A group of accounts for a business entity is called a ledger. A list of the accounts used in the
ledger is called a chart of accounts.
An account is a record of increases and decreases in a specific asset, liability, owner's equity,
Accounts Reveivable are amounts due from customers from credit sales. They occur when a
customer uses credit cards issued by third parties and when a company gives credit directly to
customers. They are classified on the balance s
The closing process is an important step at end of the accounting period after financial
statements have been completed. Here are the steps in closing process:
1. Identify accounts for closing.
2. Record and post closing entries.
Accounting is an information and measurement system that identifies, records and
communicates relevant, reliable, and comparable information about an organizations business
activities. Accounting is guided by principles, standards, concepts, and assu
Accounting Basis and Concepts
Accounting Period Concept - requires an organizations revenues and expenses be reported in the
proper time period. Time periods can be a month, a quarter, a six-month interval, or a year
Sarbanes Oxley Act of 2002 (SOX)
Congress passed the Sarbanes Oxley Act in response to financial scandals. The purpose of SOX
is to maintain public confidence and trust in the financial reporting of companies.
Internal control is defined as the polic
A physical inventory or count of the inventory is generally taken at the end of its fiscal year or
when inventory amounts are low (at least once per year). The physical inventory is used to
adjust the Inventory account balance to t
Merchandise consists of products, also called goods, that a company acquires to resell to
Reporting Income for a Merchandising Business - Revenue from selling merchandise (Sales)
minus the cost of merchandise sold
A subsidiary ledger contains detailed information on specific general ledger accounts. When a
general ledger account has a subsidiary ledger it is referred to as the control account.
Two of the most important subsidiary ledgers are
Running head: CASE STUDY EX 5-2
Case Study EX 5-2
Dr. Lester Reid
September 30, 2016
CASE STUDY EX 5-2
Using the revenue journal on page 232 in Accounting 25th edition, I will explain how to
set up, post, and balance the
Chapter 2 Notes
Accounting Systems are designed to show the increases and decreases in each accounting equation
element as a separate record, called an account.
An account in its simplest form has three parts in a T-shape, called a T account:
Running head: CASE STUDY EX1-9
Case Study EX 1-9
Dr. Lester Reid
September 10, 2016
CASE STUDY 1-9
Effect of Transactions on the Accounting Equation
Describe how the following business transactions affect the three eleme
Chapter 1 Notes
A business is an organization in which basic resources (inputs), such as materials and labor, are
assembled and processed to provided goods or services (outputs) to customers.
The objective of most businesses is to earn a profit- the diffe
Running head: CASE STUDY CP 3-4
CASE STUDY CP 3-4
DR. LESTER REID
SEPTEMBER 16, 2016
CASE STUDY CP 3-4
Adjustments and Financial Statements
Why do you think the loan officer suspected that the accounts had not been adjus
Search the Internet and find an instance of "Earnings Mismanagement" and "Fraud". Tell us:
The company name?
Bristol-Meyers Squibb is a biopharmaceutical company involved with research and treatment for
many medical conditions including cancer, depress
20. The following book and fair values were available for Westmont Company as of March 1.
Arturo Company pays $4,000,000 cash and issues 20,000 shares of its $2 par value common
stock (fair value of $50 per share) for all of Westmont's common stock in a m
27. Pratt Company acquired all of Spider, Inc.'s outstanding shares on December 31, 2015, for
$495,000 cash. Pratt will operate Spider as a wholly owned subsidiary with a separate legal
and accounting identity. Although many of Spider's book values approx
32. On January 1, 2013, Plano Company acquired 8 percent (16,000 shares) of the outstanding
voting shares of the Sumter Company for $192,000, an amount equal to Sumter's underlying
book and fair value. Sumter declares and pays a cash dividend to its stock
Acquisition Date Fair Value Allocation Schedule
Consideration Transferred at Fair Value
Book Value (of Spider Co.)
Excess fair value over book value
Allocation of excess fair value to specific assets and liabilities:
to computer software
Applying to Broward College
A Guide for New Dual Enrollment Students
Step 1: Access the Broward College website at www.broward.edu and click the Apply Now button as
shown below after meeting with a Guidance Counselor for approval of eligibility.
Step 2: C
Three forms of organizational business three choicessole proprietorship, partnership, or corporation.
-Simple to establish-Owner controlled-Tax advantages
-Simple to establish-Shared control-Broader skills and r
A classified balance sheet groups together similar assets and similar liabilities, using a number of
standard classifications and sections. Page 48
These groupings help financial statement readers determine such things as (1) whether the company
ACG 2001 Chapter 1.06
On May 19, McCade Repair Service extended an offer of $105,000 for land that had been priced for
sale at $120,000. On June 4, McCade Repair Service accepted the seller's counteroffer of $114,000.
On October 10, the land was assess
ACG 2001 Exercise 1.06
Determine the missing amount for each of the following:
Effect of Transactions on Account
Michael Dell, at 19 years old founded a company called PCs Limited in his dorm room. At
the time he was a pre-med student. In 1985, We design and build our first computer system,
the Turbo PC, featuring an Intel 8088 processor running at