COMPLETE THE UPLOADED WORKSHEET
Part 1 – Accounting Cycle
| BUS-FPX2061 Assessment 2 Template | |
| PART 1: Accounting Cycle | |
| Respond to the following eight questions using grammatically correct language. | |
| 1. Describe the steps in recording and posting the effects of a business transaction.
Provide some examples of source documents used in these steps. |
[Answer here] |
| 2. Which steps in the accounting cycle are performed throughout the accounting cycle? | [Answer here] |
| 3. Which of the steps in the accounting cycle are performed only at the end of the accounting period? | [Answer here] |
| 4. How do ethical considerations impact each stage of the accounting cycle? Provide specific examples. | [Answer here] |
| 5. What is the purpose of the “dividends” account?
Under what circumstances would this account be increased? |
[Answer here] |
| 6. What are the rules of debit and credit for accounts appearing on a firm’s balance sheet and income statement? | [Answer here] |
| 7. Describe the nature and purposes of the general journal, ledger, and chart of accounts. | [Answer here] |
| 8. What are the purposes of an unadjusted trial balance?
Describe the types of accounts that would appear on this type of trial balance. |
[Answer here] |
| 9. If you found that the total of the debits column of the trial balance for a company is $200,000, while the total of the credits column is $180,000, what are some possible causes of this difference? | [Answer here] |
Part 2 – Journal Entries
| PART 2: Journal Entries | |||
| Create appropriate journal entries for each of the following business events. Fill in the yellow cells in columns B, C, and D as appropriate. | |||
| Cash. | |||
| Prepaid insurance. | |||
| Land. | |||
| Buildings. | |||
| Equipment. | |||
| Accounts payable. | |||
| Unearned service revenue. | |||
| Owner’s capital. | |||
| Owner’s drawings. | |||
| Service revenue. | |||
| Advertising expense. | |||
| Salaries and wages expense. | |||
| 1-May | Invested $45,000 cash in the golf course business. | ||
| 3-May | Purchased Hampstead Golf Land for $40,000 cash. The price includes land $22,000, shed $16,000, and equipment $2,000. | ||
| 5-May | Paid advertising expenses of $8,800. | ||
| 6-May | Paid cash $12,000 for a one-year insurance policy. | ||
| 10-May | Purchased golf discs and other equipment for $12,075 from Discs Are Us, payable in 30 days. | ||
| 18-May | Received $9,985 in cash for golf fees earned (service revenue). | ||
| 19-May | Sold 370 coupon books for $25 each. Each book contains four coupons that enable the holder to play one round of disc golf. | ||
| 25-May | Withdrew $1,250 cash for personal use. | ||
| 30-May | Pay $2,500 as salaries for part-time employees. | ||
| 30-May | Paid Discs Are Us the full amount due. | ||
| 31-May | Received $31,000 cash for fees earned. | ||
| Note: The first two rows below are an example for cash. | |||
| Date | Accounts | Debit | Credit |
| 1-May | Cash | $20,000 | |
| Owner’s Capital | $20,000 | ||
