accounting final

select a transaction which reflect the impact on the accounting equation

.One example of a transaction that would have an impact on the accounting equation is the purchase of inventory. When a company buys inventory, it is increasing its assets (the inventory) and decreasing its equity (since the company is using its cash to pay for the inventory). This would be reflected in the accounting equation as follows: Assets = Liabilities + Equity Purchase of inventory: Assets + Inventory = Liabilities + Equity - Cash Another example of a transaction that would impact the accounting equation is the sale of goods. When a company sells goods, it is decreasing its assets (the inventory) and increasing its equity (since the company is receiving cash from the sale). This would be reflected in the accounting equation as follows: Assets = Liabilities + Equity Sale of goods: Assets - Inventory = Liabilities + Equity + Cash

select the type of bonds described in the question

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select the adjusting journal entry for the situation

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select the journal entry which reflect the transaction

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select the normal place and classification of a specific account

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select the classification of a specific account

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select the impact on the accounting equation regrading a divided transaction

A dividend is a distribution of a portion of a company's earnings to its shareholders. When a company declares and pays dividends, it reduces its retained earnings and cash balance by the amount of the dividends. This means that the accounting equation (Assets = Liabilities + Shareholders' Equity) is not directly affected by a dividend. However, the payment of dividends can indirectly affect the accounting equation by changing the value of the company's equity. Overall, the impact of a dividend on the accounting equation depends on the specific details of the transaction.

understand the different forms of business organization and their characteristics.

A sole proprietorship is a business owned and operated by a single individual. This is the simplest form of business organization. The owner is personally liable for the debts and obligations of the business. A partnership is a business owned and operated by two or more individuals. Partnerships can be general or limited. In a general partnership, all partners are personally liable for the debts and obligations of the business. In a limited partnership, some partners are only liable to the extent of their investment in the business. A corporation is a business owned by shareholders and managed by a board of directors. Corporations are separate legal entities from their owners, so the owners are not personally liable for the debts and obligations of the business. An LLC is a hybrid business organization that combines elements of partnerships and corporations. LLCs are owned by members, who are not personally liable for the debts and obligations of the business. This means that the personal assets of the members are protected in the event that the business fails.

identify the impact of stock split and stock divided on the stockholder's equity account

A stock split is a corporate action in which a company increases the number of its outstanding shares by issuing more shares to existing shareholders. For example, a 2-for-1 stock split means that for every 1 share a shareholder owns, the shareholder will receive an additional 1 share. This increases the total number of outstanding shares, but it does not change the value of the company's equity. On the other hand, a stock dividend is a distribution of additional shares to shareholders, typically in proportion to their existing holdings. Like a stock split, a stock dividend increases the number of outstanding shares but does not change the value of the company's equity. In both cases, the stockholder's equity account is not directly affected. However, the stock split or stock dividend may affect the value of the individual shares, which can in turn affect the stockholder's equity if they own shares in the company. For example, if a company declares a 2-for-1 stock split and a shareholder owns 100 shares, the shareholder will own 200 shares after the split, but the value of each share will be halved. This means that the total value of the shareholder's equity will remain unchanged.

understand the purpose of a trial balance

A trial balance is a listing of all of the accounts in the general ledger, along with their balances, organized into debit and credit columns. The purpose of preparing a trial balance is to ensure that the total amount of debits in the general ledger equals the total amount of credits. This is an important step in the accounting cycle, as it helps to ensure the accuracy and completeness of a company's financial records. A trial balance is typically prepared at the end of an accounting period, such as a month or a year, and is used as a starting point for preparing a company's financial statements.

select the impact on the accounting equation of the adjusting entry

Accounting equation, adjusting entries can affect either the assets, liabilities, or equity components of the equation. For example, an adjusting entry that records an expense would reduce a company's assets (through a debit to the expense account) and increase its equity (through a credit to the retained earnings account). This would result in a net decrease in the company's assets and a corresponding decrease in the accounting equation. On the other hand, an adjusting entry that records unearned revenue would increase a company's assets (through a credit to the unearned revenue account) and decrease its equity (through a debit to the retained earnings account). This would result in a net increase in the company's assets and a corresponding increase in the accounting equation

calculate the adjustment to the allowance of doubtful account and select the journal entry

Adjustment to allowance for doubtful accounts = (Bad debt written off + Recoveries of bad debt) - (Beginning balance of allowance for doubtful accounts) For example, let's say that a company had $10,000 of bad debt written off during the accounting period, and $1,000 of recoveries of bad debt. Additionally, let's say that the beginning balance of the allowance for doubtful accounts was $5,000. Using the formula above, we can calculate the adjustment to the allowance for doubtful accounts as follows: Adjustment to allowance for doubtful accounts = ($10,000 + $1,000) - $5,000 = $6,000 Once you have calculated the adjustment to the allowance for doubtful accounts, you can make the corresponding journal entry by debiting the allowance for doubtful accounts and crediting bad debt expense for the full amount of the adjustment. For example, in the scenario above, the journal entry would be: Debit: Allowance for doubtful accounts $6,000 Credit: Bad debt expense $6,000 This journal entry will adjust the allowance for doubtful accounts to reflect the actual amount of bad debt that has been written off and recovered during the accounting period

impact of a recording error on the income statement

Arecording error on the income statement could lead to incorrect reporting of the company's revenues and expenses, which could affect its tax liability and financial ratios, such as its debt-to-equity ratio. If the error is not discovered and corrected, it could also potentially impact the company's future financial statements and lead to problems with financial reporting and compliance.

Identify the formula that describes the accounting equation

Assets = Liabilities + Equity The accounting equation is used to prepare a company's balance sheet, which is a financial statement that shows the company's assets, liabilities, and equity at a specific point in time. By using the accounting equation, a company can ensure that its balance sheet is accurate and complete.

calculate the ending inventory/cogs using lifo or fifo costing methods

Beginning inventory: The value of the inventory at the beginning of the accounting period. Purchases: The total value of the inventory that was purchased during the accounting period. Sales: The total value of the inventory that was sold during the accounting period. Once you have this information, you can use the following formulas to calculate the ending inventory and cost of goods sold using the LIFO or FIFO costing methods: LIFO: Ending inventory = Beginning inventory + Purchases - Sales Cost of goods sold = Sales - Ending inventory FIFO: Ending inventory = Beginning inventory - Sales + Purchases Cost of goods sold = Beginning inventory + Purchases - Ending inventory For example, let's say that a company has the following information for the current accounting period: Beginning inventory: $10,000 Purchases: $30,000 Sales: $50,000 Using the formulas above, we can calculate the ending inventory and cost of goods sold using the LIFO and FIFO costing methods as follows: LIFO: Ending inventory = $10,000 + $30,000 - $50,000 = $-10,000 Cost of goods sold = $50,000 - $-10,000 = $60,000 FIFO: Ending inventory = $10,000 - $50,000 + $30,000 = $-10,000 Cost of goods sold = $10,000 + $30,000 - $-10,000 = $40,000 As you can see, the LIFO and FIFO costing methods produce different results for the ending inventory and cost of goods sold. In this example, using the LIFO method results in a higher cost of goods

select the journal entry for a type of sales transaction

Debit: Accounts receivable $100 Debit: Sales returns and allowances $10 Debit: Sales discounts $5 Credit: Deferred revenue $95 Credit: Sales revenue $100 This journal entry reflects the fact that the company has made a sale for $100, but the customer has returned $10 worth of the product and received a $5 discount. The net amount received by the company is $95, which is recognized as deferred revenue until the product is delivered or the service is performed. The accounts receivable account is used to track the amount of money that is owed to the company by its customers, whereas the sales revenue account is used to track the total amount of revenue that the company has earned from sales. The sales returns and allowances account is used to track the amount of revenue that has been returned or discounted, and the deferred revenue account is used to track the amount of revenue that has been received but not yet recognized.

understand the definition of FOB shipping point and FOB destination

FOB shipping point means that the seller is responsible for the cost and risk of loss of the goods until they are loaded onto the buyer's transportation at the seller's shipping point. Once the goods are loaded onto the buyer's transportation, the ownership and responsibility for the goods transfer to the buyer. FOB destination means that the seller is responsible for the cost and risk of loss of the goods until they are delivered to the buyer's designated destination. The ownership and responsibility for the goods transfer to the buyer once the goods are delivered to the designated destination. In general, the use of FOB shipping point or FOB destination can affect the timing of when the revenue and cost of goods sold are recognized in the seller's and buyer's accounts. For example, if the terms of sale are FOB shipping point, the seller will recognize the revenue and the cost of goods sold when the goods are loaded onto the buyer's transportation, and the buyer will recognize the cost of the goods when they are received and accepted. If the terms of sale are FOB destination, the seller will recognize the revenue and the cost of goods sold when the goods are delivered to the designated destination, and the buyer

Property identify the classification of specific account

In accounting, the classification of specific accounts refers to the way in which different types of accounts are grouped together based on their purpose and characteristics. Property is typically classified as a long-term asset account and a fixed asset account. Long-term assets are assets that are expected to provide benefits to a company for more than one year, and fixed assets are long-term assets that are not easily converted into cash. These classifications help to provide a consistent and organized way of tracking and reporting the financial transactions and activities of a company.

Definition of asset, liability and stockholder equity

In financial accounting, an asset is anything that is owned by a business that has monetary value. Assets can be tangible, such as cash, buildings, and equipment, or intangible, such as patents, copyrights, and trademarks. A liability is a debt or obligation that a business owes to someone else. Liabilities can be short-term, such as accounts payable and taxes owed, or long-term, such as loans and bonds. Stockholder equity, also known as shareholders' equity, represents the owners' stake in the company. It is the difference between the company's total assets and its total liabilities. Stockholder equity can be negative if the company's liabilities exceed its assets.

calculate interest on a note receivable

Interest = (Principal * Interest rate * Length of time) / Number of days in a year For example, let's say that a company has a note receivable with a principal amount of $10,000, an interest rate of 10%, and a length of time of 6 months (or 0.5 years). Additionally, let's assume that there are 365 days in a year. Using the formula above, we can calculate the interest on the note as follows: Interest = ($10,000 * 10% * 0.5) / 365 = $13.70 This means that the company will earn $13.70 in interest on the note over the 6-month period.

select the internal and or external users of financial statement

Internal users of financial statements are individuals or groups within a company who use the financial statements to make business decisions. Examples of internal users include managers, executives, and other employees who need to access the financial information to perform their job duties. External users of financial statements are individuals or organizations outside of the company who use the financial statements to make decisions about the company. Examples of external users include investors, creditors, and regulatory agencies. These individuals and organizations use the financial statements to assess the financial health and performance of the company.

Determined net income under accrual basis of accounting

Net income under the accrual basis of accounting is calculated by taking a company's total revenues and subtracting its total expenses, including both operating expenses and non-operating expenses. The accrual basis of accounting is a method of recognizing revenue and expenses at the time they are earned or incurred, rather than when they are received or paid. This means that revenues are recognized when they are earned, rather than when the company receives payment for them, and expenses are recognized when they are incurred, rather than when they are paid. To determine a company's net income under the accrual basis of accounting, you would need to add up all of the company's revenues for the period and subtract all of its expenses, including both operating and non-operating expenses. For example, if a company had total revenues of $100,000 and total expenses of $80,000, its net income under the accrual basis of accounting would be $20,000. Net income = Total Revenues - Total Expenses In the example above, the net income would be calculated as follows: Net income = $100,000 - $80,000 = $20,000

Understand the flow of product costs of the three inventory transaction

Purchase transaction: When a company buys inventory from a supplier, the product costs are recorded as an increase in the inventory account and a corresponding increase in the accounts payable account. Sale transaction: When a company sells inventory to a customer, the product costs are recorded as a decrease in the inventory account and a corresponding increase in the sales revenue account. Cost of goods sold: The cost of goods sold is the total cost of the inventory that has been sold during a given period of time. This cost is calculated by adding up the costs of the inventory items that have been sold, and it is recorded as a decrease in the inventory account and a corresponding increase in the cost of goods sold account. Overall, the flow of product costs in these three inventory transactions involves tracking the movement of inventory from the point of purchase to the point of sale, and the corresponding changes in the inventory, accounts payable, sales revenue, and cost of goods sold accounts. This information is used to calculate the cost of goods sold and the gross profit, and to provide information about the company's inventory and its financial performance.

understand the accounting for various perpetual inventory transactions

Purchase transactions: When a company buys inventory from a supplier, it records a debit to the inventory account and a credit to the accounts payable account to reflect the increase in inventory and the corresponding liability to pay for the inventory. Sales transactions: When a company sells inventory to a customer, it records a debit to the accounts receivable account and a credit to the sales revenue account to reflect the increase in revenue and the corresponding asset representing the amount owed by the customer. Cost of goods sold: The cost of goods sold is the total cost of the inventory that has been sold during a given period of time. This cost is calculated by adding up the costs of the inventory items that have been sold, and it is recorded as a debit to the cost of goods sold account and a credit to the inventory account. Inventory shrinkage: Inventory shrinkage is the loss of inventory that occurs due to theft, damage, or other factors. This loss is recorded as a debit to the inventory shrinkage account and a credit to the inventory account.

Determine the impact of various transaction on retained earning

Retained earnings represent the portion of a company's profits that are retained and not distributed to shareholders as dividends. The impact of transactions on retained earnings depends on the nature of the transactions. If the company incurs a net loss, the retained earnings will decrease by the amount of the loss. If the company incurs a net profit, the retained earnings will increase by the amount of the profit. If the company declares and pays dividends to shareholders, the retained earnings will decrease by the amount of the dividends. f the company reacquires some of its own outstanding shares, the retained earnings will decrease by the amount paid to repurchase the shares. Overall, any transaction that results in a decrease in net income will also result in a decrease in retained earnings. Conversely, any transaction that results in an increase in net income will also result in an increase in retained earnings.

determine the impact if various

Retained earnings represent the portion of a company's profits that are retained and not distributed to shareholders as dividends. The impact of transactions on retained earnings depends on the nature of the transactions. If the company incurs a net loss, the retained earnings will decrease by the amount of the loss. If the company incurs a net profit, the retained earnings will increase by the amount of the profit. If the company declares and pays dividends to shareholders, the retained earnings will decrease by the amount of the dividends. f the company reacquires some of its own outstanding shares, the retained earnings will decrease by the amount paid to repurchase the shares. Overall, any transaction that results in a decrease in net income will also result in a decrease in retained earnings. Conversely, any transaction that results in an increase in net income will also result in an increase in retained earnings.

identify the cash receipts of internal control procedure described in this question

Segregation of duties: This means that different people are responsible for different aspects of the cash receipts process. For example, one person might handle the actual receipt of cash, while another person records the transaction in the accounting system. This can help to prevent errors and fraud. Physical controls: This can include measures such as locking up cash when it is not in use, or using a secure cash drawer to store cash. Use of pre-numbered receipts: This can help to ensure that all cash receipts are accounted for, and can make it easier to track any discrepancies. Reconciliation of cash receipts: This involves comparing the actual cash on hand with the amount that should be on hand based on the cash receipts records. This can help to identify any errors or fraud. Independent verification: This can involve having someone outside of the cash receipts process periodically review the records to ensure that they are accurate and complete.

Calculate the current ratio

The current ratio is a financial ratio that measures a company's ability to pay its short-term obligations with its current assets. To calculate the current ratio, you will need to know the following information: Current assets: The value of the company's assets that are expected to be converted into cash within one year, such as cash, accounts receivable, and inventory. Current liabilities: The value of the company's obligations that are expected to be paid within one year, such as accounts payable and short-term loans. Once you have this information, you can use the following formula to calculate the current ratio: Current ratio = Current assets / Current liabilities For example, let's say that a company has the following information: Current assets: $200,000 Current liabilities: $100,000 Using the formula above, we can calculate the current ratio for the company as follows: Current ratio = $200,000 / $100,000 = 2 This means that the company has $2 of current assets for every $1 of current liabilities. A current ratio of 2 is considered to be a healthy and strong ratio, indicating that the company has sufficient current assets to meet its short-term obligations. However, it is important to note that the ideal current ratio will vary depending on the specific circumstances and goals of the company.

Definition of the expense recognition principle

The expense recognition principle is an accounting principle that states that expenses should be recognized in the period in which they are incurred, rather than in the period in which they are paid for. This means that when a company incurs an expense, it should be recorded in the company's financial statements in the period in which the expense was incurred, regardless of when the company actually pays for the expense. The expense recognition principle is based on the idea that expenses should be matched with the revenues that they helped to generate, in order to provide a more accurate picture of a company's financial performance. This principle is an important part of generally accepted accounting principles (GAAP) and is used in the preparation of financial statements.

Four basic financial statement know the purpose of each in short sentences.

The four basic financial statements are the balance sheet, income statement, statement of cash flows, and statement of stockholders' equity. Each of these statements serves a specific purpose in providing information about a company's financial performance and position. The balance sheet provides a snapshot of a company's financial position at a specific point in time, showing its assets, liabilities, and equity. The income statement shows a company's revenues, expenses, and net income (or loss) over a specific period of time. The statement of cash flows shows the cash inflows and outflows of a company over a specific period of time, indicating where the company's cash is coming from and where it is going. The statement of stockholders' equity shows the changes in a company's equity over a specific period of time, including any contributions from shareholders and retained earnings.

Four basic financial statement know which account appear on what financial statement.

The four basic financial statements are the balance sheet, the income statement, the statement of cash flows, and the statement of stockholders' equity. The following accounts typically appear on each of these financial statements:Balance Sheet: assets, liabilities, and equity Income Statement: revenues, expenses, and net income or loss Statement of Cash Flows: cash inflows and outflows from operating, investing, and financing activities Statement of Stockholders' Equity: stock issuances, stock repurchases, dividends, and other transactions that affect equity.

Four basic financial statement know which are prepare for a time period or point in time

The four basic financial statements are the balance sheet, the income statement, the statement of cash flows, and the statement of stockholders' equity. These statements are typically prepared for a specific time period, such as a quarter or a year. The balance sheet is a financial statement that shows a company's assets, liabilities, and equity as of a specific point in time. It provides a snapshot of a company's financial position at a particular moment. The income statement is a financial statement that shows a company's revenues, expenses, and net income or loss for a specific time period. It provides information about a company's financial performance over a period of time. The statement of cash flows is a financial statement that shows a company's cash inflows and outflows for a specific time period. It provides information about a company's cash flows from operating, investing, and financing activities. The statement of stockholders' equity is a financial statement that shows a company's changes in equity for a specific time period. It provides information about a company's stock issuances, stock repurchases, dividends, and other transactions that affect equity.

determine the impact of a transaction on the accounting equation

The impact of a transaction on the accounting equation depends on the specific details of the transaction. In general, a transaction will either increase one or more assets, decrease one or more assets, increase one or more liabilities, decrease one or more liabilities, increase one or more equity accounts, or decrease one or more equity accounts. For example, if a company borrows money from a bank, this will increase its assets (in the form of cash) and increase its liabilities (in the form of a loan payable to the bank). This means that the accounting equation will be impacted in two ways: the assets will increase, and the liabilities will increase. On the other hand, if a company pays off a loan, this will decrease its assets (in the form of cash) and decrease its liabilities (in the form of the loan payable). In this case, the accounting equation will be impacted in two ways: the assets will decrease, and the liabilities will decrease. on the blance sheet

Determine the inventory costing method that generates the highest profit

The inventory costing method that is most likely to generate the highest profit is the method that accurately reflects the true cost of the inventory and the revenue earned from its sale. For example, if a company is using the first-in, first-out (FIFO) method to value its inventory and the cost of the goods being held in inventory is increasing over time, then using the FIFO method may produce a higher profit than using a method like the last-in, first-out (LIFO) method, which would result in a lower profit in this scenario.

understand the accounting difference between a perpetual vs a periodic inventory

The main difference between a perpetual and a periodic inventory system is the frequency with which the inventory records are updated. In a perpetual inventory system, the records are updated continuously, whereas in a periodic inventory system, the records are only updated at regular intervals. This difference can affect the accuracy and usefulness of the inventory information for decision-making and cost tracking. A perpetual inventory system is more accurate and up-to-date, but it may be more complex and costly to implement. A periodic inventory system is simpler and less costly, but the inventory information may be less accurate and up-to-date

select the normal balance of various account

The normal balance of an account is the side of the account that is expected to have a positive balance. In other words, it is the side of the account that is expected to have a debit balance if the account is a liability or equity account, or a credit balance if the account is an asset or expense account. The normal balance of an asset account is a credit. The normal balance of a liability account is a debit. The normal balance of an equity account is a debit. The normal balance of a revenue account is a credit. The normal balance of an expense account is a debit.

determine weather bonds will be sold at a premium, discount or face value

The price at which a bond is sold is determined by a variety of factors, including the interest rate, the creditworthiness of the issuer, and the current market conditions. If the interest rate on the bond is higher than the current market interest rate, the bond will likely be sold at a premium, meaning that it will be sold for more than its face value. If the interest rate on the bond is lower than the current market interest rate, the bond will likely be sold at a discount, meaning that it will be sold for less than its face value. If the interest rate on the bond is the same as the current market interest rate, the bond will likely be sold at its face value.

Calculate total current asset

To calculate a company's total current assets, you would need to add up the balances of all of the company's assets that are expected to be converted into cash or used up within one year. Current assets typically include cash, accounts receivable, inventory, and other assets that can easily be converted into cash. To calculate the total current assets, you would add up the balances of all of the company's current assets and arrive at a total amount. For example, if a company has $10,000 in cash, $20,000 in accounts receivable, and $30,000 in inventory, its total current assets would be $60,000. Total current assets = Cash + Accounts Receivable + Inventory + Other Current Assets

Calculate cost of good sold and gross profit rate

To calculate the cost of goods sold and the gross profit rate, you will need to know the total revenue earned from sales and the total cost of the goods sold. Once you have this information, you can use the following formulas: Cost of goods sold = Total revenue - Gross profit Gross profit rate = (Total revenue - Cost of goods sold) / Total revenue For example, let's say that a company earned $100,000 in total revenue from sales and the total cost of the goods sold was $60,000. Using the formulas above, we can calculate the cost of goods sold and the gross profit rate as follows: Cost of goods sold = $100,000 - $40,000 = $60,000 Gross profit rate = ($100,000 - $60,000) / $100,000 = 40% This means that the company's cost of goods sold was $60,000 and its gross profit rate was 40%.

calculate the net cash flow from operating activities

To calculate the net cash flow from financing activities for a dividend transaction, follow these steps: Determine the amount of dividends paid by the company during the period. This information can be found in the company's financial statements or reported in the company's earnings release. Subtract the amount of dividends paid from the company's beginning cash balance to calculate the net change in cash from financing activities. For example, if the company's beginning cash balance was $100,000 and it paid dividends of $10,000 during the period, the net change in cash would be $100,000 - $10,000 = $90,000. Add the net change in cash from financing activities to the company's ending cash balance to calculate the net cash flow from financing activities. For example, if the company's ending cash balance was $110,000 and the net change in cash from financing activities was $90,000, the net cash flow from financing activities would be $110,000 + $90,000 = $200,000.

calculate the net cash flow from financing equation regrading a dividend transaction

To calculate the net cash flow from financing activities for a dividend transaction, you need to know the amount of dividends paid by the company during the period. If the company paid dividends of $X during the period, the net cash flow from financing activities would be -$X, because the payment of dividends is a use of cash. For example, if a company paid dividends of $10,000 during the period, the net cash flow from financing activities would be -$10,000. This means that the payment of dividends resulted in a decrease of $10,000 in the company's cash balance.

determine the adjusted cash balance according to a bank reconciliations

To determine the adjusted cash balance according to a bank reconciliation, you need to follow these steps: Start with the cash balance as shown on the bank statement. Add any deposits in transit that have not yet been processed by the bank. These are deposits that have been made by the company but have not yet been reflected on the bank statement. Subtract any outstanding checks that have not yet been processed by the bank. These are checks that have been written by the company but have not yet been reflected on the bank statement. Add any interest or other income earned but not yet credited to the company's account. Subtract any bank charges or fees that have been deducted from the account but not yet reflected on the bank statement. Adjust for any errors or discrepancies that were identified during the reconciliation process.

select the journal entry to record the issues of bonds

To record the issuance of bonds, the following journal entry can be used: Debit: Bonds Payable (for the face value of the bonds) Credit: Cash (for the amount received from the sale of the bonds) For example, if a company issues $100,000 of bonds at a face value of $1,000 each, the journal entry would be as follows: Debit: Bonds Payable (100,000 x $1,000 = $100,000) Credit: Cash (100,000 x $1,000 = $100,000)

select the journal entry for retirement of a long term asset

When a long-term asset is retired, it is permanently removed from the company's balance sheet and the associated accumulated depreciation is also eliminated. The proceeds from the disposal of the asset, if any, are recorded as a gain or loss on the disposal of the asset. Here is an example of a journal entry for the retirement of a long-term asset: Debit Credit Long-term asset account $x Accumulated depreciation account $x Gain/loss on disposal account $x In this journal entry, the long-term asset account and the accumulated depreciation account are debited for the original cost and accumulated depreciation of the asset, and the gain/loss on disposal account is credited for the difference between the proceeds from the disposal of the asset and its original cost and accumulated depreciation. This journal entry reflects the removal of the long-term asset and its associated accumulated depreciation from the company's balance sheet, and the recognition of any gain or loss on the disposal of the asset.

select the definition of an item that is a step in the accounting cycle

accounting cycle is a specific task or activity that is included in the overall process of preparing and producing a company's financial statements. The accounting cycle is the sequence of activities that is performed in order to produce a company's financial statements, and typically includes steps such as identifying and recording transactions, posting entries to the appropriate accounts, and preparing and reviewing financial statements. Some common items that are typically included as steps in the accounting cycle include journalizing transactions, posting to ledger accounts, preparing a trial balance, and preparing financial statements.

Internal Control

free question

select the purpose for the use of lower cost or net realizable value in costing inventory

purpose of using the LCNRV method in costing inventory is to ensure that the inventory is recorded at its fair market value, which is the price that could be obtained if the inventory were sold in the ordinary course of business. By valuing the inventory at its LCNRV, a company can avoid overstating its inventory value and its profit, which can provide a more accurate and realistic picture of its financial performance. Additionally, using the LCNRV method can help a company to comply with generally accepted accounting principles (GAAP), which require inventory to be recorded at its lower of cost or market value.

Identify purpose/ use of a specific account

the purpose of an accounts receivable account is to track the amount of money that is owed to a business by its customers, whereas the purpose of a cash account is to track the amount of cash on hand.

calculate straight line depreciation expense

to calculate the straight-line depreciation expense for a long-term asset, you will need to know the following information: Cost: The original cost of the long-term asset. Salvage value: The estimated value of the long-term asset at the end of its useful life. Useful life: The estimated number of years or periods over which the long-term asset is expected to be used. Once you have this information, you can use the following formula to calculate the straight-line depreciation expense for the long-term asset: Straight-line depreciation expense = (Cost - Salvage value) / Useful life For example, let's say that a company has purchased a long-term asset with a cost of $50,000, a salvage value of $5,000, and a useful life of 10 years. Using the formula above, we can calculate the straight-line depreciation expense for the long-term asset as follows: Straight-line depreciation expense = ($50,000 - $5,000) / 10 = $4,500 per year This means that the company will recognize a depreciation expense of $4,500 per year for the long-term asset over its useful life of 10 years. At the end of the 10 years, the asset will have a book value of $5,000 (its salvage value), and the accumulated depreciation will be equal to its original cost minus its salvage value, or $45,000.

determine the journal entry to issue common stock

to issue common stock, the journal entry would be a debit to the common stock account and a credit to the cash account. The debit to the common stock account represents the addition of the new shares to the company's equity, while the credit to the cash account represents the inflow of cash from the sale of the stock.