Concept explainers
Balance sheet:
Balance sheet is a financial statement which reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and
Income statement:
The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement.
To List: The accounts in the order in which they should appear in the ledger of School OL, and to assign the two digits account number.
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- Sage Learning Centers was established on July 20 to provide educational services. The services provided during the remainder of the month are as follows: Instructions 1. Journalize the transactions for July, using a single-column revenue journal and a two-column general journal. Post to the following customer accounts in the accounts receivable ledger and insert the balance immediately after recording each entry: D. Chase; J. Dunlop; F. Mintz; T. Quinn; K. Tisdale. 2. Post the revenue journal and the general journal to the following accounts in the general ledger, inserting the account balances only after the last postings: 3. a. What is the sum of the balances of the customer accounts in the subsidiary ledger at July 31? b. What is the balance of the accounts receivable controlling account at July 31? 4. Assume Sage Learning Centers began using a computerized accounting system to record the sales transactions on August 1. What are some of the benefits of the computerized system over the manual system?arrow_forward"LeadCo School is a newly organized business that teaches people how to inspire and influence others. The list of accounts to be opened in the general ledger is as follows:Accounts PayablePrepaid InsuranceAccounts ReceivableRent ExpenseCashRetained EarningsCommon StockSuppliesDividendsSupplies ExpenseEquipmentUnearned RentFees EarnedWages ExpenseMiscellaneous ExpenseList the accounts in the order in which they should appear in the ledger of LeadCo School and assign account numbers. Each account number is to have two digits: the first digit is to indi-cate the major classification (1 for assets, etc.), and the second digit is to identify the specific account within each major classification (11 for Cash, etc.)."arrow_forwardIn this activity you are going to apply the learning that you get from the essential knowledge. Prepare the correct journal entries of the following transactions. CASE 1 Gordon Pharmacy a business engaged in buying and selling of medicines and other related products has the following transactions for the month of March 2020. The entity buys merchandise on credit with a terms of 3/10, n/45 and sell merchandise on credit terms of 1/5, n/30. But there are also cases where the entity buy and sell merchandise in cash. The company uses the periodic system of recording inventory. March 4- Purchased medicines and other related products to Amy Pharmaceutical Company on credit for P120,000. FOB Shipping point. Paid Allied Services for the freight amounting to P2,500. March 5- Sold merchandise (MDSE) to various customers for cash P 36,000. March 6- Returned defective MDSE to Amy amounting to P10,000. Received returned from customer on March 5 for wrong specification and refunded the amount paid…arrow_forward
- In this homework assignment you will develop a simplified four-column ledger account system for a local bank. A four-column ledger account form has spaces to enter the account name, the account number, the date, a description of the entry, and the posting reference. It also has four columns in which to record dollar amounts: Debit, Credit, Debit Balance, and Credit Balance. A simplified four-column ledger would have the account name and number, date of transaction and the four columns.arrow_forwardSage Learning Centers was established on July 20, 2016, to provide educational services. The services provided during the remainder of the month are as follows: Instructions 1. Journalize the transactions for July, using a single-column revenue journal and a two-column general journal. Post to the following customer accounts in the accounts receivable ledger, and insert the balance immediately after recording each entry: D. Chase; J. Dunlop; F. Mintz; T. Quinn; K. Tisdale. 2. Post the revenue journal and the general journal to the following accounts in the general ledger, inserting the account balances only after the last postings: 3. a. What is the sum of the balances of the customer accounts in the subsidiary ledger at July 31? b. What is the balance of the accounts receivable controlling account at July 31? 4. Assume Sage Learning Centers began using a computerized accounting system to record the sales transactions on August 1. What are some of the benefits of the computerized system over the manual system?arrow_forwardWhere should you go to set up a new bank feed or link to a bank account in a client's QuickBooks Online company? A. Expenses Center B. Accounting Center C. Sales Center D. Banking Centerarrow_forward
- For each of the following, indicate if the statement reflects an input component, output component, or storage component of an accounting information system. A. A credit card scanner at a grocery store. B. A purchase order for 1,000 bottles of windshield washing fluid to be used as inventory by an auto parts store. C. A report of patients who missed appointments at a doctors office. D. A list of the days cash and credit sales. E. Electronic files containing a list of current customers.arrow_forwardFor each of the following, indicate if the statement reflects an input component, output component, or storage component of the accounting information system for a bank. A. Online customer check ordering system. B. Approved loan applications. C. Report of customers with savings accounts over $5,000. D. Desktop hard drive on computer used by bank presidents administrative assistant. E. List of the amount of money withdrawn from all of the banks ATMs on a given day.arrow_forwardSUNDAY about:blank lawkes Learning | Home ion II Saved Help Save & Exit Egrane, Inc.s monthly bank statement showed the ending balance of cash of $14,800. The bank reconciliation for the period showed an adjustment for a deposit in transit of $1,200, outstanding checks of $1,600, a NSF check of $560, bank service charges of $24 and the EFT from a customer in payment of the customer's account of $1,200. What journal entry should be recorded by Egrane for the EFT? =32 Multiple Choice Debit Cash and credit Sales Revenue for $1,200. No journal entry is necessary for this item. Debit Accounts Receivable and credit Cash for $1,200. Debit Cash and credit Accounts Receivable for $1,20. MacBook DII DD 吕0 F8 F9 F10 F3 F4 F5 F6 F7 #3 24 & へ 4. 6 7 8 9 T Y つarrow_forward
- (Learning Objectives 4, 5: Account for accounts receivable and uncollectible receivables) On November 30, Palmer Party Planners had a $41,000 balance in Accounts Receivableand a $3,584 credit balance in Allowance for Uncollectible Accounts. During December, Palmermade credit sales of $200,000. December collections on account were $168,000, and write-offsof uncollectible receivables totaled $2,910. Uncollectible-account expense is estimated as 1% ofcredit sales. No sales returns are expected. Ignore cost of goods sold.Requirements1. Journalize sales, collections, write-offs of uncollectibles, and uncollectible-accountexpense by the allowance method during December. Explanations are not required.2. Show the ending balances in Accounts Receivable, Allowance for Uncollectible Accounts,and Net Accounts Receivable at December 31. How much does Palmer expect to collect?3. Show how Palmer Party Planners will report Accounts Receivable and net sales on itsDecember 31 balance sheet and income…arrow_forwardIn November, Year 2, your accounting firm placed a one-time website advertisement with Today's CPA. This is your first ad with this vendor. You pay for the one-time advertising with your company's Citibank Visa credit card. Below is the transaction you completed for this purchase. If you run the report Transaction List by Vendor, for all dates, what dollar amount will appear under the vendor Today's CPA? Why? Teacher Feedback: was the expense form completed properly?arrow_forwardPrepare a service blueprint for each of these banking transactions: Make a savings deposit using a teller. Apply for a home equity loan.arrow_forward
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