Concept explainers
Balance sheet is a financial statement which reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and
Income statement:
The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement.
To List: The accounts in the order in which they should appear in the ledger of School OL, and to assign the two digits account number.
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Accounting (Text Only)
- Sage Learning Centers was established on July 20, 2016, to provide educational services. The services provided during the remainder of the month are as follows: Instructions 1. Journalize the transactions for July, using a single-column revenue journal and a two-column general journal. Post to the following customer accounts in the accounts receivable ledger, and insert the balance immediately after recording each entry: D. Chase; J. Dunlop; F. Mintz; T. Quinn; K. Tisdale. 2. Post the revenue journal and the general journal to the following accounts in the general ledger, inserting the account balances only after the last postings: 3. a. What is the sum of the balances of the customer accounts in the subsidiary ledger at July 31? b. What is the balance of the accounts receivable controlling account at July 31? 4. Assume Sage Learning Centers began using a computerized accounting system to record the sales transactions on August 1. What are some of the benefits of the computerized system over the manual system?arrow_forwardWhat will the general journal entry be for the following transaction? Mr. Smith paid his outstanding account at Choice Bakery for products he purchased for his school. A. Dr Creditors control; Cr Bank B. Dr Bank; Cr Creditors control C. Dr Bank; Cr Debtors control D. Dr Choice Bakery; Cr Creditors controlarrow_forwardACTIVITY. On February 1, 20A4, Mira Delamar opened a store that sells school supplies. Mira wanted to know the results of opening the store. Mira knew you were studying accounting so she asked for your help. The following were taken from the accounting records of Mira’s Store. Balance Debit Credit Sales ₱114,567 Sales return 1,544 Sales discount 1,675 Purchases 61,558 Purchase return 504 Purchase discount 1,076 Freight-in 765 Utilities expense 4,000 Salaries Expense 14,000 Rent expense 10,000 Depreciation 500 Additional Information: a. Physical inventory conducted at the end of the year revealed an ending inventory of ₱15,345. b. Depreciation is for shelves and cabinets used as displays racks and storage in the store. c. Mira has a small office inside the store. Allocate 15% of rent and utilities to…arrow_forward
- ACTIVITY. On February 1, 20A4, Mira Delamar opened a store that sells school supplies. Mira wanted to know the results of opening the store. Mira knew you were studying accounting so she asked for your help. The following were taken from the accounting records of Mira’s Store. Balance Debit Credit Sales ₱114,567 Sales return 1,544 Sales discount 1,675 Purchases 61,558 Purchase return 504 Purchase discount 1,076 Freight-in 765 Utilities expense 4,000 Salaries Expense 14,000 Rent expense 10,000 Depreciation 500 Additional Information: a. Physical inventory conducted at the end of the year revealed an ending inventory of ₱15,345. b. Depreciation is for shelves and cabinets used as displays racks and storage in the store. c. Mira has a small office inside the store. Allocate 15% of rent and utilities to general administrative expense. d. 25% of Emily’s Salaries are allocated to General and Administrative Expense. Aside from tending the store, she was also tasked to file receipts and…arrow_forwardi hope you will can solve it quickly Assume that you are going to start a Business after graduation. Describe 10 transactions that thebusiness might undertake by using your own idea with the following assumptions:• Started business with cash• Goods purchase for cash• Goods purchased on credit• Any asset purchased and paid cash• Any asset purchase on credit• Sold goods for cash• Sold goods on credit• Paid any bill• Paid salary to staff• Cash withdraw from business for personal useBased on your own 10 transactions, prepare:1. Accounting Equation2. Journal3. Ledger4. Trail Balance5. Financial statementarrow_forwardAssume that you are going to start a Business after graduation. Describe 10 transactions that the business might undertake by using your own idea with the following assumptions: Started business with cash Goods purchase for cash Goods purchased on credit Any asset purchased and paid cash Any asset purchase on credit Sold goods for cash Sold goods on credit Paid any bill Paid salary to staff Cash withdraw from business for personal use Based on your own 10 transactions, prepare: 1. Journalarrow_forward
- Assume that you are going to start a Business after graduation. Describe 10 transactions that the business might undertake by using your own idea with the following assumptions: Started business with cash Goods purchase for cash Goods purchased on credit Any asset purchased and paid cash Any asset purchase on credit Sold goods for cash Sold goods on credit Paid any bill Paid salary to staff Cash withdraw from business for personal use Based on your own 10 transactions, prepare: 1. Ledgerarrow_forwardDirections: Journalize the transactions in the General Journal, and Special Journals: Sales Journal, Purchases Journal, Cash Receipts Journal, Cash Payment Journal; and posts in the General Ledger and Subsidiary Ledgers. Write your answers in a separate needed answer sheet. You decided to open a Mini Grocery in your barangay. The following are the transactions in December of the current year: 1 You invested ₱100,000 cash and equipment for ₱25,000 in the business. 4 Purchased furniture on cash for ₱5,000. 6 Purchased supplies on cash for ₱2,500. 8 Purchased merchandise from ABC Merchandising for ₱20,000. Terms: 2/10, n/30. 10 Purchased merchandise from XYZ Merchandising for ₱12,000 on cash. 12 Paid the freight on merchandise bought above for ₱500. 15 Sold merchandise to various cash customers for ₱10,000. 16 Sold merchandise to Mr. Perez for ₱8,000. Terms: 2/10, n/30. 17 Paid the freight on merchandise sold above for ₱200. 18 Paid the wages employees for ₱4,000. 19…arrow_forward
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