Once you have people on your money, And you owne others money, Youcan create assets,liability and equity accounts. How can having abalance sheet be of value to you?
Related questions
1. Produce a balance sheet for a company that distinguishesbetween current and non-current assets and liabilities.
2. Create a balance sheet from a trial balance.
3. Create a comparison of net income based on different methods ofinventory accounting.
4. Analyze a statement of cash flows and show where each line itemcan be found or calculated from the other financialstatements.
5. Prepare a full analysis of key financial ratios for a companyand state conclusions about the financial strength of the companycompared to industry ratios.
| Create a BalanceSheet from the trial balance: | ||||
| Debits | Credits | Classification | ||
| Cash | 300,000.00 | Current asset | ||
| Sales | (10,000,000.00) | Income statement | ||
| Cost of Goods Sold | 7,000,000.00 | Income statement | ||
| Selling Expenses | 500,000.00 | Income statement | ||
| Other income | (50,000.00) | Income statement | ||
| Administrative expenses | 350,000.00 | Income statement | ||
| Interest Expenses | 12,500.00 | Income statement | ||
| Land | 300,000.00 | non-current asset | ||
| Building | 2,000,000.00 | non-current asset | ||
| Long Term bond payable | (550,000.00) | non-current liability | ||
| Accrued Liabilities | (50,000.00) | current- liability | ||
| Accumulated Depreciation Buildings | (250,000.00) | non-current asset | ||
| Equipment | 750,000.00 | non-current asset | ||
| Receivables | 100,000.00 | current asset | ||
| Allowance for doubtful accounts | (7,500.00) | current asset | ||
| Accumulated depreciation equipment | (125,000.00) | non-current asset | ||
| Common Stock | (200,000.00) | equity | ||
| Payables | (115,000.00) | current Liability | ||
| Inventories | 200,000.00 | current asset | ||
| Prepaid Expenses | 50,000.00 | current asset | ||
| Retained Earnings | (215,000.00) | equity | ||
| 11,562,500.00 | (11,562,500.00) | |||
| Assets | Equity and Liabilities | |||||||||
| Current Assets | Current Liabilities | |||||||||
| Total Current Assets | - | Total Current Liabilities | - | |||||||
| Total long term Liabilities | - | |||||||||
| Total property plant and equipment | - | |||||||||
| Total Equity | - | |||||||||
| Total Assets | - | Total Equity and liabilities | - | |||||||
The following is list of accounts and cost centers for a group of physician offices that you manage. The accounts are in alphabetical order. How to create a numbering system for a chart of accounts using a 5-digit numbering system that incorporates the main categories of Assets, Liabilities, Equity, Expenses, and Revenues.There are sub-accounts under these main headings. How to determine if the accounts are considered Assets, Liabilities, Equity, Expenses, or Revenues and indicate that in the file. Also define each. The cost centers represent the various physician office sites and will be indicated by a modifier. For example, letâs assume salaries as an expense. Numbering system states that all expenses have a 5 digit code starting with 30. Salaries would be indicated by 30100. Breakdown salaries by type such as clerical: 30101 or physicianâs assistant: 30102. Indicate the three cost centers through a two digit modifier. So, a physicianâs assistant salary at the Bedford Clinic would be 30102-01 and a physicianâs assistant salary at the Simon Clinic would be 30102-02. Provide an explanation of how set up your chart of accounts -includes definitions and explanation) The following is the list of accounts and cost centers from which to create numbering system. How to create chart of accounts in Excel.
| Accounts |
| Accounts payable - general |
| Cash - investment account |
| Cash - money market |
| Coding expense |
| Collection agency income |
| Common stock |
| Computer supplies |
| Dues - professional |
| Medicare tax payable |
| Office supplies |
| Professional (PC) billing revenue |
| Retained earnings |
| Salaries - management |
| Salaries - staff |
| Cost Centers |
| Bedford Clinic |
| Simon Clinic |
| Morgan Physician Group |
Example of ways to set up your chart of accounts. 60000 Assets 60100 Bonds Assets 60100 Bonds 60200 Stocks Assets 60200 Stocks 70100 Reserves Liabilities 70000 Liabilities 70100 Reserves
