Role, Timing, and Mechanics of Accounting Essay Example | Topics and Well Written Essays - 750 words

Role, Timing, and Mechanics of Accounting - Essay ExampleB) The other piece of information required can be the storage of dates on the entries so that they derive in handy for the proper management of records and so that the company can reflect back and learn from the decisions taken in the pastC)Cats and Dogs Company transaction and Profit and Loss Account selection for the month of MarchSalesLess ExpensesInterestExpensesProfit$20650$900(675)225Cats and Dogs CompanyRetained Earning Statement Extract for the month of MarchRetained Earning BeginningNet ProfitLess DividendsRetained Earnings At End$xxx225(25)$200Cats and Dogs Company sense of equilibrium Sheet Extract for the month of MarchAssets immediate paymentShort Term LiabilitiesInterest PayableLong Term LiabilityNotes PayableOwners Equity great(p)Retained Earnings$$20006000200$153252062008220Cats and Dogs CompanyCash Flow Statement Extract for the month of MarchCash from Operating ActivitiesServicesExpensesCash from Investing Ac tivitiesCapitalCash flows from Financing ActivitiesNotesDrawings/DividendsNet Increase in Cash$$9000(650)2000(25)$83506000197516325Part TwoA)a. The equipment (purchased on January 1, 2003) has a useful life of 12 years with no salvage value (Straight-line method is used). Depreciation70000Accumulated Depreciation70000The cost of the asset decreases by 70000b. Interest accrued on the bonds collectible is $20,000 as of December 31, 2003. Interest Expense20000Interest Payable20000The liabilities extend by 20000c. Unexpired insurance at December 31, 2003 is $7,000. This would increase the assets by 7000d. The choose payment of $140,000 covered the four months from December 1, 2003 through March 31, 2004. Interest Prepaid105000Cash105000This would have no affect as one assets increase while the other asset decreasese. Salaries and wages of $28,000 were earned but unpaid at December 31, 2003. Salaries Expense28000Salaries Accrued28000The liabilities would increase by 28000B)1) Trading and benefit and loss account2) Balance sheet-current assets3) Balance sheet-current liabilities4) Balance sheet-current assets5) Balance sheet-current assets6) Balance sheet-Property plant and equipment 7) Balance sheet-current assets8) Balance sheet-current assets9) Balance sheet-current assets10) Balance sheet-stock holders equity11) Trading and do good and loss account12) Trading and profit and loss accountReferences 1) Hagen, K. M. (2005). How To Prepare a Cash Flow Statement. Retrieved February 17, 2008, from Googo Bits http//www.googobits.com/articles/932-how-to-prepare-a-cash-flow-statement.html 2) Preparing the Financial Statements. (2007). Retrieved February 17, 2008, from Net MBA http//www.netmba.com/accounting/fin/ turn/statements/ 3) Sangster, Alan & Wood, Frank (1999), Business Accounting 2, Eighth