[ANSWER] Introduction to the Accounting Cycle and Recording Business Transactions

Question description

Instructions:  Looking for some
serious help in accounting assignment.  I
needed honestly and willing to meet my dead line.  Respond to the
following questions using grammatically correct language and appropriate APA
citations. All questions need to be answer and with APA citations.  The book that used is Accounting Principles: A Business
perspective, Financial Accounting (chapter
3 pages 77-124 Recording Business Transitions) Question 1-5 is Introduction
to the Accounting Cycle, Question 6- 10
is Recording Business Transactions
Question 1:
-Describe the steps in recording and posting
the effects of a business transaction and provide some examples of source
documents used in these steps.
-Define debit and credit and name the types of
accounts that are (three correct responses):
Increased by a debit.
Decreased by a debit.
Increased by a credit.
Decreased by a credit.
Correctly identify all of the types of
accounts on the list.
Question 2:
Which steps in the accounting cycle are
performed throughout the accounting cycle?
Which of the steps in the accounting cycle are
performed only at the end of the accounting period?

Many of the steps in the accounting cycle can
be performed on a computer with an accounting software package. Research three
of the most commonly used packages and decide which one you would choose if you
were starting a small business this year.
Question 3:
Why are separate “expense” and
“revenue” accounts used when all revenues and expenses could be shown
directly in the retained earnings account?
Describe three examples of transactions that
would affect a firm’s income statement. For each transaction, identify if the
transaction has a positive or negative effect on the firm’s net income.

What is the purpose of the
“dividends” account and under what circumstances would this account
be increased?
Under what circumstances would the
“dividends” account be decreased?
Question 4:
Are the following possibilities conceivable in
an entry involving only one debit and one credit? Please explain your response
for each item. Provide five or six correct responses:
Increase a liability and
increase an expense.
Increase an asset and
decrease a liability.
Increase revenue and
decrease an expense.
Decrease an asset and
increase another asset.
Decrease an asset and
increase a liability.
Decrease revenue and
decrease an asset.
Decrease a liability
and increase revenue.

Correctly identify all of the items.
Question 5:
Define the “normal” balance for an
What are the rules of debit and credit for
accounts appearing on a firm’s balance sheet?

What are the rules associated with accounts
appearing on a firm’s income statement?
Question 6:
Describe the nature and purposes of the
general journal, ledger, and chart of accounts.

Describe the act of posting a transaction from
the general journal to the ledger. What difficulties could arise if no
cross-indexing existed between the general journal and the ledger accounts?
Question 7:
Prepare the journal entry required for each of
the following transactions. Be sure to identify which part of the entry is the
debit and which is the credit. Provide five correct responses:
Cash was received for
services performed for customers, $1,200.
Services were
performed for customers on account, $4,200.
Purchased machinery
for cash, $30,000.
Capital stock was
issued for $100,000.
Salaries for a period
were paid to employees, $24,000.
Purchased a truck
using a note payable, $35,000.
Correctly prepare all of the journal entries
for the transactions.
Question 8:
What are the purposes of an unadjusted trial
balance? Describe the types of accounts that would appear on this type of trial

If you found that the total of the debits
column of the trial balance for a company is $200,000, while the total of the
credits column is $180,000, what are some possible causes of this difference?
Question 9:
A student remembered that the side toward the
window in the classroom was the debit side of an account. The student took an
examination in a room where the windows were on the other side of the room and
became confused and consistently reversed debits and credits. Would the
student’s trial balance have equal debit and credit totals? If there were no
existing balances in any of the accounts to begin with, would the error prevent
the student from preparing correct financial statements? Why?
Store equipment was purchased for $2,000.
Instead of debiting the Store Equipment account, the debit was made to Delivery
Equipment. Of what help will the trial balance be in locating this error?
Question 10:
What is the difference between horizontal and
vertical analysis of financial statements?
How is each type calculated and presented for
viewing by company stakeholders?

How is this type of analysis used by

~~~For this or similar assignment papers~~~



We have the solution to this question. However, to avoid posible plagiarism, let us provide a fully custom and original solution. Please talk to any of our homework helpers via the chat icons at the bottom of your screen.

Psst!!! Let us do your homework for you!

Do you need expert help with your homework? Are you busy and would like an extra hand with your essays, homework and assignments? Try us today for the best grades in class!

Send us a message!