Chart Of Accounts Phase 4

Chart Of Accounts Phase 4 Ipchart Of Accountsfor Phase 4 Ipyour Compan

Chart of Accounts Phase 4 IP Chart of accounts For Phase 4 IP Your Company Account Account This link is to information about Charts of Accounts Number Account Name Type Accountingcoach.com has an example also. Account Account Number Account Name Type 1100 Cash Asset This is a sample chart of accounts. 1200 Prepaid Insurance Asset Use the chart you started with in your DB post. 1300 Office Supplies Asset Make sure you have these types of accounts: 1400 Truck Asset Assets 1500 Tools Asset Liabilities 1600 Books Asset Capital 2100 Credit Card Payable Liability Withdrawal 2200 Bank Loan Payable Liability Revenue 2300 Salaries Payable Liability Expenses 3100 Joe Smith, Capital Equity 3200 Joe Smith, Withdrawal Equity If an account is a liability, use the word "payable". 4100 Service Revenue Revenue If an account is an expense, use the word "expense". 5100 Training Expense Expense 5200 Advertising Expense Expense 5300 License Expense Expense 5400 Gasoline Expense Expense 5500 Interest Expense Expense 5600 Insurance Expense Expense 5900 Supplies Expense Expense Journal-Phase 4 IP JOURNAL For Phase 4 IP Date Description Post Ref. Debit Credit March 1 Cash 10,000.00 This is a sample journal entry, you should overwrite with your own entry. Owner, Capital 10,000.00 Invested cash in business Journal Entries should include the following: Initial investment (owner investing money into the business). Revenue/sales (service provided to a customer). At least 3 expenses (think of expenses you will incure to provide your service to customers). Owner withdrawing money from business. All of your journal entries must balance, they must have both a debit and a credit. Ledger-Phase 4 IP For Phase 4 IP Enter Account Name Enter Account # Enter your account name and account number for each account. Debit Credit Date Amount Date and dollar amount here is an example, you can overwrite. After you write your journal entries in the ledger, post your entries to the ledger. You will need to add account names and account numbers. There are probably more accounts here then you will need. You will need to compute the balance for each account. Enter Account Name Enter Account # Debit Credit Date Amount Date Amount Enter Account Name Enter Account # Debit Credit Date Amount Date Amount Enter Account Name Enter Account # Debit Credit Date Amount Date Amount Enter Account Name Enter Account # Debit Credit Date Amount Date Amount Enter Account Name Enter Account # Debit Credit Date Amount Date Amount Enter Account Name Enter Account # Debit Credit Date Amount Date Amount Enter Account Name Enter Account # Debit Credit Date Amount Date Amount Enter Account Name Enter Account # Debit Credit Date Amount Date Amount Enter Account Name Enter Account # Debit Credit Date Amount Date Amount Enter Account Name Enter Account # Debit Credit Date Amount Date Amount Enter Account Name Enter Account # Debit Credit Date Amount Date Amount Enter Account Name Enter Account # Debit Credit Date Amount Date Amount Enter Account Name Enter Account # Debit Credit Date Amount Date Amount Enter Account Name Enter Account # Debit Credit Date Amount Date Amount Enter Account Name Enter Account # Debit Credit Date Amount Date Amount

Paper For Above instruction

The provided instructions guide the creation of a comprehensive accounting cycle for a new business, focusing on establishing a chart of accounts, journal entries, ledger postings, trial balance, and financial statements. The process begins with developing an appropriate chart of accounts that includes asset, liability, equity, revenue, and expense accounts, ensuring correct account numbering and naming conventions. Subsequently, documenting initial journal entries such as the owner’s capital investment, revenue from services, expenses incurred, and owner withdrawals is essential. These journal entries must be balanced, with equal debits and credits, and then posted to the ledger, updating account balances accordingly.

Once ledger accounts are updated and balances computed, a trial balance consolidates all account balances to verify that total debits equal total credits, ensuring the accounting equation's integrity. Following this, the narrative component requires reflecting on the choice of business type (service company, partnership, sole proprietorship), internal controls, and their importance in maintaining accurate financial data. Internal controls safeguard financial information, prevent fraud, and ensure compliance with laws, which is especially vital for startups or small business entities.

The financial statements—Income Statement, Statement of Owner’s Equity, and Balance Sheet—are prepared using data from the trial balance and ledger accounts. The Income Statement summarizes revenues and expenses to show net income or loss. The Statement of Owner’s Equity details changes in owner’s capital, considering investments, withdrawals, and net income. The Balance Sheet provides a snapshot of assets, liabilities, and owner’s equity at a specific point in time, ensuring the fundamental accounting equation (Assets = Liabilities + Equity) balances.

This process emphasizes the importance of accuracy, consistency, and adherence to accounting principles throughout the accounting cycle, from initial account setup to financial reporting. Proper documentation and understanding of internal controls contribute to reliable and transparent financial statements, facilitating informed decision-making by stakeholders.

References

  • Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2020). Financial Accounting (13th ed.). Wiley.
  • Wild, J. J., Subramanyam, K. R., & Halsey, R. F. (2019). Financial Statement Analysis (12th ed.). Pearson.
  • AccountingCoach. (n.d.). Chart of Accounts. Retrieved from https://www.accountingcoach.com/chart-of-accounts/explanation
  • Horngren, C. T., Sundem, G. L., & Elliott, J. A. (2018). Introduction to Financial Accounting (11th ed.). Pearson.
  • Revsine, L., Collins, D., & Johnson, W. (2015). Financial Reporting & Analysis. Prentice Hall.
  • Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2019). Financial Accounting Theory and Analysis. Wiley.
  • Financial Accounting Standards Board (FASB). (2023). Accounting Standards Codification. FASB.
  • Institute of Management Accountants. (2022). Management Accounting. IMA Annals.
  • Gibson, C. H. (2020). Financial Reporting & Analysis. South-Western College Publishing.
  • Applegate, L., & Morris, S. (2021). Internal Controls and Fraud Prevention. Journal of Accountancy, 231(4), 45-50.

Related Assignments