What would you say to convince him that closing entries are necessary?
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Your uncle owns a small sole proprietorship. He does his own bookkeeping, although he didn't finish the chapter on closing entries before he opened his business. He mentions that closing entries look like they take a long time. He wonders why he should bother to do them, because all he looks at is the checkbook. What would you say to convince him that closing entries are necessary?
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- Roscoe has attempted to prepare the closing entries for Chandler Company on this panel. He’s not sure if he’s entered the journal entries correctly, and asks you to review them. You find that one entry is correct, but the other is incorrect. Determine which entry is incorrect, and journalize both closing entries for Chandler Company as of Dec. 31 on the Journal panel.As Ena and Al have expanded their business, they have noticed how hard it can be to keep track of which customers owe them money and when they should be paying. As a result of their haphazard approach to managing their receivables they have noticed that Shortcuts to Food has experienced an increase in the number of bad debts they have recorded. In the past Ena would simply write off any bad debts as an expense once she got official notification the customer could not pay. Al has suggested this is a very muddled way of doing things and would prefer to be a bit proactive. Surprisingly, Al has already set up an Allowance for Doubtful Debts account with a balance of $500 Cr in it and has done some research and based on the past couple of years has worked out that about 5% of the credit sales they make end up becoming bad debts. Based on the current year's income statement net sales totalled $38,160 and Al has determined $5,820 of those were cash sales. Al has also Rec REQUIRED: 1. Identify…Mr. Evans Otabil has been in business for a number of years. In the past year, he has been busy Learning for the ICAG exams and has not kept proper records for his business. He has given you some information. 1st June, 2017 31st May, 2018$ $Inventory 1,019 2,998Trade Receivables 3,605 2,070Trade payables 1,740 970Telephone prepaid 200 265Cash at bank 1,696 (1,144)The bank statements for the year to 31st May, 2018 are summarized as follows:$Payments to suppliers 8,460 Receipt from Customers 6,690Cash takings 5,900 Drawing 3,120Rent 2,700 Telephone 1,150Other balances as at 1st June, 2017 are as follows: $Motor vehicle (cost $6,000) 4,750Rent; Outstanding 165 Prepaid 100You are given the following additional information: i. Depreciation is to be charged at 20% on straight line method. Mr. Otabil took goods for his personal use worth $375. ii. A telephone bill was received on 7th July, 2018 for $375, this related to the quarter ended 30th June, 2018. iii. Rent includes $960 paid on 1st…
- At the end of the month of January, you reconciled your credit card account. All of the transactions reconciled, and you were able to get your reconciliation to balance to $0. You want to go ahead and pay the bill to the credit card company, but the bill does not appear in the list of possible bills you can pay when you select "Pay Bills" from the Create icon. The credit card bill was $850.00. Below is the liability section of your balance sheet. Since you have already reconciled the account, how can you pay the bill?As part of the review of her business Rita has been looking into what she is owed by various customers and how many debts are outstanding. Rita has been able to gather the following information about her customers and credit sales. Rita has reached out to an old University friend to get some advice about the likelihood of the amounts owed to her being uncollectible. Age of Customer Debt Amounts owed Estimate of % that (including GST) will not be collected. 1-30 days overdue 14,107.50 5% 31– 180 days overdue 6,204.00 16 % 181 – 365 days overdue 2,458.50 25 % 1 year + overdue 517.00 100 % 23,287.00 Perfect Cover Insurance Brokers sales data for the past year is Credit Sales and Commissions $42,900 $11,600 $ 2,400 (returns are only available on credit sales) Cash Sales and Commissions Sales Returns Industry data shows that 5% of credit transactions are likely to go bad. Rita has also informed you that the current balance in her allowance for doubtful debts account is 500 Dr after a recent…Janet Wilson has run a furniture business for many years, but has never kept adequate accounting records. However, a need to obtain a loan for the expansion of the business has necessitated the preparation of the final accounts for the year ended December 31, 2020. She is seeking your help in the preparation of the statements. 1. Janet is able to provide you with the following information about her financial position at January 1, 2020: inventory of furniture $21,420; Trade accounts receivable $20,286; Trade accounts payable $18,196; Buildings $25,200; Fixtures and Fittings $23,400,- building expenses owing $4864, insurance prepaid $ 4,000, bank $8,840 2. Chequesdrawn during the year were estimated as follows: Trade payables Electricity Telephone Rent Advertising & Promotion Fixtures and Fittings Insurance Building expenses 54,843 12,180 11,220 15,500 13,360 15,600. 12,392 14,732 2020/2021 - Semester 2 Financial Accounting /3. All cash and cheques received were paid into the bank…
- b. Discuss whether there has or has not been any violation of ethical conduct.Please Explain Proper Step by Step and Do Not Give Solution In Image Format And Fast Answering Please Thanks In Advance ?LONG PROBLEM 3. You own a small shop that sells medical equipment. However, due to the economic downturn since 2020, you decided that you had to lay off one of its four employees in the accounting department. Thus, you have to assign some duties to the three remaining employees - Abigail, Bryan, and Chris maintaining the appropriate separation of duties. The duties that have to be assigned are: while а. Reconcile bank statement. b. Open mail and list checks. c. Prepare checks for Phillip's signature. d. Prepare payroll checks. e. Maintain personnel records. f. Prepare deposit and take to bank. g. Maintain petty cash. h. Maintain accounts receivable records. Maintain general ledger. j. Reconcile accounts receivable records to general ledger account. i. Requirements: 1. Assign the above tasks to the three remaining employees 2. Explain your answer to no. 1 in one paragraph, keeping in mind the idea of separation of duties. 3. How else should you improve the internal controls within the…
- A customer misses his flight due to the one hour wait in the check-in line. They are asking you to fix the situation.You have been so helpful to Sahra that she has recommended you to a friend of hers, Jed Skee. Jed set up the business ‘Surfs Up’ in October 2019 which sells Surf Ski’s. Jed completed a basic bookkeeping course before he commenced his business and is able to prepare his business’s accounting information up to the point of the Trial Balance, but requires your assistance in preparing the financial statements. Required: Prepare an Income Statement, Statement of Changes in Equity and a Balance Sheet from the Trial Balance provided below. Surfs Up Trial Balance for the year ended 30th June 2020 Debit ($) Credit ($) Loan Payable 66 640 Supplies on Hand 9 163 Fuel Expense 7 938 Capital 245 000 Equipment 17 640 Cash at Bank 100 254 Telephone Expense 2 450 Warehouse 196 000 Sales 43 316 Accounts Payable 3 038 Council Rates Expense 588 Accounts Receivable 23…Explain clearly how would you deal with the cheque if the cheque has been lost and Mr. James asks if your branch will stop payment of the cheque if it is presented. He leaves his telephone number in case of need. The cheque is discovered in the days clearing. It is properly drawn in favor of Mr. Ward James and is endorsed “Ward James” on the back.
