Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 4, Problem 2BTN
One of your classmates states that a company’s books should be ongoing and therefore not closed until that business is terminated. Write a half-page memo to this classmate explaining the concept of the closing process by drawing analogies between (1) a scoreboard for an athletic event and the revenue and expense accounts of a business or (2) a sports team’s record book and the capital account. Hint: Think about what would happen if the scoreboard were not cleared before the start of a new game.
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At lunch, two bookkeepers got into a heated discussion about whether closing entries should be made before or after preparing the financial statements. They have come to you to resolve this issue and have agreed to accept your position. Write a memo explaining the purpose of closing entries and whether they should be made before or after preparing the financial statements
You have recently been hired by Bougie Academy as an accounting assistant. Bougie Academy is a private educational institution. During your first month as an employee of Bougie, the school’s accountant was fired. The owner of the school has asked for your help in preparing the next set of financial accounts to 31 October 2021.
You eagerly begin to assist with the preparation of the next set of financial accounts to 31 October 2021. Firstly, you locate the account balances related to 30 September 2021:- Cash at bank $267,000; Furniture and fittings $24,000; Equipment $60,000; Capital $351,900; Accounts receivable – T. Steward - $6,900; Accounts payable - R. Maskell- $6,000.
Secondly you identify the transactions that occurred during October 2021.
1. On Oct 1 2021, The owner withdrew $7,000 from the business bank account for personal reasons.
2. On Oct 1 2021, Bougie Academy paid $6,000 towards the amount owed to R. Maskell.
3. On Oct 1 2021 Bougie Academy paid business…
You have recently been hired by Bougie Academy as an accounting assistant. Bougie Academy is a private educational institution. During your first month as an employee of Bougie, the school’s accountant was fired. The owner of the school has asked for your help in preparing the next set of financial accounts to 31 October 2021.
You eagerly begin to assist with the preparation of the next set of financial accounts to 31 October 2021. Firstly, you locate the account balances related to 30 September 2021:- Cash at bank $267,000; Furniture and fittings $24,000; Equipment $60,000; Capital $351,900; Accounts receivable – T. Steward - $6,900; Accounts payable - R. Maskell- $6,000.
Secondly you identify the transactions that occurred during October 2021.
1. On Oct 1 2021, The owner withdrew $7,000 from the business bank account for personal reasons.
2. On Oct 1 2021, Bougie Academy paid $6,000 towards the amount owed to R. Maskell.
3. On Oct 1 2021 Bougie Academy paid business…
Chapter 4 Solutions
Principles of Financial Accounting.
Ch. 4 - G. Venda, owner of Venda Services, withdrew 25,000...Ch. 4 - The following information is available for the R....Ch. 4 - Which of the following errors would cause the...Ch. 4 - The temporary account used only in the closing...Ch. 4 - Prob. 5MCQCh. 4 - Prob. 1DQCh. 4 - What accounts are affected by closing entries?...Ch. 4 - What two purposes are accomplished by recording...Ch. 4 - Prob. 4DQCh. 4 - Prob. 5DQ
Ch. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQCh. 4 - What are the characteristics of plant assets?Ch. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 16DQCh. 4 - Prob. 17DQCh. 4 - Prob. 1QSCh. 4 - Prob. 2QSCh. 4 - Prob. 3QSCh. 4 - The ledger of Claudell Company includes the...Ch. 4 - Choose from the following list of terms/phrases to...Ch. 4 - The ledger of Mai Company includes the following...Ch. 4 - Prob. 7QSCh. 4 - Prob. 8QSCh. 4 - Classifying balance sheet items C3 The following...Ch. 4 - Prob. 10QSCh. 4 - Prob. 11QSCh. 4 - Prob. 12QSCh. 4 - Prob. 13QSCh. 4 - These 16 accounts are from the Adjusted Trial...Ch. 4 - The Adjusted Trial Balance columns of a 10-column...Ch. 4 - Use the following information from the Adjustments...Ch. 4 - The following data are taken from the unadjusted...Ch. 4 - Capri Company began the current period with a...Ch. 4 - Prob. 6ECh. 4 - Prob. 7ECh. 4 - Use the May 31 fiscal year-end information from...Ch. 4 - Prob. 9ECh. 4 - The adjusted trial balance for Salon Marketing Co....Ch. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Use the following adjusted year-end trial balance...Ch. 4 - Following are Nintendos revenue and expense...Ch. 4 - Prob. 15ECh. 4 - Hawk Company records prepaid assets and unearned...Ch. 4 - The following two events occurred for Trey Co. on...Ch. 4 - On April 1, Jiro Nozomi created a new travel...Ch. 4 - The following unadjusted trial balance is for Ace...Ch. 4 - Prob. 3APCh. 4 - The adjusted trial balance for Tybalt Construction...Ch. 4 - The adjusted trial balance of Karise Repairs on...Ch. 4 - The following six-column table for Hawkeye Ranges...Ch. 4 - On July 1, Lula Plume created a new self-storage...Ch. 4 - Prob. 2BPCh. 4 - Prob. 3BPCh. 4 - The adjusted trial balance for Anara Co. as of...Ch. 4 - Santo Companys adjusted trial balance on December...Ch. 4 - The following six-column table for Solutions Co....Ch. 4 - This serial problem began in Chapter 1 and...Ch. 4 - Accounting Analysis Refer to Apples financial...Ch. 4 - Prob. 2AACh. 4 - Prob. 3AACh. 4 - Prob. 1BTNCh. 4 - One of your classmates states that a companys...Ch. 4 - Review this chapters opening feature involving...
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- You have recently been hired by Bougie Academy as an accounting assistant. Bougie Academy is a private educational institution. During your first month as an employee of Bougie, the school’s accountant was fired. The owner of the school has asked for your help in preparing the next set of financial accounts to 31 October 2021. You eagerly begin to assist with the preparation of the next set of financial accounts to 31 October 2021. Firstly, you locate the account balances related to 30 September 2021: - Cash at bank $267,000; Furniture and fittings $24,000; Equipment $60,000; Capital $351,900; Accounts receivable – T. Steward - $6,900; Accounts payable - R. Maskell- $6,000. Secondly you identify the transactions that occurred during October 2021. On Oct 1 2021, the owner withdrew $7,000 from the business bank account for personal reasons. On Oct 1 2021, Bougie Academy paid $6,000 towards the amount owed to R. Maskell. On Oct 1 2021Bougie Academy paid business insurance for the next 12…arrow_forwardYou have recently been hired by Trinity College as an accounting assistant. Trinity College is a private institution. During your first month as an employee of Trinity College, the school’s accountant was fired. The owner of the school has asked for your help in preparing the next set of financial accounts to 31 October 2020. You eagerly begin to assist with the preparation of the next set of financial accounts to 31 October 2019. Firstly, you locate the account balances related to 30 September 2020:- Cash at bank $267,000; Furniture and fittings $24,000; Equipment $60,000; Capital $351,900; Accounts receivable – T. Steward - $6,900; Accounts payable - R. Maskell- $6,000. Secondly you identify the transactions that occurred during October 2020. On Oct 1 2020, The owner withdrew $6,000 from the business bank account for personal reasons. On Oct 1 2020, Trinity College paid $6,000 towards the amount owed to R. Maskell. On Oct 1 2020Trinity College paid business insurance for the next 12…arrow_forwardDo you agree to the student answer to this question Buddy Dupree is the accounting manager for On-Time Geeks, a tech support company for individuals and small businesses. As part of his job, Buddy is responsible for preparing the company’s trial balance. His supervisor placed a “hard deadline” of Friday at 5p.m. for the completion of the trial balance. Unfortunately, Buddy was unable to get the trial balance to balance by the due date. The credit side of the trial balance exceeded the debit side by $3,000. To make the deadline, Buddy decided to add $3,000 debit to the vehicles account balance. He selected the vehicles account because it will not be significantly affected by the additional $3,000. Questions: Is Buddy behaving ethically? Why or why not? Who is affected by Buddy’s decision? How should Buddy have handled this situation? Businesses, proprietors, and or individuals, are entrusting that when someone is put into a position such as an accounting manager they are going…arrow_forward
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