II. Direction: The following comparative financial statements are provided by Zeus Company. UsingHorizontal and Vertical approach, calculate the missing and write your answer on the blank. Showsupporting solutions in a separate sheet of paper. Answer the questions at the bottom of this activity. ZEUS COMPANYCOMPARATIVE INCOME STATEMENTFor the years 2019 and 201820192018Rate of Inc(Dec)SalesP500,000.00(0.50%)Cost of Goods Sold50%40%Gross ProfitOperating Expenses:P301,500.00P95,000.0025,000.0020,000.00SalariesP97,000.00Rent25,000.00Marketing5%5,000.00Utilities1%Other Expenses7,500.0010,000.00Total ExpensesNet Income

Comparative balance sheet(horizontal approach) means where increase or decrease of every item is…

ZEUS COMPANY COMPARATIVE INCOME STATEMENT For the years 2019 and 2018 2019 2018 Rate of Inc(Dec) Sales P500,000.00 (0.50%) Cost of Goods Sold 50% 40% Gross Profit P301,500.00 Operating Expenses: Salaries P95,000.00 P97,000.00 Rent 25,000.00 25,000.00 Marketing 20,000.00 5% Utilities 1% 5,000.00 Other Expenses 7,500.00 10,000.00 Total Expenses Net Income

ZEUS COMPANY COMPARATIVE INCOME STATEMENT For the years 2019 and 2018 2019 2018 Rate of Inc(Dec) Sales P500,000.00 (0.50%) Cost of Goods Sold 50% 40% Gross Profit P301,500.00 Operating Expenses: Salaries P95,000.00 P97,000.00 Rent 25,000.00 25,000.00 Marketing 20,000.00 5% Utilities 1% 5,000.00 Other Expenses 7,500.00 10,000.00 Total Expenses Net Income

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter2: Introduction To Financial Statements

Section: Chapter Questions

Problem 2PB: Each situation below relates to an independent companys Owners Equity. A. Calculate the missing...

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Read each definition below and write the number of the definition in the blank beside the appropriate term. The quiz solutions appear at the end of the chapter. Recognition Historical cost Current value Cash basis Accrual basis Revenues Revenue recognition principle Matching principle Expenses Adjusting entries Straight-line method Contra account Deferral Deferred expense Deferred revenue Accrual Accrued liability Accrued asset Accounting cycle Work sheet Real accounts Nominal accounts Closing entries Interim statements A device used at the end of the period to gather the information needed to prepare financial statements without actually recording and posting adjusting entries. Inflows of assets or settlements of liabilities from delivering or producing goods, rendering services, or conducting other activities. Journal entries made at the end of a period by a company using the accrual basis of accounting. Journal entries made at the end of the period to return the balance in all nominal accounts to zero and transfer the net income or loss and the dividends to Retained Earnings. A liability resulting from the receipt of cash before the recognition of revenue. The name given to balance sheet accounts because they are permanent and are not closed at the end of the period. An asset resulting from the recognition of a revenue before the receipt of cash. The amount of cash or its equivalent that could be received by selling an asset currently. The assignment of an equal amount of depreciation to each period. Cash has been paid or received but expense or revenue has not yet been recognized. A system of accounting in which revenues are recognized when a performance obligation is satisfied and expenses are recognized when incurred. Cash has not yet been paid or received but expense has been incurred or revenue recognized. Financial statements prepared monthly, quarterly, or at other intervals less than a year in duration. Revenues are recognized in the income statement when a performance obligation is satisfied. The process of recording an item in the financial statements as an asset, a liability, a revenue, an expense, or the like. An asset resulting from the payment of cash before the incurrence of expense. The name given to revenue, expense, and dividend accounts because they are temporary and are closed at the end of the period. A system of accounting in which revenues are recognized when cash is received and expenses are recognized when cash is paid. A liability resulting from the recognition of an expense before the payment of cash. The association of revenue of a period with all of the costs necessary to generate that revenue. An account with a balance that is opposite that of a related account. The amount paid for an asset and used as a basis for recognizing it on the balance sheet and carrying it on later balance sheets. Outflows of assets or incurrences of liabilities resulting from delivering goods, rendering services, or carrying out other activities. A series of steps performed each period and culminating with the preparation of a set of financial statements.
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Please donot provide solution in image format provide solution in step by step format and fast solution Using the information from Part I, comment on the following financial elements of Target Corporation:
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