Preparing the financial statements Estella Osage publishes an online travel magazine. In need of cash, the business applies for a loan with National Bank. The bank requires borrowers to submit financial statements. With little knowledge of accounting, Estella Osage, a stockholder, does not know how to proceed. Requirements What are the four financial statements that the business will need to prepare? Is there a specific order in which the financial statements must be prepared? Explain how to prepare each statement.

Preparing the financial statements Estella Osage publishes an online travel magazine. In need of cash, the business applies for a loan with National Bank. The bank requires borrowers to submit financial statements. With little knowledge of accounting, Estella Osage, a stockholder, does not know how to proceed. Requirements What are the four financial statements that the business will need to prepare? Is there a specific order in which the financial statements must be prepared? Explain how to prepare each statement.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter5: Adjusting Entries And The Work Sheet

Section: Chapter Questions

Problem 1MYW: Delia Alvarez, owner of Delias Lawn Service, wants to borrow money to buy new lawn equipment. A...

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Delia Alvarez, owner of Delias Lawn Service, wants to borrow money to buy new lawn equipment. A local bank has asked for financial statements. Alvarez has asked you to prepare financial statements for the year ended December 31, 20--. You have been given the unadjusted trial balance on page 175 and suspect that Alvarez expects you to base your statements on this information. You are concerned, however, that some of the account balances may need to be adjusted. Write a memo to Alvarez explaining what additional information you need before you can prepare the financial statements. Alvarez is not familiar with accounting issues. Therefore, explain in your memo why you need this information, the potential impact of this information on the financial statements, and the importance of making these adjustments before approaching the bank for a loan.
TRANSACTION ANALYSIS Linda Kipp starred a business on May 1, 20--. Analyze the following transactions for the first month of business using T accounts. Label each T account with the title of the account affected and then place the transaction letter and the dollar amount on the debit or credit side. (a) Invested cash in the business, 5,000. (b) Bought equipment for cash, 700. (c) Bought equipment on account, 600. (d) Paid cash on account for equipment purchased in transaction (c), 400. (e) Withdrew cash for personal use, 900. FOOT AND BALANCE T ACCOUNTS Foot and balance the T accounts prepared Exercise 3-5A if necessary.
TRANSACTION ANALYSIS Linda Kipp started a business on May 1, 20--. Analyze the following transactions for the first month of business using T accounts. Label each T account with the title of the account affected and then place the transaction letter and the dollar amount on the debit or credit side. (a) Invested cash in the business, 5,000. (b) Bought equipment for cash, 700. (c) Bought equipment on account, 600. (d) Paid cash on account for equipment purchased in transaction (c), 400. (e) Withdrew cash for personal use, 900.
Please answer Part 2: Alfred Hansen publishes an online travel blog. In need of cash, the business applies for a loan with National Bank. The bank requires borrowers to submit an income statement, statement of owner's equity, balance sheet, and statement of cash flows. With little knowledge of accounting, Alfred Hansen, owner, does not know how to proceed. Requirements 1. Is there a specific order in which the financial statements must be prepared? ***already answered*** Income statement, Statement of owner's equity, Balance sheet and Statement of cash flows) 2. Explain the steps to prepare each statement (Income statement, Statement of owner's equity, Balance sheet and Statement of cash flows), filling in the boxes with the provided drop-down boxes (see attached images)
Choose the correct Answer Which of the following does not describe accounting? Language of business Useful for decision making Is an end rather than a mean to an end? Financial accounting and accounting systems Should the $500 entry to the Cash account be a debit? Yes No Should the $500 entry to Mary Smith, Capital be a debit? Yes No In Septemberwhen the company receives the $2,000 from the customer, which account should the company credit? Cash Accounts Receivable Service Revenue External reporting is the result of? Financial accounting Management accounting Cost accounting Social accounting
nu bartleby search message Q&A Sign in Business Accounting Q&A Library Directions: Analyze the transaction of Tiny Bubbles Co, put an emojey smileyif it is part in the preparation of Statement of Comprehensive Income and NA if it is not part in the preparation of Statement of Comprehensive Income. Tiny Bubbles, a parlor owner, asks to you to prepare her Statement of Comprehensive Income for the month of August with the following transactions. 1. Her company has cash deposited in a bank account amounting to P50, 000 as her initial capital 2. She bought parlor furniture set amounting to P75, 000 by paying 20% down and the balance in 12 monthly installments 3. Supplies expense for the month is P20,000 4. She paid two months rent amounting to P24, 000 5. Her total income for the month of August is 120,000 cash 6. She paid one staff for P5, 000 a month 7. The business paid P4, 500 for the light, water, and Internet connection 8. She has trade receivables amounting to P25, 000 for…
1-Accounting software is related to which system of accounting? a. Manual Individual customer records b. Manual system of accounting c. Computerized accounting d. Any system of accounting 2-A Creditor of the business uses the financial statement for a. Day to day decision making related to the business b. Making the decisions to buy or sell the shares c. Evaluating the risks of granting credit or lending money d. Verifying whether the company complies with tax laws 3-For every debit there will be an equal credit according to a. Dual aspect concept b. Matching concept c. Money measurement concept d. Cost concept 4-Mr. Asif is an accountant. Purchase of Merchandise on credit for OMR 75000 was entered in Furniture Account for OMR 75000 but he posted Accounts payable entry is correct. Which of the following rectification entry is correct? a. Debit Accounts payable RO 75000 Credit Furniture RO 75000 b. Debit Purchase RO 75000 Credit Accounts payable account RO…
Processing accounting transactions. I have to analyze, record in general journal and post the entry using t accounts. Here is the problem. a. on may 15, DeShawn opens a landscaping company called elegant lawns by investing $7,000 in cash along with equipmewnt having a $3,000 value in exchange for common stock. b. on may 21, elegant lawns purchases office supplies on credit for $500. c. on may 25, elegant lawns receives $4,000 cash for performing landscaping services. d. on may 30, elegant lawns recieves $1,000 cash advance of providing landscaping services to a customer. I attached 3 pictures of my work and it seems to be right but I am missing something. It says my answer is not complete. What am I missing? Please help. Thank you.
Which of the following is true about financial accounting? It provides information to investors and creditors on the whole company. It reports detailed information for segments of the company. It provides detailed reports as needed. It provides guarantees required that the company will be able to pay debt. Question 2 A service company has: no inventory account one inventory account two inventory accounts three inventory accounts Question 3 Which of the following is most likely a merchandising company? a real estate office an accounting office a shoe store a custom home builder Question 4 Which of the following would appear on the balance sheet of a merchandiser but not on the balance sheet of a service company? cost of goods sold merchandise inventory gross profit work in process inventory Question 5 Our company is a manufacturer and has the following data available for the current year: sales, $550,000; sales discounts, $20,000; sales returns and allowances, $15,000; and cost of…
Do the following events represent business transactions?Explain your answer in each case.(a) A computer is purchased on account.(b) A customer returns merchandise and is given crediton account.(c) A prospective employee is interviewed.(d) The owner of the business withdraws cash from thebusiness for personal use.(e) Merchandise is ordered for delivery next month
Questions I need help for homework for accounting Which of the transactions below most likely led to the journal entry that was recorded in the image? A. The business took out a loan B. The business paid for a bill that they owed. C. The business received money rush we’re owed D. The business paid for an expense Bird of a feather inc. provided services and were paid $5,000. In the journal entry written, what go in box d? A. Cash B. Accounts receivable C. Revenue D. Owners drawings
Which of the following business events would not be recorded in the accounting records? Group of answer choices A. Obtaining a bank loan. B. Putting down a deposit on a new vehicle. C. Signing a contract to rent equipment in the next accounting period. D. Receiving a deposit from a customer.