Retained Earnings 295750 Accrual accouting has two steps In the first steps

Retained earnings 295750 accrual accouting has two

This preview shows page 121 - 125 out of 197 pages.

Retained Earnings 295750 Accrual accouting has two steps. In the first steps revenues for a particular time period are identi expenses to the revenues. Traditional approach focuses in the functions that a business performs and contribution approac by the sources and uses of the company's resources. This approach is used for day-to-day, opera Arrange the following data for the ABC Company into a balance sheet. Begin the Balance Shee
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7 How is a current asset cash balance determined? Demonstrate with the cash worksheet below Date Explanation Debit 11/30/11 Closing balance, November 12/1/11 Purchase medical insurance policy 12/1/11 Purchase of office supplies 12/4/11 Cash Receipts $ 4,690 12/4/11 Check for returns to supplier $ 91 12/7/11 Cash Receipts $ 1,006 12/11/11 Cash Receipts $ 8,207 12/14/11 Cash Receipts $ 9,592 12/14/11 Purchase of books from Neal Publishing 12/14/11 Purchase of books from Lenny Distributing 12/18/11 Cash Receipts $ 4,663 12/18/11 Accounts Receivable payment fo $ 17,951 12/21/11 Cash Receipts $ 5,514 12/23/11 Cash Receipts $ 3,791 12/27/11 Telephone bill, November 12/27/11 Cash Receipts $ 9,050 12/27/11 Purchase of books from Neal Publishing 12/29/11 Salary check, Rodgers 12/29/11 Salary check, Rouse 12/29/11 Salary check, Tafoya 12/29/11 Advertising bill, November 12/30/11 Cash Receipts $ 6,841 8 How is a current asset accounts receivable balance determined? Demonstrate with the data b Current asset cash balance for a given time is the closing balance of the previous time period plu cash account.
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Account receivable for a given time is the balance from the previous time plus all debits to accou Date Accounts Receivable: Explanat Debit 11/30/11 Closing balance, November 12/1/11 Credit sales $ 1,127 12/1/11 Credit sales $ 1,258 12/4/11 Credit sales $ 497 12/4/11 Credit sales $ 288 12/7/11 Credit sales $ 187 12/11/11 Credit sales $ 977 12/14/11 Credit sales $ 1,236 12/14/11 Credit sales $ 454 12/14/11 Credit sales $ 855 12/18/11 12/21/11 Credit sales $ 882 12/23/11 Credit sales $ 789 12/27/11 Credit sales $ 1,337 12/27/11 Credit sales $ 392 12/27/11 Credit sales $ 856 12/29/11 Credit sales $ 1,291 12/29/11 Credit sales $ 1,418 12/29/11 Credit sales $ 390 12/29/11 Credit sales $ 1,337 12/30/11 Credit sales $ 1,277 9 How are prepaid expenses handled on a balance sheet? Calculate the Current Balance for the Prepaid expenses are an asset (debit) if not used on balance sheet and will be liability(credit) if u Asset Account Medical Insurance Date Explanation Debit 12/1/2011 Purchase of medical policy $ 6,864 12/31/2011 Expiration of one month coverage Balance $ 5,720 How are costs and revenues matched? Payment from service bureau, 11/11 charges Using the matching principle, costs are matched to the revenue in the same period. Accrual acc revenue.
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10 What is the impact on net income? Income Statement 1/31/2010 Marble Designs, Inc. Sales Expenses Salary $3,500 Office lease $900 Telephone $96 Office supplies $2,000 Purchase: Computer $1,950 Total Expenses Net Income 11 How do cash and working capital differ? 12 Calculate working capital for the data below. Income Statement $40,209 Revenues Sales $10,000 Less Cost of Goods Sold Beginning Inventory $0 Purchases $2,000 Ending inventory $1,500 $500 Gross profit $9,500 Operating Expenses revenue.
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