BUS3061 Fundamentals of Accounting Student’s name: Institutional affiliation: Answer one Proficient It begins with committing into a business transaction on the basis of decisions taken by the respective management. The transaction has to be supported by evidence from a source document CITATION Her11 \l 1033 (Hermanson Edwards & Maher 2011). The document that is used acts as the basis of journal entry preparation. The final stage involves posting the entries to the ledger for the matching accounts. Main source documents include bills from suppliers cash registers and bills sent to purchasers of the goods. The word debit is used to mean placements of entries from transactions that are done on the left side in commonly used a debit (increase) followed by a credit (revenue increase) Answer five Proficient It refers to the nature of equality that is observed in debits emanating from the left side of T accounts and credits on the other side. Accounts relating to assets would be debits whereas those relating to liabilities would be credits. In addition credit balances relating to the balance sheet would also come from stockholders’ equity accounts. Distinguished In this case expense accounts are expected to show debit balances whereas credits are expected from revenue accounts. References BIBLIOGRAPHY Hermanson Edwards & Maher. (2011). Accounting Principles: A Business Perspective Financial Accounting. Homewood IL: Richard D Irwin. James T. (2017). Types of Accounting Software. Chron 1-2. http://smallbusiness.chron.com/types-accounting-software-60627.html [...]
Due by January 17, 2018 Please; Please use 4 separate documents for each section. Please read instructions carefully in order to answer all the questions below; Required book below; Edwards, J. D., Hermanson, R.H., & Maher, M. W. (2011). Accounting principles: A business perspective, financial accounting (Chapters 1–8). Textbook Equity. This assignment consist of 4 section – Section 1, 2, 3, &4. SECTION #1 [u02d1] Unit 2 Discussion 1 Financial Statement Terminology: Balance Sheet For this discussion, you are going to have your second language of business lesson. In your Dictionary of Accounting Terms e-book: Locate six terms that you consider to be associated with balance sheet liabilities and equity (liabilities and leftovers). Define each term, and explain why it should be included as a liability or equity in a business organization. Submit your initial post by midnight on Wednesday of this week. Refer to the Discussion Participation Scoring Guide for expectations on the post. SECTION #2 Response Guidelines From the perspective of an external stakeholder (potential investor), respond to the posts of at least two of your fellow learners with questions or issues they did not address in their original discussion. Critically evaluate the accounting terms they chose, their definitions, and reasons why they were included in each category. Identify other issues that might not have been considered. Post your responses by midnight on Sunday of this week. Resources Dictionary of Accounting Terms. SECTION #3 u02a1] Unit 2 Assignment 1 Introduction to the Accounting Cycle Instructions Respond to the following questions using grammatically correct language and appropriate APA citations. To achieve a proficient grade in this assignment, answer the proficient-level queries for each question. To achieve a distinguished grade, answer both sets of queries for each question. 1. Question 1: Proficient: 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. Distinguished: Correctly identify all of the types of accounts on the list. 2. Question 2: Proficient: 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? Distinguished: 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. 3. Question 3: Proficient: 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. Distinguished: 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? 4. Question 4: Proficient: 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. Distinguished: Correctly identify all of the items. 5. Question 5: Proficient: Define the "normal" balance for an account. What are the rules of debit and credit for accounts appearing on a firm's balance sheet? Distinguished: What are the rules associated with accounts appearing on a firm's income statement? Write your responses in a Microsoft Word document and submit it as an attachment in the assignment area. Prior to submitting your assignment, review the Introduction to the Accounting Cycle Scoring Guide to ensure you have met all of the requirements and as a self-assessment of your work. Be sure to address the questions at the proficient and distinguished levels to achieve the highest grade possible. Note: Your instructor may also use the Writing Feedback Tool to provide feedback on your writing. In the tool, click the linked resources for helpful writing information. Resources Introduction to the Accounting Cycle Scoring Guide. Section #4 [u02a2] Unit 2 Assignment 2 Recording Business Transactions This assignment will familiarize you with the beginning steps in the accounting cycle. After completing this assignment, you will understand: o The concepts of a general journal, ledger, and chart of accounts. o How to prepare journal entries from business transactions. o Purposes of a trial balance. o The concepts of horizontal and vertical analysis. Instructions Respond to the following questions or problems using grammatically correct language and appropriate APA citations. To achieve a proficient grade in this assignment, answer the proficient-level queries for each question. To achieve a distinguished grade, answer both sets of queries for each question. 10. Question 1: Proficient: Describe the nature and purposes of the general journal, ledger, and chart of accounts. Distinguished: 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? 11. Question 2: Proficient: 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. Distinguished: Correctly prepare all of the journal entries for the transactions. 12. Question 3: Proficient: What are the purposes of an unadjusted trial balance? Describe the types of accounts that would appear on this type of trial balance. Distinguished: 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? 13. Question 4: Proficient: 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? Distinguished: 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? 14. Question 5: Proficient: What is the difference between horizontal and vertical analysis of financial statements? How is each type calculated and presented for viewing by company stakeholders? Distinguished: How is this type of analysis used by management? Write your responses in a Microsoft Word document and submit it as an attachment in the assignment area. Prior to submitting your assignment, review the Recording Business Transactions Scoring Guide to ensure you have met all of the requirements and as a self-assessment of your work. Be sure to address the questions at the proficient and distinguished levels to achieve the highest grade possible. Note: Your instructor may also use the Writing Feedback Tool to provide feedback on your writing. In the tool, click the linked resources for helpful writing information. Resources Recording Business Transactions Scoring Guide.