Extract Interim Report-Free-Samples for Students-Myassignment

Questions: 1.Record the effects of the above transactions on the Accounting Equation. 2.Prove the Accounting Equation using the Final Balances in the Accounts. Answers: 1.Process financial transaction and extract interim report Books of Beck Wsik Company Cash Supplies Accounts receivable Equipment Accounts payable Common stock Retained earnings A 50000 50000 B 5000 5000 C -2000 -2000 Utility Expenses D 6000 6000 Service Revenue E 3000 -3000 F -5000 -5000 G 10000 10000 H -2200 -2200 Dividends Total 43800 5000 3000 10000 10000 50000 1800 The above table depicts about the financial transaction of Beckwsik and its impact over the various accounts (Garleanu Pedersen, 2007). This table depicts that entire transaction impacts over 2 or more than 2 accounts constantly. Further, it has also been found that the impact of accounts make it easy for the accountant to analyze that whether the transaction has been reported in a good manner. Accounting equation: Accounting equation depicts that all the financial transaction has impact over 2 or more than 2 accounts. This accounting equation depict that all the assets of a company are either bought by the company on cash or borrowing money (Noreen, Brewer Crawford, 2011). Thus the accounting equation of the finance is: Accounting Equation = Assets - Liabilities = capital The above discussed equation has been analyzed over the above given calculation to analyze that whether the above recorded transaction are correct or not. For analyzing it, all the assets have been added and subtracted from liabilities which would be equal to the total capital of the company. In the given case, the total assets are = 43800+5000+3000+10000 Whereas the total liabilities = 10000 And, the total capital of the company = 51800 If the following information is putted into the accounting equation than, Accounting Equation = Assets - Liabilities = capital So, = 43800+5000+3000+10000-10000 = 50000+1800 51800=51800 (Garrison et al, 2010) It proves that the total assets and liabilities are equal to the capital of the company and thus it has been proved that the financial transaction has been recorded in a good manner by the accountant and in a correct way. 2.The following information depicts about the transaction and the account which would be impacted through this transaction and the financial statement has also been analyzed according to that. ACCOUNT TYPE OF ACCOUNT FINANCIAL STATEMENT 1 Equipment Assets Balance sheet 2 Common Stock Stockholder's equity Statement of retained earnings 3 Accounts Payable Liability Balance sheet 4 Service Revenue Revenue Income statement 5 Salary Expense Expenses Income statement 6 Inventory Assets Balance sheet 7 Accounts Receivable Assets Balance sheet 8 Retained Earnings Stockholder's equity Statement of retained earnings 9 Notes Payable Liability Balance sheet 10 Prepaid Insurance Assets Balance sheet 11 Dividends Liability account Balance sheet 12 Cash Assets Balance sheet (Davies Crawford, 2011) References: Davies, T. Crawford, I., (2011).Business accounting and finance. Pearson. Garleanu, N. B., Pedersen, L. H. (2007).Liquidity and risk management(No. w12887). National Bureau of Economic Research. Garrison, R. H., Noreen, E. W., Brewer, P. C., McGowan, A. (2010). Managerial accounting.Issues Noreen, E. W., Brewer, P. C Crawford, I., (2011). Managerial accounting.Pearson.