ADJUSTING AND CLOSING ENTRIES - ACCRUALS
Demonstration Problem 1
The transactions for the year 2000 for Anderson Architects have already been recorded. This
problem shows how to prepare adjusting entries for December 2000.
Final Exam Review Chapter 12-13
1. In its most basic form, the earnings per share ratio is calculated as
a. dividends paid on common stock divided by the average number of outstanding common
b. net income divided by the average number of outstandi
1. Calculate the book value of a 3-year-old machine that cost $400,000 and has a
residual value of $40,000 with an estimated life of 4 years. The company uses
2. Calculate the book value of a 3-year-old machine that co
Cost Management and Strategy
Provides info used primarily by investors,
creditors, and others outside a business
Example Balance Sheet & Income Statement
Characterized by objectivity, reliability, and
Chapter 4 - Adjustment Examples
1. Purchased 1,000 cups for $100 on 1/1/2015. Performed an inventory of the cups on 1/31/2015, noting 200 cups are left. W
2. On 12/1/2014 Sky Blue Corp. collected $2,400 rent for the period December 1, 2014, to February 28
Bank Reconciliation Example
Lets prepare a July 31 bank reconciliation statement for Matrix, Inc. The July 31 bank statement indicated a balance of $9,610,
while the cash general ledger account on that date shows a balance of $7,430.
1. Outstanding checks
On November 1, 2014 RecRoom Equipment Co. received an $8,000, six-month, 6% note to settle an $8,000 unpaid balance ow
Fill in the appropriate accounts and/or balances for each of the required journal entries:
11/1/2014 Notes Receivable
6% note to settle
(Looking in the perspective as the BORROW
11/1/2014 Accoutn Payable (
Inventory and Cost of Goods Sold
Remember These Entries?
January 5, 20X3
February 2, 20X3
dr. Inventory (A+) xxx
cr. Cash (A-) or Accts Pay (L+)
Merchandising Operations and the
Multistep Income Statement
Where Are We Going?
Learning Objective 6-1
Distinguish between service
and merchandising operations.
Learning Objective 6-2
Explain the differences
Long-Lived Tangible and Intangible
Learning Objective 9-1
Define, classify, and explain
the nature of long-lived assets.
Definition and Classification
Actively Used in Operations
Value represented by rights
that produce benefits.
Chapter 10 - Liabilities
Including: Principal & Interest Loans See
Supplement D on Blackboard/Connect
Learning Objective 10-1
Explain the role of liabilities in
financing a business.
The Role of Liabilities
Liabilities are created when a company:
The Income Statement
Learning Objective 3-1
Describe common operating
transactions and select
appropriate income statement
Methods of Accounting
Cash Basis Accounting
Records revenue when cash is
received and expenses when cash
Marketing: An Introduction, 13e (Armstrong)
Chapter 2 Company and Marketing Strategy: Partnering to Build Customer Engagement,
Value, and Relationships
1) Which of the following is true of strategic planning in a firm?
A) It deals with maintaining the com
1. CSG had salaries and wages earned of 400,000. Employee income taxes
withheld of 37,000. FICA taxes withheld of 28,600. Unemployment taxes of
a. Prepare the journal entry to record the payroll.
b. Prepare the journal entry to record the employers
Accounting 201 Chapter 2 Worksheet 2b
Name and analyze each of the situations
Mike Andrews incorporates Mikes Ice Cream, Inc. on August 1. The company issues stock to Mike and his
wife as evidence of their contribution of $40,000 cash, which is deposit
Chapter 4-7 Practice
1. 201 Company pays its employees every Friday (not including Fridays labor) for work rendered that
week. The payroll is typically $7,000 per week (we are open 7 days/week). What journal entry would
be recorded on Wednesday if the end
1. What are the two types of Cash payments typically used by a company?
a. Dollar bills and check
b. Coins and dollar bills
c. Check and EFT
d. EFT and Dollar bills
2. True or False: Banks statements and company records always match.
1. Morgan Company pays its employees every Friday (not including
Fridays labor) for work rendered that week. The payroll is typically
$7,000 per week (we are open 7 days/week). What journal entry would
be recorded on Wednesday if the end of the accounting
Chapter 2 Worksheet
Basic Accounting Equation:
For each activity below write the effect that the transaction has on the accounting equation:
1.Borrowed $6000 from the bank and signed a 5 year note
2. Purchased $10,000 in equipment, paying $1000 in
2. Req 3:
At May 31, 2013
Total Current Assets
Total Current Liabilit
There are three types of Bonds: Here is an example of each
Visual of all three comparing the Stated rate to the Market Rate
The difference is how much you pay now for the bond.
Cash paid or received before = deferral
Cash paid or received after = Accrual
Deferral adjustments are used to decrease balance sheet accounts and increase
corresponding income statement accounts.
a. expense or revenue has been deferr
Business Decisions and Financial
Learning Objective 1
organizational forms and
business decision makers.
Business organization owned by
one person. The owner is
Statement of Cash Flows
Learning Objective 12-1
Identify cash flows arising
from operating, investing,
and financing activities.
Business Activities and Cash Flows
The Statement of
Cash Flows focuses
Cash received and p
Panera Bread: Joe Scherer, Mike Duncan, Sam Haile,
Mary Kathryn Tilma, Robert Hazzard
1. In all three years the company had positive cash flows from operating activities. This
indicates that the company is making money by doing business. There is also an
The income statement and selected balance sheet information for Glenn's Grooming
Shop for the year ended December 31, 2013, is presented below.