accounting

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Business Finance

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1/ Why do we have double-entry accounting in our U.S. system of GAAP?

2/ In a capital account, explain which side (debit or credit) will decrease and which side will increase. Provide an example (just make one up) of a transaction with a T-account for each side of the transaction showing which type of accounts will receive the debt and credit (e.g., asset, cash, accounts payable, equipment, revenue, etc.).

3/ Create a journal entry and a T-Account for each of the following transactions (review the applicable textbook chapter and, if necessary, the optional debits/credits PowerPoint presentation and the YouTube videos) :

$15,000 worth of equipment is purchased on credit.

$40,000 of patient bills from last year are collected in cash.

$10,000 is received from a managed care company for services to be rendered next year for members

$20,000 worth of supplies is purchased and paid for in cash.

$5,000 of accounts payable is paid in cash.

$30,000 of cash is received from taking out a note with the local bank.

$10,000 of accounts receivable from last year is received in cash.

Why do organizations prepare cash flow statements and operating statements?

$7,000 is paid back on the borrowed note.

4/ Why do organizations prepare cash flow statements and operating statements?

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1/ Why do we have double-entry accounting in our U.S. system of GAAP? 2/ In a capital account, explain which side (debit or credit) will decrease and which side will increase. Provide an example (just make one up) of a transaction with a T-account for each side of the transaction showing which type of accounts will receive the debt and credit (e.g., asset, cash, accounts payable, equipment, revenue, etc.). 3/ Create a journal entry and a T-Account for each of the following transactions (review the applicable textbook chapter and, if necessary, the optional debits/credits PowerPoint presentation and the YouTube videos) : $15,000 worth of equipment is purchased on credit. $40,000 of patient bills from last year are collected in cash. $10,000 is received from a managed care company for services to be rendered next year for members $20,000 worth of supplies is purchased and paid for in cash. $5,000 of accounts payable is paid in cash. $30,000 of cash is received from taking out a note with the local bank. $10,000 of accounts receivable from last year is received in cash. Why do organizations prepare cash flow statements and operating statements? $7,000 is paid back on the borrowed note. 4/ Why do organizations prepare cash flow statements and operating statements?
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Introduction
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Conclusion
References


Running head: HOME WORK MODULE

Homework Module
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HOME WORK MODULE

2
Question One

The double entry system is used to refer to the practice of accounting in which a debit
and a corresponding credit entry are made for each of the accounting or financial transaction
which takes place in an organization (Griffin and BarCharts, 2014). The United States embrace
the use of the double entry practice as one of its GAAP standards. The main reason for such a
practice is that it helps in ensuring that the entries made are accurate .Since it embraces the
matching principle, it works towards ensuring that the errors are reduced dur...


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