Introduction to the Accounting Cycle and Recording Business Transactions

Instructions:  Looking for some serious help in accounting assignment.  I needed honestly and willing to meet my dead line.  Respond to the following questions using grammatically correct language and appropriate APA citations. All questions need to be answer and with APA citations.  The book that used is Accounting Principles: A Business perspective, Financial Accounting (chapter 3 pages 77-124 Recording Business Transitions) Question 1-5 is Introduction to the Accounting Cycle, Question 6- 10 is Recording Business Transactions

Question 1:

Proficient:

-Describe the steps in recording and posting the effects of a business transaction and provide some examples of source documents used in these steps.

-Define debit and credit and name the types of accounts that are (three correct responses):

Increased by a debit.

Decreased by a debit.

Increased by a credit.

Decreased by a credit.

Distinguished:

Correctly identify all of the types of accounts on the list.

Question 2:

Proficient:

Which steps in the accounting cycle are performed throughout the accounting cycle?

Which of the steps in the accounting cycle are performed only at the end of the accounting period?

Distinguished:

Many of the steps in the accounting cycle can be performed on a computer with an accounting software package. Research three of the most commonly used packages and decide which one you would choose if you were starting a small business this year.

Question 3:

Proficient:

Why are separate “expense” and “revenue” accounts used when all revenues and expenses could be shown directly in the retained earnings account?

Describe three examples of transactions that would affect a firm’s income statement. For each transaction, identify if the transaction has a positive or negative effect on the firm’s net income.

Distinguished:

What is the purpose of the “dividends” account and under what circumstances would this account be increased?

Under what circumstances would the “dividends” account be decreased?

Question 4:

Proficient:

Are the following possibilities conceivable in an entry involving only one debit and one credit? Please explain your response for each item. Provide five or six correct responses:

Increase a liability and increase an expense.

Increase an asset and decrease a liability.

Increase revenue and decrease an expense.

Decrease an asset and increase another asset.

Decrease an asset and increase a liability.

Decrease revenue and decrease an asset.

Decrease a liability and increase revenue.

Distinguished:

Correctly identify all of the items.

Question 5:

Proficient:

Define the “normal” balance for an account.

What are the rules of debit and credit for accounts appearing on a firm’s balance sheet?

Distinguished:

What are the rules associated with accounts appearing on a firm’s income statement?

Question 6:

Proficient:

Describe the nature and purposes of the general journal, ledger, and chart of accounts.

Distinguished:

Describe the act of posting a transaction from the general journal to the ledger. What difficulties could arise if no cross-indexing existed between the general journal and the ledger accounts?

Question 7:

Proficient:

Prepare the journal entry required for each of the following transactions. Be sure to identify which part of the entry is the debit and which is the credit. Provide five correct responses:

Cash was received for services performed for customers, $1,200.

Services were performed for customers on account, $4,200.

Purchased machinery for cash, $30,000.

Capital stock was issued for $100,000.

Salaries for a period were paid to employees, $24,000.

Purchased a truck using a note payable, $35,000.

Distinguished:

Correctly prepare all of the journal entries for the transactions.

Question 8:

Proficient:

What are the purposes of an unadjusted trial balance? Describe the types of accounts that would appear on this type of trial balance.

Distinguished:

If you found that the total of the debits column of the trial balance for a company is $200,000, while the total of the credits column is $180,000, what are some possible causes of this difference?

Question 9:

Proficient:

A student remembered that the side toward the window in the classroom was the debit side of an account. The student took an examination in a room where the windows were on the other side of the room and became confused and consistently reversed debits and credits. Would the student’s trial balance have equal debit and credit totals? If there were no existing balances in any of the accounts to begin with, would the error prevent the student from preparing correct financial statements? Why?

Distinguished:

Store equipment was purchased for $2,000. Instead of debiting the Store Equipment account, the debit was made to Delivery Equipment. Of what help will the trial balance be in locating this error?

Question 10:

Proficient:

What is the difference between horizontal and vertical analysis of financial statements?

How is each type calculated and presented for viewing by company stakeholders?

Distinguished:

How is this type of analysis used by management?

 

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