STUDENT: PROFESSOR: COURSE: DATE: T-ACCOUNTS TRIAL BALANCE AND IMPORTANCE OF BUSINESS REPORTS. Construction of T-accounts based on a single day J. LOPEZ CAPITAL DR CR cash 5700 computers 4300 office equipment 3600 bal c/f 10600 10600 totals 10600 Bal B/D 10600 COMPUTERS DR CR payable 480 Capital 4300 bal c/d 9100 4780 4780 bal d/d 4780 PAYABLES DR CR supplies 330 Salaries 440 computers 480 advertising exp. 190 office equip 380 utilities 90 repair expense 40 dr OFFICE EQUIPMENT CR Capital 3600 payables 380 bal. c/f firm or executing an already ongoing policy which has proven to have increasing returns. In our trial balance we can extract some important ways in which meaningful interpretation can be deduced. For example the current total expenses proportion to the total equity by the owners can be used to assess how the management is yielding returns to owners’ equity. Too revenue can be compared with the expenses to predict on whether the proportion constant or changing. In this way the firm can determine on when appropriate. [...]
Chapter 2 P3 Transaction Analysis, T Accounts and Trial Balance (p.77) (18 points) C4 Interpreting Financial Statements: Cash Flows (p.83) (10 points) Students should use the Excel template provided for P3 then save as “[Student’s last name] Ch 2 P3” before submitting for grading.