Acc 290 Preview Entire Class
- 1. 1Week Two Reflection Summary Week 1 – DQ 1 Week One - DQ #1 What are the four basic financial statements? What is the primary purpose of each of the four basic financial statements? In your opinion, which financial statement is the most important? Explain why. How would the financial statements be useful to managers and employees? How would the financial statements be useful to investors and creditors? Response #1 The four basic financial statements are: Income Statement – reports the success or failure of the company’s operations for a period of time. Retained Earnings Statement – shows the amounts and causes of changes in retained earnings during the period. Balance Sheet – reports assets and claims to assets at a specific point in time. Statement of Cash Flows – provides financial information about the cash receipts and cash payments of a business for a specific period of time. Week 1 – DQ 2 What are debits and credits? How are debits and credits used to record business transactions? Why do accountants debit asset accounts to increase them but credit liability accounts to increase them? Why do accountants debit expenses to increase them but credit revenues to increase them? Response #1 A debit indicates the left side of an account while credit indicates the right side. We know that both sides of the basic equation (Assets = Liabilities + Stockholders’ Equity) must be equal. It therefore follows that increases and decreases in liabilities will have to be recorded opposite from increases and decreases in assets.
- 2. WEEK THREE REFLECTION SUMMARY 2 Week 1 Individual Assignment Financial Statements Paper Name ACC/290 Date
- 3. WEEK THREE REFLECTION SUMMARY 3 The four basic financial statementsare usually prepared by organizations for use by internal and external decision makers. According to McGraw-Hill Higher Education (2009), "They can be prepared at any point in time (such as the end of the year, quarter, or month) and can apply to any time span (such as one year, one quarter, or one month).” (para. 3).The four basic statements outline the financial operations of the business. They can be prepared at any time and can apply to any period.Most companies prepare financial statements for external users through quarterly reports and through annual reports. The four basic financial statements include income statement, retained earnings statement, balance sheet, and statement of cash flow. Week 2 Individual WileyPLUS Assignment Week Two -Exercise E3-4 ,E3-9 Problem 3-5A, 3- 6A Exercise E3-4 A tabular analysis of the transactions made during August 2010 by Witten Company during its first month of operations is shown below. Each increase and decrease in stockholders' equity is explained. Assets =Liabilities + Stockholders' Equity Cash + Accounts Receivable+ Supplies + Office Equipment= Accounts Payable + Common Stock + Retained Earnings Rev. - Exp. - Div. 1. $20,000 $20,000 Com. Stock 2. -1,000 $5,000 $4,000 3. -750 $750 4. 4,400 $5,400 $9,800 Serv. Rev 5. -1,500 -1,500 6. -2,000 - 2,000 Div. This information relates to Pickert Real Estate Agency. Oct. 1 Stockholders invested $30,000 in exchange for common stock of the corporation. Oct. 2 Hires an administrative assistant at an annual salary of $42,000. Oct. 3 Buys office furniture for $4,600, on account. Oct. 6 Sells a house and lot for M.E. Petty; commissions due from Petty, $10,800 (not paid by Petty at this time).
- 4. WEEK THREE REFLECTION SUMMARY 4 Oct. 10 Receives cash of $140 as commission for acting as rental agent renting an apartment. Oct. 27 Pays $700 on account for the office furniture purchased on October 3. Oct. 30 Pays the administrative assistant $3,500 in salary for October. Post the transactions to T-accounts and complete the following trial balance. (If answer is zero, please enter 0, do not leave any fields blank.) Week 2 – DQ 1 What is the revenue recognition principle? What is the expense recognition principle? Why are they important to financial reporting? What are adjusting entries and why are they necessary? What are accruals? Provide examples of accruals. Why do accruals require adjusting entries? What are deferrals? What are some examples of deferrals? Why do deferrals require adjusting entries? Response #1 The revenue recognition principle requires that companies recognize their revenue during the period which it was earned, but not necessarily received. The expense recognition principle is used to match expenses with revenues during the time when the service was extended to generate revenue. Week 2 – DQ 2 What accounts are subject to adjusting journal entries and why? How would you explain the purpose of the adjusted trial balance? Response #1 This I was a little confused on. I believe an adjusted journal entry is a journal entry to adjust the account balance. So if I am correct then you can do this at anytime if you recorded something incorrectly.
- 5. WEEK THREE REFLECTION SUMMARY 5 Week 2 LT Reflection Summary Name Team ACC/ 290 Date
- 6. 6Week Two Reflection Summary Week Two Reflection Summary The four basic financial statements are income statement, retained earnings statement, balance sheet and the statement of cash flow. These statements are very important because they make use to keep records of any type of activities that a business performs. The four basic statements summarize the financial activities of the business ("The Four Basic Financial Statements: An Overview ", 2009). They can be prepared at any point in time (such as the end of the year, quarter, or month) and can apply to any time span (such as one year, one quarter, or one month) ("The Four Basic Financial Statements: An Overview ", 2009). Each statement is in charge of doing something that shows how a business is moving and doing financially. week 3 DQ 1 Week 3 – DQ 1 What are the steps in completing the accounting cycle? How do the different steps affect the financial statements? What is the effect on the financial statements of missing a step when completing the accounting cycle? What are the four closing journal entries? Why are they necessary? What are reversing entries? Why are they used? What are the pros and cons of using reversing entries? Why are reversing entries optional? Response #1 The steps to complete the accounting cycle are determine the transaction, look over it to make sure you no what it is, record it in the journal, decide the t-account and post it to the ledger, trail balance to check (credits/debits), adjust entries, then redo the trail balance, create your financial statements for your investors etc, close it, and final trial balance if necessary.
- 7. WEEK THREE REFLECTION SUMMARY 7 Week 3 – DQ 2 What are the pros and cons of using reversing entries? Why are reversing entries optional? What is the main purpose of a financial statement worksheet and its benefits? How has automation aided the preparation, accuracy, and use of the financial statement worksheet? Response #1 Reversing entries are used to avoid any double entries of revenue and or expenses and are made on the first day of the accounting period to remove some adjusting entries that were made in the previous accounting period. It is most common for the reversing entries to be used with accrual adjusting entries. Week 3 Individual WileyPLUS Assignment Week Three - Exercise BE4-1, Problem P4-2A and P4-3A Question 1 Correct. Exercise BE4-1 Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transactions would have upon cash and net income. The first transaction has been completed as an example. (If an amount has a decreasing effect use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45). Do not use a dollar sign $ for negative answers.) Cash Net Income
- 8. WEEK THREE REFLECTION SUMMARY 8 (a) Purchased $100 of supplies for cash. -$100 $0 (b) Recorded an adjusting entry to record use of $40 of the above supplies. 0 -40 Week Three Reflection Summary Name Team A ACC/ 290 Date What do you think is the most important skills learned when you are in accounting? Well accounting is very important in all. Accounting comes with many different statements and entries that pretty much define a business in all. Distinguish among the cash basis and the accrual
- 9. WEEK THREE REFLECTION SUMMARY 9 basis of accounting. Accrual-based accounting suggests that organizations register in the segments in which the actions happen, actions that modify organizations monetary statements still if cash has not swap. week 4 DQ 1 Week 4 – DQ 1 How would you calculate cost of goods sold? What items make up cost of goods sold? How does beginning and ending inventory affect cost of goods sold? What are the journal entries a merchandising organization would use to record the purchase and subsequent sale of merchandise? How would these transactions differ with a periodic versus a perpetual inventory system? Why are perpetual inventory systems so much more popular today than back in the early 1960s and earlier? Why would a company employing a perpetual inventory system still take a physical inventory periodically? week 4 DQ 2 Week 4 – DQ 2 What are the three different inventory cost flow assumptions commonly used in commerce today and allowed by generally accepted accounting principles? How does a company determine what cost flow assumption they should use? How does first in, first out cost flow assumption work? When it is most appropriate to use? How does last in, first out cost flow assumption work? When it is most appropriate to use? How does an average cost flow assumption work? When it is most appropriate to use?
- 10. WEEK THREE REFLECTION SUMMARY 10 Week Four Team Assignment – Verizon Name Team A ACC/ 290 March 9, 2012 Aziz Karim Accounting is considered one of those complex yet necessary responsibilities that keep organizations financial affairs relatively clean. Users of monetary statements contain an organization’s directors, stockholders, dealers, lending institutions, workers, employment unions, regulatory authorities, and the community. Organizations exercise the monetary reports to make decisions. For instance, possible investors use the monetary information as a guide in choosing
- 11. WEEK THREE REFLECTION SUMMARY 11 whether to purchase the supply. Suppliers use the monetary information to choose whether to sell goods to a corporation on credit. Team A has chosen Verizon Wireless 2010 most annual report to review and discuss for week four assignments. At Verizon Wireless the corporation exercises technology, monetary resources, personnel, and partnerships to help solve essential social issues. The organization’s inspiration is by the company deep commitment to doing business in a way that contributes to the prosperity of the corporation’s shareowners, there employees and the communities the company serves. week 5 DQ 1 Week 5 – DQ 1 What is the control environment? How does the control environment affect a company’s internal controls? What are the negative and positive elements of a control environment? What are two examples of strong and weak internal controls in organizations where you have worked or have first-hand knowledge? How are these different? How would you describe the key internal controls that should be in place to protect cash in a cash rich environment such as a merchandiser? What are the key internal controls that should be in place to protect inventory for a merchandiser that sells highly desirable and very expensive inventory, such as jewelry? Would this be different if the business had a less desirable and less expensive inventory? Explain why or why not.