Chapter 02 - Investing and Financing Decisions and the Accounting System HANDOUT 2 – 1 SOLUTION‚ continued ANALYZING TRANSACTIONS Analyze each of the following transactions of World Wide Webster by performing each of the following. Then‚ use the chart on the following page to keep track of the amount in each account: (a) Stockholder invests $10‚000 into the business in exchange for 10‚000 shares of $1 par value common stock. 1. Decide if a transaction took place. Yes – received cash and gave stock
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during the period. Supplies on hand at the end of the year. Cash received from issuing new bonds during the period. Total debts outstanding at the end of the period. Brief Exercise 1-8 Use the basic accounting equation to answer these questions. (a) The liabilities of Daley Company are $94‚410 and the stockholders’ equity is $241‚000. What is the amount of Daley Company’s total assets? Total assets (b) The total assets of Laven Company
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Business Entity Concept- The business and the businessman are two different and distinct entities. I.e. that the firm and the partners‚ the company and the shareholders‚ the owners and the organization have their own distinct identities. All accounting is done from the perspective of the business. The accountant regards owners‚ creditors‚ suppliers‚ customers as parties transacting with the business. All transactions are viewed from the point of view of the business. Money Measurement Concept-
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entries are made for each transaction. The first entry is a debit in on account and the second is credit in another account. The two accounts together keep the accounting equation balanced. The accounting equation is Assets = liabilities + Owners’ Equity. The pegboard system is a system in which a pegboard is used to hold all the necessary accounting forms. I believe that the pegboard system is best for a medical office because it is easiest to operate and seems to be the most accurate. Reference:
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a standard of methods that accountants and others use to prepare their financials. http://www.suite101.com/content/what-is-gaap-a28142 * Basic accounting formula: The formula or equation takes what a owner might owe to creditors and others adds it to what the owner might already own and factors in what the business owns. The equation can be done in different ways‚ but no matter there is always a balanced outcome. http://www.moneyinstructor.com/lesson/accountingtransaction.asp
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Brief Exercise BE1-7. Indicate which statement you would examine to find each of the following items: income statement‚ balance sheet‚ retained earnings statement‚ or statement of cash flows. 2. Brief Exercise BE1-8. Use the basic accounting equation to answer these questions. (a) The liabilities of Cummings Company are $90‚000 and the stockholders’ equity is $230‚000. What is the amount of Cummings Company’s total assets? (b) The total assets of Haldeman Company are $170
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Unit 10 Final Assignment Jessica Miller AC-113 May 27‚ 2012 Throughout my journey in Accounting for Non-Accounting majors I have crossed many thresholds to make me a stronger candidate to enter the business world. Beginning in Unit 1 I gained a lot of information on how important accounting is in a business. The first topic that I found beneficial for my knowledge in the business world is the different types and forms of a business. The objective for most businesses is to earn a profit. The three
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theory was among the first new theories of ownership. (Schroeder‚ Clark‚ & Cathey‚ 2009‚ page 499). It depicts the accounting equation as assets equals equity (Schroeder‚ Clark‚ & Cathey‚ 2009‚ page 363). It makes no distinction between debt and equity (Schroeder‚ Clark‚ & Cathey‚ 2009‚ page 500). Entity theorist believe that companies’ accounting should be prepared from the accounting entity’s view instead of in the interest of the shareholders. According to the entity theory‚ there is no fundamental
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accessing this Question Assistance‚ you will learn while you earn points based on the Point Potential Policy set by your instructor. Brief Exercise 1-8 Your answer is correct. Use the basic accounting equation to answer these questions. (a) The liabilities of Daley Company are $93‚820 and the stockholders’ equity is $255‚900. What is the amount of Daley Company’s total assets? Total assets 349‚700 add liabilities and stockholders equity =assets
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Hindi dahil sa hindi mo naiintindihan ang isang bagay ay kasinungalingan na ito… Minsan‚ accounting lang talaga iyan. A student died and was asked by St. Peter. St. Peter: What was your course when you were in college? Student: BSA… St. Peter: You may enter Heaven. You’ve suffered enough. A-rt of making yourselves unsleep for several nights. C-an make you feel tulala na wala sa sarili. C-hallenges you to shift. O-A sa hirap ng problems kahit unrealistic. U-maga na gising ka pa with matching
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