1. The accounts that represent the resources of the company are called This is t
ID: 2567034 • Letter: 1
Question
1. The accounts that represent the resources of the company are called This is the month-end for Certified. Prepare the financial statements in good form at August 31, 2017 Glendale Answering Service, Inc Adjusted Trial Balance August 31, 2017 Cash $ 12,800 2,750 Allowance for uncollectable accounts Prepaid Insurance Office Equipment Accum Dep: Office Equipment Accounts Payable Unearned Revenue Common Stock, August 1, 2017 Retained Earnings, August 1, 2017 Dividends Answering Service Revenue Wages Expense Office Supplies Expense Depreciation Exp: Office Equipment Income Taxes Expense 250 200 3,400 600 1,650 1,600 10,530 2,870 400 3.020 6,100 480 450 100 23,600 3. What is the primary purpose of financial accounting? a. Determine the amount of tax liability owed to the govemment b. Communicate business transactions to internal management c. Measure business transactions and communicate those measures to external users to make decisions. d. Measure the profitability of the company in order to assist employees with making decisions. Steve's BarBQ borrowed $10,000 to start the business on October 1, 2016. The interest and principal were to be paid in March 2017, The interest rate is 7% annually, what entry was made at the end of the year - December 31, 2016? Make the entry in proper form 4. At the beginning of the year, Southside Company assets were $590,000 and Stockholders' Equity was $275,000. During the year, Assets increased $75,000 and Liabilities decreased $40,000. What was S/E at the end of the year. 5. Looking at the Disney balance sheet, prove that the accounting equation works for 2016. This would be showing that assets equal liabilities plus stockholders' equity 6. 7. Uneamed revenues are recorded by companies that a. Receive money at the time the performance of a service is complete b. Receive money in advance of the performance of a service c. Pay money at the time the performance of a service is complete d. Pay money in advance of the performance of a serviceExplanation / Answer
1.) Assets , for example, fixed assets and current assets are resources on which investors and creditors can claim
2.) Income statment
Answering Service revenue = $6100
less: wages expense = (3020)
less: office supplies expense = (480)
less: Depreciation exp:office equipment = (450)
Income before tax = 2150
less: income tax expense = (100)
Net income = $2050
Retained earning Statement
Beginning Balance as on 1 Aug,2017 = 2870
add: Net income = 2050
less: Dividends = (400)
Ending Balance as on 31 Aug,2017 = $4520
Balance sheet
Assets
Cash = 12800
Accounts receivables = 2750
Prepaid insurance = 200
Total current assets = 15750
Office equipment 3400
less: Accumulated depreciation 600 = 2800
Total assets = $18550
Liabilities and Shareholder's equity
Allowance for uncollectible account = 250
Accounts payable =1650
Unearned revenue = 1600
Total current liabilities = 3500
Shareholder's equity
Common stock = 10530
Retained earnings = $4520
Total Liabilities and Shareholder's equity = $18550
3.) c. Measures business transactions and communicate those measures to external users to make decisions , It is a system of recording and maintaining business financial transactions in a manner that can help outsiders to make decision through financial statements.
4.)
5.) Total assets at beginning = total liabilities at beginning + total stockholder's equity at beginning
$590000 = total liabilities + $275000
$315000 = total liabilities
During the year,
Total assets at end = total liabilities at end + total stockholder's equity at end
(590000 + 75000) = ( $315000 - 40000) + total stockholder's equity at end
665000= 275000 + total stockholder's equity at end
total stockholder's equity at end = $390000
7.) b. Receive money in advance of the performance of a service , Uneared revenue is a current liability for the company,where money has been received relating to the work to be done
Date Accounts title Dr Cr. December 31 ,2016 Interest expense [$10000 * 7% * 3/12 months(Oct - Dec)] $175 To interest payable $175Related Questions
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