Essay Available:
Pages:
2 pages/β550 words
Sources:
3 Sources
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 9.36
Topic:
Economic Transaction and Ending Inventory
Essay Instructions:
SLP Assignment ExpectationsPrepare a balance sheet for the company in good format. Update the balance sheet for the changes to income in Module 2 and also consider the effect of paying the dividend. You do not need to include the income statement.The submission should be 2- to 4-pages and need to include answers to all the questions listed above. Show computations, discuss the results, and include references in APA format.
Essay Sample Content Preview:
Module 3 - SLP
Your Name
Date
Addition Information added in Module 2
1st Bullet - No Economic Transaction Occurred in this bullet
2nd Bullet - The Ending Inventory was understated by $8,500 ($42,500- $34,000) because of its non-adjustment. Every year-end, the beginning inventory must be cancelled out by crediting it and debiting the year-old inventory. The cost of goods sold must have been $298,500 ($307,000-$8,500) since understating the ending inventory would result to an overstated cost of goods sold; This in turn would understate net income. This is true because the ending inventory is being deducted to arrive at the resulting figure, which is cost of goods sold. Another thing to note is that the physical count must be followed/used in determining the ending inventory since it proves the actual inventory units during the end of the year.
Additional Information for Module 3
1st bullet- During the offering, $180,000 was raised, inclusive of paid-in capital amounting to $150,000. Therefore, $30,000 ($180,000-$150,000) of the amount raised will be added to the common stock account. Therefore, the adjusted balances of the account’s common stock and pain-in capital should be $40,000 ($10,000+$30,000) and $200,000 ($50,000+ $150,000), respectively. Cash would also increase by $180,000, the total amount raised.
2nd bullet - This transaction would reduce retained earnings and the cash account by $15,000
3rd bullet - The Land account is to be debited in the amount of $400,000 while the cash and notes payable accounts should be credited by $40,000 and $360,000, respectively.
Entries:
Entries
Amount (in USD)
Inventory, End
42,500
Inventory, Beginning
34,000
Cost of goods
8,500
Cash
180,000
Common stock
30,000
Paid-in capital
150,000
Land
400,000
Cash
40,000
Notes payable
360,000
Retained Earnings
15,000
Cash
15,000
Nybrostrand Company
Trial Balance (in USD)
Entries
Unadjusted
Adjustments
Adjusted
Debit
Credit
Debit
Credit
Debit
Credit
Accounts payable
98,000
78,000
Accounts recievable
36,000
36,000
Cash
30,000
125,000
155,000
Common stock
10,000
30,000
40,000
Depreciation expense
24,350
24,350
Cost of goods sold
307,000
8,000
298,500
Equipment, Net
415,000
415,000
Insurance
1,400
1,400
Inventory
34,000
42,500
Updated on
Your Name
Date
Addition Information added in Module 2
1st Bullet - No Economic Transaction Occurred in this bullet
2nd Bullet - The Ending Inventory was understated by $8,500 ($42,500- $34,000) because of its non-adjustment. Every year-end, the beginning inventory must be cancelled out by crediting it and debiting the year-old inventory. The cost of goods sold must have been $298,500 ($307,000-$8,500) since understating the ending inventory would result to an overstated cost of goods sold; This in turn would understate net income. This is true because the ending inventory is being deducted to arrive at the resulting figure, which is cost of goods sold. Another thing to note is that the physical count must be followed/used in determining the ending inventory since it proves the actual inventory units during the end of the year.
Additional Information for Module 3
1st bullet- During the offering, $180,000 was raised, inclusive of paid-in capital amounting to $150,000. Therefore, $30,000 ($180,000-$150,000) of the amount raised will be added to the common stock account. Therefore, the adjusted balances of the account’s common stock and pain-in capital should be $40,000 ($10,000+$30,000) and $200,000 ($50,000+ $150,000), respectively. Cash would also increase by $180,000, the total amount raised.
2nd bullet - This transaction would reduce retained earnings and the cash account by $15,000
3rd bullet - The Land account is to be debited in the amount of $400,000 while the cash and notes payable accounts should be credited by $40,000 and $360,000, respectively.
Entries:
Entries
Amount (in USD)
Inventory, End
42,500
Inventory, Beginning
34,000
Cost of goods
8,500
Cash
180,000
Common stock
30,000
Paid-in capital
150,000
Land
400,000
Cash
40,000
Notes payable
360,000
Retained Earnings
15,000
Cash
15,000
Nybrostrand Company
Trial Balance (in USD)
Entries
Unadjusted
Adjustments
Adjusted
Debit
Credit
Debit
Credit
Debit
Credit
Accounts payable
98,000
78,000
Accounts recievable
36,000
36,000
Cash
30,000
125,000
155,000
Common stock
10,000
30,000
40,000
Depreciation expense
24,350
24,350
Cost of goods sold
307,000
8,000
298,500
Equipment, Net
415,000
415,000
Insurance
1,400
1,400
Inventory
34,000
42,500
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