Chapter 1, Problem 6EYCT

John Phelps has run a small business for many years and has never kept adequate accounting records. However, a need to obtain a loan from the Bank of Make It Flow,  for  the  expansion  of  his  business  has  necessitated  the  preparation  of  final accounts.  As  such,  he  has  contracted  a  medium  size  accounting  firm,  WAD  & Associates  to  assist  him in  preparing  a  full  set  of  accounting  records.  You  were recently  employed  to  WAD  &  Associates  and  have  been  assigned  the  task  to prepare  the  final  accounts  for  John  Phelps.  You were  able  to  ascertain  the following information for the year ended December 31, 2020:1.  John Phelps’ bank transactions for the year January 1 through December 31,2020 were as follows:Bank AccountReceipts                            $                     Payments                              $Trade receivables                     430,100   Trade payables                            272,500Debit card…

It is very important to record business transactions correctly. If the recording of transactions in the book of original entry is erroneous, their posting to the book of final entry will also be erroneous. The error committed will definitely be reflected in the final process of bookkeeping. Now let us recall the processes in simple bookkeeping before we proceed to the lesson this week which is the preparation of financial statements. What are the Bookkeeping processes prior to the preparation of financial statements? Identify each process and describe them in your own words.

As an accountant, your new client Michael Sue's he's assistance in setting up his books for his business. To do this successfully, you start by showing him how you perform a transaction analysis based on the accounting equation assets equals liabilities plus owners equity. You explain to Michael how to show increases and decreases in assets liabilities and owners equity accounts using that analysis template. To help Michael understand the transaction analysis you reconcile each side of the equation by balancing out each column at the end of the transaction. complete by using the accounts cash, accounts receivable, supplies, equipment, accounts payable, notes payable, Suze capital, Suze drawing, service revenue, rent expense, salary expense, utilities expense, and advertising expense. Please record the transactions listed in the image.

Determine whether the following statements are True or False and provide an essay worthy explanation.  A user who logs in to the computer-based accounting system to enter invoices should also have access to the portion of the system that would allow her/him to order goods.  It is necessary that managers remember that they are stewards of funds expended by a business - that the funds are not owned by the managers.

Jimmy Bunting, the practitioner at Yanzhou Coal Mining and Minerals, performed the following tasks: he used analytical procedures and he had discussions with management. These activities were a basis for a conclusion on the financial information. What did Jimmy Bunting perform? a qualified report an unmodified opinion a review engagement O a compilation engagement

Yesterday, Extensive Enterprise Inc. released its 2018 annual report on the company’s website. While reading the report for his boss, Rafael came across several terms about which he was unsure. He leaned around the wall of his cubicle and asked his colleague, Asha, for help.   RAFAEL: Asha, do you have a second to help me with my reading of Extensive’s annual report? I’ve come across several unfamiliar terms, and I want to make sure that I’m interpreting the data and management’s comments correctly. For example, one of the footnotes to the financial statements uses “the book value of Extensive’s shares,” and then in another place, it uses “Economic Value Added.” I’ve never encountered those terms before. Do you know what they’re talking about?   ASHA: Yes, I do. Let’s see if we can make these terms make sense by talking through their meaning and their significance to investors. The term book value has several uses. It can refer to a single asset or the company as a whole.…

I need help solving this problem. The picture attached is the information which was given. I copy and pasted the part of the problem I need help completing which is asking for the companys income statement. I found the values which were missing in the original information and have copy and pasted those values. Thanks! Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers. Letter On Company Off Company a. $59960 $84830 b. $528820 $271120 c. $549650 $216030 d. $544090 $92710 e. $479010 $457230 f. $345740 $263070   2.  Prepare On Company's statement of cost of goods manufactured for December. On Company Statement of Cost of Goods Manufactured For the Month Ended December 31       $ Direct materials:         $               $                 $                   Total manufacturing costs incurred during December       Total manufacturing costs     $               $

You have been recently hired as an assistant controller for XYZ Industries, a large, publically held manufacturing company. Your immediate supervisor is the controller who also reports directly to the VP of Finance. The controller has assigned you the task of preparing the year-end adjusting entries.  In the receivables area, you have prepared an aging accounts receivable and have applied historical percentages to the balances of each of the age categories.  The analysis indicates that an appropriate estimated balance for the allowance for uncollectible accounts is $180,000.  The existing balance in the allowance account prior to any adjusting entry is a $20,000 credit balance. After showing your analysis to the controller, he tells you to change the aging category of a large account from over 120 days to current status and to prepare a new invoice to the customer with a revised date that agrees with the new category.  This will change the required allowance for uncollectible accounts…

You have been recently hired as an assistant controller for XYZ Industries, a large, publically held manufacturing company. Your immediate supervisor is the controller who also reports directly to the VP of Finance. The controller has assigned you the task of preparing the year-end adjusting entries.  In the receivables area, you have prepared an aging accounts receivable and have applied historical percentages to the balances of each of the age categories.  The analysis indicates that an appropriate estimated balance for the allowance for uncollectible accounts is $180,000.  The existing balance in the allowance account prior to any adjusting entry is a $20,000 credit balance. After showing your analysis to the controller, he tells you to change the aging category of a large account from over 120 days to current status and to prepare a new invoice to the customer with a revised date that agrees with the new category.  This will change the required allowance for uncollectible accounts…