Chart Of Accounts Phase 4 066349

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 and Amount Enter Account Name Enter Account # Debit Credit Date Amount Date and Amount Enter Account Name Enter Account # Debit Credit Date Amount Date and Amount Enter Account Name Enter Account # Debit Credit Date Amount Date and Amount Enter Account Name Enter Account # Debit Credit Date Amount Date and Amount Enter Account Name Enter Account # Debit Credit Date Amount Date and Amount Enter Account Name Enter Account # Debit Credit Date Amount Date and Amount Enter Account Name Enter Account # Debit Credit Date Amount Date and Amount Enter Account Name Enter Account # Debit Credit Date Amount Date and Amount Enter Account Name Enter Account # Debit Credit Date Amount Date and Amount Enter Account Name Enter Account # Debit Credit Date Amount Date and Amount Enter Account Name Enter Account # Debit Credit Date Amount Date and Amount Enter Account Name Enter Account # Debit Credit Date Amount Date and Amount Trial Balance-Phase 4 IP Name of Company For Phase 4 IP Trial Balance Date Account Number Account Name Debit Credit Use accounts from your chart of accounts. 0 0 The debits and credits should balance. Narrative-Phase 5 IP Enter your narrative here. Fill this in for the Phase 5 IP. The narrative should explain these points: Why did you choose the service company you did? Why did you choose either a partnership or sole proprietorship? Discuss internal controls, why they are important, how will you use controls to ensure the integrity of your company's accounting information. Include the narrative in the Excel file. Income Statement-Phase 5 IP Name of Company Income Statement Date For Phase 5 IP Account Title Amount Revenue Total Revenue 0 Expenses Account Title Amount Total Expenses 0 Net Income 0 Statement of Equity-Phase 5 IP Name of Company Statement of Owner's Equity For Phase 5 IP Date Beginning Owner's Capital 0 Beginning capital is zero because this is a brand new business. Plus: Owner Investment Less: Owner Withdrawal Plus: Net income This is Net Income from the Income Statement Owner's capital, June 30 0 Balance Sheet-Phase 5 IP Name of Company Balance Sheet Date For Phase 5 IP ASSETS LIABILITIES & EQUITY Account Title Amount Account Title Amount Assets Liability Total Liabilities - 0 Equity Owner, Capital Owner's Capital is same amount as ending balance of Statement of Equity. Total Equity - 0 TOTAL ASSETS $ - 0 TOTAL LIABILITIES AND EQUITY $ - 0 Student ID: Exam: 061692RR - CORPORATIONS When you have completed your exam and reviewed your answers, click Submit Exam. Answers will not be recorded until you hit Submit Exam. If you need to exit before completing the exam, click Cancel Exam. Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page break, so be sure that you have seen the entire question and all the answers before choosing an answer. 1. What are the rate of return on stockholders' equity and the rate of return on common stockholders' equity (rounded to the nearest one-tenth of a percent) given the following information: Net Income $350,000 Preferred Dividends 20,000 Common Stock 48,000 Common Stockholders’ Equity 1/1/2011 4,400,000 Total Stockholders’ Equity 1/1/2011 5,300,000 Total Stockholders’ Equity 12/31/2011 5,500,000 A. Return on Stockholders' Equity: 6.5 %; Return on Common Stockholders' Equity: 7.6% B. Return on Stockholders' Equity: 7.8 %; Return on Common Stockholders' Equity: 8.9% C. Return on Stockholders' Equity: 8.1 %; Return on Common Stockholders' Equity: 9.2% D. Return on Stockholders' Equity: 5.6 %; Return on Common Stockholders' Equity: 6.7% 2. The Isaiah Corporation Stockholders' Equity section includes the following information: Total par value of the preferred and common stock is Preferred Stock $22,000 Paid-in Capital in Excess of Par—Preferred 2,980 Common Stock 48,000 Paid-in Capital in Excess of Par—Common 3,400 Retained Earnings 7,350 A. $76,380. B. $83,730. C. $70,000. D. $77,350. 3. Casey Company has an accounts receivable turnover of 36 days, an inventory turnover of 77 days, and an accounts payable turnover of 40 days. Casey's cash conversion cycle is _______ day(s). A. 1 B. 73 C. 153 D. . A company has $56,000 in cash; $12,000 in accounts receivable; $25,000 in short-term investments; and $100,000 in merchandise inventory. The company also has $60,000 in current liabilities. The company's quick ratio is A. 1.133. B. 3.217. C. 1.550. D. 0.933. 5. Operating cash flows affect A. long-term liability accounts. B. long-term asset accounts. C. equity accounts. D. current assets and current liabilities. 6. Earnings that a stockholder receives from a corporation are an example of which stockholder right? A. Vote B. Dividends C. Liquidation D. Preemption 7. The Amanda Corporation Stockholders' Equity section includes the following information: What was the total selling price of the preferred stock? Preferred Stock $12,000 Paid-in Capital in Excess of Par— Preferred 2,700 Common Stock 15,000 Paid-in Capital in Excess of Par— Common 4,100 Retained Earnings 8,200 A. $20,200 B. $12,000 C. $14,700 D. $16. Casey Company has a $2,400 credit balance in Paid-In Capital— Treasury Stock. It sells 500 shares of treasury stock that the company reacquired at $21/share, for $18/share. After the transaction, what will be the balance be in the Paid-In Capital in Excess of Par— Treasury account? A. $3,900 credit B. $900 credit C. $1,500 debit D. $900 debit 9. If Rick's net sales increased from $40,000 to $80,000 and its operating expenses increased from $30,000 to $50,000, then vertical analysis based on net sales would show which of the following for operating expenses for the two periods (to the nearest tenth of a percent)? A. 160.0% and 133.3% B. 75.0% and 62.5% C. 62.5% and 75.0% D. 133.3% and 160.0% 10. What is the rate of return on common stockholders' equity if sales are $100,000, net income is $22,700, and average common stockholders' equity is $86,000? A. 26.4% B. 22.7% C. The rate of return can't be determined from the information given. D. 86.0% 11. To determine why net income and cash on the balance sheet don't equal, an accountant can prepare a/an A. statement of retained earnings. B. income statement. C. balance sheet. D. statement of cash flows. 12. The accuracy of the statement of cash flows can be verified by computing the change in the balance of the A. cash and cash equivalent accounts. B. asset and liability accounts. C. equity account. D. revenue accounts. 13. Rick Company's net sales decreased from $90,000 in year 1 to $45,000 in year 2, and its cost of goods sold decreased from $30,000 in year 1 to $20,000 in year 2. Vertical analysis based on sales would show which decreases in cost of goods sold for the two periods (rounded to the nearest tenth of a percent)? A. 225% and 300% B. 33.3% and 44.4% C. 44.4% and 33.3% D. 300% and 225% 14. Casey Company has 5,000 shares of treasury cost that it purchased for $13 per share. It later resold 2,000 of those shares for $17 per share. The amount to be credited to Paid-in Capital—Treasury Stock is A. $8,000. B. $34,000. C. $26,000. D. $30,000. 15. Ryan Industries has an inventory turnover of 112 days, an accounts payable turnover of 73 days, and an accounts receivable turnover of 82 days. Ryan's cash conversion cycle is _______ days. A. 43 B. 9 C. 103 D. 17. Tammy Company has a beginning accounts receivable balance of $65,000 and an ending accounts receivable balance of $60,000. Net credit sales are $250,000. Tammy's accounts receivable turnover rate is A. 4.167. B. 3.846. C. 4.000. D. 2.000. 17. Cost of goods sold for the year was $850,000. Inventory was $60,000 at the beginning of the year and $90,000 at the end of the year. There were no changes in the amount in accounts payable for the year. Cash payment for merchandise to be reported under the direct method is A. $910,000. B. $850,000. C. $940,000. D. $880,000. 18. Rick Company has declared a $40,000 cash dividend to shareholders. The company has 5,000 shares of $20 par, 6% preferred stock, and 10,000 shares of $15 par common stock. The preferred stock is noncumulative. How much will be distributed to the preferred and common stockholders on the date of payment? A. $34,000 preferred; $6,000 common B. $0 preferred; $40,000 common C. $6,000 preferred; $34,000 common D. $40,000 preferred; $0 common 19. Which activities are computed differently using the two methods of formatting a statement of cash flows? A. Financing activities B. Investing activities C. Both operating activities and investing activities D. Operating activities 20. Net sales at Kelly's Bakery increased from $40,000 to $60,000, and its cost of goods sold increased from $20,000 to $40,000. Vertical analysis based on net sales would show which percentages for cost of goods sold (rounded to the nearest %)? A. 50% and 67% B. 67% and 40% C. 10% and 30% D. 40% and 20% End of exam

Paper For Above instruction

The provided instructions encompass a comprehensive set of tasks related to constructing, analyzing, and interpreting financial documents and data for a new or existing company, focusing on aspects such as chart of accounts, journal entries, ledger posts, trial balances, financial statements, and answering specific financial analysis questions. The core objective is to develop an understanding of accounting procedures, financial statement preparation, and interpretation of financial ratios and metrics, reflecting a practical application of accounting principles and internal controls.

To begin with, creating a detailed Chart of Accounts (COA) is fundamental. This involves categorizing accounts by type—assets, liabilities, equity, revenue, and expenses—and assigning appropriate account numbers, such as 1100 for Cash, 1200 for Prepaid Insurance, and so forth. For example, cash and prepaid insurance are asset accounts, while accounts like salaries payable are liabilities, each with designated account numbers. The COA should also include revenue accounts like service revenue and various expense accounts such as training, advertising, license, gasoline, interest, insurance, and supplies expenses.

Subsequently, journal entries must be recorded to reflect the initial capital investment, service revenue, various expenses, and owner withdrawals. For instance, an initial journal entry would debit cash and credit owner’s capital when the owner invests funds. Other entries include recording revenue earned from services, expenses incurred to provide those services, and withdrawals made by the owner, ensuring every journal entry balances with equal debit and credit totals.

Once journal entries are prepared, they are posted to the ledger accounts. The ledger contains detailed accounts with individual transactions, identified by date, description, account number, and amount, with calculations of the account balances after each transaction. Accurate posting is essential for reliable financial statements and involves summation of debits and credits to determine the closing balances for each account.

The trial balance consolidates all ledger balances, verifying that total debits equal total credits—a key step in ensuring accounting accuracy before drafting financial statements. These statements include the Income Statement, Statement of Owner’s Equity, and Balance Sheet, which collectively provide a snapshot of the company's financial performance, ownership changes, and financial position at a specific date.

Beyond record-keeping, analytical questions assess understanding of financial ratios, such as return on equity, quick ratios, and cash conversion cycles, which measure liquidity, profitability, and operational efficiency. For example, calculating the return on stockholders' equity involves dividing net income by average shareholders' equity, while the cash conversion cycle involves days inventory outstanding, days sales outstanding, and days payable outstanding.

Interpreting these metrics helps evaluate company performance—for instance, understanding how efficiently accounts receivable are collected or how quickly inventory is turned over. It’s also important to analyze the effects of different transactions on stockholder equity, including stock issuance, treasury stock transactions, and dividends distributions, which influence retained earnings and overall ownership stakes.

Finally, the exercises involve answering multiple-choice questions that test knowledge of financial ratios, stockholder rights, cash flow activities, and vertical analysis. These questions reinforce the understanding of core concepts by requiring calculation and interpretation of financial data, emphasizing the importance of accurate financial analysis and internal controls in maintaining reporting integrity.

References

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