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Purchases, Cost of sales,
Balances at 31 January 2009: Debtors control account.............................$32,400 Creditors control account...........................$25,200 Inventory...................................................$30,000
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Balance Sheet, Statement of Owner's Equity and Income Statement
Q1: The three primary financial statements that we have seen so far are the Balance Sheet, Statement of Owner’s Equity, and the Income Statement. Please
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Asset Classification & Cashier's Check
Q: I bought a business warehouse. How do I classify this asset if I paid the full amount with a cashier's check? A: This is a pretty simple transaction
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Bank Reconciliation Questions:
What is a Bank Reconciliation and the Bank Reconciliation Process?
An explanation of what a bank reconciliation is as well as the typical process involved.
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What is a Bank Reconciliation and the Bank Reconciliation Process?"
Work-In-Progress Inventory &
Stage Of Completion Valuation
Q: I want to ask how do you calculate opening work in progress inventory and closing work in progress inventory... and whether this calculation should
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Stage Of Completion Valuation"
Questions regarding Debtors and Collecting/Settling Accounts
Q: 1. How do I determine the effectiveness of the internal control system with regards to debtors? 2. What are the strategies that I can implement to
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Cost Price, Sales Price, Mark-Up
Q: How do you find the cost price if the sales are $216,000 and the mark-up is 50%? A: Mark-up literally means the amount you mark up the cost by (the
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Accrued Expenses and Revenue:
Closed or Not?
Q: Does accrued expenses and revenue need to be closed at the end of the accounting period? A: First let's make sure we understand what accrued expenses
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Closed or Not?"
Accounting Entry for Giving Away a Free Sample
Q: What entry will be passed in the general journal for goods taken as a free sample? A: The first thing to work out here is whether free samples would
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Cash Flow Statement and Depreciation
Q: Depreciation charged during the year will come under which activities? A: Depreciation actually does not come under any of the categories of the cash
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Financial Statements and Investors
Q: How are the balance sheet, income statement, statement of owner's equity and statement of cash flow useful for investors? 1. Balance Sheet The balance
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Trial Balance and Financial Statements Exercise
The trial balance of Palicio Security Services Inc. as of January 1, 2016 had the following normal balances: Cash 74,210 Accounts receivable 13,500
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T Accounts, Journal Entry and Trial Balance Exercise
Q: Juan de la Cruz began professional practice as a system analyst on July 1. He plans to prepare a monthly financial statement. During July, the owner
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Debtors and Creditors Ledger Question
Q: Please prepare the debtors and creditors ledger control account for the following: Balances: Debtors (1/1/10) 150,000 Creditors
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Credit Balance in
Q: I was solving an exercise of control accounts in which one of the transactions given was this: Credit balance in purchases ledger transferred from
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Journal Entry for
Recovery of Bad Debts?
Q: What is the double entry of recording recovery of bad debts in control accounts? A: First of all, bad debts are debts owed to the business that have
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Recovery of Bad Debts?"
Journal Entry Question: Settlement of Debtors Account, Bad Debts
Q: Prepare the journal entry or entries for the following transaction: Issued a receipt for R105 to B. Baloyi in settlement of his account of R126. (R
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Purpose of Cashflow Statement
Q: Please what is the main purpose of preparing a cash flow statement in an organization? A: Very good question. The purpose of the cash flow statement
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Cash Flow Statement Question
Q: Cash flow statement shows negative from operating activities but shows positive on cash at the end of the period. Is that possible? A: Yes, this is
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Which Accounts are Affected by these Transactions?
Q: Which accounts are affected in each of the following transactions? April 3 Purchased office supplies on account, $300. April 4 Received prepayment
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Expenditure: Capital vs Revenue in Nature?
Q: State with reasons whether the following expenditure items are capital or revenue in nature: Purchase of Land. Installation of Plant and Machinery
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Cheap College Books - Some Great Resources I Found
Here are a few great resources I found on cheap college books, including renting and selling back your textbooks.
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Gift, Sale, Discount & Carriage Paid By Another
Q: What are the journal entries for the following: 1) Received gift of Rs 51,000 from father-in-law by check, which is deposited into business bank account.
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Gift, Sale, Discount & Carriage Paid By Another"
Journal Entries Accrual Items Question
Q: I want to know how do you make the following journal entries (rs = Rupees = Indian currency): 1. Outstanding expense - rs 3,000 2. Accrued interest
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Journal Entries and T Accounts Exercise
Create journal entries and draw up the T-accounts for the following transactions (Rs. = Rupees = Indian currency): 1. Harish started business with cash
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Journal Entry - Payment on Account
Question: What would be the entries in the journal if the problem is like this: made payments on account, 17,000.00 ? Solution: Here is the entry for
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Equity - Distributed and Undistributed Profits
Q: What is the share of undistributed profits? Do we have distributed profits? A: Yes, there is something called undistributed profits and there is
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Fill in the Blank Questions:
Basic Accounting Equation and Changes to Owners Equity
Q: The summaries of balance sheet and income statement data follow. Beginning of year: Total assets $ 85,000 Total liabilities 62,000 Total
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Basic Accounting Equation and Changes to Owners Equity"
Journal Entry for Credit Card Sales Transaction
Q: Prepare the journal entries for the following credit card sales transactions (the company uses the perpetual inventory system): Sold $3,000 of merchandise
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Journal for Partial Payment and Trade-In of Vehicle
Q: Paid $12,500 for a car which cost $20,000 with the garage accepting $7,500 in part exchange. The old car cost $22,000 and had depreciated by $5,000.
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Q: Write the journal entries for the following transactions: Jan 1 Shayam commenced with cash 15,000. Jan 10 Returned goods to Krishna 350. A: Entries
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Interest charged by the creditor on an overdue account...
would be credit or debit? A: To answer this question you first have to work out what that interest is. Is it an asset, income, expense, liability? The
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T-accounts: Entry for Complex Capital Investment
Q:Owner invested PHp (Philippine Pesos) 500,000 cash along with computer equipment that had a market value of php. 120,000 two years ago but was now worth
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Journal Entry - Rent in Advance
Q: LaBouche Corporation owns a warehouse. On November 1, it rented storage space to a lessee (tenant) for 3 months for a total cash payment of $600 received
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Define Capital Structure
Q: What is the meaning of capital structure? A: The term capital structure refers to the structure of capital (equity) for a business. Actually more often
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Where to Study Accounting - College Search
Deciding on a college where you'll study accounting can be a bit scary. Use our search tools here to find accounting colleges and classes across the US.
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What is a Folio?
Q: What is a folio? A: It's a cross-referencing code, usually a number or a few numbers and letters. It connects two separate records, such as connecting
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Is cash flow affected
Q: Is cash flow affected for a company when they have entered into a terms agreement with their customers and no longer receive cash upfront, but sales
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Accounting Question - LIFO Method
Why would tax accountants prefer to use last-in-first-out method?
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Income Statement - Six Month Period (Multiple Choice Question)
If the income statement covered a six month period ending on November 30, 2010, the third line of the income statement would read: A. Month ended November
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