Introduction to the Accounting Cycle- Kelvin - 78257

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  • From: Business, Accounting
  • Due on: Thu 21 Jan, 2016 (12:00pm)
  • Asked on: Mon 18 Jan, 2016
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Instructions

Respond to the following questions using grammatically correct language and appropriate APA citations. To achieve a proficient grade in this assignment, answer the proficient-level queries for each question. To achieve a distinguished grade, answer both sets of queries for each question.

  1. Question 1:
     
    • Proficient:
      • Describe the steps in recording and posting the effects of a business transaction and provide some examples of source documents used in these steps.
      • Define debit and credit and name the types of accounts that are (three correct responses):
        • Increased by a debit.
        • Decreased by a debit.
        • Increased by a credit.
        • Decreased by a credit.
    • Distinguished:
      • Correctly identify all of the types of accounts on the list.


      •  
  2. Question 2:
     
    • Proficient:
      • Which steps in the accounting cycle are performed throughout the accounting cycle?
      • Which of the steps in the accounting cycle are performed only at the end of the accounting period?
    • Distinguished:
      • Many of the steps in the accounting cycle can be performed on a computer with an accounting software package. Research three of the most commonly used packages and decide which one you would choose if you were starting a small business this year.


      •  
  3. Question 3:
     
    • Proficient:
      • Why are separate "expense" and "revenue" accounts used when all revenues and expenses could be shown directly in the retained earnings account?
      • Describe three examples of transactions that would affect a firm's income statement. For each transaction, identify if the transaction has a positive or negative effect on the firm's net income.
    • Distinguished:
      • What is the purpose of the "dividends" account and under what circumstances would this account be increased?
      • Under what circumstances would the "dividends" account be decreased?


      •  
  4. Question 4:
     
    • Proficient:
      • Are the following possibilities conceivable in an entry involving only one debit and one credit? Please explain your response for each item. Provide five or six correct responses:
        • Increase a liability and increase an expense.
        • Increase an asset and decrease a liability.
        • Increase revenue and decrease an expense.
        • Decrease an asset and increase another asset.
        • Decrease an asset and increase a liability.
        • Decrease revenue and decrease an asset.
        • Decrease a liability and increase revenue.
    • Distinguished:
      • Correctly identify all of the items.


      •  
  5. Question 5:
     
    • Proficient:
      • Define the "normal" balance for an account.
      • What are the rules of debit and credit for accounts appearing on a firm's balance sheet?
    • Distinguished:
      • Information relating:

        You will observe that a Proficient-level question is asked ... and is then followed by a Distinguished-level question. These two questions are companion questions. After responding to the Proficient-level and Distinguished-level for the first question, respond to the next set of Proficient-level and Distinguished-level questions. Repeat this process until all questions have been responded at both the Proficient-level and Distinguished-level.

        Answering an assignment question completely and correctly only at the Proficient-level generally results in a ranking of Proficient on the Scoring Guide Rubric and will result in a grade of 85% for the entire assignment if each question is graded as Proficient. Answering each question completely and correctly ... AND ... correctly responding to the EXTRA REQUIREMENT contained in the Distinguished-level question for each question ... will result in a Scoring Guide Rubric ranking of Distinguished and will result in a grade of 100% for the entire assignment if each question is answered Proficiently (completely and correctly) AND the correct Distinguished-level  response is also given for each question.

         

        Assignment Hints/Suggestions: The u02a1 assignment is an introduction to the accounting cycle. This assignment will familiarize you with the beginning steps in the accounting cycle. Here are some hints and suggestions for certain questions in this assignment:  

        Question 1: In the last part of the Proficient-level question, you are asked to name the types of accounts that are (and four items are listed.) Here is the correct response to the first item listed, that serves as an example of an acceptable response (feel free to use this response and respond to the other listed items in the same format):

        Increased by a debit:    assets, expenses

        (Provide 3 of 4 correct responses for Proficient-level work. Provide all 4 correct responses for Distinguished-level work.)

         Question 2: In the Distinguished-level question, you are asked to research three of the most commonly used accounting software packages and decide which one you would choose if you were starting a small business this year. I am waiving the need to respond to this question, and assuming you correctly and completely respond to the Proficient-level questions asked in this second question, you will receive a Scoring Guide Rubric grade of "Distinguished."

        Question 3: In the second part of the Proficient-level question, you are asked to describe three examples of transactions that would affect a firm's income statement AND to identify if the transaction has a positive or negative effect on the firm's net income. Here is an example of an acceptable response (from Transaction #7, Page 98):

        "Performed training services for a customer for $5,000 cash. (Since revenue is increased; net income is increased.)"

        Feel free to use this as one of your three required responses. Review all 15 transactions presented in Section 3.8 to find two more transactions that affect a firm's income statement and identify if the transactions has a positive or negative effect on net income.

        Question 4: In the Proficient-level question, you are asked if the listed possibilities are  conceivable in an entry involving only one debit and only one credit and to explain your response.  Here is the correct response to the first item listed, that serves as an example of an acceptable response (feel free to use this response and respond to the other listed items similarly):

        1) Increase a liability and increase an expense?  (It takes a credit to increase a liability and a debit to increase an expense; so this entry is possible because there is one debit and one credit allowed in this "only one debit and only one credit" journal entry.)

        Question 5: To answer this question, the following 4 items constitutes a review of VERY IMPORTANT INFORMATION contained in section 3.4, pages 82-86, stating:

        -Assets increase by debits (left side) to the T-account and decrease by credits (right side) to the T-account.

        -Liabilities and stockholders' equity decreases by debits (left side) to the T-account and increase by credits (right side) to the T-account. 

        -Record increases in revenues on the right (credit) side of the T-account and decreases on the left (debit) side.

        -Record increases in expenses on the left (debit) side of the T-account and decreases on the right (credit) side.

         

        Using the above information obtained from the text, here are some example responses to sections of the 5th question:

        The "normal" balance for an asset would be a debit balance (since assets are increased by debits.) The entry (debit or credit) that increases the account will represent its "normal' balance. Use this response for assets and then give the "normal" balance responses for liabilities and stockholders' equity,  revenues, and expenses.

        The rules of debits and credits for assets is: Assets increase by debits (left side) to the T-account and decrease by credits (right side) to the T-account. Use this response for assets and then give the rules of debits and credits responses for liabilities and stockholders' equity.

        Assignment Hints/Suggestions: The u02a2 assignment relates to recording business transactions and will familiarize you with aspects relating to preparation and use of journal entries. Here are some hints and suggestions for certain questions in this assignment: 

      • Question 1: For the definition of "General Journal" you might consider using your "Dictionary of Accounting Terms" or some other source of information.

        Question 2: In the Proficient-level question, you are asked to prepare journal entries for the listed transactions. Here is the correct response to the first item listed (feel free to use this response and its manner of presentation and respond to the other listed items similarly, and leave a blank row between each set of journal entries):

        Account                               Debit                     Credit

        Cash                                      1,200

        Service Revenue                                              1,200

         

        (Leave a blank row between each of the remaining 5 requested journal entries)

         

         

        (More) Information:

        Write your responses in a Microsoft Word document and submit it as an attachment in the assignment area.

        It is VERY IMPORTANT THAT YOU START OFF ON A STRONG FOOTING in our study of the fundamentals of accounting. Do be prepared to re-read and re-study many of the concepts of this course so as to form a strong base. Students need a strong understanding of the material at the onset of the course because concepts learned early on are required to be solidly understood so as to master concepts to be developed later in the course.

        What are the rules associated with accounts appearing on a firm's income statement?

 

2 Solution for Introduction to the Accounting Cycle- Kelvin
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An introduction to accounting cycle
$15.00 Business, Accounting kelvin777 1 time(s)
ACC 455 Week 1 DQ 1
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