The Accounting Cycle and Journal Entries DP

Accountingassessment2.xlsx

Part 1 - Accounting Cycle

BUS-FPX3061 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 and 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. What is the purpose of the "dividends" account and under what circumstances would this account be increased?	[Answer here]
5. What are the rules of debit and credit for accounts appearing on a firm's balance sheet and income statement?	[Answer here]
6. Describe the nature and purposes of the general journal, ledger, and chart of accounts.	[Answer here]
7. 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]

8. 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
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 $20,000 cash in the golf course business.
3-May	Purchased Hampstead Golf Land for $15,000 cash. The price includes land $12,000, shed $2,000, and equipment $1,000.
5-May	Paid advertising expenses of $700.
6-May	Paid cash $600 for a one-year insurance policy.
10-May	Purchased golf discs and other equipment for $1,050 from Discs Are Us, payable in 30 days.
18-May	Received $1,100 in cash for golf fees earned (service revenue).
19-May	Sold 150 coupon books for $10 each. Each book contains four coupons that enable the holder to play one round of disc golf.
25-May	Withdrew $800 cash for personal use.
30-May	Pay $250 as salaries for part-time employees.
30-May	Paid Discs Are Us the full amount due.
31-May	Received $2,100 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