Part 1: Describe the purpose of a Trial Balance and the steps of how to prepare a Trial Balance.
Q: 1öllowing transactions were completed by the company: The company completed consulting work for a…
A: Solution : The impact of each transaction is shown below Transaction number Cash Accounts…
Q: The transactions completed by PS Music during June 20Y9 were described at the end of Chapter 1. The…
A: Solution: Introduction: As per BNED requirements, we answer only three parts only. Hence please…
Q: Listed below are several transactions that took place during the second and third years of…
A: Computation of accrual net income for both years is as follows: The resultant table is as follows:…
Q: Salt & Pepper & Co (Salt & Pepper) is a firm of Chartered Certified Accountants which has seen its…
A: Auditing:- An audit is a physical examination of books of accounts of a particular company through…
Q: A law firm collected $1,800 in advance for work to be performed in three months. Which of the…
A: The question says , Amount collected of $ 1800 Service to be performed in 3 months. Cash has been…
Q: Pam Fisher opens a web consulting business called Fisher Consulting and completes the following…
A: Financial statements include the primary four elements, namely, Income statement, statement of cash…
Q: A few years ago, Sam Gig founded Gig n Spin Consultancy Services. Sam is aware that you and your…
A: As per the guidelines, answers to the first three parts have been given. For obtaining answers for…
Q: Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On…
A: Income statement for the month of August: $ $ Consulting fees earned 27,010 Less: Rent…
Q: Suppose you have been given a job as an Accounting Clerk in a retail store and have been asked by…
A: There are two types of accounting systems, one is Cash basis accounting and Accrual basis…
Q: As the bookkeeper of a new start-up company, you are responsible for keeping the chart of accounts…
A: Accounts Payable is an obligation of the company to the supplier or contractors who sell their goods…
Q: General General Requirement Trial Balance Income Statement St Owners Equity Balance Sheet Impact on…
A: JOURNAL ENTRIES IN THE BOOKS OF MILK SWEET LMT ON MARCH
Q: Here is the question Massa Company, which has been operating for three years, provides marketing…
A: Net Profit Margin: The net profit margin, also known as net margin, is a percentage of revenue that…
Q: According to the revenue recognition principle, revenues should be recognized when or as the company…
A: Revenue recognition principle of accounting says that revenues should only be recognised when…
Q: Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On…
A: Income statement: The financial statement which reports revenues and expenses from business…
Q: answer in excel with formula
A: Horizontal financial statements model is the one which is prepared based on the accounting equation…
Q: Listed below are the current Accounting Assumptions and Principles…
A: Accounting Concept/ Principal/ Assumption/ conventions: These are known as Generally Accepted…
Q: $8,000 cash for six month
A: The journal entry is given as,
Q: Humble Management Services opened for business and completed these transactions in September. Sep. 1…
A:
Q: Why do you think the A/P clerk needs the New Expenses account? Who needs to know this information…
A: Accounts payable clerk is the individual personnel, appointed in the business entity who is…
Q: March 1 Brooks invested $195,000 cash along with $24,000 in office equipment in the company. March 2…
A: 1. Date General Journal Debit Credit Mar 01 Cash 195,000 Office equipment…
Q: hotel corporation is preparing its end of year financial statements. Management has informed the…
A: Solution Fact of the case A hotel corporation is preparing its end of year financial statements…
Q: The following transactions were completed by the company. a. The company completed consulting work…
A: Please see Step 2 for required information.
Q: The following events occurred in October: October 1: The business owner used $25,000 from their…
A: An accounting record for a business uses a journal entry to document a commercial transaction. The…
Q: Required information [The following information applies to the questions displayed below.] In…
A: T Account :— These are the temporary ledger accounts in which journal entries are posted. General…
Q: ot last longer than two weeks. In addition, Salt & Pepper has offered all new audit clients a free…
A: (a) (i) Steps to be taken prior to accepting the audit- 1. The firm should evaluate independence…
Q: Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On…
A: Income Statement is the statement which shows income and expenses of the business and at the end it…
Q: Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On…
A: we know that to prepare a balance sheet, net income is to be calculated which should be included in…
Q: Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On…
A: Statement of owners equity shows changes in equity balance of the business during the period.
Q: Required: 1. Prepare a March income statement for the business. 2. Prepare a March statement of…
A: Dear Student Since you have asked multiple question, we will solve the first question for you. If…
Q: Listed below are several transactions that took place during the second and third years of…
A: In order to determine 'Accruals net income,' we have to subtract 'expenses incurred' from the…
Q: Transaction: Where can you go to find each of your answers? April 1 Tanner invested $80,000 cash…
A: Financial statements cover many elements such as income and expenses, assets and liabilities, equity…
Q: According to the revenue recognition principle, revenues should be recognized when or as the company…
A: Revenue is the amount that the entity has earned. It is recognized in the books when the entity has…
Q: The following transactions were completed by the company. a. The company completed consulting work…
A: Accounting Equation: Total assets equal total liabilities and equity, according to an accounting…
Q: Mike Sweet opens a web consulting business called Sweet Consulting and completes the following…
A: Income : Cash received from client on Mar 6 $5900 Amount receivable from client for service…
Q: Transactions made by Whispering Winds Corp., a law firm, for the month of March are as follows. 1.…
A: Journal entries are recorded in the journal book of account. It recorded in a tabular format which…
Q: One year ago, Allan Thorpe founded Alcazar Sales Company, and the business has prospered. Allan…
A: Financial statements: The income statement, balance sheet, cash flow statement and statement of…
Q: Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On…
A: Statement of owners equity is the statement which shows all amount pertaining to the shareholders or…
Q: Pam Fisher opens a web consulting business called Fisher Consulting and completes the following…
A: Statement of owners equity :— It is one of the financial statement that shows capital introduced and…
Q: 6. Listed below are several transactions that took place during the second and third years of…
A: An income statement refers to the statement of profit or loss of an accounting period. It discloses…
Q: rinciples Economic Entity Assumption Monetary Unit Assumption…
A: Accounting Concept/ Principal/ Assumption/ conventions: These are known as Generally Accepted…
Q: Prepare and Complete the Worksheet using the Following Information: a. Supplies on hand at…
A: Worksheet is very important statement or sheet prepared in the whole accounting process, which shows…
Q: Angela Lopez owns and manages a consulting firm called Metrix, which began operations on March 1. On…
A: Balance Sheet- A balance sheet is a financial statement, which shows the assets and liabilities of…
Q: Juice World Jamaica Limited, a leading juice manufacturing company has recently hired you as an…
A: The shareholders of a company has to be provided with proof from time to time about the profit or…
Q: Joel Feliciano Communications is a public relation firm. During the month of August, the entity…
A: Trail balance is the statement that carries the balances of all the accounts prepared in the books…
Q: Allan indicates that, at year-end, customers owe him $1,000 accrued service revenue, which he…
A: Statement of Profit and Loss A/C Particulars Amount Revenue From Operations $78,400…
Q: Question 1 Suppose you have been given a job as an Accounting Clerk in a retail store and have been…
A: Hi Student Since there are multiple questions, we will answer only first question. If you want…
Part 1: Describe the purpose of a
Part 2: Meredith Ward is the assistant chief accountant at Frazier Company, a manufacturer of computer chips and cellular phones. The company presently has total sales of $20 million. It is the end of the first quarter. Meredith is hurriedly trying to prepare a trial balance so that quarterly financial statements can be prepared and released to management and the regulatory agencies. The total credits on the trial balance exceed the debits by $1,000. In order to meet the 4 p.m. deadline, Meredith decides to force the debits and credits into balance by adding the amount of the difference to the Equipment account. She chooses Equipment because it is one of the larger account balances; percentage-wise, it will be the least misstated. Meredith “plugs” the difference! She believes that the difference will not affect anyone's decisions. She wishes that she had another few days to find the error but realizes that the financial statements are already late.
Answer the following questions:
- Who are the stakeholders in this situation?
- What are the ethical issues involved in this case?
- What are Meridith's alternatives?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- The following information is provided for the first month of operations for Legal Services Inc.: A. The business was started by selling $100,000 worth of common stock. B. Six months rent was paid in advance, $4,500. C. Provided services in the amount of $1,000. The customer will pay at a later date. D. An office worker was hired. The worker will be paid $275 per week. E. Received $500 in payment from the customer in C. F. Purchased $250 worth of supplies on credit. G. Received the electricity bill. We will pay the $110 in thirty days. H. Paid the worker hired in D for one weeks work. I. Received $100 from a customer for services we will provide next week. J. Dividends in the amount of $1,500 were distributed. Prepare the necessary journal entries to record these transactions. If an entry is not required for any of these transactions, state this and explain why.B. Kelso established Computer Wizards during November of this year. The accountant prepared the following chart of accounts: The following transactions occurred during the month: a. Kelso deposited 45,000 in a bank account in the name of the business. b. Paid the rent for the current month, 1,800, Ck. No. 2001. c. Bought office desks and filing cabinets for cash, 790, Ck. No. 2002. d. Bought a computer and printer from Cyber Center for use in the business, 2,700, paying 1,700 in cash and placing the balance on account, Ck. No. 2003. e. Bought a neon sign on account from Signage Co., 1,350. f. Kelso invested her personal computer software with a fair market value of 600 in the business. g. Received a bill from Country News for newspaper advertising, 365. h. Sold services for cash, 1,245. i. Received and paid the electric bill, 345, Ck. No. 2004. j. Paid on account to Country News, a creditor, 285, Ck. No. 2005. k. Sold services for cash, 1,450. l. Paid wages to an employee, 925, Ck. No. 2006. m. Received and paid the bill for the city business license, 75, Ck. No. 2007. n. Kelso withdrew cash for personal use, 850, Ck. No. 2008. o. Kelso withdrew cash for personal use, 850, Ck. No. 2008. Required 1. Record the owners name in the Capital and Drawing T accounts. 2. Correctly place the plus and minus signs for each T account and label the debit and credit sides of the accounts. 3. Record the transactions in T accounts. Write the letter of each entry to identify the transaction. 4. Foot the T accounts and show the balances. 5. Prepare a trial balance, with a three-line heading, dated November 30, 20--.Ethics and Cash Flows You are the accountant for Nello Company, which manufactures specialty equipment. Nello has been in financial difficulty, so its suppliers require purchases to he paid in cash. Furthermore, Nello has long-term debt with a debt covenant that requires it to maintain a 1:1 acid-test (quick) ratio. Nellos employees work a 5-day week, Monday through Friday. On Wednesday morning during the last week of the current year, Sam (the production supervisor) comes to you and says, I dont understand it. We have this large special order from a customer that must be delivered at the end of the first week in January. Once we get the raw materials, it is going to take 5 solid days of work without overtime to produce the order. If Bob (the president) would let me order the raw materials this morning, we could have them by late today. This would give us 2 days this week and the 4 days after New Years Day (Monday) of next week to complete the order without incurring overtime costs. But Bob says we must wait until next Tuesday to order the materials. This means we will have to work double time that Wednesday through Friday to finish the order. That overtime cost is going to really increase next years factory salary expense, so our profit and operating cash flows from that order will be very low. Please talk to him. When you approach Bob about buying the raw materials this morning, he says, If we purchase those materials today, we will have to write a check. And that means our cash flow from operating activities for this year will be much lower, which our shareholders wont like. Furthermore, our quick ratio will go down from 1.01:1 to 0.90:1, so our creditors may be upset. I know our profit and operating cash flows for next year will be lower if we delay the purchase, but that seems to be the best decision. Dont you agree? Required: From financial reporting and ethical perspectives, how would you respond to Bob?
- The transactions completed by PS Music during June 20Y5 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the businesss operations: July 1. Peyton Smith made an additional investment in PS Music in exchange for common stock by depositing 5,000 in PS Musics checking account. 1. Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July, 1,750. 1. Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2. Received 1,000 on account. 3. On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of 3,600. Any additional hours beyond 80 will be billed to KXMD at 40 per hour. In accordance with the contract, Peyton received 7,200 from KXMD as an advance payment for the first two months. 3. Paid 250 on account. 4. Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5. Purchased office equipment on account from Office Mart, 7,500. 8. Paid for a newspaper advertisement, 200. 11. Received 1,000 for serving as a disc jockey for a party. 13. Paid 700 to a local audio electronics store for rental of digital recording equipment. 14. Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Page 2 of the two-column journal: 16. Received 2,000 for serving as a disc jockey for a wedding reception. 18. Purchased supplies on account, 850. 21. Paid 620 to Upload Music for use of its current music demos in making various music sets. 22. Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23. Served as disc jockey for a party for 2,500. Received 750, with the remainder due August 4, 20Y5. 27. Paid electric bill, 915. 28. Paid wages of 1,200 to receptionist and part-time assistant. 29. Paid miscellaneous expenses, 540. 30. Served as a disc jockey for a charity ball for 1,500. Received 500, with the remainder due on August 9, 20Y5. 31. Received 3,000 for serving as a disc jockey for a party. 31. Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists music during July. 31. Paid dividends, 1,250. PS Musics chart of accounts and the balance of accounts as of July 1, 20Y5 (all normal balances), are as follows: Instructions 1. Enter the July 1, 20Y5, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column, and place a check mark () in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2. Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3. Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance as of July 31, 20Y5.EFFECTS OF TRANSACTIONS (BALANCE SHEET ACCOUNTS) Jon Wallace started a business. During the first month (March 20--), the following transactions occurred. Show the effect of each transaction on the accounting equation: Assets= Liabilities + Owners Equity. After each transaction, show the new account totals. (a) Invested cash in the business, 30,000. (b) Bought office equipment on account, 4,500. (c) Bought office equipment for cash, 1,600. (d) Paid cash on account to supplier in transaction (b), 2,000. EFFECTS OF TRANSACTIONS (REVENUE, EXPENSE, WITHDRAWALS) This exercise is an extension of Exercise 2-3B. Lets assume Jon Wallace completed the following additional transactions during March. Show the effect of each transaction on the basic elements of the expanded accounting equation: Assets = Liabilities + Owners Equity (Capital Drawing + Revenues Expenses). After transaction (k), report the totals for each element. Demonstrate that the accounting equation has remained in balance. (e) Performed services and received cash, 3,000. (f) Paid rent for March, 1,000. (g) Paid March phone bill, 68. (h) Jon Wallace withdrew cash for personal use, 800. (i) Performed services for clients on account, 900. (j) Paid wages to part-time employee, 500. (k) Received cash for services performed on account in transaction (i), 500.You run a consulting firm. During Year 1, your firm collected $200,000 from clients (all of these payments were for work previously done). On January 1, Year 1, the Accounts Receivable account had a balance of $40,000. On December 31, Year 1, the Accounts Receivable account had a balance of $60,000. Based on this information, what amount should your firm recognize as revenue for Year 1?
- Question 1 Suppose you have been given a job as an Accounting Clerk in a retail store and have been asked by the manager for advice on an accounting issue. You were told that most of the companies customers pay immediately for services rendered while a few pay sometime later. As at December 31st, 2013 the company collected $30,000 from its cash customers, while $25,000 is owed by other customers for services rendered within the same period. Advice the manager how much should be recorded as service revenue under the cash basis and accrual basis of accounting for the period in question. Question 2 Complete the missing information in the various columns of the worksheet below: Unadjusted trial balance Adjustment Adjusted Trial Balance Account title Debit Credit Debit Credit Debit Credit Cash 2,065 Accounts receivable 2,220 500 Supplies 2,000 760 Furniture 14,200…Nicole Martins is the controller at UMC Corp., a publicly-traded manufacturing company. Last year, UMC had annual sales revenue of $15 million. The first quarter of this year just ended, and Nicole needs to prepare a trial balance so she can prepare the quarterly financial statements. However, the trial balance is out of balance by $750 (credits exceed debits). Nicole is running out of time aside as the report is due today! Therefore, she decides to balance by plugging the $750 into the account called depreciation expense account. She chooses this account because it is one that is adjusted during the year-end. Three basic principles of accrual accounting are that revenue must be recognized in the period it is earned, expenses must be recorded in the period they support revenue and are generated, and debits equal credits. 1) Does this violate any of these basic principles? If so, which ones? 2) When the trial balance does not balance, what might this indicate? 3) Explain the ethical…Assume that you are the controller of a business that provides legal services to clients. Suppose that the company has had a tough year, so the revenues have been lagging behind, based on previous years’ standards. What would you do if your boss (the chief executive officer [CEO] of the company) asked to reclassify a transaction to report loan proceeds of $150,000 as if the cash came from service fee revenue from clients instead. Would following the CEO’s advice impact the company’s accounting equation? How would reclassifying this one transaction change the outcome of the balance sheet, the income statement, and the statement of retained earnings? Would making this reclassification change the perception that users of the financial statements would have of the company’s current year success and future year potential? Write a memo, detailing your willingness (or not) to embrace this suggestion, giving reasons behind your decision. Remember to exercise diplomacy, even if you must dissent…
- Can I please get someone to check my work and explain where I went wrong please. Gomez Company had the following transactions in the last two months of its year ended December 31. November 1 Paid $2,000 cash for future advertising. November 1 Paid $3,120 cash for 12 months of insurance through October 31 of the next year. November 30 Received $6,600 cash for future services to be provided to a customer. December 1 Paid $12,000 cash for consulting to be received over the next eight months. December 15 Received $10,550 cash for future services to be provided to a customer. December 31 Of the advertising paid for on November 1, $1,450 worth is not yet used. December 31 A portion of the insurance paid for on November 1 has expired. No adjustment was made in November. December 31 Services worth $1,100 are not yet provided to the customer who paid on November 30. December 31 One-eighth of the consulting paid for on December 1 has been received. December 31 The company…Suppose you have been given a job as an Accounting Clerk in a retail store and have been asked by the manager for advice on an accounting issue. You were told that most of the companies customers pay immediately for services rendered while a few pay stsometime later. As at December 31 , 2013 the company collected $30,000 from its cash customers, while $25,000 is owed by other customers for services rendered within the same period. Advice the manager how much should be recorded as service revenue under the cash basis and accrual basis of accounting for the period in question.Can someone please check this? Gomez Company had the following transactions in the last two months of its year ended December 31. November 1 Paid $2,000 cash for future advertising. November 1 Paid $3,120 cash for 12 months of insurance through October 31 of the next year. November 30 Received $6,600 cash for future services to be provided to a customer. December 1 Paid $12,000 cash for consulting to be received over the next eight months. December 15 Received $10,550 cash for future services to be provided to a customer. December 31 Of the advertising paid for on November 1, $1,450 worth is not yet used. December 31 A portion of the insurance paid for on November 1 has expired. No adjustment was made in November. December 31 Services worth $1,100 are not yet provided to the customer who paid on November 30. December 31 One-eighth of the consulting paid for on December 1 has been received. December 31 The company has performed $3,900 of services that the customer…
