Description
The key to understanding how to create financial statements is to know which statement each account (bank, accounts payable, utility expense, etc.) will appear on. See the video in Additional Resources for more detailed instructions.
Use the statements below (a-c) to answer Question #1:
Income statement (IS)
Statement of owner’s equity (OE)
Balance sheet (BS)
Identify which statement is associated with the following accounts below:
Cash (IS, OE or BS?)
Computer (IS, OE or BS?)
Computer Equipment (IS, OE, or BS?)
Accounts Payable (IS, OE or BS?)
L. Bradford, Capital (IS, OE, or BS?)
L. Bradford, Withdrawals (IS, OE or BS?)
Legal Fees Earned (IS, OE or BS?)
Consulting Fees Earned (IS, OE or BS?)
Wage Expense (IS, OE or BS?)
Supplies Expense (IS, OE or BS?)
Sell Shares of Stock (IS, OE or BS?)
Anni’s Delivery Service: Prepare a trial balance (List accounts with debits and credits). For example, the Owner’s investment of $17,000.
Account
Debit
Credit
Owner’s Investment – Equity
$17,000
Cash – Asset
$17,000
Transaction A: Avery invested $17,000 in the delivery service from her personal savings account.
Transaction B: Bought delivery trucks on account, $11,000
Transaction C: Bought office equipment for cash, $600
Transaction D: Paid advertising expense, $350
Transaction E: Collected cash for delivery services rendered, $3,500
Transaction F: Paid drivers’ salaries, $900. Transaction G: Paid gas expense for trucks, $1,700
Transaction H: Performed delivery services for a customer on account, $1,600
Transaction I: Telephone expense due but unpaid, $600
Transaction J: Received $400 as partial payment of transaction H
Transaction K: Avery withdrew cash for personal use, $250
Write a summary describing what you did in this assignment.
Record audio and video showing your work (approximately 6-8 minutes).
Assignment Expectations
Length: 6-8 minute video; answers must thoroughly address the questions in a clear, concise manner
Structure: Include a title page and reference page in APA style. These do not count toward the minimum word amount for this assignment.
References: Use the appropriate APA style in-text citations and references for all resources utilized to answer the questions. Include at least three (3) scholarly citations to support your claims.
Format: Save your assignment as a .mp4 or provide the link to the video on YouTube.
Filename: Name your saved file according to your FirstInitialLast Name_CourseID_ModuleNumber (for example, “RHall_EDD820_M1.docx”)
