24 Mar You will describe elements of the accounting environment and prepare an income statement, balance sheet, and statement of retaine
You will describe elements of the accounting environment and prepare an income statement, balance sheet, and statement of retained earnings.
Imagine you are trying to grow your business by attracting investors, clients, or securing a loan. You’ll need to tell a compelling story that demonstrates your understanding of business finance and the language it speaks—the language of accountants. Accounting is often called the language of business, and rightfully so, because effective business organizations set up an accounting information system to communicate data to help internal and external stakeholders make better decisions. Reporting the results of an organization’s business transactions to these stakeholders requires the preparation of financial reports such as a balance sheet (statement of financial position), retained earnings, and the income statements. Accurate preparations of these statements require essential accounting knowledge and skills.
In this assessment, you are required to:
- Answer questions designed to test your knowledge of the basic accounting environment.
- Prepare income, balance, and retained earnings statements.
Part 1 – Accounting Environment
|BUS3061 Week 1 Assignment Template|
|PART 1: Accounting Environment|
|Respond to the following 6 questions using grammatically correct language.|
|1. Describe the similarities and differences between the two categories (Financial & Managerial Accounting) and provide examples of the users of each type of data that are the result of the work in each category.||[Answer here]|
|2. Describe the four major types of internal management decisions that utilize management accounting information.||[Answer here]|
|3. Identify each of the six organizations that are influential in the establishment of GAAP and discuss their role.||[Answer here]|
|4. Identify and describe the three basic forms of business organization. Include the advantages and disadvantages of all three.||[Answer here]|
|5. Identify the primary objectives of every business. What are the four basic financial statements that measure the primary objectives of every business? Describe what information each statement presents and which of the primary objective(s) can be met through the information presented on the statement.||[Answer here]|
|6. Describe the difference between an asset, liability, and equity on a company’s balance sheet.||[Answer here]|
Part 2 – Income Statement
|PART 2: Income Statement|
|Complete the income statement for the following transactions for June 2010 disclosed Fill in the yellow cells as appropriate.|
|Equipment rent expense||$50,000|
|Film rent expense||$53,400|
|Cash dividends declared and paid||$12,000|
|Balance sheet amounts at June 30 include the following:|
|Retained earnings as of 2010 June 1||$84,900|
|Prepare the Income Statement|
Part 3 – Retained Earnings
|PART 3: Statement of Retained Earnings|
|Complete the statement of retained earnings using information from Part 2. Fill in the yellow cells as appropriate.|
|Retained Earnings – June 1|
|Add: Net income|
|Reatined Earnings – End|
Part 4 – Balance Sheet
|PART 4: Balance Sheet|
|Complete the balance sheet using information from Part 2. Fill in the yellow cells as appropriate.|
|Liabilities and Equities|
|Total Liab. & Eq.|
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