Explain the need for adjusting entries and how they affect his balance sheet and the "bottom line" on the income statement.
Q: Sean's restaurant, you must deal with a variety of business transactions. Give an example of a…
A: Since we only answer up to 3 subparts, we will answer the first 3. Please resubmit the question and…
Q: To obtain financing for her hair salon, Valeri asked you toprepare a balance sheet for her business.…
A: Assets: These are the resources owned and controlled by business and used to produce benefits for…
Q: As an accountant, your new client Michael Sue's he's assistance in setting up his books for his…
A: GIVEN DATA 1-July Owner, Michael Suze invested $32,000 in his business, “Be Great Athletics”.…
Q: At a recent luncheon, you were seated next to Mr. Hopkins, the president of a local company that…
A: Methods of Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset…
Q: You are the bookkeeper for a small but thriving business. You have asked the owner for the…
A: Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to…
Q: Which of the following would provide evidence using the evidence-gathering technique of…
A: There are various method to gathering evidences. i.e. Documentation, Inspection, observation,…
Q: assume you are employed as the chief financial officer of a corporation and are responsible for…
A: Introduction:- Financial statements are official records of a company's, person's, or other entity's…
Q: he owner of a small business selling and repairing cars which you patronise has just received a…
A: An asset is a resource with monetary worth that an individual, corporation, or country possesses or…
Q: Sue is a customer account representative for ABC Company. She recently acquired several new accounts…
A: Fictitious Revenues refer to sales of products or services that never happened. False invoicing can…
Q: You are required to prepare a reflection paper that incorporates your answers to the following…
A: Here are discussing the factors of the Accountant which are important to the business as well. The…
Q: How can his revenue and expenses match? Discuss in a group several ways that Edward's accountants…
A: How revenue and expenses match Edwards foster wil book the expense in the period in which…
Q: Mr. Tee ordered two computers which he is going to receive after 1 month. He is going to pay for the…
A: Accounting principles are the general rules and guidelines that organizations are required to follow…
Q: Your friend Rakib started a new business in Dhaka. He has been running the business for the last 3…
A: There are 5 issues on which advice is required.
Q: You are a sole practitioner who used to provide a range of accountancy services for a small company…
A: Accountants are the persons who have the information which are very confidential and important of…
Q: Mr Amjad is planning to start a business. He follows various accounting concepts and conventions…
A: Revenue recognition: Revenue recognition refers to an accounting principle which outlines the…
Q: Using the accounting equation to analyze transactions As the manager of a Papa Sean’s restaurant,…
A:
Q: Using the accounting equation to analyze transactions As the manager of Papa Sean’s restaurant, you…
A:
Q: what step in the accounting cycle is she most likely to make the discovery
A: Accounting: Accounting is a system, or a process of collecting and organizing economic…
Q: What would you say to convince him that closing entries are necessary?
A:
Q: The owner withdrew cash from the business to buy a gift to his friend b.
A: There is a decrease in equity and decrease in asset in the business. Which transaction might have…
Q: Jessica Boland works for Sea Biscuit Co. She and Farah Smith, her manager, are preparing adjusting…
A: 1. As per the generally accepted accounting principles, the depreciation should be recorded by…
Q: The owner of a local business complains that the adjustments process consumes a lot of time and…
A: Adjusting entries: Adjusting entries refers to the entries that are made at the end of an accounting…
Q: One year ago, Tyler Stasney founded Swift Classified Ads. Stasney remembers that you took an…
A:
Q: After the trial balance is prepared, the business owner can prepare the financial statements. List…
A: The company will record the transactions in a journal in a chronological manner. All the day to day…
Q: Sue is a customer account representative for ABC Company. She recently acquired several new accounts…
A: Sue should contact all parties who will underwrite the public offering if the company is planning an…
Q: source documents
A: Source documents are the documents at the origin of a transaction.
Q: Lucy must close the accounting books in the old system to have a complete set of financial…
A: In certain situations the business may decide to implement new systems for the recording of the…
Q: Mr. Anmol started a retail outlet of food corner named Anmol Foods in his locality and doing well in…
A: Accounting is necessary for any kind of business because it is very necessary keep updated what is…
Q: Anmol started a retail outlet of food corner named Anmol Foods in his locality and doing well in his…
A: Solution- Accounting is necessary for any kind of business because it is very necessary keep updated…
Q: Henry Josstick has just started his first accounting course and has prepared the following balance…
A:
Q: amon Davis was working on a spreadsheet for the Drano Plumbing Company. He calculated that the net…
A: The totals of debit and credit sides of a balance sheet should be equal in order to be accurate.…
Q: The Income Statement will O indicate how much money the owner invested into their business. indicate…
A: Income statement means the statement which show the cost of goods sold and selling price and give…
Q: A new client has just contacted you to prepare their business tax return for the current year. He…
A: Business tax return is the return which have to be filled by the enterprise in which it is computed…
Q: Why salary is an expense and supplies is an asset? The book noted that when a cash expenditure that…
A: The financial statements of the business include the income statement and balance sheet. The…
Q: The owner of a small business selling and repairing cars which you patronise has just received a…
A: Asset is any resource which is owned through the business or the economic entity and it can be…
Q: Sue is a customer account representative for ABC Company. She recently acquired several new accounts…
A: A scenario is a hypothetical set of events. This is an example of thinking about all the possible…
Q: Mr. X started a retail outlet named "X Foods" in his. His friend Y asks him to record the…
A: Solution Accounting is the process of recording financial transactions pertaining to a business.
Q: The owner of a small business selling and repairing cars which you patronise has just received a…
A: 1) Assets - Assets are the properties(tangible or intangible) owned by a business. They are the…
Q: Prepare an Income Statement, Statement of Changes in Equity and a Balance Sheet from the Trial…
A: a) INCOME STATEMENT Particulars Debit Credit Revenue Sales $43,316 Expenses:…
Q: Joe Sephume, the owner of a small business, Joe's Car Shop, that sells and repairs cars, has…
A: Answer:- Financial statements meaning:- Financial statements are documents that describe a…
Q: Assume you are employed as the chief financial officer of a corporation and are responsible for…
A: Financial statements: Financial statements are condensed summary of transactions communicated in the…
Q: I have completed a journal and a Ledger and now I need to know how to determine the excess of…
A: Income statement: It is a financial statement that calculates the net income generated by the…
Q: You work as an accountant for a small land development company that desperately needs…
A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
Q: You are tasked to manage your family’s financial resources. How would you practice money management?…
A: Money management is an important part which directly starts from your home itself.A person earns…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- You are the bookkeeper for a small but thriving business. You have asked the owner for the information you need to make adjusting entries for depreciation, supplies , insurance, and wages. He says that he's really busy and that what you've done so far is "close enough". Explain the need for adjusting entries and their effect on the owner's balance sheet and the "bottom line" of the income statement.At a recent luncheon, you were seated next to Mr. Fogle, the president of a local company that manufactures food processors. He heard that you were in a financial accounting class and asked:“Why is it that I’m forced to record depreciation expense on my property when I could sell it for more than I originally paid? I thought that the purpose of the balance sheet is to reflect the value of my business and that the purpose of the income statement is to report the net change in value or wealth of a company. It just doesn’t make sense to penalize my profits when the building hasn’t lost any value.”At the conclusion of the luncheon, you promised to send him a short explanation of the rationale for current depreciation practices.Required:Prepare a memo to Mr. Fogle. Explain the accounting concept of depreciation and contrast this with the dictionary definition of depreciation.What Would You Do? You are responsible for preparing all of the journal entries for Regional Financial Services. You have correctly prepared the following entry for financial services provided on December 15: Your boss has asked you to change the date from December 15 to January 15 so that the business’s profit, and thus taxes, would be lower. Are you allowed to do this? What is your response to your boss? How should you handle this situation?
- Damon Davis was doing the paperwork for Drano Plumbing. He estimated a net profit of $50,000. He discovered that the debit column on the balance sheet totaled $400,000 and the credit column, $300,000, when he added up the columns. What was the difference in the results' most likely cause? What should he do if this wasn't the root of the problem? How can he find out where it came from?You just started an internship working in a small business that is in its second year of operation. The business owner wants to apply for a bank loan as soon as possible, and is very anxious to receive the second year financial statements. The business owner has observed you performing the steps in the recording process of journalizing, posting and preparing a trial balance, and he doesn't understand why you can't prepare the financial statements without first preparing adjusting entries and an adjusted trial balance. Explain to the business owner the need and purpose of adjusting entries, and why the adjusted trial balance should be the source for the financial statements.As an accountant, your new client Michael Sue's he's assistance in setting up his books for his business. To do this successfully, you start by showing him how you perform a transaction analysis based on the accounting equation assets equals liabilities plus owners equity. You explain to Michael how to show increases and decreases in assets liabilities and owners equity accounts using that analysis template. To help Michael understand the transaction analysis you reconcile each side of the equation by balancing out each column at the end of the transaction. complete by using the accounts cash, accounts receivable, supplies, equipment, accounts payable, notes payable, Suze capital, Suze drawing, service revenue, rent expense, salary expense, utilities expense, and advertising expense. Please record the transactions listed in the image.
- Mr. Anmol started a retail outlet of food corner named Anmol Foods in his locality and doing well in his food business. His friend Atul asks him to record the transactions and assess his financial position. Mr. Anmol is not convinced on accounting of the information as he is not sure about the need of accounting when he is earning good money. You as Mr. Atul, help Mr. Anmol to get an understanding about the term accounting, uses of accounting information - so that he can record the financial information and assess his financial position. Also, discuss any five accounting terms relevant to recording the financial information.Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement for Omega Corp. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability. a.Prepare the balance sheet and income statement by rearranging the above items. b.In the process of constructing the balance sheet, please show me the total current assets, total assets, total current liabilities, and total liabilities. c.In the process of constructing the income statement, please calculate the gross profit, operating profit (EBIT),taxable income and net profit.Roy Akins was the accounting manager at Zelco, a tire manufacturer, and he played golf with Hugh Stallings, the CEO who was something of a celebrity in the community. The CEO stood to earn a substantial bonus if Zelco increased net income by year-end. Roy was eager to get into Hugh’s elite social circle. He boasted to Hugh he knew of some accounting tricks to increase the company’s income by simply revising a few journal entries for rental payments on storage units. At the end of the year, Roy changed the debits form “rent expense” to “prepaid rent” on several entries. Later Hugh got his bonus, and the deviations were never discovered. How did the change in the journal entries affect the net income of the company at year-end? Who gained and who lost as a result of these actions?
- Roy Akins was the accounting manager at Zelco, a tire manufacturer, and he played golf with Hugh Stallings, the CEO, who was something of a celebrity in the community. The CEO stood to earn a substantial bonus if Zelco increased net income by year-end. Roy was eager to get into Hugh’s elite social circle; he boasted to Hugh that he knew some accounting tricks that could increase company income by simply revising a few journal entries for rental payments on storage units. At the end of the year, Roy changed the debits from “rent expense” to “prepaid rent” on several entries. Later, Hugh got his bonus, and the deviations were never discovered. Requirements How did the change in the journal entries affect the net income of the company at year-end? How did the change in the journal entries affect the net income of the company at year-end?Lucy must close the accounting books in the old system to have a complete set of financial statements to bring into the new system. How would you guide Lucy through the process of closing the accounting books in the old system? Explain.You are a lawyer who has her own business. You buy a Mercedes convertible that you use primarily to take trips to the beach and vacation get - aways. You claim it as a business expense because you drive a client to lunch once a month. Which accounting principle does this violate? Objectivity Concept Unit of Measure Concept Business Entity Concept Cost Concept