the liability account Loan Payable. May 5 Provided $1‚000 of services to Jason Ratchford‚ a client‚ on account. $1‚000 The asset‚ Accounts Receivable (representing amounts due from customers for work already rendered)‚ is increased‚ which is matched with an increase in Revenues‚ Income‚ and Equity. May 9 Paid $1‚250 of salaries to an employee. $1‚250 Cash is decreased‚ as is Income/Equity via the recording of Wages Expense. May 14 Acquired a new computer for $4‚200‚ on account. $4‚200 Supplies
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BE8-1 Presented below are three receivables transactions. Indicate whether these receivables are reported as accounts receivable‚ notes receivable‚ or other receivables on a balance sheet. | (a) | Sold merchandise on account for $64‚000 to a customer. | | (b) | Received a promissory note of $57‚000 for services performed. | | (c) | Advanced $10‚000 to an employee.a. accounts receivableb. notes receivablec. other receivables | | BE9-1 The following expenditures were incurred
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management we are referring to account receivable‚ account payable‚ and inventory. As business owner and operator I’m always trying to find better ways in which I can accelerate the collection of account receivables and stretch out my payables without losing our clientele or damaging our credit rating. My company is involved in a service type business – PRESCHOOLS.- Each of the four locations in operation are unique to the area we provide our service. Account Receivable A/R is one of a series
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employed for the verification of accounts payable because A. Evidence supporting accrued liabilities is nonexistent‚ whereas evidence supporting accounts payable is readily available. B. Accrued liability balances are less material than accounts payable balances. C. Accrued liabilities usually pertain to services of a continuing nature whereas accounts payable are the result of completed transactions. D. Accrued liabilities at year end will become accounts payable during the following year. 4 A
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CHALLENGE: need for business process reengineering in Ford Motor Company Ford Motor Company is the world’s second largest manufacturer of cars and trucks with products sold in more than 200 markets. The company employs nearly 400‚000 people worldwide‚ and has grown to offer consumers eight of the world’s most recognizable automotive brands. CHALLENGE With inherent large-scale growth issues‚ more demanding customers‚ and mounting cost pressures‚ Ford needed to transform from a linear‚ top-down
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cost principle c. the stable-monetary unit concept d. the reliability principle 2. Wendy Craven has $13‚000 of equity in the business. Assets | = | Liabilities | + | Owner’s Equity | | | | | | | | Accounts | | Craven‚ | Cash + Furniture | = | Payable | + | Capital | | | | | | $6‚000 + $12‚000 | = | $5‚000 | + | $13‚000 | (5 min.) S 1-7 | Assets | = | Liabilities + Owner’s Equity | | | | | | | | | | | | | | Cash
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company has large percentages of accounts payable and long-term debt (37% and 41% respectively). When we put these pieces of information we can see how a department store can have financial data that is consistent with firm A. The majority of transactions would be cash sales; however the company still has some accounts receivables‚ this could be explained by the customers who choose to use the department store’s own credit card. The large amount of accounts payable is used to buy inventory for the
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Faculty of Business Studies BE-210 TMA-1 DUE DATE 26th December Part A: Essay Questions (25) 1. Define accounting. Accounting is the information system that measures business activity‚ progress the data into reports and communicates the results to decision makers. And accounting is the language of business. The better you understand the language of business the better you can manage your own business. For example‚ how will you decide whether or not to borrow money? You
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following items appeared in the accounting records of Triguero’s‚ a retail music store that also sponsors concerts. | Classify each of the items as an asset‚ liability; revenue; or expense from the company’s viewpoint. Also indicate the normal account balance of each item. | | | | | | Classification | Normal Balance | a. The albums‚ tapes‚ and CDs held for sale to customers. | A | Debit | b. A long-term loan owed to Citizens Bank. | | L | Credit | c. Promotional costs
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1 Merchandise Inventory 6‚000 Accounts Payable—Abilene 6‚000 Purchased goods on credit. 4 Accounts Payable—Abilene 100 Cash 100 Paid freight for Abilene. 5 Accounts Receivable—Lux 4‚200 Sales 4‚200 Sold goods on credit. 5 Cost of Goods Sold 3‚000 Merchandise Inventory 3‚000 To record the cost of August 5 sale. 8 Merchandise Inventory 5‚540 Accounts Payable—Welch 5‚540 Purchased
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