ACCOUNTING ASSIGNMENT

[Name of the Author]

ACCOUNTING ASSIGNMENT

BUS3061 Fundamentals of Accounting

Instructions

In each of the two sets of organization financial statement information, two items have been omitted. Replace the question marks with the missing amounts. Use the area below the table to show any calculations used to arrive at the final answer for each missing amount.

Smith Industries ($)

Jones Chips, Inc. ($)

Beginning of year:

Total assets

110,000

129,000

Total liabilities

85,000

49,000

Total equities

25,000

80,000

End of year:

Total assets

160,000

180,000

Total liabilities

120,000

50,000

Total equities

40,000

130,000

Changes during the year in equities:

Additional owner investment

11,000

25,000

Owner's withdrawals

29,000

65,000

Total revenues

215,000

100,000

Total expenses

175,000

60,000

Calculation

For Jones Chip Inc:

Total Liabilities= Total Assets-Total Equities

Total Liabilities= 129,000- 80,000

Total Liabilities= 49,000

Owner's Withdrawal= Total revenue- Total expenses+ Additional owner investment- Difference in Equities

Owner's Withdrawal= 100,000- 60,000+25,000

Owner's Withdrawal= 65,000

Smith Industries:

Total Equities= Total Assets-Total Liabilities

Total Equities=110,000-85,000

Total Equities=25,000

Additional owner investment = Total revenue- Total expenses- Owner's Withdrawal

Additional owner investment = 215,000- 175,000- 29,000

Additional owner investment = 11,000

BUS3061 Fundamentals of Accounting

Instructions

Determine the correct balance sheet category for each of the following accounts. Using the following designations for balance sheet categories, place the correct designator in the Balance Sheet Category column next to the associated account title.

CA - Current Asset

LTA - Long-term Asset

CL - Current Liability

LTL - Long-term Liability

EQ - Equity

Account Title

Balance Sheet Category

1.Accounts payable.

CL

2.Equipment.

LTA

3.Prepaid rent.

Current Asset

4.Short-term investments.

CL

5.Accounts receivable.

Current Asset

6.Land.

LTA

7.Common stock.

Equity

8.Cash.

Current Asset

9.Accumulated depreciation.

Current Asset

10.Goodwill.

LTA

11.Bonds payable.

CL

12.Retained earnings.

Equity

13.Preferred stock.

Equity

14.Mortgage payable.

CL

15.Salaries payable.

CL

16.Allowance for uncollectables.

CL

17.Inventories.

Current Asset

18.Patent.

LTA

19.Income tax payable.

Current Liability

20.Security deposits.

Long-term Asset

Blaze IndustriesBalance Sheet, as of December 31, 2011

CURRENT ASSETS

Cash

$3,050.00

Prepaid insurance

$830.00

Accounts receivable

$400.00

Supplies

$80.00.

FIXED ASSETS

Equipment

$217,200.00.

Less: depreciation

($29,100.00.)

$188100.00.

CURRENT LIABILITIES

Advances from customers

$460.00.

Wages payable

$880.00.

Interest payable

$3,600.00.

LONG TERM LIABILITIES

Long-term bonds payable

$150,000.00

EQUITIES

Retained earnings

$27,520.00.

Common Stock

$10,000.00.

TOTAL

$19,2460

$19,2460

The balance sheet (BS) is one component of the financial statements. A standard set of financial statements includes the balance sheet, income statement, statement of cash flows, and associated footnotes. These statements can be issued on a daily, monthly, quarterly, or annual basis. If accounting is the basic language of business, then financial statements are the fundamental scorecards that report organizational performance, and the balance sheet is the operational snapshot of an organization's financial situation at a particular point in time (for example, organization X's balance sheet as of December 31, 2008). The income statement and statement of cash flows depict the activities of the organization over a period of time (such as organization X's income statement for the year ending December 31, 2008).

A typical balance sheet has three sections: assets, liabilities, and owners' equity. Assets are resources the organization owns that will provide the organization with future benefits (that is, that have a quantifiable monetary value), such as cash, equipment, and buildings. Liabilities are organizational obligations that will require future cash outlays, such as accounts payables, pension liabilities, and long-term debt. Owners' equity has several components. Owners' equity includes the cumulative effect of common and preferred stock transactions and retained earnings. Retained earnings represent, since the organization's inception, the total net income earned less any dividends that have been paid to owners. Although financial statements, including the balance sheet, are based on a number of different assumptions, it is important that health care professionals understand that accounting financial statements provide valuable data that are reliable, comparable, and consistent

The balance sheet also has an order (structure) to ...