Description Part 1: Categorizing Balance Sheet AccountAccounts are either temporary or permanent, with the temporary ones assigned to revenues and expenses, leaving the permanent ones to reside on the balance sheet. Because the balance sheet reflects all journal entries affecting the business since inception, knowledge of the placement of each account is essential to preparing the statement. Because you have been studying the parts of the balance sheet, this is an opportunity to apply your knowledge to an important piece of the accounting cycle.Determine the correct balance sheet category for each of the following accounts. Use the Assessment 2, Part 1 Template to complete this part of the assessment.Accounts payable.Equipment.Prepaid rent.Short-term investments.Accounts receivable.Land.Common stock.Cash.Accumulated depreciation.Goodwill.Bonds payable.Retained earnings.Preferred stock.Mortgage payable.Salaries payable.Allowance for uncollectibles.Inventories.Patent.Income tax payable.Security deposits.Part 2: Balance Sheet PreparationReporting the results of an organization’s business transactions requires the preparation of financial statements that will be shared with both internal and external users of financial data. For this reason, preparation of the balance sheet, or statement of financial position, is an essential skill and requires the accountant to take information from the accounting system and summarize it in a single location. This assessment demonstrates your skill in the preparation of this financial statement.Use the following account information to prepare the 2011 balance sheet for Blaze Industries. Be sure to use the proper balance sheet format. If you need to research this format, you may wish to start with the suggested materials in the Resources. Use the Assessment 2, Part 2 Template to complete this part of the assessment.Wages payable: $880.00.Supplies: $80.00.Common stock: $10,000.00.Equipment: $217,200.00.Interest payable: $3,600.00.Retained earnings: $27,520.00.Accounts receivable: $400.00.Long-term bonds payable: $150,000.00.Cash: $3,050.00.Advances from customers: $460.00.Prepaid insurance: $830.00.Accumulated depreciation: $29,100.00.Part 3: Income Statement PreparationGenerally accepted accounting principles (GAAP) require organizations to prepare both an income statement and a balance sheet. Before the balance sheet can be prepared, the organization’s net income must be determined. This requires the accountant to pull together data from numerous system accounts and other sources of information. In this part of the assessment, demonstrate your skill in putting together the necessary account data and preparing an income statement in good form.Use the Assessment 2, Part 3 Template to complete Part 3 of the assessment. On the first page of the template is financial data for Southwest Business School. On the second page is a blank income statement. Use the information provided on the first page to prepare the income statement on the second page.Part 4: Analyzing Items in the Financial StatementBalance sheets do not always balance once they are prepared, and income statements do not always contain correct account data. This can cause havoc across the accounting department and requires the accountant to locate the missing or incorrect data. Financial statement preparation will be an important skill during this process, as you will discover when you determine the missing amounts in the statement in this part of the assessment.Use the Assessment 2, Part 4 template to complete Part 4 of the assessment. In each of the two sets of organization financial statement information provided in the template, two items have been omitted. Analyze the financial statements to determine the missing amounts and fill them in on the template to complete the financial statement information. Be sure to show your work in the space provided under the table in the template. 4 attachmentsSlide 1 of 4attachment_1attachment_1attachment_2attachment_2attachment_3attachment_3attachment_4attachment_4.slider-slide > img { width: 100%; display: block; } .slider-slide > img:focus { margin: auto; } Unformatted Attachment Preview BUS-FP3061 Assessment 2, Part 2 Template BUS-FP3061 Fundamentals of Accounting Use the following account information to prepare the 2011 balance sheet for Blaze Industries. Be sure to use the proper format. If you need to research the format for balance sheets, you may wish to start with the suggested materials in Resources. • • • • • • • • • • • • Wages payable – $880.00. Supplies – $80.00. Common stock – $10,000.00. Equipment – $217,200.00. Interest payable – $3,600.00. Retained earnings – $27,520.00. Accounts receivable – $400.00. Long-term bonds payable – $150,000.00. Cash – $3,050.00. Advances from customers – $460.00. Prepaid insurance – $830.00. Accumulated depreciation – $29,100.00. Capella Proprietary and Confidential ShortDoc_Internal.doc Last updated: 7/22/2020 10:42 PM 1 BUS-FP3061 Assessment 2, Part 2 Template Blaze Industries Balance Sheet, as of December 31, 2011 Capella Proprietary and Confidential ShortDoc_Internal.doc Last updated: 7/22/2020 10:42 PM 2 BUS-FP3061 Assessment 2, Part 3 Template BUS-FP3061 – Fundamentals of Accounting Southwest Business School Adjusted Trial Balance December 31 20XX Debit ($) Cash ………………………………………………………………………………. 26,000 Accounts receivable ………………………………………………………….. 7,500 Teaching supplies …………………………………………………………….. 2,600 Prepaid insurance …………………………………………………………….. 12,000 Prepaid rent …………………………………………………………………….. 0 Professional library …………………………………………………………… 30,000 Accumulated depreciation—Professional library ……………………. Equipment……………………………………………………………………….. Credit ($) 15,000 70,000 Accumulated depreciation—Equipment ……………………………….. 28,000 Accounts payable……………………………………………………………… 36,000 Salaries payable ………………………………………………………………. 400 Unearned training fees ………………………………………………………. 6,600 Common stock …………………………………………………………………. 10,000 Retained earnings …………………………………………………………….. 53,600 Dividends ………………………………………………………………………… 40,000 Tuition fees earned …………………………………………………………… 109,500 Training fees earned …………………………………………………………. 42,400 Depreciation expense—Professional library ………………………….. 6,000 Depreciation expense—Equipment ……………………………………… 12,000 Salaries expense ……………………………………………………………… 48,400 Insurance expense……………………………………………………………. 3,000 Rent expense…………………………………………………………………… 24,000 Teaching supplies expense ………………………………………………… 7,400 Advertising expense ………………………………………………………….. 7,000 Utilities expense ……………………………………………………………….. 5,600 _______ Totals …………………………………………………………………………….. $301,500 $301,500 Capella Proprietary and Confidential ShortDoc_Internal.doc Last updated: 7/22/2020 10:42 PM 1 Southwest Business School Income Statement For Year Ended December 31, 20XX Capella Proprietary and Confidential ShortDoc_Internal.doc Last updated: 7/22/2020 10:42 PM 2 BUS-FP3061 Assessment 2, Part 4 Template BUS-FP3061 – Fundamentals of Accounting Instructions In each of the two sets of organization financial statement information, two items have been omitted. Replace the question marks with the missing amounts. Use the area below the table to show any calculations used to arrive at the final answer for each missing amount. Smith Industries ($) Jones Chips, Inc. ($) Beginning of year: Total assets 110,000 129,000 85,000 ? ? 80,000 Total assets 160,000 180,000 Total liabilities 120,000 50,000 Total equities 40,000 130,000 ? 25,000 29,000 ? Total revenues 215,000 100,000 Total expenses 175,000 60,000 Total liabilities Total equities End of year: Changes during the year in equities: Additional owner investment Owner’s withdrawals Capella Proprietary and Confidential ShortDoc_Internal.doc Last updated: 7/22/2020 10:41 PM 1 BUS-FP3061 – Fundamental Accounting Principles Assessment 2, Part 1 Template Instructions: Using the following designations for balance sheet categories, place the designator in the column next to the account title. • (CA) – Current Asset • (LTA) – Long-term Asset • (CL) – Current Liability • (LTL) – Long-term Liability • (EQ) – Equity Account Title Accounts Payable Equipment Prepaid rent Short-term investments Accounts receivable Land Common stock Cash Accumulated depreciation Goodwill Bonds payable Retained earnings Preferred stock Mortgage payable Salaries payable Allowance for uncollectibles Inventories Patent Income tax payable Short-term security deposits Balance Sheet Category Purchase answer to see full attachment Tags: Investment Analysis Accounts Payable fundamentals of accounting Short Term Investment tangible assets User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.

Description

Part 1: Categorizing Balance Sheet AccountAccounts are either temporary or permanent, with the temporary ones assigned to revenues and expenses, leaving the permanent ones to reside on the balance sheet. Because the balance sheet reflects all journal entries affecting the business since inception, knowledge of the placement of each account is essential to preparing the statement. Because you have been studying the parts of the balance sheet, this is an opportunity to apply your knowledge to an important piece of the accounting cycle.Determine the correct balance sheet category for each of the following accounts. Use the Assessment 2, Part 1 Template to complete this part of the assessment.Accounts payable.Equipment.Prepaid rent.Short-term investments.Accounts receivable.Land.Common stock.Cash.Accumulated depreciation.Goodwill.Bonds payable.Retained earnings.Preferred stock.Mortgage payable.Salaries payable.Allowance for uncollectibles.Inventories.Patent.Income tax payable.Security deposits.Part 2: Balance Sheet PreparationReporting the results of an organization’s business transactions requires the preparation of financial statements that will be shared with both internal and external users of financial data. For this reason, preparation of the balance sheet, or statement of financial position, is an essential skill and requires the accountant to take information from the accounting system and summarize it in a single location. This assessment demonstrates your skill in the preparation of this financial statement.Use the following account information to prepare the 2011 balance sheet for Blaze Industries. Be sure to use the proper balance sheet format. If you need to research this format, you may wish to start with the suggested materials in the Resources. Use the Assessment 2, Part 2 Template to complete this part of the assessment.Wages payable: $880.00.Supplies: $80.00.Common stock: $10,000.00.Equipment: $217,200.00.Interest payable: $3,600.00.Retained earnings: $27,520.00.Accounts receivable: $400.00.Long-term bonds payable: $150,000.00.Cash: $3,050.00.Advances from customers: $460.00.Prepaid insurance: $830.00.Accumulated depreciation: $29,100.00.Part 3: Income Statement PreparationGenerally accepted accounting principles (GAAP) require organizations to prepare both an income statement and a balance sheet. Before the balance sheet can be prepared, the organization’s net income must be determined. This requires the accountant to pull together data from numerous system accounts and other sources of information. In this part of the assessment, demonstrate your skill in putting together the necessary account data and preparing an income statement in good form.Use the Assessment 2, Part 3 Template to complete Part 3 of the assessment. On the first page of the template is financial data for Southwest Business School. On the second page is a blank income statement. Use the information provided on the first page to prepare the income statement on the second page.Part 4: Analyzing Items in the Financial StatementBalance sheets do not always balance once they are prepared, and income statements do not always contain correct account data. This can cause havoc across the accounting department and requires the accountant to locate the missing or incorrect data. Financial statement preparation will be an important skill during this process, as you will discover when you determine the missing amounts in the statement in this part of the assessment.Use the Assessment 2, Part 4 template to complete Part 4 of the assessment. In each of the two sets of organization financial statement information provided in the template, two items have been omitted. Analyze the financial statements to determine the missing amounts and fill them in on the template to complete the financial statement information. Be sure to show your work in the space provided under the table in the template.

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Unformatted Attachment Preview

BUS-FP3061 Assessment 2, Part 2 Template
BUS-FP3061 Fundamentals of Accounting
Use the following account information to prepare the 2011 balance sheet for Blaze Industries.
Be sure to use the proper format. If you need to research the format for balance sheets, you
may wish to start with the suggested materials in Resources.
•
•
•
•
•
•
•
•
•
•
•
•
Wages payable – $880.00.
Supplies – $80.00.
Common stock – $10,000.00.
Equipment – $217,200.00.
Interest payable – $3,600.00.
Retained earnings – $27,520.00.
Accounts receivable – $400.00.
Long-term bonds payable – $150,000.00.
Cash – $3,050.00.
Advances from customers – $460.00.
Prepaid insurance – $830.00.
Accumulated depreciation – $29,100.00.
Capella Proprietary and Confidential
ShortDoc_Internal.doc
Last updated: 7/22/2020 10:42 PM
1
BUS-FP3061 Assessment 2, Part 2 Template
Blaze Industries
Balance Sheet, as of December 31, 2011
Capella Proprietary and Confidential
ShortDoc_Internal.doc
Last updated: 7/22/2020 10:42 PM
2
BUS-FP3061 Assessment 2, Part 3 Template
BUS-FP3061 – Fundamentals of Accounting
Southwest Business School
Adjusted Trial Balance
December 31 20XX
Debit ($)
Cash ……………………………………………………………………………….
26,000
Accounts receivable …………………………………………………………..
7,500
Teaching supplies ……………………………………………………………..
2,600
Prepaid insurance ……………………………………………………………..
12,000
Prepaid rent ……………………………………………………………………..
0
Professional library ……………………………………………………………
30,000
Accumulated depreciation—Professional library …………………….
Equipment………………………………………………………………………..
Credit ($)
15,000
70,000
Accumulated depreciation—Equipment ………………………………..
28,000
Accounts payable………………………………………………………………
36,000
Salaries payable ……………………………………………………………….
400
Unearned training fees ……………………………………………………….
6,600
Common stock ………………………………………………………………….
10,000
Retained earnings ……………………………………………………………..
53,600

Dividends …………………………………………………………………………
40,000
Tuition fees earned ……………………………………………………………
109,500
Training fees earned ………………………………………………………….
42,400
Depreciation expense—Professional library …………………………..
6,000
Depreciation expense—Equipment ………………………………………
12,000
Salaries expense ………………………………………………………………
48,400
Insurance expense…………………………………………………………….
3,000
Rent expense……………………………………………………………………
24,000
Teaching supplies expense …………………………………………………
7,400
Advertising expense …………………………………………………………..
7,000
Utilities expense ………………………………………………………………..
5,600
_______
Totals ……………………………………………………………………………..
$301,500
$301,500
Capella Proprietary and Confidential
ShortDoc_Internal.doc
Last updated: 7/22/2020 10:42 PM
1
Southwest Business School
Income Statement
For Year Ended December 31, 20XX
Capella Proprietary and Confidential
ShortDoc_Internal.doc
Last updated: 7/22/2020 10:42 PM
2
BUS-FP3061 Assessment 2, Part 4 Template
BUS-FP3061 – Fundamentals of Accounting
Instructions
In each of the two sets of organization financial statement information, two items have been
omitted. Replace the question marks with the missing amounts. Use the area below the table to
show any calculations used to arrive at the final answer for each missing amount.
Smith Industries
($)
Jones Chips, Inc.
($)
Beginning of year:
Total assets
110,000
129,000
85,000
?
?
80,000
Total assets
160,000
180,000
Total liabilities
120,000
50,000
Total equities
40,000
130,000
?
25,000
29,000
?
Total revenues
215,000
100,000
Total expenses
175,000
60,000
Total liabilities
Total equities
End of year:
Changes during the year in equities:
Additional owner investment
Owner’s withdrawals
Capella Proprietary and Confidential
ShortDoc_Internal.doc
Last updated: 7/22/2020 10:41 PM
1
BUS-FP3061 – Fundamental Accounting Principles
Assessment 2, Part 1 Template
Instructions: Using the following designations for balance sheet categories, place the
designator in the column next to the account title.
• (CA) – Current Asset
• (LTA) – Long-term Asset
• (CL) – Current Liability
• (LTL) – Long-term Liability
• (EQ) – Equity
Account Title
Accounts Payable
Equipment
Prepaid rent
Short-term investments
Accounts receivable
Land
Common stock
Cash
Accumulated depreciation
Goodwill
Bonds payable
Retained earnings
Preferred stock
Mortgage payable
Salaries payable
Allowance for uncollectibles
Inventories
Patent
Income tax payable
Short-term security deposits
Balance Sheet Category

Purchase answer to see full
attachment

Tags:
Investment Analysis

Accounts Payable

fundamentals of accounting

Short Term Investment

tangible assets

User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.