1. (TCO 3) At the end of the period it is necessary to close all temporary accounts. (1) Explain why this process is required (10 points) and (2) provide an example of the closing of an expense account, Salary Expense in the form of a journal entry. (10 points) (Points : 20) It’s basically all about bringin the account back to zero. It is necessary to close provisional financial records at the end of the financial report because when they are closed its of course back to zero, for instance;
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7 Stephen purchased office supplies for $800 in cash. This transaction would • Question 8 To debit an account is to enter an amount on the left column in the journal entry. • Question 9 Prepaid Insurance is an expense account. • Question 10 Mary's business has performed services on account. The journal entry to record this transaction would include a debit to Cash and a credit to Service Revenue. • Question 11 The normal balance of the Owner, Capital account •
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A C C O U N TA N C Y HIGHER SECONDARY – FIRST YEAR Untouchability is a Sin Untouchability is a Crime Untouchability is Inhuman. TAMILNADU TEXTBOOK CORPORATION College Road, Chennai - 600 006. © Government of Tamilnadu First Edition - 2004 PREFACE CHAIRPERSON Dr. (Mrs) R. AMUTHA Reader in Commerce Justice Basheer Ahmed Sayeed College for Women Chennai - 600 018. REVIEWERS Dr. K. GOVINDARAJAN Reader in Commerce Annamalai University Annamalai Nagar - 608002. Dr. M. SHANMUGAM Reader
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Accounting for a Merchandising Business In this lesson, we examine the accounting for merchandising operations -- those that sell products. The products held for sale are called inventory, or more specifically, merchandise inventory. Inventory is a current asset that will be sold to yield a profit--and the adage "buy low, sell high" is a succinct way to state a merchandiser's profit strategy. In addition to introducing a new asset, we also introduces a new cost category, and a new name for the
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provide information for decision-making. Double-entry system Accountant to record the dual effects of each transaction uses double-entry system. As every transaction affects two items it is necessary to show these effects when recording each transaction. This stage is known as bookkeeping and the process is called double entry. Particular method follows the rule of accounting equation and maintains that every debit has a corresponding credit entry. Source documents Source documents are the original
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cycle. T8.Purpose of trial balance. T9.General journal. F10.Posting and trial balance. T11.Adjusting entries for prepayments. T12.Example of accrued expense. F13.Book value of depreciable assets. T14.Reporting ending retained earnings. F15.Post-closing trial balance. F16.Closing entries and Income Summary. F17.Posting closing entries. F*18.Accrual basis accounting. F*19.Purpose of reversing entries. F*20.Adjusted trial balance. MULTIPLE CHOICE—Conceptual
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cost of $12,000. It had been depreciated in the last 5 years on the straight-line method with 8 years of life and no salvage value. On January 1, 2014, Sally sold the truck to its parent, Paulson Company for $5,280. Prepare the working paper entry (in journal entry format) for the intercompany sale for Paulson Company and subsidiary for the years ended December 31, 2014 and 2015. 3. Peng Corporation (the parent) during the year ended December 31, 2015, sold merchandise to Skyline Company (a 75%-owned
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Payroll Administration Unit 11 – Basic Payroll Accounting Unit 11 Learning Outcomes Describe the interaction with an accounting department Demonstrate a basic journal entry Set up an account Summarize amounts paid Introduction Every business must keep records showing transactions relating to goods or services rendered and the costs incurred to run the business, known as expenses. This process is referred to as bookkeeping, which is simply entering each transaction that affects
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Meng Dai ID:903692 Date: 9/04/2014 ACCT400 Illustrative problem: J. F. Outz, M.D., organized Hearts Inc. three years ago to practice cardiology. During April 2013, Hearts Inc. completed the following transactions: Apr. 1. Paid office rent for April, $800. 3. Purchased equipment on account, $2,100. 5. Received cash on account from patients, $3,150. 8. Purchased X-ray film and other supplies on account, $245. 9. One of the items of equipment purchased on April 3 was defective. It was
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JM Ferreira Student Nr: 10011678860 Hotel Accounting 1 P O Box 10278 Assignment Code: 72367 B Test: 1 Edition 1 FONTEINRIET 1460 Tel: 0829283527 15 March 2015 Question 1. The accounting equation: Indicate classification of the items presented below by a tick, see example 1. | Assets | Liabilities | Owner’s Equity | 1. Cash | | | | 2. Bank Overdraft | | | | 3. Capital | | | | 4. Loans | | | | 5. Salaries Payable | | | |
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