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ADM 1340 Lecture 11: ADM1340 LECTURE 11

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11 Feb 2019

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ADM 1340 Lecture 1: ADM 1340 Lecture : ADM 1340 Lecture : 1

ADM 1340 Lecture Notes - Lecture 2: Gross Profit, Income Statement, Net Income

ADM 1340 Lecture 11: ADM1340 LECTURE 11

Document Summary

After all closing entries are journalized and posted: proves that total debit balances and total credit balances are equal after the closing entries have been made. Service companies perform services as their primary source of revenue: merchandising companies buy and sell inventory (e. g. loblaws): The time it takes to go from cash to cash in producing revenues. Longer for a merchandising company that for a service company: Merchandise must first be purchased before it can be sold. Adds an additional step to the cycle. Sales revenue (from the sale of merchandise): the main source. Cost of goods sold: total cost of merchandise sold in a period. Operating expenses: incurred in the process of earning sales revenue: gross profit. = sales revenue less cost of goods sold. Beginning inventory + purchases = cost of goods available for sale. Once sold, these costs are assigned to cost of goods sold.

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Related Questions

Please include the answer for the depreciation expense and accumulated depreciation. i noticed other posts with this similar questions didnt have the answer to those

Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel Template.xlsx". Use the following accounts as appropriate: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Wages Payable, Common Stock, Retained Earnings, Dividends, Service Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Rent Expense, and Insurance Expense.

Began business by depositing $10500 in a bank account in the name of the company in exchange for

1050 shares of $10 per share common stock.

Paid the rent for the current month, $1450 .

Paid the premium on a one-year insurance policy, $1320 .

Purchased Equipment for $4200 cash.

Purchased office supplies from XYZ Company on account, $300 .

Provided services to customers for $9200 cash.

Provided service to customers ABC Inc. on account, $8200 .

Received $3400 cash from ABC Inc., customer on account.

Paid $170 to XYZ company for supplies purchased on account on December 5 .

Paid wages for the period December 1 through December 28, $5040 .

Declared and paid dividend to stockholders $200 .

Post all of the December transactions from the âGeneral Journalâ tab to the T-accounts under the âT-Accountsâ tab in the excel template file "Accounting Cycle Excel Template.xlsx". Assume there are no beginning balances in any of the accounts.

Compute the balance for each T-account after all of the entries have been posted. These are the unadjusted balance as of December 31.

Prepare the unadjusted trial balance under the âUnadjusted Trial Balanceâ tab in the excel template file "Accounting Cycle Excel Template.xlsx" .

Provide the total of the credit column from the Unadjusted Trial Balance

Record the following four transactions as adjusting entries under the âGeneral Journalâ tab.

One monthâs insurance has been used by the company $110.

The remaining inventory of unused office supplies is $90.

The estimated depreciation on equipment is $70.

Wages incurred from December 29 to December 31 but not yet paid or recorded total $540.

Post all of the adjusting entries to the T-accounts under the âT-Accountsâ tab. Compute the balance for each T-account after all of the adjusting entries have been posted. These are the adjusted balance as of December 31.

Prepare the adjusted trial balance under the âAdjusted Trial Balanceâ tab as of December 31 in the excel template file "Accounting Cycle Excel Template.xlsx" .

Provide the following accounts balances from the Adjusted Trial Balance:

Accounts Receivable

Prepaid Insurance

Accumulated Depreciation

Accounts Payable

Retained Earnings

Prepare Income Statement, Statement of Stockholderâs Equity, and Classified Balance Sheet under the âFinancial Statementsâ tab for the month ended December 31, 20XX in the excel template file "Accounting Cycle Excel Template.xlsx".

Provide the following amount from the Income Statement:

Service Revenue

Depreciation Expense

Supplies Expense

Insurance Expense

Provide the following account balance from the Statement of Stockholders' Equity:

Provide the following account balances from the Balance Sheet:

Long-Term Assets

Total Liabilities

Total Stockholderâs Equity

Record the closing entries under the âGeneral Journalâ tab.

Post all of the closing entries to the T-accounts under the âT-Accountsâ tab. Compute the balance for each T-account after all of the closing entries have been posted.

Provide the ending balance of Cash at December 31 from the T-account

Provide the balance of the Retained Earnings T-account after closing entries have been posted.

Does the ending balance of the Retained Earnings T-account agree with the balance of Retained Earnings on the Balance Sheet?

Check Point: Total Assets

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