Ch. 3.1

Question 1

Accounting cycle steps

Answer 1

1. analyze transactions
2. journalize
3. post to ledger
4. trial balance
5. adjust entries
6. adjust trial balance
   7/ financial statements
   8/ closing entries
   9/ post closing trial balance

Question 2

accounting transaction

Answer 2

any econonic event that results in a company’s financial postiion (Assets/liabiltiies/ shareholders equity) changing in a measurable way

Question 3

Shareholders equity formula

Answer 3

common shares+ retained earnings

Question 4

retained earnings formula

Answer 4

revenues- expesnes- dividences declared

Question 5

ACCT EQUATION MUST ALWAYS BALANCE SO…

Answer 5

a recorded transaction will have at LEAST an impact on ntwo parts of the equation

could be 2=

Question 6

Basic analysis

Answer 6

affected accounts and amounts are identified

Question 7

equation analysis

Answer 7

demonstrating the effect that each transaction has on the financial statements

Question 8

NOTE ABOUT BASIC ANALYSIS (the breaking up of A= L +SE)

Answer 8

NOTE THAT THE SIGNS ARE FORM THE COLUMN HEADINGS BABES!!!!! TAKE NOTE OF THEMES

Question 10

Would you record a ttransaction for hiring new employees

Answer 10

no not until they get paid

Question 11

iF YOU ar epaid on account, what two accounts are impacted

Answer 11

accounts recievable
service revenue

Question 12

how to record deferred revenue?

Answer 12

increase of cash

increased of deferred revneue liability

Question 13

when is revenue recognized in deferred revenue context

Answer 13

when the company eventually performs the service or good

Question 14

when there is a declaration and payment of dividends what accts are impacted

Answer 14

cash
div declared

Question 15

Recall from Illustration 3.11 that, when a service has been provided to a client on account, the revenue is recorded together with an account receivable. Revenue is not recorded again when the cash is collected. Rather, Cash is increased by $9,000 and Accounts Receivable is decreased by $9,000, bringing the balance in the Accounts Receivable account to $11,000 ($20,000 – $9,000). This is the amount still owing from Copa, as shown in Illustration 3.16.

Answer 15

Recall from Illustration 3.11 that, when a service has been provided to a client on account, the revenue is recorded together with an account receivable. Revenue is not recorded again when the cash is collected. Rather, Cash is increased by $9,000 and Accounts Receivable is decreased by $9,000, bringing the balance in the Accounts Receivable account to $11,000 ($20,000 – $9,000). This is the amount still owing from Copa, as shown in Illustration 3.16.