ACCT410 Unit 2 IP - Accounting - Timing & Mechanics

The table below shows the item amount and which

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sheet, which financial statement it would be located on will be indicated. The table below shows the item, amount, and which balance sheet classification or other financial statement it should be listed on (Elliott, Horngren, Philbrick, & Sundem, 2011). Item Amount Balance Sheet Classification Cash paid employees for salaries and wages $300,000 Cash Flow Statement - Operations – Cash paid for Wage expense Cash collected from sales customers $1,850,000 Assets – Current Assets – Accounts Receivable Cash Flow Statement - Operations – Cash receipts from customers Income Statement – Sales/Service Revenue Bonds payable $500,000 Liabilities and Owner’s Equity - Long-term liabilities Cash $150,000 Assets – Current Assets - Cash Common stock $60,000 Equity Equipment $840,000 Fixed Assets (Long-Term) - Property, plant, and equipment Income Statement – Expenses – Furniture and equipment Prepaid insurance $30,000 Assets - Current Assets - Prepaid Expenses Inventory $250,000 Assets - Current Assets - Inventory Prepaid rent $140,000 Assets - Current Assets - Prepaid Expenses Retained earnings $130,000 Liabilities and Owner’s Equity –
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ACCOUNTING: TIMING & MECHANICS Owner’s Equity – Retained earnings Salaries and wages expense $328,000 Income Statement – Expenses – Salaries and wages Sales $2,000,000 Income Statement – Revenue – Sales revenue In conclusion, financial statements can include important information and it is important to know where to place and locate all of the figures. The end of the year information system amounts were given for Hay and Bamabas Company and two portions were included Part A and Part B to be completed. Part A supplied five adjustments that are completed prior to the yearend financial statements preparation. These adjustments are shown with the effects of each on the accounting equation, whether negative or positive. Part B supplied twelve items and for each it was indicated where on the balance sheet they appeared and if not located on the balance sheet, which financial statement it should appear on was indicated.
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ACCOUNTING: TIMING & MECHANICS References Elliott, J.A., Horngren, C.T., Philbrick, D.R., & Sundem, G.L. (2011). Financial accounting (10 th ed.). Upper Saddle River, NJ: Pearson Education, Inc.
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  • Spring '12
  • James
  • Accounting, Balance Sheet, Generally Accepted Accounting Principles, financial statements preparation, Bamabas Company, yearend financial statements

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