Introduction to the Accounting Cycle and Recording Business Transactions

Hire our professional essay experts at Gradehunters.net who are available online 24/7 for an essay paper written to a high standard at an affordable cost.


Order a Similar Paper Order a Different Paper

Instructions:  Looking for someserious help in accounting assignment.  Ineeded honestly and willing to meet my dead line.  Respond to thefollowing questions using grammatically correct language and appropriate APAcitations. All questions need to be answer and with APA citations.  The book that used is Accounting Principles: A Businessperspective, Financial Accounting (chapter3 pages 77-124 Recording Business Transitions) Question 1-5 is Introductionto the Accounting Cycle, Question 6- 10is Recording Business Transactions

Question 1:

Proficient:

-Describe the steps in recording and postingthe effects of a business transaction and provide some examples of sourcedocuments used in these steps.

-Define debit and credit and name the types ofaccounts that are (three correct responses):

Increased by a debit.

Decreased by a debit.

Increased by a credit.

Decreased by a credit.

Distinguished:

Correctly identify all of the types ofaccounts on the list.

Question 2:

Proficient:

Which steps in the accounting cycle areperformed throughout the accounting cycle?

Which of the steps in the accounting cycle areperformed only at the end of the accounting period?

Distinguished:

Many of the steps in the accounting cycle canbe performed on a computer with an accounting software package. Research threeof the most commonly used packages and decide which one you would choose if youwere starting a small business this year.

Question 3:

Proficient:

Why are separate “expense” and”revenue” accounts used when all revenues and expenses could be showndirectly in the retained earnings account?

Describe three examples of transactions thatwould affect a firm’s income statement. For each transaction, identify if thetransaction has a positive or negative effect on the firm’s net income.

Distinguished:

What is the purpose of the”dividends” account and under what circumstances would this accountbe increased?

Under what circumstances would the”dividends” account be decreased?

Question 4:

Proficient:

Are the following possibilities conceivable inan entry involving only one debit and one credit? Please explain your responsefor each item. Provide five or six correct responses:

Increase a liability andincrease an expense.

Increase an asset anddecrease a liability.

Increase revenue anddecrease an expense.

Decrease an asset andincrease another asset.

Decrease an asset andincrease a liability.

Decrease revenue anddecrease an asset.

Decrease a liabilityand increase revenue.

Distinguished:

Correctly identify all of the items.

Question 5:

Proficient:

Define the “normal” balance for anaccount.

What are the rules of debit and credit foraccounts appearing on a firm’s balance sheet?

Distinguished:

What are the rules associated with accountsappearing on a firm’s income statement?

Question 6:

Proficient:

Describe the nature and purposes of thegeneral journal, ledger, and chart of accounts.

Distinguished:

Describe the act of posting a transaction fromthe general journal to the ledger. What difficulties could arise if nocross-indexing existed between the general journal and the ledger accounts?

Question 7:

Proficient:

Prepare the journal entry required for each ofthe following transactions. Be sure to identify which part of the entry is thedebit and which is the credit. Provide five correct responses:

Cash was received forservices performed for customers, $1,200.

Services wereperformed for customers on account, $4,200.

Purchased machineryfor cash, $30,000.

Capital stock wasissued for $100,000.

Salaries for a periodwere paid to employees, $24,000.

Purchased a truckusing a note payable, $35,000.

Distinguished:

Correctly prepare all of the journal entriesfor the transactions.

Question 8:

Proficient:

What are the purposes of an unadjusted trialbalance? Describe the types of accounts that would appear on this type of trialbalance.

Distinguished:

If you found that the total of the debitscolumn of the trial balance for a company is $200,000, while the total of thecredits column is $180,000, what are some possible causes of this difference?

Question 9:

Proficient:

A student remembered that the side toward thewindow in the classroom was the debit side of an account. The student took anexamination in a room where the windows were on the other side of the room andbecame confused and consistently reversed debits and credits. Would thestudent’s trial balance have equal debit and credit totals? If there were noexisting balances in any of the accounts to begin with, would the error preventthe student from preparing correct financial statements? Why?

Distinguished:

Store equipment was purchased for $2,000.Instead of debiting the Store Equipment account, the debit was made to DeliveryEquipment. Of what help will the trial balance be in locating this error?

Question 10:

Proficient:

What is the difference between horizontal andvertical analysis of financial statements?

How is each type calculated and presented forviewing by company stakeholders?

Distinguished:

How is this type of analysis used bymanagement?

"Is this question part of your assignment? We can help"

ORDER NOW
Writerbay.net

Everyone needs a little help with academic work from time to time. Hire the best essay writing professionals working for us today!

Get a 15% discount for your first order


Order a Similar Paper Order a Different Paper