Accounting ACC 290 The biggest difference between accrual and cash basis accounting is the timing in which the revenues or expenses are recognized. Cash basis accounting is used mostly by small businesses or personal finances. The cash basis method accounts for revenue only when money is received or expenses only when money is paid out. For example, when you balance your checkbook, you only enter your paycheck when it is deposited into the bank, and when you write a check
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True / False Questions 1. A company's fiscal year must correspond with the calendar year. FALSE AACSB: Communications AICPA BB: Industry AICPA FN: Decision Making Difficulty: Easy Learning Objective: C1 2. The time period principle assumes that an organization's activities can be divided into specific time periods. TRUE AACSB: Communications AICPA BB: Industry AICPA FN: Decision Making Difficulty: Easy Learning Objective: C1 3. Interim statements report
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Prepare a personal income statement for the past year, using the same format as Alice’s income statement in this chapter. Include all relevant categories of income and expenses. What does your income statement tell you about your current financial situation? For example, where does your income come from, and where does it go? My current financial situation is dire; I am on disability and have an income of less than $12,000 per year. I am a widow who lost all my assets, including my home. All my
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INDIVIDUAL POSTCODE ASSIGNMENT Student Name: | Nguyen Thi Mong Nghi | Student ID: | 18573400 | Class: | MK1MDP | Lecturer: | Peter Wong | Submit Date: | December 19, 2015 | EXCUTIVE SUMMARY This report explored the hypothesis that ALPHA PROPERTY DEVELOPMENT GROUP whether they should invest in property in Edgecliff. The report uses previous research (secondary data) to examine many elements, such as: demographics, geographic, type of dwelling, sales prices of dwelling… in order to
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