Generally Accepted Accounting Principles and Account Debit Credit Essay

Submitted By Michael-Borrelle
Words: 653
Pages: 3
3.29.15 – XACC/290 Week 6

(a)

(b)
Cash

Service Revenue
1-Jul
$12,000
1 $ 2,000

July 12 $3,700
21-Jul
$1,600
5 $ 1,800

July 25 $2,500

18 $ 1,500

July 31 $1,700

20 $ 2,000

July 31 Bal. $7,900

31 $ 290

31 $ 600

Common Stock
July 31 Bal.
$5,410

July 1 $12,000

July 31 Bal. $12,000
Equipment

1-Jul
$8,000

Supplies Expense
July 31 Bal.
$8,000

31-Jul
$580

July 31 Bal.
$580

Supplies

3-Jul $ 900
July 31 $580

Salaries and Wages Expense
July 31 Bal.
$320

20-Jul
$2,000

31-Jul
$400

Prepaid Insurance

July 31 Bal.
$2,400

5-Jul
$1,800
July 31 $150

July 31 Bal.
$1,650

Maintenance & Repairs Expense
Accounts Payable

31-Jul
$290

18-Jul
$1,000
July 1 $6,000

July 31 Bal.
$290

18-Jul
$500
July 3 $900

July 31 Bal. $5,400

Dividends

31-Jul
$600

Salaries and Wages Payable

July 31 Bal.
$600

July 31 $400

July 31 Bal. $400

Depreciation Expense -Equipment

31-Jul
$180

Accounts Receivable

July 31 Bal.
$180

12-Jul
$3,700
July 21 $1,600

25-Jul
$2,500

Insurance Expense
31-Jul
$1,700

31-Jul
$150

July 31 Bal.
$6,300

July 31 Bal.
$150

Accumulated Depreciation-Equipment

July 31 $180

July 31 Bal. $180

(c)

Pro Window Washing Inc.
Trial Balance 7.31.2012
Account
Debit
Credit
Cash
$5,410

Prepaid Insurance
$1,800

Supplies
$900

Equipment
$8,000

Account Receivable
$4,600

Salaries and Wages Expense
$2,000

Supplies Expanse
$500

Maintenance & Repairs Expense
$290

Dividends
$600

Accounts Payable $5,900
Common Stock $12,000
Service Revenue $6,200
Total
$24,100
$24,100

(d)
Pro Window Washing Inc.
Adjusted Entries for July
Date
Account
Debit
Credit
July 31st, 2012

Account Receivable
$1,700

Service Revenue $1,700 Depreciation Expense -Equipment
$180

Accumulated Depreciation-Equipment $180 Insurance Expense (1 month)
$150

Prepaid Insurance $150 Supplies Expense
$580

Supplies $580 Salaries and Wages Expense
$400

Salaries and Wages Payable $400
31-Jul

$3,010
$3,010

(e)
Income Summary
$3,600
$7,900
$4,300

$7,900
$7,900

Retained Earnings
$600
0 $4,300
Balance
$3,700

Dividends
$600
$600

Service Revenue
$7,900
$3,700 $2,500 $1,700
$7,900
$7,900

(f)
Pro Window Washing Inc.
Adjusted Trial Balance, July 31st 2012
Account
Debit
Credit
Cash
$5,410

Prepaid Insurance
$1,650

Supplies
$320

Equipment
$8,000

Account Receivable
$6,300

Salaries and Wages Expense
$2,400

Maintenance & Repairs Expense
$290

Dividends
$600

Accounts Payable $5,400
Common Stock $12,000
Service Revenue $7,900
Depreciation Expense -Equipment
$180

Accumulated Depreciation-Equipment $180
Insurance Expense
$150

Supplies Expense
$580

Salaries and Wages Payable $400
Total
$25,880
$25,880

(g)
Pro Window Washing Inc.
Income Statement - July 2012

Revenues

Service Revenue $7,900
Expenses

Salaries and Wages Expense
$2,400

Maintenance & Repairs Expense
$290

Supplies Expense
$580

Insurance Expense
$150

Depreciation Expense -Equipment
$180

Related Documents: Generally Accepted Accounting Principles and Account Debit Credit Essay

ACCT1002 Mid Semester Practice Essay example

basic purpose of Generally Accepted Accounting Principles (GAAPs) is to: a. Minimize the possibility of the business becoming insolvent b. Ensure the financial statements include the type of information that is best suited to every type of business decision c. Provide a framework for financial reporting that is understood by both the preparers and the users of financial statements d. Eliminate the need for professional judgment in preparing financial statements 2. The accounting principle of matching…

Words 1280 - Pages 6

Acc 421 Accounting Cycle

Accounting Cycle Michelle Corniciuc ACC/421 11/24/2014 Art Trujillo Accounting Cycle A transaction is a type of external or internal event or exchange between two entities where each receives and sacrifices value. In every type of business there is some form of transactions occurring like sales, wages, and expenses, receivables, using buildings and machinery or consuming raw materials. A company will normally record these transactions and prepare financial statements using the steps…

Words 758 - Pages 4

EXAM 1 ACCT SG Essay examples

Accounting: Test 1 Study Guide (Chapters 1-4) Definitions Working Capital: current assets- current liabilities Current Ratio: Current Assets/Current Liabilities Free Cash Flow: Operating cash flow Contra Asset: An asset account which is expected to have a credit balance (as opposed to a normal debit balance) Liquidity: How easily something can be turned into cash Profitability Ratios: How efficient a company is at making money Liquidity Ratios: How quickly could a company pay off short…

Words 897 - Pages 4

Essay on Account Notes

Chapter 3- Intro to Debits and Credits Know the basic equation of accounting (Assets= Liabilities+Stockholders’ Equity) Know that Stockholders Equity is equal to common stock plus retained earnings Know that Retained Earnings = Expenses and Dividends subtracted from Revenues When you increase cash it is a debit and when you decrease cash it is a credit Increases in Liabilities are entered as credits and Decreases in Liabilities are entered as debits The normal balance is the side…

Words 2582 - Pages 11

Questions On Accounting

Exercise 1-5: 1 + E : Specific accounting principle - Usually created by a pronouncement an authoritative body. 2 + G: Going-concern assumption - Financial statements reflect the assumption that the business continues operating. 3 + A: General accounting principle - Derived from long-used and generally accepted accounting practices. 4 + C: Business entity assumption - Every business is accounted for separately from its owner or owners. 5 + D: Revenue recognition principle - Revenue is recorded only…

Words 1087 - Pages 5

scagenger hunt Essay

Scavenger Hunt September 28, 2014 HSM/260 Kevin Bottomley Scavenger Hunt GAAP- Stands for Generally acepted accounting principles. GAAP is a collection of followed accounting rules and stabndards for finalcial reporting. http://whatis.techtarget.com/definition/GAAP-generally-accepted-accounting-standardsBasic accounting formula- made up of three components including assests, liabilities, and shareholders. A formula that must balance out assests are things like cash, liabilities are things like…

Words 445 - Pages 2

Accounting Research Paper

----------------------- Basic Concepts And Conventions Accounting principles are usually rules and conventions which have been adopted as a general guide to action by the accountancy profession. 1. The Business Entity Concept All accounts are kept in respect of business entities which are distinct from the persons who own or manage these entities. Sometimes the law makes the same distinction, as in the case of a limited company which is a separate legal entity from the shareholders…

Words 629 - Pages 3

ACCT 2301 Study Guide

ACCT 2301 Study Guide Comprehensive Final Exam Chapter 1 Purpose and objectives of Generally Accepted Accounting Principles (GAAP). Purpose of financial reporting Purposes of and differences between financial accounting/management accounting/tax accounting Purposes/Authority of the Securities and Exchange Commission and the Financial Accounting Standards Board Chapter 2 3 primary/general purpose financial statements, nature of and reporting periods/dates covered by each. Nature of Assets…

Words 673 - Pages 3

Essay about Generally Accepted Accounting Principles and Cash

Provide financial information, statements, and reports to various users (Who are users?) Seasonality of Business Short distribution chain and time span Labor intensive Major investment in fixed assets What accounting does in our industry? Generally Accepted Accounting Principles (GAAP)------------------------------------------------------------ (1)Cost 말고 (2) Business entity - a restaurant owner, decided to take some sushi home for her dinner. He had to record the cost of the sushi as…

Words 1916 - Pages 8

Should I Invest Money In IBM Or General Motors?

9/8/2010 Chapter 1 - An Introduction to Accounting Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Accounting provides information that is useful in answering questions about resource allocation Should I invest money in IBM or General Motors? 1 9/8/2010 A market is a group of people or entities organized to exchange things of value. Organizations need financial resources (money) to establish and operate their businesses. Investors…

Words 1605 - Pages 7