For all accounting equations, if a financial statement item is not affected, select "No Entry" and leave the amount box blank or enter "0". If the effect is negative, use the minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. 1. Identify and analyze each of the following transactions of Cycletime.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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eBook
Purchases and Sales of Merchandise,
Cash Flows Cycletime, a bike shop, opened for business on April 1. It uses a periodic inventory system. The following transactions occurred during the first month of business:
Required:
For all
accounting equations , if a financial statement item is not affected, select "No Entry" and leave the amount box blank or enter "0". If the effect is negative, use the minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item.1. Identify and analyze each of the following transactions of Cycletime.
April 1: Purchased five units from Fairall Corp. for $500 total, with terms 3/10, n/30, FOB destination.
Activity Accounts Statement(s) How does this entry affect the
accounting equation ?Balance Sheet Income Statement Stockholders' Net Assets = Liabilities + Equity Revenues – Expenses = Income fill in the blank 7af346ff4fc8fb3_2 fill in the blank 7af346ff4fc8fb3_4 fill in the blank 7af346ff4fc8fb3_5 fill in the blank 7af346ff4fc8fb3_7 fill in the blank 7af346ff4fc8fb3_9 fill in the blank 7af346ff4fc8fb3_10 April 10: Paid for the April 1 purchase.
Activity Accounts Statement(s) How does this entry affect the accounting equation?
Balance Sheet Income Statement Stockholders' Net Assets = Liabilities + Equity Revenues – Expenses = Income fill in the blank 8b284b002f9606a_2 fill in the blank 8b284b002f9606a_4 fill in the blank 8b284b002f9606a_5 fill in the blank 8b284b002f9606a_7 fill in the blank 8b284b002f9606a_9 fill in the blank 8b284b002f9606a_10 April 15: Sold one unit for $200 cash.
Activity Accounts Statement(s) How does this entry affect the accounting equation?
Balance Sheet Income Statement Stockholders' Net Assets = Liabilities + Equity Revenues – Expenses = Income fill in the blank fcaa24002fd3044_2 fill in the blank fcaa24002fd3044_4 fill in the blank fcaa24002fd3044_5 fill in the blank fcaa24002fd3044_7 fill in the blank fcaa24002fd3044_9 fill in the blank fcaa24002fd3044_10 April 18: Purchased ten units from Pummill, Inc. for $900 total, with terms 3/10, n/30, FOB destination.
Activity Accounts Statement(s) How does this entry affect the accounting equation?
Balance Sheet Income Statement Stockholders' Net Assets = Liabilities + Equity Revenues – Expenses = Income fill in the blank 2b262b06403bfef_2 fill in the blank 2b262b06403bfef_4 fill in the blank 2b262b06403bfef_5 fill in the blank 2b262b06403bfef_7 fill in the blank 2b262b06403bfef_9 fill in the blank 2b262b06403bfef_10 April 25: Sold three units for $200 each, cash.
Activity Accounts Statement(s) How does this entry affect the accounting equation?
Balance Sheet Income Statement Stockholders' Net Assets = Liabilities + Equity Revenues – Expenses = Income fill in the blank 0859abfd0fe1fcc_2 fill in the blank 0859abfd0fe1fcc_4 fill in the blank 0859abfd0fe1fcc_5 fill in the blank 0859abfd0fe1fcc_7 fill in the blank 0859abfd0fe1fcc_9 fill in the blank 0859abfd0fe1fcc_10 April 28: Paid for the April 18 purchase.
Activity Accounts Statement(s) How does this entry affect the accounting equation?
Balance Sheet Income Statement Stockholders' Net Assets = Liabilities + Equity Revenues – Expenses = Income fill in the blank f0215f012f99004_2 fill in the blank f0215f012f99004_4 fill in the blank f0215f012f99004_5 fill in the blank f0215f012f99004_7 fill in the blank f0215f012f99004_9 fill in the blank f0215f012f99004_10 2. Determine net income for the month of April. Cycletime incurred and paid $100 for rent and $50 for miscellaneous expenses during April. Ending inventory is $967. (Ignore income taxes.)
$fill in the blank 99c3d0074067fa5_13. Assuming that these are the only transactions during April (including rent and miscellaneous expenses), compute net cash flow from operating activities. Use the minus sign to indicate cash out flows, a decrease in cash or cash payments.
$fill in the blank 99c3d0074067fa5_24.
Cash outflow during the first month of business is much larger than expenses as shown on the income statement due to
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