Business 1A
Accounting Cycle Project Name: ______________________________
On October 1, 2013, Adrian Lopez launched a computer services company, Success Systems, which is organized as a corporation and provides consulting services, computer system installations, and custom program development. Lopez adopts the calendar year for reporting purposes and expects to prepare the company's first set of financial statements on December 31, 2013.
A list of business transactions for the months of October to December:
Oct.
1 Adrian Lopez invested $55,000 cash, a $20,000 computer system, and $8,000 of office equipment in the company in exchange for its common stock. 2 The company paid $3,300 cash for four months’ rent. (Hint: Debit
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You may omit explanations of the transactions. Skip a line between eah set of journal entries.
(Hint: Enter ‘No Entry required’ OR do not make journal entries for non-recordable business tranactions)
Step 2: Post from General Journal to General Ledger for all affected accounts on pages 7 to 13.
Company Chart of Account: Account No. Account No. Cash 101 Retained Earnings 318 Accounts Receivable 106 Dividends 319 Computer Supplies 126 Computer Service Revenue 403 Prepaid Insurance 128 Depreciation Expense- Office Equipment 612 Prepaid Rent 131 Depreciation Expense- Computer Equipment 613 Office Equipment 163 Wages Expense 623 Accumulated Depreciation- Office Equpment 164 Insurance Expense 637 Computer Equipment 167 Rent Expense 640 Accumulated Depreciation- Computer Equiment 168 Computer Supplies Expense 652 Accounts Payable 201 Advertising Expense 655 Wages Payable 210 Mileage Expense 676 Unearned Computer Services Revenue 236 Miscellaneous Expenses 677 Common Stock 307 Repair Expense – Computer 684 Income Summary 901
Step 3: Prepare the Trial Balance on page 14.
Step 4: The following additional facts are collected for use in making adjusting entries on December 31 prior to preparing financial statements for the company’s first three months. Journalize the following adjusting journal entries in the General Journal on page 6 and then post them to
An accounting cycle is a process, or a series of activities, that consists of collecting an organization’s transactions at the end of a reporting period to prepare essential financial statements of a business (Fleury, 2015). The accounting cycle is a strict, methodical set of rules used to ensure the accuracy and conformity of financial statements (Investopedia, 2017). The steps involved with an accounting cycle, the roles each of the step facilitate, the impact of omission, and what financial statements are assembled from the accounting cycle data.
Posting and Updates: Foots sales journal and traces total to master file and GL, Trace invoice amounts to a/r , Traces source documents to acct records
Payton Approved, a new dog bakery opened in July 2014. To measure the businesses success the first six months are reviewed. The first topic will discover the steps of the accounting cycle with descriptions of each process. Next, one will learn and analyze a report of the importance of each step for the accounting process to measure success. The last analyzed step will discuss how the omission of one step can impact the success of the company.
Accounting is commonly described as the language of business. It is very important for all business owners to have very good understanding of their finances. Having the knowledge of your business finance, you will know where the money is going. Every business owner should have a good understanding of finance. To have a good understanding business owners needs to understand basic accounting steeps, how does accounting play a role in their business, how to define a financial statement and how the omission of any of these steps would affect the success of a business. Once you have an understanding of accounting/finance and the how it plays
This verification only tests for complete entries, it does not guarantee the correctness of the numbers entered. 8. Click on the Post Entry button. The entry will be recorded in the General Journal and posted to the General Ledger. Continue entering the transactions for the first week. If you discover that a transaction entered into the system at an earlier time needs correction, simply reverse or back out the incorrect entry and then enter the transaction correctly. More detailed instructions on error correction procedures are demonstrated in the next transaction.
4. Nothing needs to be done for any transaction that has a ROLLBACK operation after the last checkpoint before the failure occurred, because the database was never updated
5. Prepare any necessary adjusting entries to reflect the Inventory count at year end. These must be hand written.
The standard costs and variances for direct materials, direct labor, and factory overhead for the month of May are as follows:
Assess the degree to which the firm’s accounting reflects the underlying business reality. Identify accounting distortions and evaluate their impact on profits and the sustainability of profits.
Due to the information, 20 acres of land equal 80 sheep according to the exchange rate of last year, a one-room cabin equal 3 acres of land and equal 12 sheep finally, a plow equals 2 goat and equal 2/3 sheep according to last year’s exchange rate and 2 carts which were traded with a poor acre of land equals 8 sheep plus 400 sheep. So Deyonne’s total assets are 500(2/3) sheep. Deyonne’s liabilities and assets deduction are 35 sheep plus 3 sheep, which will come to 38 sheep,
To over view the knowledge we learnt from accounting theory and practice, the main thing I can conclude that is the tendency of accounting will shift away from technical way to people’s behaviour way. By understanding what should do, we should ask why and how we could improve and change it into a better way. This essay aims to explain how the theoretical material that we learn in lectures can be developed under a real practical manner.
The process of recording and posting the effects of business transaction is done in a double entry t-form. The total dollar amount of debits must equal the total dollar amount of credits, with debits to the left and account credit to the right. Broken down, Assets = Liabilities + Stakeholder Equity. “Since debits increase assets, expense, and dividend accounts, they normally have debit balances. Conversely, because credits increase liability, capital stock, retained earnings, and revenue accounts, they normally have credit balances.”( Edwards, J. D., Hermanson, R.H., & Maher, M. W. (2011). p.84)
1. A brief history of the two organisations, and their objectives, in as far as they
Accounts Payable Vendor Master File Checklist Customized? YES NO Process Ref. If “YES”, Approved by AP/01/01
Marvin Braun had just been appointed vice president of the Great Basin Region of the Financial Services Corporation (FSC). The company provides check processing services for small banks. The banks send checks presented for deposit or payment to FSC, which then records the data on each check in a computerized database. FSC sends the data electronically to the nearest Federal Reserve Bank check-clearing center where the appropriate transfers of funds are made between banks. The Great Basin Region consists of three check processing centers in Eastern Idaho—Pocatello, Idaho Falls, and Ashton. Prior to his promotion to vice president, Mr. Braun had been manager of a check processing