1. MEANING OF FINAL ACCOUNTS “Final accounts refers to the final statements of accounts prepared

The following information is provided for adjustments prior to closing the books. Lopez and Knepp ask you to enter the adjustments into the spreadsheet, in the two columns to the right of the unadjusted trial balance. (CM2 uses a perpetual inventory system.)

Timing: Sales are recorded in same period in which title of goods sold has passed: traces shipping docs to invoices to the sales journal and compares dates

1. A company’s ending accounts receivable balance and the period’s advertising expense would be found on which financial statements, respectively

eventual disposition of the asset (asset group). That assessment shall be based on the carrying amount

Classify each of the items as an asset, liability; revenue; or expense from the company's viewpoint. Also indicate the normal account balance of each item.

Accounts Receivable, Other Receivables, Allowance for Doubtful Accounts, Bad Debt ExpenseInventories and Reserve for Inventory Obsolescence

Then closing the expense accounts, which transfers the balances in the expense account to a clearing account called income summary. Then closing the income summary account, which transfers the balance of the income summary account to the retained earning account. Finally, closing the dividends account, which transfers the balance of the dividends account to the retained earning account. The closing process is important because it reduces the revenue, expense, and dividends account balances to zero so they are ready to receive data for the next accounting period. The only account types that remain open are assets, liabilities, capital stock, and retained

An adjusting journal entry or an adjusting entry, involves an income statement account (revenue or expense) along with a balance sheet account (asset or liability) and typically relates to the accounts for accrued expenses, accrued revenue, prepaid expenses and unearned revenue. (Investopedia.com, n.d.) When accounts are not updated to show the correct transactions or a mistake has been made, adjusting entry will provide insight in order to ensure all entries are appropriately recorded. This action will then reflect the accurate amounts of expenses and revenues. Once this is done, a business may close accounts for the ending period.

* Items should not be included: Internal transaction other than in exchange for services, unrealized gains/losses on investment other than those classified as trading securities, a such as identified by FASB.

Ending inventory amount is shown as an asset on the balance sheet, which happens to be true for all three inventory valuation methods.

S29.Equity securities acquired by a corporation which are accounted for by recognizing unrealizedholding gains or losses as other comprehensive income and as a separate component ofstockholders' equity are

(b) Would the trial balance be out of balance if the $2650 entry had been journalized correctly but the credit to Cash had been posted as $2560?

Closing entries is the last part to closing accounts for any type of business. This will allow a company to ready itself for its next fiscal year. When doing so, a business must transfer balances in revenues and expenses to an income summary to the retained earnings account. This will reset all temporary accounts to zero permitting new transactions to occur for the next fiscal year. This lets businesses to compare balances from year to year; in return, they can make necessary adjustments in their business decisions. (Editorial Board, 2012, p. 52-53)

10. Fixed asset turnover = Total Revenues in Statement of Operations / Net Property and

A direct cost can be traced to a product or service which includes: Direct labor- which is the cost of the labor that’s directly connected to a product or services. Direct labor is sometimes called touch labor, since direct labor workers typically touch the product while it is being made.( Ray H. Garrison, Eric W. Noreen and Peter C. Brewer p 39-40) An example of direct labor is an assembly line worker. Labor cost that cannot be physically traced to the creation of products, or that can be traced only at great cost and inconvenience, are considered to be indirect labot.( Ray H. Garrison, Eric W. Noreen and Peter C. Brewer p 40) Direct material are those materials that become an integral part of the finished product and whose cost can be traced to the finished product.( Ray H. Garrison, Eric W. Noreen and Peter C. Brewer p39-40) Manufacturing overhead is the third element so manufacturing cost, it includes all costs of manufacturing except direct materials and direct labor. Manufacturing overhead includes items such as indirect materials; indirect labor; maintenance and repairs on production equipment; and heat and light, property taxes, depreciation, and insurance on manufacturing facilities. Only cost associated with operating the factory are consider to be manufacturing overhead cost. A company also incurs other costs associated with its selling administive functions, but these costs are not included as part of manufacturing overhead. Only those