Financial accounting cycle, Assignment help
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
4 “Adjustments for Financial Reporting “pages 144-167 and Chapter 5 “Completing
the Accounting Cycle pages 190-224) Question 1-5 is Adjustments for Financial
Reporting & Question 6- 10
is Completing the Accounting Cycle.
Question 1:
Proficient:
-Describe the basic characteristics of the
cash basis and the accrual basis of accounting.
-How are revenues and expenses reported on the
income statement under the cash basis of accounting and the accrual basis of
accounting?
Distinguished:
-What differences exist when assets,
liabilities, and equities are recorded under each of the two bases of
accounting?
Question 2:
Proficient:
-Which events during an accounting period
trigger the recording of normal journal entries and which event triggers the
making of adjusting entries? Please explain why adjusting entries are necessary
at the end of an accounting period.
Distinguished:
-Identify the four different types of
adjusting entries frequently required at the end of an accounting period.
Question 3:
Proficient:
-Give an example of an adjusting journal entry
for each of the following transactions. Provide three correct responses:
Equal growth of an
expense and a liability.
Earning of revenue
that was previously recorded as unearned revenue.
Equal growth of an
asset and revenue.
Increase in an expense
and decrease in an asset.
Distinguished:
-Give an example of an adjusting journal entry
for each of the transactions. Provide four correct responses.
Question 4:
Proficient:
Classify the following items as (a) prepaid
expense, (b) unearned revenue, (c) accrued revenue, or (d) accrued expense.
Provide six or seven correct responses:
A three-year premium
paid on a fire insurance policy.
Fees earned but not
yet received.
Fees received but not
yet earned.
Salary owed but not
yet paid.
Subscriptions received
in advance by a magazine publisher.
Supplies on hand at
the end of an accounting period.
Taxes owed but payable
in the following accounting period.
Utilities owed but not
yet paid.
Distinguished:
Classify the items mentioned as (a) prepaid
expense, (b) unearned revenue, (c) accrued revenue, or (d) accrued expense.
Provide eight correct responses.
Question 5:
Proficient:
Describe the difference between depreciation
expense and accumulated depreciation.
Describe the formula used for computing the
straight line depreciation for a depreciable asset. Explain how to calculate an
asset’s book value.
Distinguished:
-The balance in the equipment account is
$1,375,000, and the balance in the accumulated depreciation—equipment account
is $725,000.
-What is the book value of the equipment and
does that amount mean that the equipment has a loss in real value of $725,000?
Explain your response.
Question 6:
Proficient:
-You have taken over a set of accounting books
for a small business as a part-time job. At the end of the first accounting
period, you have partially completed the work sheet by entering the proper
ledger accounts and balances in the Trial Balance columns. You turn to the
manager and ask, “Where is the list of additional information I can use in
entering the adjusting entries?” The manager indicates there is no such
list. In all the text problems you have done, you have always been given this
information. How would you obtain the information for this real-life situation?
Distinguished:
What are the consequences of not making all of
the required adjustments at the end of the accounting period?
Question 7:
Proficient:
After the Adjusted Trial Balance columns of a
work sheet have been totaled, which account balances are extended to the Income
Statement columns, the Statement of Retained Earnings columns, and the Balance
Sheet columns?
Distinguished:
-Describe how is the statement of retained
earnings prepared.
Question 8:
Proficient:
-Describe, in order, the four basic steps in
the closing process performed at the end of each accounting period.
-Explain why the closing process is so
important.
Distinguished:
-After the closing process has been completed,
what account types remain open?
Question 9:
Proficient:
-Describe how a classified balance sheet is
different from a basic unclassified balance sheet.
List the major categories of accounts that
would appear under assets, liabilities, and stockholder’s equity on a
classified balance sheet.
Distinguished:
-Rearrange the following steps in the
accounting cycle in proper order:
Financial statements
are prepared.
An adjusted trial
balance is prepared.
Adjustment data are
assembled and analyzed.
Adjusting entries are
journalized.
Closing entries are
journalized and posted to the ledger.
An unadjusted trial
balance is prepared.
Transactions are
posted to the ledger.
Transactions are
analyzed and recorded in the general journal.
An optional
end-of-period work sheet is prepared.
A post-closing trial
balance is prepared.
Question 10:
Proficient:
-Describe how the current ratio is used to
analyze financial results?
-What are the components of the ratio and how
is the ratio calculated?
-What does the ratio indicate regarding a
company’s financial position?
Distinguished:
-Current assets and current liabilities for
the Fortson Company are:
-Current assets: 2013—$262,500; 2014—$310,500.
Current liabilities: 2013—$150,000;
2014—$172,500.
Determine the current ratio for 2013 and 2014.
Does the change in the current ratio from 2013 to 2014 indicate a favorable or
unfavorable trend?
