Category: Accounting

Complete two accounting exercises in which you prepare adjusting journal entries and income statements and compute financial ratios, inventory costs, and gross profit using a provided worksheet.

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Introduction

This assessment extends your analysis of merchandising activities by focusing on the valuation of the organization’s inventory that is available for sale to wholesalers and point-of-sale consumers. An understanding of inventory accounting helps in the analysis and interpretation of financial statements prepared by large retailers and small owner-operated specialty retailers.

Merchandise Business Accounting

The first assessment dealt with accounting and reporting activities for businesses that provide services to their customers. In contrast to this business type, merchandisers earn their revenues through the purchase and resale of goods. The two most common types of merchandisers are wholesalers and retailers. A wholesaler generally purchases goods from a manufacturer and sells them to retailers or other intermediaries. A retailer buys direct from either the manufacturer or a wholesaler and resells these goods to consumers. There are some fundamental differences between accounting for merchandise and service operations.

Merchandise Inventory

Accounting for inventory affects both the balance sheet and the income statement. The major goal in accounting for inventory is to properly match costs with sales and, as such, use the matching principle to decide how much of the cost of goods available for sale is deducted from sales and how much is carried forward as inventory and matched against future sales.

Overview

This assessment consists of two accounting exercises provided in the Adjusting Entries, Inventory, and Cost of Goods Sold Worksheet. Use this worksheet to record and submit your solutions for Exercises 2-1 and 2-2.

Preparation

In addition, practice problems for each exercise are provided in the practice problems worksheet. This worksheet and the answer key can be found in the Resources area of this assessment and are optional.

Instructions

To complete this assessment, please finish the exercises provided in the following document:

• .

Submission Guidelines

Submit your completed worksheet for faculty evaluation. Please do not submit completed practice problems with your assessment.

Competencies Measured

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and scoring guide criteria:

• Competency 2: Apply accounting principles as the language of business.
  • Prepare adjusting journal entries for merchandising operations.
• Competency 3: Communicate the effects of business events on an organization’s financial structure.
  • Prepare a multiple- or single-step income statement for merchandizing operations.
  • Compute current and acid test financial ratios.
  • Compute inventory costs using three inventory valuation methods.
  • Compute gross profit using three inventory valuation methods.

Complete three accounting exercises related to transaction analysis and financial statements using a provided worksheet.

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Introduction

Accounting is the language used by a business to communicate how well it is performing to its many stakeholders. Stockholders want to know how their money has been used and what return they will receive on their investment. Creditors want to know the business has the financial resources to continue their business relationship. Potential investors want to know if a business is a good investment. Lastly, employees of a business want to know that their hard work is paying off in continued employment. Each of these stakeholders has a vested interest in the success of the business, and financial reporting will provide them with the data needed to make sound business and investment decisions.

The Accounting Cycle

The accounting cycle begins when business events are translated to transactions that affect the financial health of a business, and ends with the preparation of financial statements used to communicate financial health to the various stakeholders of the business.

Adjustments and Financial Statements

The annual reporting period is not always a calendar year ending on December 31. An organization can elect to adopt a fiscal year comprising any 12 consecutive months or 52 consecutive weeks. Regardless of which reporting period an organization chooses, the end of a reporting period requires adjustments that are often necessary to properly reflect revenues when earned and expenses when incurred.

Following these adjustments, an adjusted trial balance will be prepared, and it is from this adjusted trial balance that the necessary financial statements will be prepared. Lastly, certain ledger accounts will require their balances to be closed so they can begin the next accounting period with zero balances. These accounts are known as temporary or nominal accounts. When all of this work has been completed, a new accounting period will begin and the cycle will repeat itself.

Overview

This assessment consists of three accounting exercises provided in the Transaction Analysis and Financial Statements Worksheet. Use this worksheet to record and submit your solutions for Exercises 1-1, 1-2, and 1-3.

Preparation

In addition, practice problems for each exercise are provided in the practice problems worksheet. This worksheet and the answer key can be found in the Resources area of this assessment and are optional.

Instructions

To complete this assessment, please finish the three accounting exercises provided in the following document:

• .

Submission Guidelines

Submit your completed worksheet for faculty evaluation. Please do not submit completed practice problems with your assessment.

Competencies Measured

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and scoring guide criteria:

• Competency 1: Analyze the relationship between business events and accounting.
  • Comparatively analyze two companies, including asset investments, return on assets, and company expenses.
  • Analyze company equity, including correct net income and debt ratio calculations.
• Competency 2: Apply accounting principles as the language of business.
  • Prepare T-accounts, adjusting journal entries, and an adjusted trial balance.

Share repurchase programs are a method for corporations to return funds to shareholders. According to Moyer, et al., from 2004 to 2011, companies in the Standard & Poors 500 stock index (S&P 500) spent $2.7 trillion on repurchases and only $1.8 trillion on dividends (Section 15-6, para. 2). Thus, it is critical that investors understand the mechanics and advantages and disadvantages of stock repurchase programs. Prior to beginning work on this discussion forum, read of the text, with particular attention to sections 15-6 a through h, and read the following articles:

For the initial post,

• If your last name begins with A through L, form an argument that stock repurchase programs are a good capital allocation strategy that benefit all shareholders.
• If your last name begins with M through Z, form an argument that stock repurchase programs are a bad capital allocation strategy that benefit insiders and executives to the detriment of outside shareholders.

In your post (with a minimum of 300 words):

• Explain why a company might implement a stock repurchase program.
• Explain one research study that supports your position (as assigned above, by your last name). For guidance on this see the tip sheet and
  • Include a link to the study in your post.
• Explain the implications of this question for management considering implementing a stock repurchase program.

Prior to beginning work on this discussion forum, read of the text. Dividend policy is a companys decision on the amount of capital to return to shareholders. The total dividends paid out of a corporation have a direct impact on the amount of equity in the companys capital structure, the companys weighted average cost of capital and, thus, a companys investment decisions.

For this discussion forum, select one publicly traded company that is currently paying a dividend. For tips on how to find a company that pays a dividend, review the handout.

In your post (with a minimum of 300 words):

• Identify the most recent dividend per share, as well as declaration date, the ex-dividend date, the record date, the payment date, and the frequency of dividends (e.g., quarterly, annual, etc.).
• Calculate the companys dividend payout ratio.
  • Provide your calculations in a table in your post.
  • Provide links to the source of the financial information you use in the calculation.
• Explain what dividend policy the company uses (e.g., passive residual, stable dollar, constant payout, etc.).
  • Provide evidence for your explanation from the company.
• Determine whether the company paid dividends throughout 2020 or if the dividends were suspended at any time.
• Pose one question you have about dividend policy.

Essay Question: approx. 750 words

View the TED video:

Write a 750 word essay on your reactions to this call for change in our accounting systems to truly account for the costs of production. Do you think this is realistic? What value would obtain from following the practices being proposed. Where do you think firms might struggle with this approach?

I am preparing the quarterly financial statements for a small retail business based in Las Pias, Metro Manila, following Philippine Financial Reporting Standards (PFRS) for Small and Medium-sized Entities (SMEs). The company paid 120,000 in advance for a one-year office rental on January 1, 2026, and 24,000 for a six-month insurance policy on February 1, 2026.

I need clear guidance on:

– The initial journal entry to record each prepaid expense when payment is made

– How to calculate the monthly amortization amount for each item

– The adjusting journal entries required at the end of March 2026 (the end of the quarter)

– Where prepaid expenses are presented on the statement of financial position and how the amortized amounts are reflected in the statement of comprehensive income

– Whether there are any specific disclosure requirements for prepaid expenses under local regulations

I also want to confirm if the treatment differs for VAT-registered businesses, as this company is VAT-registered and the payments include 12% VAT.

Hello, I am a student and I want to learn accounting for earning purposes.

Please explain the basics of accounting in simple language.

Also guide me:

How to start accounting from beginner level

Which skills are required

How I can earn money using accounting skills

Accounting is the process of recording, organizing, summarizing, and reporting financial transactions of a person, business, or organization.

In simple terms: Accounting helps you track money where it comes from and where it goes.

Example:

If you own a small shop:

Money you earn from sales = income

Money you spend on products, rent, etc. = expenses

Accounting helps you:

Know if you are earning or losing money

Make better financial decisions

Keep records for reports or taxes

Key parts of accounting:

Recording writing down all transactions

Classifying grouping similar transactions (like expenses, income)

Summarizing making reports (like total income)

Reporting showing results (like financial statements)

Simple definition:

Accounting is the language of business because it shows the financial health of a business.

La digitalizacin ha cambiado de forma significativa cmo las organizaciones trabajan y crean valor.

Review the scenario and complete the activity below. This scenario can also be found in the Problems Series A section 8-19A of Ch. 8,Performance Evaluation, of Fundamental Managerial Accounting Concepts.Use Excelshowing all work and formulasto complete the following: Prepare a flexible budget. Compute the sales volume variance and the variable cost volume variances based on a comparison between the master budget and theflexible budget. Compute flexible budget variances by comparing the flexible budget with the actual results.Mr. Snow was extremely upset with the budget deficit. He immediately called you, the treasurer, to complain about the budget variance for themeal cost. He told you that the added dessert caused the meal cost to be $4,810 ($25,110 – $20,300) over budget. He added, I could expect acouple hundred dollars one way or the other, but several thousand is totally unacceptable. At the next budget meeting of the budget committee, Iwant you to explain what happened.Create a 6- to 8-slide presentation for the budget committee meeting showing your findings and recommendations from your computations. Complete the following in your presentation: Summarize the results of the sales volume and variable cost volume variances computations based on the comparison between themaster budget and the flexible budget. Summarize the results of the flexible budget variances computations based on the comparison between the flexible budget and the actualresults. Justify the favorable or unfavorable budget variances. Since this is a not-for-profit organization, address why anyone should be concerned with meeting the budget. Make recommendations for what can be done differently to stay on budget for future luncheons. Provide specific examples to support yourrecommendations. Include detailed speaker notes