Accounting Intern Paper

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Company introduction
KC ACCOUNTANCY CORP is a Southern California CPA firm, found in 2000. The company offers a full range of business and consumer CPA services including financial statements preparation, IRS.FTB.EDD representation, tax return preparation, office computerization, new business start-up, general bookkeeping and tax preparation & planning.

Job description
During the intern period, I did four main tasks as follow

1. Bookkeeping
The company uses the accounting software called Write up and Quick Book to do the book keeping. In order to do the book keeping we need to create a ledger for all the financial accounts and use the check and invoice provided by the customer to record all payments made from these accounts. We should filled the all the column of cells, which include date, name of the payment, payee, category (for tax purposes), memorandum and a record of the check number or the invoice number. The reason for write the category is for tax purposes. After record the payment, we need to use the same software to record the cash inflow. We list all money (only revenue) received by the customer. As same as the cash outflow, we need to record the date, name of the income, payer-providers, category, memorandum and a record of the check number. If the company has the Loan or the investment, we should use the different ledgers to record it. Next step, we need to create accounts payable/accounts receivable. For the account payable we list utilities, rent, and other future payments. We list two date: one is the due day another one is the due day before penalty. For the account receivable, we list the income we will receive in the future. This ledger is most important, I need to aware that when the company actually receives the payment by the customers or the bounced check will happened. The final step is to reconcile the ledgers with the bank statements. The company will provide us their bank account records and allow us to check each payment. This is typically done on a quarterly schedule 2. Prepared, examined, and analyzed accounting records, financial statements, and other financial reports to assess accuracy, completeness, and conformance to reporting and procedural standards. Financial statements include income statement, statement of retained earnings, balance sheet and cash flow statement. From the supervisor’s experience, I learned that there is specific logical order for preparation due to some financial statements use numbers from the other statements The order is following:

* Income statement
* Statement of retained earnings
* Balance sheet
* Cash flow statement
Before financial statements are prepared, we need to adjust entries based on revenue recognition and the matching principles. Each transaction may affect one income statement accounts and one balance sheet account. Adjustments fall into one of five categories: accrued revenues, accrued expenses, unearned revenues, prepaid expenses, and depreciation. Income Statement

The income statement reports revenues, expenses, and the resulting net income. It transfers from revenue, expenses and capital gains or losses ledger account balances into the income statement. Statement of Retained Earnings

The Statement of Retained Earnings is prepared after the income statement because we use the net profit or loss account balance from income statement. The retained earnings statement shows the retained earnings at the beginning and end of the accounting period. It is prepared using the following information: * Beginning retained earnings from previous statement of retained earnings. * Net income, obtained from the income statement

Balance Sheet
The balance sheet reports the assets, liabilities, and shareholder equity of the company. It is constructed using the following information: * Balances of all asset accounts
* Balances of all liability accounts
* owner's equity
Cash Flow Statement
To do this...
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