Sample Adjustment Transactions
Original Transaction #1:
Borrowed $135,000 from Washington Trust Bank on a 5% one year note on 3/01/2015
Subsequent Transaction #1:
Weekly Sales and Purchases for the Month of April
All Purchases are made at the end of the week after all of the week's sales have been made.
Week 1 Sales
Week 2 Sales
Practice Problem Accruals & Deferrals
Bill Sanders started a part-time consulting practice, Sanders Consulting Associates
(SCA), on January 1, 2015. SCA experienced the following transactions during 2015.
Acquired $3,000 cash from issuing comm
Professor Liz's Courses
(Course use H/M/L)
The Statement of Cash Flows
The statement of cash flows helps investors and creditors:
a. Predict future cash flows by reporting past cash receipts and
payments, which are reasonably good predictors of future
Hortons payment was not an expense.
Horton acquired an asset, Equipment, because the computer
is an economic resource of the business.
a. $14,800 ($13,000 + $1,800
Short-Term Investments & Receivables
(5 min.) S 5-1
1. Trading investments are reported at their current market
2. A trading investment is always a current asset because the
investor intends to sell the trading investment
The Financial Statements
Computed amounts in boxes
= Total Liabilities + Stockholders Equity
Internal Control & Cash
Fraud is an intentional misrepresentation of facts, made for
the purpose of persuading another party to act in such a way
that causes injury or damage to that party.
The Three Components of