The financial statements present a company to the public in financial terms.
(1) Which financial statement identifies where cash was generated and where it was spent during the year and
(2) identify the three major parts of this statement.
Transaction analysis results in the development of a journal entry. In the start-up of a business the owner contributes $750,000 of cash.
(1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount and
(2) explain how the Accounting Equation is impacted.
Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. The building that houses the business is depreciated at an annual rate of $14,000. Develop the adjusting entry for year end.
(1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount and
(2) explain how the Accounting Equation is impacted.