, Literature week I. → ch 2 (106-121), ch3
(162-172), (178-194), ch5 (314 bottom-332)
Exercises week I T-accounts
Cash Assets
P266 A
A. $64.000 C. $66.000 A.$102.000
B. $70.000 E. $3.000 C. $66.000
F.$4600 H. $400 D. $800
j. $4.200 K.$2.200 & $1200
Shareholders equity Notes payable
A. $166.000 H.$400 B. $70.000
D. $800
I.$1.100
Wages expense Accounts receivable
E.$3.000 G. $6.000 j. $4.200
Service revenue Utility expense
F.$4600 I.$1.100
Rent
G. $6.000
K.$2.200
Advertising expense
K.$1.200
, Trial balance November 2x16
Cash $70.000
Acc. Receivable $1800
Assets $168.800
Shares capital $166.000
Notes payable $71.500
Service revenue $10.600
Utility expense $1.100
Rent expense $2.200
Advertising expense $1.200
Wages expense $3.000
Total: $248.100 $248.100
Adjustment entries
P363Aa Insurance expense $2800
Prepaid insurance expense $2800
D Wages expense $2480
Cash or wages payable $2480
C Interest receivable $500
Interest revenue $500
D Supplies expense $6700
Supplies $6700
E Unearned service revenues $10500
Service revenues $10500
F Depreciation expense. $8200
Accumulated depreciation $8200
,P364 A Adjusted trial balance and financial statements
,Bank reconsiliation Explanation
In transit: doesn't come
back in bank statement, so
In transit still needs to be reported.
& in transit
-
Deposit
checks
-
Out of this info, the reconciliation needs to be made.
-
2
Ending balance bank
statement
⑫
Ways to derive - T account Cash ending
balance
②
-
Last step is to make the journal entries, see other page!
, Differences between accounts receivable and notes receivables
Notes receivables are more formal contracts. The borrower signs a written promise and
pays the lender a definite sum at a future dale, plus interest. The lender has collateral
if the borrower is not able to pay the notes Plus interest back.
E5-39Bstartswith starts witen
-
must be equal
, P5-66A
Lecture I: Risk introduction, Business transactions, accrual accounting, receivables.
To
What is risk?—> Risk is related to uncertainty of outcome. it can result in positive
OR negative outcome.
Risk assessment tool for business purposes: COSO framework (1992,2013)
• committee of sponsoring organizations of the treadway Commission (coso).
• joint initiative of private sector organisations; American accounting Association,
aicpa, FEI, ima and the institute of internal auditors.
• COSO provides thought leadership through the development of frameworks and
guidance on;
1. Enterprise risk management.
2. Internal control
3. Fraud deterrence
Operations objectives: pertain to
r
effectiveness and efficiency of the entity's
operations, including performance goals.
Reporting objectives: internal, external and
non-financial reporting; reliability,
timeliness, transparency ect.
Compliance objectives: adherence to laws
and regulations
(162-172), (178-194), ch5 (314 bottom-332)
Exercises week I T-accounts
Cash Assets
P266 A
A. $64.000 C. $66.000 A.$102.000
B. $70.000 E. $3.000 C. $66.000
F.$4600 H. $400 D. $800
j. $4.200 K.$2.200 & $1200
Shareholders equity Notes payable
A. $166.000 H.$400 B. $70.000
D. $800
I.$1.100
Wages expense Accounts receivable
E.$3.000 G. $6.000 j. $4.200
Service revenue Utility expense
F.$4600 I.$1.100
Rent
G. $6.000
K.$2.200
Advertising expense
K.$1.200
, Trial balance November 2x16
Cash $70.000
Acc. Receivable $1800
Assets $168.800
Shares capital $166.000
Notes payable $71.500
Service revenue $10.600
Utility expense $1.100
Rent expense $2.200
Advertising expense $1.200
Wages expense $3.000
Total: $248.100 $248.100
Adjustment entries
P363Aa Insurance expense $2800
Prepaid insurance expense $2800
D Wages expense $2480
Cash or wages payable $2480
C Interest receivable $500
Interest revenue $500
D Supplies expense $6700
Supplies $6700
E Unearned service revenues $10500
Service revenues $10500
F Depreciation expense. $8200
Accumulated depreciation $8200
,P364 A Adjusted trial balance and financial statements
,Bank reconsiliation Explanation
In transit: doesn't come
back in bank statement, so
In transit still needs to be reported.
& in transit
-
Deposit
checks
-
Out of this info, the reconciliation needs to be made.
-
2
Ending balance bank
statement
⑫
Ways to derive - T account Cash ending
balance
②
-
Last step is to make the journal entries, see other page!
, Differences between accounts receivable and notes receivables
Notes receivables are more formal contracts. The borrower signs a written promise and
pays the lender a definite sum at a future dale, plus interest. The lender has collateral
if the borrower is not able to pay the notes Plus interest back.
E5-39Bstartswith starts witen
-
must be equal
, P5-66A
Lecture I: Risk introduction, Business transactions, accrual accounting, receivables.
To
What is risk?—> Risk is related to uncertainty of outcome. it can result in positive
OR negative outcome.
Risk assessment tool for business purposes: COSO framework (1992,2013)
• committee of sponsoring organizations of the treadway Commission (coso).
• joint initiative of private sector organisations; American accounting Association,
aicpa, FEI, ima and the institute of internal auditors.
• COSO provides thought leadership through the development of frameworks and
guidance on;
1. Enterprise risk management.
2. Internal control
3. Fraud deterrence
Operations objectives: pertain to
r
effectiveness and efficiency of the entity's
operations, including performance goals.
Reporting objectives: internal, external and
non-financial reporting; reliability,
timeliness, transparency ect.
Compliance objectives: adherence to laws
and regulations
