ASSETS Date Cash + Accts Rec+ Supp + LIABILITIES Accts Pay + Interest Pay Capital + + + OWNER'S EQUITY Related Rev Exp Exp only
ASSETS Date Cash + Accts Rec+ Supp + LIABILITIES Accts Pay + Interest Pay Capital + + + OWNER'S EQUITY Related Rev Exp Exp only
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Prepare a tabular analysis for any adjustments required to reach the adjusted cash balance per books. Be sure to include dates and explanations for any revenues or expenses. Use the
provided templates to complete your work.
Book Balance $28,600
Bank Balance $32,545
Deposits in transit $3,400
Outstanding checks $5,000, $1,800 and $975
Bank charges $35
Interest earned $55
Health insurance auto-draft $450
Transcribed Image Text:This image represents a simplified accounting sheet outlining the basic components of a balance sheet. The table is divided into three main sections: Assets, Liabilities, and Owner’s Equity. Below is a detailed transcription and explanation of each section:
### Assets
- **Date**: A column to input the transaction date.
- **Cash**: Columns to record cash transactions.
- **Accounts Receivable (Accts Rec)**: Sections to log amounts owed by customers.
- **Supplies (Supp)**: Areas to track supplies owned by the company.
### Liabilities
- **Accounts Payable (Accts Pay)**: Columns to register money owed by the company.
- **Interest Payable (Interest Pay)**: Sections for any interest obligations due.
### Owner’s Equity
- **Capital**: Areas to note the owner's investments in the business.
- **Retained Earnings**: Entries for profits kept in the company rather than distributed.
- **Revenue (Rev)**: Columns for income earned by the company.
- **Expenses (Exp)**: Locations to record costs incurred, divided into revenue and expense sections.
- **Expense only (Exp only)**: Specific columns for expenses only.
Each section has lines to record multiple entries, and there are plus and minus signs to assist with calculations. The structure helps illustrate how transactions affect the financial standing of a business, adhering to the fundamental accounting equation: Assets = Liabilities + Owner’s Equity.
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