Accounting project

Topics: Generally Accepted Accounting Principles, Revenue, Income statement Pages: 6 (1264 words) Published: March 4, 2015
Name:Marisa BradyACCT 220 – Project Due on 12/15/14 1 - Debits and Credits
For each of the following independent transactions, identify the account that would be debited and the account that would be credited. Transaction
Debit
Credit
1. Purchased furniture on credit.
Furniture
Accounts Payable
2. Purchased inventory for cash.
Inventory
Cash
3. Sold goods to customers on credit.
Accounts Receivable
Sales Revenue
4. Record cost of goods sold on the previous sale.
COGS
Inventory
5. Purchased supplies.
Supplies
Cash
6. Borrowed money from a bank.
Cash
Notes Payable
7. Paid employee wages for the month.
Wages Expense
Cash
8. Paid for the furniture purchased previously.
Accounts payable
Cash
9. Paid rent for the month.
Rent expense
Cash
10. Collected cash from a customer for goods sold previously. Cash
Accounts receivable

2 - For each of the following independent transactions, identify the account that would be debited and the account that would be credited. Transaction
Debit
Credit
1. Borrowed money from a bank.
Cash
Notes Payable
2. Purchased supplies for cash.
Inventory
Cash
3. Purchased equipment on credit.
Inventory
Accounts Payable
4. Sold goods to customers for cash.
Cash
Sales Revenue
5. Sold goods to customers on credit.
Accounts Receivable
Sales Revenue
6. Paid employee wages for the month.
Wages Expense
Cash
7. Paid utilities for the current month.
Utilities expense
Cash
8. Recorded supplies used during the month.
Supplies expense
Supplies
9. Paid for the equipment purchased previously.
Accounts Payable
Cash
10. Repaid the note to the bank.
Note payable
Cash

3 - Select an annual report of your choice and answer the following questions: 1
What is the name of your company?

2
What is the company's form of ownership?

3
What is the date of the company's most recent fiscal yearend?

4
What is the amount of the company's total cost of goods sold? $
5
Was the company profitable?

6
How much are the company's total liabilities?
$
7
What term does the company use for owner's equity?

8
What is the name of the financial statement that shows revenues and expenses?

9
For the two most recent years shown, which year had the higher net income?

10
For the two most recent years shown, which year had the higher net income?

11
Who might be interested in these financial statements?

4 - Match each of the following terms with the appropriate definition. Use each term only once.

a.monetary-unit assumption
b.historical-cost principle
c.going-concern assumption
drevenue-recognition principle
e.matching principle
f.accrual accounting
g.accruals
h.deferrals
i.cash-basis accounting
j.detective controls
k.corrective controls
l.preventive controls

___J__ 1. Procedures to find errors
___G__ 2. Transactions in which the revenue is earned or the expense is incurred before the exchange of cash ___D__ 3. An accounting principle which requires that revenue should be recognized when it is earned ___A__ 4. An accounting assumption which requires that financial statement items be measured in monetary units ___F__ 5. An accounting method in which revenues are recognized when earned and expenses recognized when incurred __H___ 6. Transactions in which the exchange of cash takes place before the revenue is earned or the expense incurred. ___B__ 7. An accounting principle which requires that financial statement items should be reported at their costs at the time of the transaction ___I__ 8. An accounting method in which revenues are recognized when cash is collected and expenses are recognized when cash is disbursed ___E__ 9. An accounting principle which requires that expenses should be recognized in the same period as the revenue they helped generate ___C__ 10. An accounting assumption which assumes that a company will continue to be in business in the future ___K_ 11. Controls designed to fix errors

___L__...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Accounting Software Installation Project Essay
  • Project Managment Essay
  • Project Management in Bangladesh
  • Essay on It 205 Hardware Replacement Project
  • Hardware Replacement Project Essay
  • Essay on Motorola Inc. Bandit Pager Project
  • Ais Project Cycle Essay
  • Essay about INF 410 Project Management

Become a StudyMode Member

Sign Up - It's Free