Accounting, 6th Edition, 1-26 (Charles T. Horngren Series in by Charles T. Horngren, Walter T. Harrison, Linda S. Bamber

By Charles T. Horngren, Walter T. Harrison, Linda S. Bamber

This e-book introduces readers to all the key monetary and administration accounting ideas. It motivates newbies by way of familiarizing them with the accounting concerns dealing with businesses similar to goal, Nantucket Nectars, Teva, Oracle, and a number of businesses doing e-Business. clients can verify their figuring out of bankruptcy themes with “CyberCoach” and “Starter workout” good points, “Working It Out” difficulties, and particular “Concept Links.” for people getting ready for a profession in accounting.

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2. Describe 10 of the items your business must arrange in order to promote and stage the rock concert. 3. Prepare your business’s income statement, statement of owner’s equity, and balance sheet on August 31, 20XX, immediately after the rock concert and before you have had time to pay all the business’s bills and to collect all receivables. Use made-up amounts, and include a complete heading for each financial statement. For the income statement and the statement of owner’s equity, assume the period is the three months ended August 31, 20XX.

300,000 200,000 500,000 $200,000 150,000 50,000 10,000 2,000 412,000 $ 88,000 Apply Your Knowledge 39 1. Suppose you are the Campbells’ banker, and they have given you this income statement. Would you congratulate them on their net income? If so, explain why. If not, how would you advise them to measure the net income of the business? Does the amount of cash in the bank measure net income? Explain. 2. Show the Campbells how to prepare Old Victorian’s balance sheet from their data.

Paid cash for land. Ledger Accounts Cash (1) 30,000 20,000 20,000 Land (2) 20,000 (2) 20,000 TRANSACTION 3 ANALYSIS Gillen purchased $500 of office supplies on account. The asset office supplies increased, so we debit Office Supplies. The liability accounts payable also increased, so we credit Accounts Payable. Accounting Equation ASSETS = Office Supplies +500 Journal Entry LIABILITIES + OWNER’S EQUITY + 0 Accounts Payable = +500 Office Supplies (↑ asset; debit) . . . .

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