id stringlengths 36 36 | embedding list | document stringlengths 70 999 | metadata stringlengths 691 694 |
|---|---|---|---|
d7280431-591c-4075-9597-fe76a411ffb6 | [
0.013700015842914581,
0.03198159113526344,
-0.05037650838494301,
-0.02443224936723709,
0.019502855837345123,
-0.02246076799929142,
0.037822384387254715,
0.03131987154483795,
0.0424405038356781,
-0.012232418172061443,
0.02943870984017849,
-0.010621828958392143,
-0.02457304671406746,
-0.0050... | Elaine Pofeldt. “5 Ways to Tackle the Problem That Kills One of Every Four Small Businesses.” Money. May 19, 2015. http://time.com/money/
1
3888448/cash-flow-small-business-startups/
310
Chapter 5 Completing the Accounting Cycle
becoming insolvent because bills cannot be paid on time and assets need to be written d... | {"creator": "DocBook XSL Stylesheets V1.79.1", "creationdate": "2019-04-24T10:32:54-05:00", "file_type": ".pdf", "total_pages": 1055, "moddate": "2020-08-05T15:26:11-05:00", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "batch_upload": true, "title": "Principles of Accounting, Volume ... |
7c1ea92b-bd2e-459a-a8ea-dade8957e073 | [
0.03831648826599121,
0.04020378738641739,
-0.05672500655055046,
-0.0339968204498291,
-0.03241957724094391,
0.011469420045614243,
0.019246120005846024,
0.06543061137199402,
0.05843993276357651,
0.001353721716441214,
0.04196741804480553,
0.04127579182386398,
0.010667376220226288,
-0.04011594... | capital, which was first described in Introduction to Financial Statements, is found by taking the difference
between current assets and current liabilities.
A positive outcome means the company has enough current assets available to pay its current liabilities or
current debts. A negative outcome means the company ... | {"creator": "DocBook XSL Stylesheets V1.79.1", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "uploaded_via": "batch_uploader", "moddate": "2020-08-05T15:26:11-05:00", "producer": "Prince 11 (www.princexml.com)", "file_size_mb": 156.7, "file_name": "FinancialAccounting-OP.pdf", "source": ... |
9b1617c2-37ad-4e93-a09a-dc69a09ab775 | [
-0.008716506883502007,
0.025944337248802185,
-0.10887614637613297,
-0.02486119605600834,
-0.022269796580076218,
0.02515067532658577,
0.009508662857115269,
0.05080236867070198,
-0.0022813663817942142,
0.02357279695570469,
0.040400613099336624,
0.010486816056072712,
0.006718662101775408,
-0.... | dictate what type of margin is best.
Let’s consider Printing Plus and its working capital (Figure 5.13).
2 Matt Johnson. “Revisiting the Lehman Brothers Collapse, the Business of Banking and Its Inherent Crises.” Coinmonks. February 1, 2018.
https://medium.com/coinmonks/revisiting-the-lehman-brothers-collapse-fb18769... | {"total_pages": 1055, "upload_timestamp": "2026-02-07T07:23:08.167529", "file_name": "FinancialAccounting-OP.pdf", "creator": "DocBook XSL Stylesheets V1.79.1", "producer": "Prince 11 (www.princexml.com)", "file_type": ".pdf", "uploaded_via": "batch_uploader", "creationdate": "2019-04-24T10:32:54-05:00", "file_size_mb"... |
7ef8ccc8-9174-4d36-ac3c-870c0c7e9d9d | [
0.0375540629029274,
-0.013194678351283073,
0.005365023389458656,
-0.05834353342652321,
0.0011215641861781478,
-0.03354712203145027,
0.042511582374572754,
0.03277330473065376,
-0.004892878234386444,
0.024092290550470352,
0.04785940423607826,
-0.013099751435220242,
-0.0048058778047561646,
-0... | of working capital:
Working capital = $26,540 – $5,400 = $21,140
This means that you have more than enough working capital to pay the current liabilities your company has
recorded. This figure may seem high, but remember that this is the company’s first month of operations and
this much cash may need to be availabl... | {"moddate": "2020-08-05T15:26:11-05:00", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_size_mb": 156.7, "producer": "Prince 11 (www.princexml.com)", "title": "Principles of Accounting, Volume 1: Financial A... |
69b8e604-a526-493c-ae53-cbd948052c3f | [
-0.06719639897346497,
-0.06039637327194214,
0.0476895272731781,
-0.010833834297955036,
-0.009602125734090805,
-0.09743592888116837,
-0.003287021303549409,
-0.02219618670642376,
-0.00019012059783563018,
-0.019209949299693108,
0.04706832394003868,
0.031975165009498596,
-0.0769280195236206,
0... | However, the company must be careful, since the cash was recorded before providing the services or products
associated with the unearned revenue. This relationship is why the unearned revenue was initially created, and
there often will be necessary cash outflows associated with meeting the terms of the unearned reven... | {"source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "batch_upload": true, "uploaded_via": "batch_uploader", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "title": "Principles of Accounting, Volume 1: Financial Accounting", "upload_timestamp": "2026-02-07T07:23:08.16... |
ba289bf0-dc9b-4855-86d8-3db36f9c9860 | [
0.05190381407737732,
-0.03158219903707504,
-0.01737920194864273,
-0.011317163705825806,
0.0464298352599144,
-0.03641299158334732,
-0.027663862332701683,
-0.0020574103109538555,
-0.054557885974645615,
-0.023694481700658798,
0.013831781223416328,
0.013219292275607586,
-0.023872317746281624,
... | PricewaterhouseCoopers (PwC) released its 2015 Annual Global Working Capital Survey
(https://openstax.org/l/50PwC2015WorCap) which is a detailed study on working capital. Though the
report does not show the working capital calculation you just learned, there is very interesting
information about working capital in d... | {"total_pages": 1055, "moddate": "2020-08-05T15:26:11-05:00", "file_size_mb": 156.7, "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "producer": "Prince 11 (www.princexml.com)", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_hash": "89738e550d63820fbb3a833d14ab0... |
2ad3afc8-b6e0-4c4f-8f97-d0a9672a72a2 | [
-0.03424476832151413,
0.0039090123027563095,
-0.07759653031826019,
-0.020947670564055443,
-0.0006765049765817821,
-0.00420345226302743,
-0.012575079686939716,
0.09809671342372894,
-0.053462717682123184,
0.014884251169860363,
0.03738629072904587,
0.061872463673353195,
0.01569794863462448,
0... | $20,000/$10,000 = two times. This means the company has enough current assets to cover its current liabilities
twice. Ideally, many companies would like to maintain a 1.5:2 times current assets over current liabilities ratio.
However, depending on the company’s function or purpose, an optimal ratio could be lower or ... | {"uploaded_via": "batch_uploader", "file_type": ".pdf", "creationdate": "2019-04-24T10:32:54-05:00", "creator": "DocBook XSL Stylesheets V1.79.1", "batch_upload": true, "total_pages": 1055, "file_size_mb": 156.7, "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_hash": "89738e550d63820fbb3a833d... |
7d3cabf0-b7d7-4e57-9172-a6353fc74b39 | [
-0.009466927498579025,
-0.02683532051742077,
-0.06292043626308441,
-0.07368585467338562,
0.004967262968420982,
0.011647847481071949,
-0.08817155659198761,
-0.0014050825266167521,
0.05112080276012421,
-0.02656116522848606,
0.014086834155023098,
0.07342948019504547,
-0.04152526706457138,
0.0... | business was just started, having more cash might allow the company to make larger purchases while still
paying its liabilities. However, this ratio might be a result of short-term conditions, so the company is advised
to still plan on maintaining a ratio that is considered both rational and not too risky.
Using rat... | {"batch_upload": true, "file_size_mb": 156.7, "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creationdate": "2019-04-24T10:32:54-05:00", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "produ... |
b87e8e59-a0ad-4900-8c25-0eee7f75413a | [
-0.03540579974651337,
0.004946570843458176,
-0.06484672427177429,
-0.0597376748919487,
-0.017926964908838272,
-0.0362471267580986,
0.06276892870664597,
-0.030996885150671005,
0.10012812167406082,
0.04803180694580078,
0.02139991708099842,
0.026371214538812637,
0.022119272500276566,
-0.09485... | Computers Still Use Debits and Credits: Check behind the Dashboard for Fraud
Newly hired accountants are often sat at a computer to work off of a dashboard, which is a computer
screen where entries are made into the accounting system. New accountants working with modern
accounting software may not be aware that thei... | {"file_size_mb": 156.7, "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_name": "FinancialAccounting-OP.pdf", "uploaded_via": "batch_uploader", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0... |
1a078011-c1c4-4952-9239-115978666ec4 | [
-0.07864497601985931,
0.09080485254526138,
-0.08911862969398499,
-0.060432069003582,
-0.06095272675156593,
0.00968954712152481,
0.11437254399061203,
-0.01068942528218031,
0.056903839111328125,
0.058840494602918625,
0.01266341470181942,
-0.03879246860742569,
0.02910039760172367,
-0.07539321... | system or in their organization’s financial statements.
Many accounting systems automatically close the books if the command is made in the system. While
debits and credits are being entered and may not have been reviewed, the system can be instructed to
close out the revenue and expense accounts and create an Incom... | {"batch_upload": true, "file_size_mb": 156.7, "creator": "DocBook XSL Stylesheets V1.79.1", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "producer": "Prince 11 (www.princexml.com)", "moddate": "2020-08-05T15:26:11-05:00", "file_type": ".pdf", "title": "Principles of Accounting, Volum... |
5c0f7df0-e58e-4902-8d64-466b55088f6c | [
-0.06834683567285538,
0.07550828158855438,
-0.0788787230849266,
-0.08681196719408035,
-0.04107695072889328,
0.023530006408691406,
0.0473194494843483,
-0.030149009078741074,
0.03324124589562416,
-0.027880989015102386,
0.06023554131388664,
0.02592800185084343,
0.06752044707536697,
-0.0654229... | To ensure the integrity of the system, each person working in the system must have a unique user
identification, and no users may know others’ passwords. If there is an entry or updated entry, the
accountant will be able to see the entry in the audit function of the software. If an employee has changed
expense items... | {"creator": "DocBook XSL Stylesheets V1.79.1", "batch_upload": true, "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "moddate": "2020-08-05T15:26:11-05:00", "total_pages": 1055, "producer": "Prince 11 (www.princexml.com)", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74... |
3affa27c-a8b5-4d39-bd45-42c2521792fe | [
-0.03702642768621445,
0.010168087668716908,
-0.01662231609225273,
-0.048586469143629074,
-0.10076429694890976,
-0.011405895464122295,
0.009757734835147858,
0.019757403060793877,
-0.010663763619959354,
-0.005751190707087517,
0.10894391685724258,
-0.013074076734483242,
0.011070859618484974,
... | Let’s go through the complete accounting cycle for another company here. The full accounting cycle diagram
is presented in Figure 5.14.
314
Chapter 5 Completing the Accounting Cycle
Figure 5.14
The Accounting Cycle. (attribution: Copyright Rice University, OpenStax, under CC BY-NC-SA 4.0
license)
We next take a ... | {"batch_upload": true, "moddate": "2020-08-05T15:26:11-05:00", "producer": "Prince 11 (www.princexml.com)", "uploaded_via": "batch_uploader", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creationdate": "2019-04-24T10:32:54-05:00", "file_name": "FinancialAccounting-OP.pdf", "total_pages... |
bdb48cba-eedd-4f65-bdb4-7eb0225d80f1 | [
-0.03032860904932022,
-0.006751972250640392,
-0.008221282623708248,
-0.09517347067594528,
-0.1257815659046173,
0.0030795997008681297,
0.022577933967113495,
0.08323033899068832,
-0.04927024617791176,
0.03701642528176308,
0.0907379612326622,
-0.007509224582463503,
0.005787692964076996,
-0.03... | where he will help budding barbers create a barbering practice. He will charge a flat fee or a per hour charge.
His consulting practice will be recognized as service revenue and will provide additional revenue while he
develops his barbering practice.
He obtains a barber’s license after the required training and is ... | {"uploaded_via": "batch_uploader", "file_type": ".pdf", "moddate": "2020-08-05T15:26:11-05:00", "creationdate": "2019-04-24T10:32:54-05:00", "producer": "Prince 11 (www.princexml.com)", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "creator": "DocBook XSL Stylesheets V1.79.1", "source... |
ccf979a3-db4a-4169-8830-60371469b1d3 | [
-0.07405080646276474,
0.01005493476986885,
-0.0075300466269254684,
-0.08352289348840714,
-0.09443972259759903,
-0.03185189142823219,
0.04152737557888031,
0.06914018839597702,
-0.04783051088452339,
0.045502275228500366,
0.06686083972454071,
-0.04850348085165024,
0.00216494919732213,
-0.0520... | the remaining $7,500 was billed to Cliff with payment due in 30 days. He decided to buy used
equipment, because he was not sure if he truly wanted to run a barber shop. He assumed that
he will replace the used equipment with new equipment within a couple of years.
Aug. 6
Cliff purchases supplies for $300 cash.
Aug... | {"uploaded_via": "batch_uploader", "creator": "DocBook XSL Stylesheets V1.79.1", "title": "Principles of Accounting, Volume 1: Financial Accounting", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "total_pages": 1055, "moddate": "2020-08-05T15:26:11-05:00", "file_type": ".pdf", "creationdate":... |
bab030aa-5568-4cde-879d-ff385e6798ff | [
-0.060006339102983475,
0.01341752614825964,
0.012780928052961826,
-0.10645640641450882,
-0.09420108795166016,
-0.018330063670873642,
0.05622798204421997,
0.0918380469083786,
-0.03350739926099777,
0.04279500991106033,
0.11065394431352615,
-0.01835060864686966,
-0.03963874280452728,
-0.05246... | Aug. 22
Cliff paid $4,600 cash in salaries expense to employees.
Aug. 28
The customer from the August 10 transaction pays $1,500 cash toward Cliff’s account.
Table 5.2
Transaction 1: On August 1, 2019, Cliff issues $70,000 shares of common stock for cash.
Analysis:
• Clip’em Cliff now has more cash. Cash is an a... | {"file_type": ".pdf", "file_name": "FinancialAccounting-OP.pdf", "total_pages": 1055, "title": "Principles of Accounting, Volume 1: Financial Accounting", "moddate": "2020-08-05T15:26:11-05:00", "creationdate": "2019-04-24T10:32:54-05:00", "upload_timestamp": "2026-02-07T07:23:08.167529", "file_hash": "89738e550d63820f... |
187e4fb9-ebe4-444f-aaa9-d6f07abb2266 | [
-0.061957813799381256,
0.00715166749432683,
-0.014821421355009079,
-0.10621444135904312,
-0.05687457695603371,
-0.03164071589708328,
0.09925419837236404,
0.07213594764471054,
0.020884528756141663,
0.035359665751457214,
0.09069555252790451,
-0.01995559222996235,
-0.007500968873500824,
-0.01... | debit side for $45,000.
• Cash is used to pay for $37,500. Cash is an asset, decreasing on the credit side.
• Cliff asked to be billed, which means he did not pay cash immediately for $7,500 of the equipment.
Accounts Payable is used to signal this short-term liability. Accounts payable is increasing on the credit
... | {"file_size_mb": 156.7, "title": "Principles of Accounting, Volume 1: Financial Accounting", "total_pages": 1055, "batch_upload": true, "file_type": ".pdf", "creationdate": "2019-04-24T10:32:54-05:00", "producer": "Prince 11 (www.princexml.com)", "upload_timestamp": "2026-02-07T07:23:08.167529", "creator": "DocBook XSL... |
10a616df-ccd0-448a-9ef7-e32f9ed9c0d5 | [
-0.06522374600172043,
0.013753768056631088,
0.023505570366978645,
-0.08016536384820938,
-0.048566654324531555,
-0.047321517020463943,
0.06826064735651016,
0.03761705756187439,
0.028766345232725143,
0.03989250957965851,
0.09245854616165161,
-0.03928346931934357,
0.007335769943892956,
-0.047... | side.
• The customer did not pay immediately for the service and owes Cliff payment. This is an Accounts
Receivable for Cliff. Accounts Receivable is an asset that is increasing on the debit side.
This OpenStax book is available for free at http://cnx.org/content/col25448/1.4
Chapter 5 Completing the Accounting Cyc... | {"moddate": "2020-08-05T15:26:11-05:00", "uploaded_via": "batch_uploader", "batch_upload": true, "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_size_mb": 156.7, "upload_timestamp": "2026-02-07T07:23:08.167529", "file_type": ".pdf", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631... |
1f4d4d70-ea97-4216-bfd1-7eb557b09de3 | [
-0.0736682265996933,
-0.01933686062693596,
-0.001869425643235445,
-0.09106503427028656,
-0.024085253477096558,
-0.040550295263528824,
0.08004859834909439,
0.06811035424470901,
0.07741529494524002,
0.03043012134730816,
0.12769043445587158,
0.025194237008690834,
-0.03380538523197174,
-0.0356... | • Clip’em Cliff now has more cash. Cash is an asset, which is increasing on the debit side.
• The customer has not yet received services but already paid the company. This means the company owes
the customer the service. This creates a liability to the customer, and revenue cannot yet be recognized.
Unearned Revenue... | {"source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "uploaded_via": "batch_uploader", "total_pages": 1055, "moddate": "2020-08-05T15:26:11-05:00", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creator": "DocBook XSL Stylesheets V1.79.1", "file_name": "FinancialAcco... |
e748f90a-a0da-4601-891f-d8e3feec3632 | [
-0.04670776054263115,
0.027872763574123383,
-0.016721421852707863,
-0.09833190590143204,
-0.019488099962472916,
-0.02501225471496582,
0.06224147975444794,
0.05547717213630676,
0.05347590148448944,
0.02579309418797493,
0.0709008201956749,
0.005219800863415003,
-0.012609769590198994,
-0.0400... | Analysis:
• Clip’em Cliff now has more cash than before. Cash is an asset, which is increasing on the debit side.
• Service was provided, which means revenue can be recognized. Service Revenue increases equity. Service
Revenue is increasing on the credit side.
This OpenStax book is available for free at http://cnx.... | {"source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_type": ".pdf", "batch_upload": true, "producer": "Prince 11 (www.princexml.com)", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creationda... |
f09cc891-4c67-4fd6-a29f-7b383525bf54 | [
-0.047762610018253326,
0.04674309119582176,
-0.011006570421159267,
-0.07568753510713577,
-0.026385877281427383,
-0.022801583632826805,
0.051269952207803726,
0.058664530515670776,
0.013526433147490025,
0.03314846754074097,
0.07784488797187805,
0.00017943816783372313,
-0.012216262519359589,
... | • Clip’em Cliff now has less cash. Cash is an asset, which is decreasing on the credit side.
• When the company pays salaries, this is an expense to the business. Salaries Expense reduces equity by
increasing on the debit side.
320
Chapter 5 Completing the Accounting Cycle
Transaction 11: On August 28, 2019, the c... | {"creationdate": "2019-04-24T10:32:54-05:00", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "producer": "Prince 11 (www.princexml.com)", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf... |
1ad25191-5cb8-44f4-a684-da09a86ec3ef | [
-0.07181894779205322,
0.0544993095099926,
-0.03980044275522232,
-0.09311921894550323,
-0.019907398149371147,
-0.032493509352207184,
0.06614205241203308,
0.07036684453487396,
0.09547138214111328,
0.0293179489672184,
0.0654476210474968,
-0.0259106308221817,
0.03942561522126198,
-0.0628701001... | 321
Figure 5.15
Journal Entries for August. (attribution: Copyright Rice University, OpenStax, under CC BY-NC-SA
4.0 license)
Once all journal entries have been created, the next step in the accounting cycle is to post journal information
to the ledger. The ledger is visually represented by T-accounts. Cliff will ... | {"file_size_mb": 156.7, "upload_timestamp": "2026-02-07T07:23:08.167529", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "title": "Principles of Accounting, Volume 1: Financial Accounting", "batch_upload": true, "moddate": "2020-08-05T15:26:11-05:00", "file_name": "FinancialAccounting-... |
d0d56ecf-eea4-4917-95e8-21f89ca9b2ce | [
-0.050084516406059265,
0.030900167301297188,
-0.05543917417526245,
-0.1132502481341362,
0.0017400564393028617,
-0.03370358422398567,
0.03472016379237175,
0.059756629168987274,
0.06750237196683884,
0.052418310195207596,
0.06735126674175262,
-0.05105733498930931,
0.01926124468445778,
-0.0750... | license)
You will notice that the sum of the asset account balances in Cliff’s ledger equals the sum of the liability and
equity account balances at $83,075. The final debit or credit balance in each account is transferred to the
unadjusted trial balance in the corresponding debit or credit column as illustrated in ... | {"file_name": "FinancialAccounting-OP.pdf", "creationdate": "2019-04-24T10:32:54-05:00", "upload_timestamp": "2026-02-07T07:23:08.167529", "producer": "Prince 11 (www.princexml.com)", "total_pages": 1055, "creator": "DocBook XSL Stylesheets V1.79.1", "batch_upload": true, "uploaded_via": "batch_uploader", "title": "Pri... |
ce53ce8b-86d3-4e36-8e25-bc651099b10a | [
-0.0802115648984909,
0.010328728705644608,
-0.010921251960098743,
-0.06988181173801422,
-0.018813244998455048,
-0.03305353224277496,
0.020127693191170692,
0.08769288659095764,
0.03028622269630432,
0.047324441373348236,
0.10525713860988617,
0.006933031603693962,
-0.010452527552843094,
-0.08... | for Clip’em Cliff appears in Figure 5.18.
Figure 5.18 Unadjusted Trial Balance for Clip’em Cliff. (attribution: Copyright Rice University, OpenStax,
under CC BY-NC-SA 4.0 license)
The unadjusted trial balance shows a debit and credit balance of $87,900. Remember, the unadjusted trial
balance is prepared before any ... | {"uploaded_via": "batch_uploader", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creationdate": "2019-04-24T10:32:54-05:00", "file_name": "FinancialAccounting-OP.pdf", "file_size_mb": 156.7, "upload_timestamp": "20... |
7d068ce4-89a3-4f3b-9c29-7faa9e4d8eea | [
-0.03107263147830963,
0.033301014453172684,
-0.011137186549603939,
-0.012760353274643421,
-0.01178072951734066,
-0.030164621770381927,
0.07102561742067337,
0.055328428745269775,
-0.0278489850461483,
0.03618329018354416,
0.10635004937648773,
-0.016734685748815536,
-0.032288867980241776,
-0.... | transaction.
Aug. 31
Reviewing the company bank statement, Clip’em Cliff discovers $350 of interest earned during
the month of August that was previously uncollected and unrecorded. As a new customer for
the bank, the interest was paid by a bank that offered an above-market-average interest rate.
Aug. 31
Unpaid a... | {"total_pages": 1055, "batch_upload": true, "creator": "DocBook XSL Stylesheets V1.79.1", "file_type": ".pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "file_name": "FinancialAccounting-OP.pdf", "creationdate": "2019-04-24T10:32:54-05:00", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af7... |
a7791711-25f4-49c6-8ad3-3215c90ec32d | [
0.01620076410472393,
0.050538573414087296,
0.046518441289663315,
-0.024635637179017067,
0.007309014443308115,
-0.027085229754447937,
-0.00408674031496048,
0.02471812069416046,
-0.013200382702052593,
0.06218339502811432,
0.053748320788145065,
-0.021283017471432686,
0.09173330664634705,
-0.0... | Therefore, $50 of supplies were used during the month and must be recorded (300 – 250). Supplies is an
asset that is decreasing (credit).
• Supplies is a type of prepaid expense, that when used, becomes an expense. Supplies Expense would
increase (debit) for the $50 of supplies used during August.
Adjusting Transac... | {"file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "file_size_mb": 156.7, "file_type": ".pdf", "creationdate": "2019-04-24T10:32:54-05:00", "file_name": "FinancialAccounting-OP.pdf", "title": "Principles of Accounting, Volume 1: Financial Accounting", "producer": "Prince 11 (www.princexml... |
c1b89cf1-b17c-42a8-9524-607019a6ef3f | [
-0.061397913843393326,
0.026472294703125954,
0.030211511999368668,
-0.0995488315820694,
-0.0458696112036705,
-0.030474238097667694,
0.06166601553559303,
0.06352728605270386,
0.042460765689611435,
0.033039648085832596,
0.12094134837388992,
0.026120956987142563,
0.022715173661708832,
-0.0525... | depreciation in Long-Term Assets.
• Accumulated Depreciation–Equipment is a contra asset account (contrary to Equipment) and increases
(credit) for $2,500.
• Depreciation Expense–Equipment is an expense account that is increasing (debit) for $2,500.
Adjusting Transaction 3: Clip’em Cliff performed $1,100 of service... | {"producer": "Prince 11 (www.princexml.com)", "creator": "DocBook XSL Stylesheets V1.79.1", "uploaded_via": "batch_uploader", "total_pages": 1055, "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "batch_upload"... |
90a9b777-e37c-431a-ab9b-81b5038d12aa | [
-0.052642397582530975,
0.005212009884417057,
-0.03619752079248428,
-0.1429765373468399,
-0.0804968997836113,
-0.03642845153808594,
0.0721251368522644,
0.07125107198953629,
0.0161968432366848,
0.0482165701687336,
0.02323664352297783,
-0.032555777579545975,
-0.019439570605754852,
-0.06506329... | Revenue is a liability account and decreases on the debit side.
• The company can now recognize the $1,100 as earned revenue. Service Revenue increases (credit) for
$1,100.
Adjusting Transaction 4: Reviewing the company bank statement, Clip’em Cliff identifies $350 of interest
earned during the month of August that... | {"file_name": "FinancialAccounting-OP.pdf", "total_pages": 1055, "file_type": ".pdf", "creationdate": "2019-04-24T10:32:54-05:00", "moddate": "2020-08-05T15:26:11-05:00", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf"... |
725b879c-4bc1-48df-81fc-787c0f008f73 | [
-0.043058816343545914,
0.011798392981290817,
-0.007313453126698732,
-0.09410538524389267,
-0.020217860117554665,
0.0076658097095787525,
0.026219895109534264,
0.0560126006603241,
-0.0016834918642416596,
0.026585863903164864,
0.060224007815122604,
0.00513210566714406,
-0.05578583851456642,
-... | increases (debit) for $350.
Adjusting Transaction 5: Unpaid and previously unrecorded income taxes for the month are $3,400.
Analysis:
•
Income taxes are an expense to the business that accumulate during the period but are only paid at
predetermined times throughout the year. This period did not require payment bu... | {"producer": "Prince 11 (www.princexml.com)", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_type": ".pdf", "title": "Principles of Accounting, Volume 1: Financial Accounting", "uploaded_via": "batch_uploader", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf",... |
2654503b-2b3d-4857-b2fd-c5a6116c9bc7 | [
-0.07139801234006882,
0.03162955492734909,
-0.027593467384576797,
-0.07736469805240631,
-0.01784241572022438,
-0.03899572417140007,
0.018214166164398193,
0.04640376567840576,
0.07402937114238739,
0.04333899915218353,
0.07924414426088333,
-0.04433451592922211,
0.0136366356164217,
-0.0410640... | 327
Figure 5.19
Adjusting Journal Entries for Clip’em Cliff. (attribution: Copyright Rice University, OpenStax,
under CC BY-NC-SA 4.0 license)
Now that all of the adjusting entries are journalized, they must be posted to the ledger. Posting adjusting
entries is the same process as posting the general journal entri... | {"file_size_mb": 156.7, "moddate": "2020-08-05T15:26:11-05:00", "producer": "Prince 11 (www.princexml.com)", "uploaded_via": "batch_uploader", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "file_name": "FinancialAcco... |
ecf77606-8b16-4f9b-8905-84568dbc1629 | [
-0.025601083412766457,
0.03458162024617195,
-0.009653781540691853,
-0.0908818244934082,
-0.013748745433986187,
-0.03449687734246254,
0.03988983854651451,
0.07207520306110382,
0.07254163920879364,
0.034378718584775925,
0.07751599699258804,
-0.02295234426856041,
0.020357536152005196,
-0.0978... | Chapter 5 Completing the Accounting Cycle
Figure 5.21
Ledger Entries (in T-Accounts) for Clip’em Cliff. (attribution: Copyright Rice University, OpenStax,
under CC BY-NC-SA 4.0 license)
You will notice that the sum of the asset account balances equals the sum of the liability and equity account
balances at $80,875... | {"upload_timestamp": "2026-02-07T07:23:08.167529", "producer": "Prince 11 (www.princexml.com)", "uploaded_via": "batch_uploader", "moddate": "2020-08-05T15:26:11-05:00", "file_type": ".pdf", "file_size_mb": 156.7, "title": "Principles of Accounting, Volume 1: Financial Accounting", "total_pages": 1055, "creator": "DocB... |
bbc9ff85-e20c-4892-af5d-afaad5b9be7d | [
-0.025281760841608047,
0.0567958727478981,
-0.020708972588181496,
-0.0541030690073967,
-0.013658011332154274,
0.021513687446713448,
0.03130802512168884,
0.09092589467763901,
0.06500989943742752,
0.03144730255007744,
0.05345519632101059,
-0.04092546924948692,
-0.022377843037247658,
-0.11492... | in Figure 5.22.
Figure 5.22
Adjusted Trial Balance for Clip’em Cliff. (attribution: Copyright Rice University, OpenStax, under
CC BY-NC-SA 4.0 license)
The adjusted trial balance shows a debit and credit balance of $94,150. Once the adjusted trial balance is
prepared, Cliff can prepare his financial statements (st... | {"batch_upload": true, "title": "Principles of Accounting, Volume 1: Financial Accounting", "producer": "Prince 11 (www.princexml.com)", "file_type": ".pdf", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "total_pages": 1055, "upload_timestamp": "2026-02-07T07:23:08.167529", "creator": "DocBoo... |
1d6e7c13-77ff-448e-be30-0d53cec79c21 | [
-0.020485620945692062,
0.043098896741867065,
0.0022158983629196882,
-0.03303392231464386,
0.004860988352447748,
0.01891808956861496,
0.07114632427692413,
0.08075575530529022,
0.07941235601902008,
-0.010291745886206627,
0.09384801238775253,
-0.023899758234620094,
-0.007666935678571463,
-0.0... | liabilities, and stockholders’ equity accounts.
The income statement for Clip’em Cliff is shown in Figure 5.23.
330
Chapter 5 Completing the Accounting Cycle
Figure 5.23
Income Statement for Clip’em Cliff. (attribution: Copyright Rice University, OpenStax, under CC
BY-NC-SA 4.0 license)
Note that expenses were o... | {"moddate": "2020-08-05T15:26:11-05:00", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_size_mb": 156.7, "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "batch_upload": true, "upload_timestamp": "2026-02-07T07:23:08.167529", "title": "Principles of Accountin... |
256d6eb1-2521-4a89-90a5-792edec31dab | [
-0.023252949118614197,
0.08259213715791702,
-0.023685786873102188,
-0.0698390007019043,
-0.04720963165163994,
-0.03582009673118591,
0.08312823623418808,
0.05037086084485054,
0.07231799513101578,
0.020463427528738976,
0.07299100607633591,
-0.02030983753502369,
-0.00009895213588606566,
-0.02... | balance to carry over to a future period. The ending retained earnings balance is –$125. You probably never
want to have a negative value on your retained earnings statement, but this situation is not totally unusual for
an organization in its initial operations. Cliff will want to improve this outcome going forward.... | {"creationdate": "2019-04-24T10:32:54-05:00", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_type": ".pdf", "moddate": "2020-08-05T15:26:11-05:00", "source_file": "downloads\\business\\accounting\\FinancialAccou... |
8c88fac4-0af5-4586-9ee5-76aacb31e1b9 | [
-0.023103492334485054,
0.0620548389852047,
-0.027539340779185295,
-0.08219482749700546,
-0.015910208225250244,
0.024638256058096886,
0.019380250945687294,
0.07882670313119888,
0.006256736349314451,
0.03010616824030876,
0.019063180312514305,
-0.04458203539252281,
-0.03580142557621002,
-0.08... | statements are complete, Cliff will go to the next step in the accounting cycle, preparing and posting closing
entries. To do this, Cliff needs his adjusted trial balance information.
Cliff will only close temporary accounts, which include revenues, expenses, income summary, and dividends.
The first entry closes rev... | {"batch_upload": true, "file_size_mb": 156.7, "creator": "DocBook XSL Stylesheets V1.79.1", "creationdate": "2019-04-24T10:32:54-05:00", "producer": "Prince 11 (www.princexml.com)", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "title": "Principles of Accounting, Volume 1: Financial Acco... |
0f441893-b416-4435-b2bd-310ca94593ae | [
-0.024685995653271675,
0.011358777061104774,
-0.02128445729613304,
-0.04515407979488373,
0.007902446202933788,
0.013792854733765125,
0.059234995394945145,
0.0326065719127655,
0.05844717100262642,
0.021256323903799057,
0.060533929616212845,
-0.023133262991905212,
-0.03131342679262161,
-0.08... | the income summary amount in the first and second entries (10,650 – 10,625). To close income summary, Cliff
would debit Income Summary and credit Retained Earnings.
The fourth closing entry closes dividends to retained earnings. To close dividends, Cliff will credit Dividends,
and debit Retained Earnings.
Once all ... | {"upload_timestamp": "2026-02-07T07:23:08.167529", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_type": ".pdf", "moddate": "2020-08-05T15:26:11-05:00", "total_pages": 1055, "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creator": "DocBook XSL Stylesheets V1.79.1",... |
c9606dcc-ae7c-4cc5-8430-f8441d2c3b33 | [
-0.029686812311410904,
0.010412128642201424,
0.0064739868976175785,
-0.0536067970097065,
-0.016477685421705246,
0.0075777736492455006,
0.013007307425141335,
0.007392246276140213,
0.03240485116839409,
0.052089620381593704,
0.023531628772616386,
0.009068012237548828,
-0.026088634505867958,
-... | OpenStax, under CC BY-NC-SA 4.0 license)
Now that the temporary accounts are closed, they are ready for accumulation in the next period.
The last step for the month of August is step 9, preparing the post-closing trial balance. The post-closing trial
balance should only contain permanent account information. No temp... | {"batch_upload": true, "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creationdate": "2019-04-24T10:32:54-05:00", "creator": "DocBook XSL Stylesheets V1.79.1", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_type": ".pdf", "upload_timestamp": "2026-02-07T07... |
7ac2ee6e-9014-4473-94ad-eff93843dcad | [
-0.10781753808259964,
0.024746855720877647,
0.06370193511247635,
-0.026929117739200592,
-0.03614893555641174,
0.04665626958012581,
-0.04762416332960129,
0.006673524156212807,
0.02541593462228775,
0.03345830738544464,
0.006622707936912775,
0.019175339490175247,
-0.040265560150146484,
-0.051... | for September, and future periods.
C O N C E P T S I N P R A C T I C E
Reversing Entries
One step in the accounting cycle that we did not cover is reversing entries. Reversing entries can be
made at the beginning of a new period to certain accruals. The company will reverse adjusting entries
made in the prior ... | {"upload_timestamp": "2026-02-07T07:23:08.167529", "creator": "DocBook XSL Stylesheets V1.79.1", "file_type": ".pdf", "file_size_mb": 156.7, "file_name": "FinancialAccounting-OP.pdf", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "total_pages": 1055, "producer": "Prince 11 (www.princexml.com)... |
b69d06af-aade-4e91-8fd5-d25ab6f8edc0 | [
0.028845224529504776,
0.021945809945464134,
-0.02748711220920086,
-0.01753987930715084,
0.13298764824867249,
0.011895133182406425,
-0.0045701623894274235,
0.029673635959625244,
-0.014822847209870815,
-0.02735299803316593,
0.05065039172768593,
0.006496869958937168,
0.028571313247084618,
-0.... | L I N K T O L E A R N I N G
As we have learned, the current ratio shows how well a company can cover short-term debt with short-
term assets. Look through the balance sheet in the 2017 Annual Report for Target (https://openstax.org/
l/50Target2017Bal) and calculate the current ratio. What does the outcome mean f... | {"file_size_mb": 156.7, "file_type": ".pdf", "moddate": "2020-08-05T15:26:11-05:00", "title": "Principles of Accounting, Volume 1: Financial Accounting", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "uploaded_via": "batch_uploader", "producer": "Prince 11 (www.princexml.com)", "source_file":... |
cae7bc63-5d2a-452b-bec1-3d9dad65a25a | [
0.05007028952240944,
-0.019387584179639816,
-0.049584247171878815,
-0.014798727817833424,
0.03275218605995178,
0.009195863269269466,
-0.0012690522707998753,
0.0027240989729762077,
0.02406245842576027,
-0.026937540620565414,
0.020099259912967682,
-0.0016689320327714086,
-0.0495147667825222,
... | current ratio.
Your business is now in its eighth month of operation, and while you are starting to see a growth in sales,
you are not seeing a significant change in your working capital or current ratio from the low numbers in
your early months. What could you attribute to this stagnancy in liquidity? Is there anyt... | {"creationdate": "2019-04-24T10:32:54-05:00", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "total_pages": 1055, "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_name": "FinancialAccounting-OP.pdf", "source_file": "downloads\\business\\accounting\\FinancialAc... |
f77805bc-a3fe-4271-b680-6bc496950945 | [
0.016037717461586,
0.01042912807315588,
-0.043911904096603394,
-0.013925612904131413,
0.05737176164984703,
0.02497273124754429,
0.06353801488876343,
0.019633907824754715,
0.03666314482688904,
0.019815152511000633,
0.006338860839605331,
0.005414705257862806,
-0.06279962509870529,
-0.0360796... | closing entry
prepares a company for the next accounting period by clearing any outstanding balances in
certain accounts that should not transfer over to the next period
current ratio
current assets divided by current liabilities; used to determine a company’s liquidity (ability to
meet short-term obligations)
in... | {"source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creator": "DocBook XSL Stylesheets V1.79.1", "creationdate": "2019-04-24T10:32:54-05:00", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_type": ".pdf", "file_size_mb": 156.7, "source": "downloads\\business\\accou... |
d25654bf-b307-4a63-9534-91dd28114e37 | [
0.020747873932123184,
-0.041101034730672836,
-0.057263705879449844,
-0.046897295862436295,
0.0011791565921157598,
0.029969245195388794,
0.031469542533159256,
-0.007129891775548458,
0.0693381056189537,
0.027241621166467667,
0.058036983013153076,
0.007329160813242197,
-0.04645279422402382,
-... | long-term investment
stocks, bonds, or other types of investments held for more than one operating cycle
or one year, whichever is longer
long-term liability
debt settled outside one year or one operating cycle, whichever is longer
operating cycle
amount of time it takes a company to use its cash to provide a pro... | {"file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "moddate": "2020-08-05T15:26:11-05:00", "uploaded_via": "batch_uploader", "creationdate": "2019-04-24T10:32:54-05:00", "file_name": "FinancialAccounting-OP.pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "source": "downloads\\busi... |
b2dd53e9-b124-42a0-97c0-eb5231be32fd | [
0.012775751762092113,
0.0024206391535699368,
-0.05387437343597412,
0.005402222741395235,
0.008565197698771954,
0.03783837705850601,
0.09251625835895538,
-0.016935084015130997,
0.09485667943954468,
0.023987852036952972,
0.04789556935429573,
-0.06626647710800171,
-0.06386159360408783,
-0.057... | temporary (nominal) account
account that is closed at the end of each accounting period, and includes
income statement, dividends, and income summary accounts
working capital
current assets less current liabilities; sometimes used as a measure of liquidity
Summary
5.1 Describe and Prepare Closing Entries for a Bu... | {"creator": "DocBook XSL Stylesheets V1.79.1", "total_pages": 1055, "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "title": "Principles of Accounting, Volume 1: Financial Accounting", "batch_upload": true, "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_size... |
1c2e8235-d8c0-4e2e-b04c-155c08066c73 | [
0.03192153573036194,
0.04208088666200638,
-0.04568818211555481,
0.025193458423018456,
0.02755197510123253,
0.03775014355778694,
0.08136793226003647,
0.006156838499009609,
0.09596452116966248,
0.015255440957844257,
0.04992051422595978,
-0.028016094118356705,
-0.006817299872636795,
-0.066156... | • Temporary accounts: Temporary accounts are closed at the end of each accounting period and include
income statement, dividends, and income summary accounts.
•
Income Summary: The Income Summary account is an intermediary between revenues and expenses,
and the Retained Earnings account. It stores all the closing i... | {"file_type": ".pdf", "title": "Principles of Accounting, Volume 1: Financial Accounting", "producer": "Prince 11 (www.princexml.com)", "file_name": "FinancialAccounting-OP.pdf", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0... |
44cd34bb-9189-42b2-be0f-13540e2d6ac2 | [
-0.011468173004686832,
-0.003594449022784829,
-0.06248185783624649,
-0.03895983472466469,
0.034509334713220596,
-0.025861581787467003,
0.058035511523485184,
0.04639832302927971,
0.09213156253099442,
0.03460894152522087,
0.02803237922489643,
-0.014738654717803001,
-0.014137581922113895,
-0.... | • Posting closing entries: Once all closing entries are complete, the information is transferred to the
general ledger T-accounts. Balances in temporary accounts will show a zero balance.
5.2 Prepare a Post-Closing Trial Balance
• Post-closing trial balance: The post-closing trial balance is prepared after closing e... | {"uploaded_via": "batch_uploader", "creator": "DocBook XSL Stylesheets V1.79.1", "file_type": ".pdf", "total_pages": 1055, "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "moddate": "2020-08-05T15:26:11-05:00", "upload_timestamp": "2026-02-07T07:23:08.167529", "file_size_mb": 156.7, "title... |
9797acf5-d46c-4287-99b8-f603a681b09f | [
-0.036295533180236816,
-0.030084626749157906,
-0.08262374997138977,
-0.03506122902035713,
0.08012940734624863,
0.0075846100226044655,
0.03418579325079918,
0.0337212011218071,
0.009863294661045074,
-0.018428519368171692,
-0.029260307550430298,
0.03185562789440155,
-0.016347505152225494,
-0.... | basis system recognizes revenues and expenses in the period in which they were earned or incurred,
allowing for an even distribution of income and a more accurate business of daily operations.
• Classified balance sheet: The classified balance sheet breaks down assets and liabilities into subcategories
focusing on c... | {"batch_upload": true, "total_pages": 1055, "file_size_mb": 156.7, "uploaded_via": "batch_uploader", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creator": "DocBook XSL Stylesheets V1.79.1", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_name": "FinancialAccounti... |
7e7fa7d1-12f8-406e-b470-b4d01c080896 | [
0.001594854285940528,
0.002558057429268956,
-0.08173045516014099,
-0.04932040348649025,
-0.019850626587867737,
-0.009585811756551266,
0.09202390909194946,
-0.03930887579917908,
0.06972749531269073,
0.025874851271510124,
0.04766909033060074,
-0.007208089344203472,
0.02690695971250534,
-0.06... | by dividing current assets by current liabilities.
5.4 Appendix: Complete a Comprehensive Accounting Cycle for a Business
• The comprehensive accounting cycle is the process in which transactions are recorded in the accounting
records and are ultimately reflected in the ending period balances on the financial statem... | {"creator": "DocBook XSL Stylesheets V1.79.1", "uploaded_via": "batch_uploader", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "total_pages": 1055, "producer": "Prince 11 (www.princexml.com)", "creationdate": "2019-04-24T10:32:54-05:00", "file_size_mb": 156.7, "file_type": ".pdf", "so... |
48e524b8-8449-41f9-8319-63899bf03870 | [
-0.06841392070055008,
0.0052779847756028175,
-0.06149328872561455,
-0.04010104015469551,
0.014768112450838089,
0.03312184289097786,
0.10139790922403336,
-0.016381438821554184,
0.09052926301956177,
0.049267400056123734,
0.07289287447929382,
-0.024440573528409004,
0.000407928426284343,
-0.05... | B. Prepaid Advertising
C. Unearned Service Revenue
D. Prepaid Insurance
2.
5.1 Which of the following accounts is considered a permanent or real account?
A.
Interest Revenue
B. Prepaid Insurance
C.
Insurance Expense
D. Supplies Expense
338
Chapter 5 Completing the Accounting Cycle
3.
5.1 If a journal entr... | {"source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "file_name": "FinancialAccounting-OP.pdf", "uploaded_via": "batch_uploader", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creator":... |
a2546568-a8a8-4dce-bdb2-a2c13d5b9c6f | [
0.00289959367364645,
-0.025261584669351578,
-0.002985177095979452,
-0.008321387693285942,
0.018317395821213722,
0.05053194984793663,
0.06892532855272293,
-0.05620696768164635,
0.0566551573574543,
0.040110841393470764,
0.04094730317592621,
-0.07030907273292542,
0.024541858583688736,
-0.0269... | 5.
5.1 Which of these accounts would be present in the closing entries?
A. Dividends
B. Accounts Receivable
C. Unearned Service Revenue
D. Sales Tax Payable
6.
5.1 Which of these accounts would not be present in the closing entries?
A. Utilities Expense
B.
C.
Fees Earned Revenue
Insurance Expense
D. Divide... | {"creationdate": "2019-04-24T10:32:54-05:00", "upload_timestamp": "2026-02-07T07:23:08.167529", "batch_upload": true, "file_type": ".pdf", "file_size_mb": 156.7, "producer": "Prince 11 (www.princexml.com)", "title": "Principles of Accounting, Volume 1: Financial Accounting", "source": "downloads\\business\\accounting\\... |
c9455000-9f98-4820-bbd1-289b1b223ee4 | [
0.0017402598168700933,
0.041515812277793884,
-0.011537071317434311,
-0.029296910390257835,
0.006665501743555069,
0.05355637148022652,
0.02423003874719143,
-0.01379360817372799,
0.05914103239774704,
0.04470659792423248,
0.03250490501523018,
-0.04836208373308182,
0.011313650757074356,
-0.051... | D.
Income Summary
10.
5.1 Which account would be credited when closing the account for rent expense for the year?
A. Prepaid Rent
B. Rent Expense
C. Rent Revenue
D. Unearned Rent Revenue
This OpenStax book is available for free at http://cnx.org/content/col25448/1.4
Chapter 5 Completing the Accounting Cycle
3... | {"source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "batch_upload": true, "moddate": "2020-08-05T15:26:11-05:00", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "creationdate": "2019-04-24T10:32:54-05:00", "file_type": ".pdf", "producer": "Prince 11 (www.princexml... |
48505641-04b5-43cb-8295-96c536d05e4a | [
0.038015566766262054,
0.0190377589315176,
-0.03592826798558235,
-0.04133417457342148,
0.005126320291310549,
0.045191653072834015,
0.06435194611549377,
0.023050010204315186,
0.022879082709550858,
0.07943792641162872,
0.035580333322286606,
-0.06827224045991898,
-0.02380065619945526,
-0.05313... | C. Post-Closing Trial Balance
D. The Worksheet
14.
5.2 Which of these accounts is included in the post-closing trial balance?
A. Supplies Expense
B. Accounts Payable
C.
D.
Sales Revenue
Insurance Expense
15.
5.3 If current assets are $112,000 and current liabilities are $56,000, what is the current ratio?
A... | {"total_pages": 1055, "file_size_mb": 156.7, "creationdate": "2019-04-24T10:32:54-05:00", "batch_upload": true, "file_name": "FinancialAccounting-OP.pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_hash": "89738e550d63820fbb3a833d14ab0402... |
f1f1e5b6-69df-4b72-9151-2593d5c44ee1 | [
0.027737200260162354,
-0.028567161411046982,
0.015299219638109207,
-0.05981972813606262,
-0.0027562964241951704,
0.053562529385089874,
0.08168233186006546,
0.05130559578537941,
0.06262204796075821,
0.030002105981111526,
-0.04708556458353996,
-0.07225256413221359,
-0.07735691219568253,
-0.0... | 5.1 Which of these account types (Assets, Liabilities, Equity, Revenue, Expense, Dividend) are credited in
the closing entries? Why?
340
Chapter 5 Completing the Accounting Cycle
6.
5.1 Which of these account types (Assets, Liabilities, Equity, Revenue, Expense, Dividend) are debited in
the closing entries? Why?
... | {"source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_size_mb": 156.7, "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "moddate": "2020-08-05T15:26:11-05:00", "creator": "DocBook XSL Stylesheets V1.79.1", "creationdate": "2019-04-24T10:32:54-05:00", "total_page... |
4411027e-e7dc-4322-b1b0-9019a041994e | [
0.03403056040406227,
0.03914773464202881,
-0.044936276972293854,
-0.03122774325311184,
0.00742351496592164,
0.053011421114206314,
0.09335251897573471,
0.03898482397198677,
0.041078828275203705,
0.054466623812913895,
0.021474849432706833,
-0.0923893004655838,
-0.03116745501756668,
-0.053307... | does this indicate about the company’s net income or loss?
11.
5.2 What account types are included in a post-closing trial balance?
12.
5.2 Which of the basic financial statements can be directly tied to the post-closing trial balance? Why is
this so?
13.
5.3 Describe the calculation required to compute working ... | {"file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "producer": "Prince 11 (www.princexml.com)", "upload_timestamp": "2026-02-07T07:23:08.167529", "moddate": "2020-08-05T15:26:11-05:00", "total_pages": 1055, "batch_upload": true, "file_name": "FinancialAccounting-OP.pdf", "file_size_mb": 1... |
dc15bd94-7def-49ab-a7b0-dedc2593b35f | [
0.020951872691512108,
0.058745093643665314,
-0.06730921566486359,
0.019864151254296303,
0.023370785638689995,
0.01512205507606268,
0.06044856086373329,
-0.02229662798345089,
0.033725086599588394,
0.06557588279247284,
0.03261028230190277,
-0.047882530838251114,
0.00528646120801568,
-0.05896... | EA2.
5.1 For each of the following accounts, identify whether it is nominal/temporary or real/permanent,
and whether it is reported on the Balance Sheet or the Income Statement.
A.
Interest Expense
B. Buildings
C.
Interest Payable
D. Unearned Rent Revenue
This OpenStax book is available for free at http://cnx.... | {"source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_size_mb": 156.7, "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "uploaded_via": "batch_uploader", "creationdate": "2019-04-24T10:32:54-05:00", "moddate": "2020-08-05T15:26:11-05:00", "batch_upload": tr... |
2b98f0b9-a52f-4b96-a9ed-543a8fef7b61 | [
-0.0006130337715148926,
0.0683782547712326,
-0.03716506436467171,
-0.016523970291018486,
0.0247554462403059,
0.05277469754219055,
0.05586564540863037,
-0.01712377369403839,
0.03783181682229042,
0.06406523287296295,
0.017086490988731384,
-0.010981150902807713,
0.02018938958644867,
-0.084059... | Insurance Expense
G. Prepaid Insurance
H. Supplies
EA4.
5.1 The following accounts and normal balances existed at year-end. Make the four journal entries
required to close the books:
EA5.
5.1 The following accounts and normal balances existed at year-end. Make the four journal entries
required to close the book... | {"upload_timestamp": "2026-02-07T07:23:08.167529", "file_size_mb": 156.7, "total_pages": 1055, "creator": "DocBook XSL Stylesheets V1.79.1", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creationdate": "201... |
f9253743-9fd1-4fb6-8005-5d66d4d5550e | [
-0.02743864618241787,
0.02314968779683113,
-0.06330178678035736,
-0.051303762942552567,
0.060067810118198395,
0.05038212239742279,
0.05751905217766762,
-0.014030027203261852,
0.02699989266693592,
0.00567188486456871,
0.041614897549152374,
-0.08975997567176819,
-0.005540534853935242,
-0.038... | 343
EA9.
5.2 Identify whether each of the following accounts would be listed in the company’s Post-Closing
Trial Balance.
A. Accounts Payable
B. Advertising Expense
C. Dividends
D. Fees Earned Revenue
E. Prepaid Advertising
F.
Supplies
G. Supplies Expense
H. Unearned Fee Revenue
EA10.
5.2 Identify which o... | {"file_name": "FinancialAccounting-OP.pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "batch_upload": true, "uploaded_via": "batch_uploader", "creator": "DocBook XSL Stylesheets V1.79.1", "producer": "Prince 11 (www.princexml.com)", "file_size_mb": 156.7, "title": "Principles of Accounting, Volume 1: Financial ... |
2028a520-df41-47a4-8485-4056f2f15eea | [
0.013687768951058388,
0.03258084878325462,
-0.06427549570798874,
-0.051052648574113846,
0.03885207325220108,
0.020223798230290413,
0.08141251653432846,
0.00290609709918499,
0.03922320902347565,
0.029365425929427147,
0.04947229102253914,
-0.06015273928642273,
0.021197527647018433,
-0.026126... | G. Prepaid Insurance
H. Supplies
EA12.
5.3 Using the following Balance Sheet summary information, calculate for the two years presented:
A. working capital
B.
current ratio
344
Chapter 5 Completing the Accounting Cycle
EA13.
5.3 Using the following account balances, calculate for the two years presented:
A. ... | {"moddate": "2020-08-05T15:26:11-05:00", "file_size_mb": 156.7, "producer": "Prince 11 (www.princexml.com)", "upload_timestamp": "2026-02-07T07:23:08.167529", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "file_name": "FinancialAccounting-OP.pdf", "source": "downloads\\business\\accou... |
bed0d3e7-2290-48b2-ba80-25f7330048ac | [
0.012525384314358234,
0.051651302725076675,
-0.060224346816539764,
0.022974781692028046,
0.002561266301199794,
0.059848640114068985,
0.06308354437351227,
-0.03053915500640869,
0.013954893685877323,
0.036750148981809616,
0.02725468948483467,
-0.10289542376995087,
0.03465476259589195,
-0.038... | EB1.
5.1 Identify whether each of the following accounts are nominal/temporary or real/permanent.
A. Rent Expense
B. Unearned Service Fee Revenue
C.
Interest Revenue
D. Accounts Payable
This OpenStax book is available for free at http://cnx.org/content/col25448/1.4
Chapter 5 Completing the Accounting Cycle
345... | {"source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "producer": "Prince 11 (www.princexml.com)", "upload_timestamp": "2026-02-07T07:23:08.167529", "batch_upload": true, "file_name": "FinancialAccounting-OP.pdf", "uploaded_via": "batch_uploader", "creationdate": "2019-04-24T10:32:54-05:00", "file_t... |
3333c3b0-e115-4451-9d60-2d69c8a12815 | [
0.011852379888296127,
0.09877417236566544,
-0.01045953668653965,
0.0214755367487669,
-0.02709110453724861,
0.049694351851940155,
-0.010280522517859936,
-0.01475340873003006,
0.036788567900657654,
0.06183832511305809,
0.0004199105896987021,
-0.03243494778871536,
0.023259082809090614,
-0.091... | Earnings Statement).
A. Retained Earnings
B. Prepaid Rent
C. Rent Expense
D. Rent Revenue
E.
F.
Salaries Expense
Salaries Payable
G. Supplies Expense
H. Unearned Rent Revenue
EB4.
5.1 The following accounts and normal balances existed at year-end. Make the four journal entries
required to close the books:
... | {"moddate": "2020-08-05T15:26:11-05:00", "producer": "Prince 11 (www.princexml.com)", "file_size_mb": 156.7, "uploaded_via": "batch_uploader", "file_name": "FinancialAccounting-OP.pdf", "creator": "DocBook XSL Stylesheets V1.79.1", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "source... |
ad872aa3-c356-41eb-81cb-8dfe8cff786b | [
0.005599003750830889,
0.012682849541306496,
-0.042408253997564316,
-0.04785630479454994,
0.009174554608762264,
0.05330535024404526,
0.04416583105921745,
-0.01768583059310913,
0.002258832333609462,
0.015736451372504234,
0.0229786466807127,
-0.03119623102247715,
-0.0044016120955348015,
-0.07... | This OpenStax book is available for free at http://cnx.org/content/col25448/1.4
Chapter 5 Completing the Accounting Cycle
347
EB9.
5.2 Identify which of the following accounts would be listed on the company’s Post-Closing Trial
Balance.
A. Accounts Receivable
B. Accumulated Depreciation
C. Cash
D. Office Expen... | {"batch_upload": true, "moddate": "2020-08-05T15:26:11-05:00", "creator": "DocBook XSL Stylesheets V1.79.1", "producer": "Prince 11 (www.princexml.com)", "title": "Principles of Accounting, Volume 1: Financial Accounting", "total_pages": 1055, "file_type": ".pdf", "source_file": "downloads\\business\\accounting\\Financ... |
f6da9c78-59e3-4862-964a-2b33094b3fc3 | [
-0.0010594668565317988,
0.03781275451183319,
-0.04741756618022919,
-0.06930901855230331,
-0.0005999846034683287,
0.031971193850040436,
0.009673107415437698,
0.024696897715330124,
0.01838153414428234,
-0.0014823076780885458,
0.04386299103498459,
-0.05524101480841637,
-0.022820858284831047,
... | or stockholder’s equity.
A. Building
B. Cash
C. Common Stock
D. Copyright
E. Prepaid Advertising
F. Notes Payable (due six months later)
G. Taxes Payable
H. Unearned Rent Revenue
EB12.
5.3 Using the following Balance Sheet summary information, calculate for the two years presented:
A. working capital
B.
cu... | {"upload_timestamp": "2026-02-07T07:23:08.167529", "creationdate": "2019-04-24T10:32:54-05:00", "file_size_mb": 156.7, "uploaded_via": "batch_uploader", "producer": "Prince 11 (www.princexml.com)", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "file_type": ".pdf", "moddate": "2020-08-... |
ef752a94-8d0c-4d69-8b8c-d0c286191de5 | [
0.017903102561831474,
0.0817127451300621,
0.006763098761439323,
-0.016686800867319107,
-0.025727147236466408,
0.010480251163244247,
0.006926981266587973,
-0.0331595204770565,
-0.008726059459149837,
0.05455075949430466,
0.03737425059080124,
-0.032243598252534866,
0.026105230674147606,
-0.05... | follows:
This OpenStax book is available for free at http://cnx.org/content/col25448/1.4
Chapter 5 Completing the Accounting Cycle
349
Problem Set A
PA1.
5.1 Identify whether each of the following accounts would be considered a permanent account (yes/
no) and which financial statement it would be reported on (Ba... | {"creator": "DocBook XSL Stylesheets V1.79.1", "upload_timestamp": "2026-02-07T07:23:08.167529", "total_pages": 1055, "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_type": ".pdf", "file_size_mb": 156.7, "uploaded_via": "batch_uploader", "batch_upload": true, "source_file": "downloads\\busine... |
d5f62247-2212-4db4-a605-9e6446d460e4 | [
0.01653653010725975,
0.07613687962293625,
-0.004204314202070236,
-0.03709566965699196,
-0.0762740895152092,
0.027960751205682755,
-0.00940688792616129,
0.007238836493343115,
0.001706709386780858,
0.06830476969480515,
0.000989485764876008,
-0.025160610675811768,
0.01013356726616621,
-0.1019... | exceed revenue in this period. Make the four journal entries required to close the books:
350
Chapter 5 Completing the Accounting Cycle
PA4.
5.1 Use the following Adjusted Trial Balance to prepare the four journal entries required to close the
books:
PA5.
5.1 Use the following Adjusted Trial Balance to prepare t... | {"total_pages": 1055, "uploaded_via": "batch_uploader", "upload_timestamp": "2026-02-07T07:23:08.167529", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_size_mb": 156.7, "moddate": "2020-08-05T15:26:11-05:00", "creationdate": "2019-04-24T10:32:54-05:00", "file_type": ".pdf", "title": "Pr... |
ff99dcb1-90f0-45cc-96fc-d6ffb64fa350 | [
-0.004022054374217987,
0.060066286474466324,
0.03407086804509163,
-0.03030785545706749,
-0.019177859649062157,
0.020405394956469536,
-0.04914506897330284,
0.013968238607048988,
-0.0249128807336092,
0.05185185745358467,
0.02373747155070305,
0.02018587477505207,
-0.004004457965493202,
-0.086... | Chapter 5 Completing the Accounting Cycle
PA8.
5.1 Correct any obvious errors in the following closing entries by providing the four corrected closing
entries. Assume all accounts held normal account balances in the Adjusted Trial Balance.
A.
B.
C.
D.
PA9.
5.2 Assuming the following Adjusted Trial Balance, cre... | {"source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "total_pages": 1055, "moddate": "2020-08-05T15:26:11-05:00", "file_type": ".pdf", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "uploaded_via": "batch_uploader", "creationdate": "2019-04-24T10:32:54-05:00",... |
39bd3873-6fdc-4888-8f01-dcb24486f784 | [
-0.00018354096391703933,
0.06790214031934738,
-0.010786774568259716,
-0.054791323840618134,
-0.012628828175365925,
0.07025721669197083,
-0.056926872581243515,
0.008009103126823902,
0.010396325960755348,
0.025374997407197952,
0.05119756609201431,
0.0023152483627200127,
-0.05052826181054115,
... | PA12.
5.3 Use the following Adjusted Trial Balance to prepare a classified Balance Sheet:
354
Chapter 5 Completing the Accounting Cycle
PA13.
5.3 Using the following Balance Sheet summary information, for the two years presented calculate:
A. working capital
B.
current ratio
PA14.
5.3 Using the following Bala... | {"creationdate": "2019-04-24T10:32:54-05:00", "total_pages": 1055, "creator": "DocBook XSL Stylesheets V1.79.1", "file_name": "FinancialAccounting-OP.pdf", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "uploaded_via": "batch_uploader", "file_size_mb": 156.7, "source": "downloads\\busines... |
dc379b70-53aa-4489-b23a-4628e7b250a9 | [
0.017579354345798492,
0.09512392431497574,
-0.036510925740003586,
-0.02012632042169571,
-0.0077782380394637585,
0.06709839403629303,
0.06074131652712822,
0.0017499859677627683,
0.021792976185679436,
0.00406617671251297,
0.0526401586830616,
-0.0544220507144928,
-0.010337043553590775,
-0.048... | A.
Income Statement
B. Retained Earnings Statement
C. Balance Sheet (simple—unclassified)
D. Closing journal entries
E. Post-Closing Trial Balance
PA17.
5.4 From the following Company T adjusted trial balance, prepare the following:
A.
Income Statement
B. Retained Earnings Statement
C. Balance Sheet (simple—... | {"total_pages": 1055, "producer": "Prince 11 (www.princexml.com)", "creationdate": "2019-04-24T10:32:54-05:00", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "file_size_mb": 156.7, "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "source": "downloads\\busi... |
eb7f784c-ca67-4ff2-b9ca-55cf132b46bd | [
-0.006524938158690929,
0.030217798426747322,
-0.016297969967126846,
-0.03672858700156212,
-0.05278468504548073,
0.04082893207669258,
0.016154909506440163,
-0.002610082272440195,
0.007029860280454159,
0.06889715790748596,
-0.026355504989624023,
-0.003748892107978463,
-0.013446669094264507,
... | Income Tax Payable
G. Service Revenue
H. Unearned Service Revenue
I. Net Income
PB2.
5.1 The following selected accounts and normal balances existed at year-end. Make the four journal
entries required to close the books:
PB3.
5.1 The following selected accounts and normal balances existed at year-end. Notice th... | {"file_type": ".pdf", "uploaded_via": "batch_uploader", "total_pages": 1055, "producer": "Prince 11 (www.princexml.com)", "moddate": "2020-08-05T15:26:11-05:00", "file_name": "FinancialAccounting-OP.pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a4... |
ecb3b93f-ed55-4657-829b-5ad5b04958ac | [
-0.003205343848094344,
0.06173989176750183,
-0.006225913297384977,
-0.0320485457777977,
-0.046259500086307526,
0.05221104621887207,
0.007211498916149139,
0.023589089512825012,
0.010657045990228653,
0.046323470771312714,
0.018470894545316696,
-0.011358692310750484,
0.021065855398774147,
-0.... | books:
358
Chapter 5 Completing the Accounting Cycle
PB6.
5.1 Use the following T-accounts to prepare the four journal entries required to close the books:
PB7.
5.1 Assume that the first two closing entries have been made and posted. Use the T-accounts
provided below to:
A.
complete the closing entries
B. det... | {"file_size_mb": 156.7, "moddate": "2020-08-05T15:26:11-05:00", "title": "Principles of Accounting, Volume 1: Financial Accounting", "batch_upload": true, "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_type": ".pdf", "source": "downloads\\business\\accounting\\FinancialAccounting-OP... |
14cfbc01-7828-4f10-aad6-f6f3cdac1a6d | [
0.01978456974029541,
0.06316420435905457,
-0.005221763160079718,
-0.026418937370181084,
-0.015710096806287766,
0.035517383366823196,
-0.06759542226791382,
0.029648128896951675,
-0.015592820011079311,
0.004373745992779732,
0.009877759031951427,
0.0013813675614073873,
-0.019876284524798393,
... | result after all closing journal entries were made and posted:
360
Chapter 5 Completing the Accounting Cycle
PB10.
5.2 The following Post-Closing Trial Balance contains errors. Prepare a corrected Post-Closing Trial
Balance:
PB11.
5.2 Assuming the following Adjusted Trial Balance, re-create the Post-Closing Tria... | {"source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "moddate": "2020-08-05T15:26:11-05:00", "file_name": "FinancialAccounting-OP.pdf", "file_size_mb": 156.7, "uploaded_via": "batch_uploader", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "total_pages": 1055,... |
23e83ee3-3d53-41ae-b8f1-3c1368c669e5 | [
0.016569631174206734,
0.07985017448663712,
0.009778420440852642,
-0.03588090464472771,
-0.0031629225704818964,
0.058939896523952484,
-0.0414917953312397,
0.048425111919641495,
0.032468706369400024,
0.007228861562907696,
0.038779620081186295,
0.020650872960686684,
-0.029019346460700035,
-0.... | A. working capital
B.
current ratio
PB14.
5.3 Using the following Balance Sheet summary information, calculate for the two years presented:
A. working capital
B.
current ratio
PB15.
5.3 Using the following account balances, calculate for the two years presented:
A. working capital
B.
current ratio
PB16.
5... | {"file_size_mb": 156.7, "upload_timestamp": "2026-02-07T07:23:08.167529", "creationdate": "2019-04-24T10:32:54-05:00", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creator": "DocBook XSL Stylesheets V1.79.1", "upl... |
4d63d311-9c62-40cd-b4b2-bb845e4b506d | [
-0.014956978149712086,
0.07390999048948288,
0.027857087552547455,
-0.0200737863779068,
-0.022951891645789146,
0.03390228748321533,
-0.004247587639838457,
0.08816526085138321,
0.0025106361135840416,
0.008698834106326103,
0.03461039438843727,
-0.07493198662996292,
-0.04533678665757179,
-0.08... | two years’ profits in year 20X2, in an effort to make that year’s profits appear stronger.
Write a memo to the CEO, to offer your response to the request to skip the closing entries for year 20X1.
TP2.
5.1 Search the Securities and Exchange Commission website (https://www.sec.gov/edgar/
searchedgar/companysearch.ht... | {"producer": "Prince 11 (www.princexml.com)", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creationdate": "2019-04-24T10:32:54-05:00", "uploaded_via": "batch_uploa... |
ef05fa00-d4fa-4b31-8e27-e9d093418065 | [
-0.034212686121463776,
0.06870652735233307,
-0.009215505793690681,
-0.02044074982404709,
-0.0027987337671220303,
0.05375541374087334,
0.07886715978384018,
0.03543056547641754,
0.024155449122190475,
0.030734963715076447,
-0.004699005279690027,
-0.05570795014500618,
-0.04367636889219284,
-0.... | the company have credited the Income Summary account in the first closing entry?
B. How much would the company have debited the Income Summary account in the second
closing entry?
Provide the web link to the company’s Form 10-K, to allow accurate verification of your answers.
TP3.
5.1 Assume you are a senior accou... | {"file_type": ".pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "producer": "Prince 11 (www.princexml.com)", "total_pages": 1055, "file_size_mb": 156.7, "creator": "DocBook XSL Stylesheets V1.79.1", "creationdate": "2019-04-24T10:32:54-05:00", "file_name": "FinancialAccounting-OP.pdf", "batch_upload": true, "so... |
abc41be2-7629-407e-a8f6-b37adad15e46 | [
-0.026773331686854362,
0.04245724156498909,
-0.05986756086349487,
-0.039085954427719116,
-0.04291640594601631,
0.019050216302275658,
-0.015327205881476402,
0.03680429980158806,
-0.017611265182495117,
0.0031791285146027803,
0.022405540570616722,
-0.03558413311839104,
-0.05143754184246063,
-... | year.
This OpenStax book is available for free at http://cnx.org/content/col25448/1.4
Chapter 5 Completing the Accounting Cycle
363
TP4.
5.2 Search the US Securities and Exchange Commission website (https://www.sec.gov/edgar/
searchedgar/companysearch.html) and locate the latest Form 10-K for a company you would ... | {"source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "producer": "Prince 11 (www.princexml.com)", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_name": "FinancialAccounting-OP.pdf", "batch_u... |
f25db331-e7f4-46db-a804-f5bc924e6d82 | [
0.013349809683859348,
0.06653520464897156,
-0.05780360847711563,
-0.058119870722293854,
0.035762567073106766,
0.004643451888114214,
-0.002700097393244505,
0.024037029594182968,
-0.05043860897421837,
-0.009147591888904572,
0.046563778072595596,
-0.021415676921606064,
-0.01491170097142458,
-... | searchedgar/companysearch.html) and locate the latest Form 10-K for a company you would like to analyze.
Submit a short memo:
• State the name and ticker symbol of the company you have chosen.
• Review the company’s end-of-period Balance Sheet for the most recent annual report.
• List the amount of Current Assets a... | {"file_name": "FinancialAccounting-OP.pdf", "creationdate": "2019-04-24T10:32:54-05:00", "batch_upload": true, "total_pages": 1055, "creator": "DocBook XSL Stylesheets V1.79.1", "file_type": ".pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af7... |
28a9779c-e5d7-4d5e-8560-9ff12e4a932d | [
-0.03165419399738312,
0.061146948486566544,
-0.009738393127918243,
-0.08784418553113937,
0.021774251013994217,
0.02172793820500374,
0.035685714334249496,
0.04093627259135246,
0.0020978227257728577,
0.026305193081498146,
0.04794556275010109,
0.06524816155433655,
0.0071417186409235,
0.004702... | picture to make informed business decisions. (credit: modification of “Video game retail store, consumerism at
its finest” by Bas de Reuver/Flickr, CC BY 2.0)
Chapter Outline
6.1 Compare and Contrast Merchandising versus Service Activities and Transactions
6.2 Compare and Contrast Perpetual versus Periodic Inventor... | {"file_name": "FinancialAccounting-OP.pdf", "file_type": ".pdf", "total_pages": 1055, "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "uploaded_via": "batch_uploader", "creator": "DocBook XSL Stylesheets V1.79.1", "moddate": "2020-08-05T15:26:11-05:00", "producer": "Prince 11 (www.princexml.com... |
aaa1f22b-0c0b-426e-a914-e0ea82e1a722 | [
-0.04395213723182678,
0.048904187977313995,
-0.0012129686074331403,
-0.09052302688360214,
0.0028351424261927605,
0.03978171572089195,
0.06567390263080597,
0.035665351897478104,
0.032238636165857315,
0.030394287779927254,
0.07631519436836243,
0.0790545716881752,
0.014644299633800983,
-0.003... | Inventory System
Why It Matters
Jason and his brother James own a small business called J&J Games, specializing in the sale of video games and
accessories. They purchase their merchandise from a Marcus Electronics manufacturer and sell directly to
consumers.
When J&J Games (J&J) purchases merchandise from Marcus, ... | {"upload_timestamp": "2026-02-07T07:23:08.167529", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "file_size_mb": 156.7, "uploaded_via": "batch_uploader", "creator": "DocBook XSL Stylesheets V1.79.1", "file_name":... |
361d0123-cf82-4ceb-878a-5fb8a10085c6 | [
-0.07681722939014435,
0.07287093997001648,
0.03131754323840141,
-0.11650398373603821,
0.008370078168809414,
0.04806899651885033,
0.06808452308177948,
0.0005439266678877175,
0.016998305916786194,
0.017947755753993988,
0.046254467219114304,
0.10024844855070114,
0.025937696918845177,
-0.01830... | Chapter 6 Merchandising Transactions
payment gives J&J a monetary incentive to pay early and allow Marcus to use the funds for other business
purposes. Until J&J pays on their account, this outstanding balance remains a liability for J&J.
J&J Games successfully sells merchandise on a regular basis to customers. As t... | {"total_pages": 1055, "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "file_type": ".pdf", "uploaded_via": "batch_uploader", "upload_timestamp": "2026-02-07T07:23:08.167529", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_name": "FinancialAccounting-OP.pd... |
4ab9c2a9-a5c8-438e-9045-b9094f7c3a0b | [
0.010908938944339752,
0.04253481701016426,
-0.006423522252589464,
-0.059346508234739304,
0.07921326905488968,
0.02599414810538292,
0.10182841122150421,
-0.012011558748781681,
0.028514880686998367,
-0.11589768528938293,
0.06930557638406754,
0.011956164613366127,
-0.010634343139827251,
-0.00... | returns, and allowance policies that do not overextend their company’s financial position while giving them an
opportunity to create lasting relationships with a new customer base.
6.1 Compare and Contrast Merchandising versus Service Activities and
Transactions
Every week, you run errands for your household. These... | {"batch_upload": true, "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "file_type": ".pdf", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_name": "FinancialAccounting-OP.pdf", "uplo... |
23ee489f-280f-4a90-bdb4-da57c28b4c04 | [
-0.018683230504393578,
-0.015786368399858475,
-0.014487662352621555,
-0.08233711123466492,
-0.013571792282164097,
-0.022687461227178574,
0.05855206400156021,
-0.005635445471853018,
0.09535874426364899,
-0.0668383464217186,
0.025400664657354355,
0.034310102462768555,
0.016949737444519997,
0... | operations. There are some key differences between these business types in the manner and detail required
for transaction recognition.
Comparison of Merchandising Transactions versus Service Transactions
Some of the biggest differences between a service company and a merchandising company are what they sell,
their ... | {"file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "uploaded_via": "batch_uploader", "moddate": "2020-08-05T15:26:11-05:00", "batch_upload": true, "upload_timestamp": "2026-02-07T07:23:08.167529", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_size_mb": 156... |
1d3b6c5c-ed26-435d-afba-6ab4ef72b124 | [
-0.012337436899542809,
0.016674431040883064,
-0.018167559057474136,
-0.04543887823820114,
0.00452771782875061,
-0.04060385003685951,
0.04579121246933937,
-0.00936913676559925,
0.044640928506851196,
-0.019890861585736275,
0.0692332461476326,
0.06275703758001328,
0.02869512513279915,
-0.0299... | provided, providing the service, and processing payments. These activities may occur frequently within a
company’s accounting cycle and make up a portion of the service company’s operating cycle.
An operating cycle is the amount of time it takes a company to use its cash to provide a product or service
and collect p... | {"source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "creationdate": "2019-04-24T10:32:54-05:00", "total_pages": 1055, "batch_upload": true, "file_type": ".pdf", "producer": "Prince 11 (www.princexml.com)", "creator": "DocBook XSL Stylesheets V1.79.1", "upload_timestamp": "2026-02-07T07:23:08.... |
fb1d6abb-1a0c-4005-9ef7-9a2a430124a0 | [
0.010878024622797966,
0.040035925805568695,
-0.002417334821075201,
-0.009687574580311775,
0.0496087484061718,
0.02629314921796322,
0.02592184953391552,
0.01999819651246071,
0.01110176369547844,
-0.04088480398058891,
0.039357513189315796,
-0.024026965722441673,
0.0359065942466259,
-0.022194... | under CC BY-NC-SA 4.0 license)
The income statement format is fairly simple as well (see Figure 6.3). Revenues (sales) are reported first,
followed by any period operating expenses. The outcome of sales less expenses, which is net income (loss), is
calculated from these accounts.
Figure 6.3
Service Company Income ... | {"source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "producer": "Prince 11 (www.princexml.com)", "total_pages": 1055, "creator": "DocBook XSL Stylesheets V1.79.1", "upload_timestamp": "2026-02-07T07:23:08.167529", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_name... |
fd7f765d-99f9-488a-a08e-0523d15d7c79 | [
-0.005108896642923355,
0.07464614510536194,
0.032282304018735886,
-0.043486643582582474,
0.02683771401643753,
-0.0017586274771019816,
0.004090125672519207,
0.024463189765810966,
0.008419984020292759,
-0.0301880594342947,
0.07942263036966324,
-0.0115300128236413,
0.0514865480363369,
-0.0191... | cycle for a merchandising company starts with having cash available, purchasing inventory, selling the
merchandise to customers, and finally collecting payment from customers (Figure 6.4).
368
Chapter 6 Merchandising Transactions
Figure 6.4
Typical Operating Cycle for a Merchandising Company. (attribution: Copyrig... | {"batch_upload": true, "creator": "DocBook XSL Stylesheets V1.79.1", "upload_timestamp": "2026-02-07T07:23:08.167529", "uploaded_via": "batch_uploader", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_name": "FinancialAccounting-OP.pdf", "total_pages": 1055, "file_hash": "89738e550d6... |
51c6e9ca-1fee-4062-b446-a9ccd082b9f2 | [
0.019710002467036247,
0.05114885792136192,
0.010727716609835625,
-0.05534163862466812,
0.05342406406998634,
0.0443863607943058,
0.07485713809728622,
0.047666944563388824,
0.037022631615400314,
-0.01502278447151184,
0.08863820880651474,
-0.0433923713862896,
0.04134734719991684,
-0.000826398... | other expenses and net income (loss). A simple retailer income statement is shown in Figure 6.5 for
comparison.
Figure 6.5 Merchandise Company Income Statement. Cost of Goods Sold is deducted from net sales to
calculate gross margin. (attribution: Copyright Rice University, OpenStax, under CC BY-NC-SA 4.0 license)
... | {"title": "Principles of Accounting, Volume 1: Financial Accounting", "file_name": "FinancialAccounting-OP.pdf", "moddate": "2020-08-05T15:26:11-05:00", "creator": "DocBook XSL Stylesheets V1.79.1", "producer": "Prince 11 (www.princexml.com)", "uploaded_via": "batch_uploader", "batch_upload": true, "total_pages": 1055,... |
743d0b5f-1361-4e8c-918a-ef59a9021d2d | [
-0.06389620155096054,
-0.0081831319257617,
-0.014707877300679684,
-0.07576298713684082,
0.0206868015229702,
-0.007064963690936565,
0.11561649292707443,
-0.036595430225133896,
0.01530264038592577,
0.000901933410204947,
0.09568970650434494,
0.005545069929212332,
0.005544922314584255,
-0.0187... | business to continue operations and can use several purchase situations to accomplish this.
This OpenStax book is available for free at http://cnx.org/content/col25448/1.4
Chapter 6 Merchandising Transactions
369
Purchases with Cash or on Credit
A retailer typically conducts business with a manufacturer or with a ... | {"upload_timestamp": "2026-02-07T07:23:08.167529", "creator": "DocBook XSL Stylesheets V1.79.1", "file_size_mb": 156.7, "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "uploaded_via": "batch_uploader", "total_pages": 1055, "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74... |
31c0b8d3-7a95-4e7d-922d-bf4d395e455e | [
-0.01479274407029152,
-0.010081657208502293,
0.011924182996153831,
-0.04614388197660446,
0.0461588129401207,
0.06798668950796127,
0.14367319643497467,
0.0029998987447470427,
0.00883987732231617,
0.04738655313849449,
0.07767298072576523,
-0.042017612606287,
0.010976062156260014,
-0.01594315... | and Accounts Payable would be credited rather than Cash. For example, a clothing store may pay a jeans
manufacturer cash for 50 pairs of jeans, costing $25 each. The following entry would occur.
If this same company decides to purchase merchandise on credit, Accounts Payable is credited instead of
Cash.
Merchandise... | {"uploaded_via": "batch_uploader", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_size_mb": 156.7, "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "total_pages": 1055, "file_name": "FinancialAccounting-OP.pdf", "creationdate": "2019-04-24T10:32:54-05:00", "uploa... |
1071992a-29ea-4a53-937e-d789b2f66e96 | [
-0.05212930217385292,
0.06829329580068588,
0.047914303839206696,
-0.04188244789838791,
0.07761307805776596,
0.02675623819231987,
0.05109092593193054,
0.04288109391927719,
0.05266515910625458,
0.028465207666158676,
0.10970225930213928,
0.0029832543805241585,
0.03693809732794762,
-0.04964845... | equals gross purchases less purchase discounts, purchase returns, and purchase allowances.
Figure 6.6
Purchase Transactions’ Effects on Gross Purchases. Deducting purchase discounts, returns, and
allowances from gross purchases will result in net purchases. (attribution: Copyright Rice University, OpenStax,
under C... | {"moddate": "2020-08-05T15:26:11-05:00", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_size_mb": 156.7, "file_type": ".pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "producer": "Prince 11 (www.princexml.com)", "title": "Principles of Accounting, Volume 1: Financial Accounting"... |
9e7005dc-4658-417d-b440-a64898660680 | [
-0.07078906148672104,
0.08880094438791275,
0.018961170688271523,
-0.0450066514313221,
-0.0328558087348938,
-0.036055050790309906,
-0.03503578156232834,
0.04241557791829109,
0.026500042527914047,
0.0366254560649395,
0.10676876455545425,
-0.010110142640769482,
0.03681119903922081,
-0.0310180... | rate on the final purchase cost. Receiving payment in a timely manner allows the manufacturer to free up cash
for other business opportunities and decreases the risk of nonpayment.
To describe the discount terms, the manufacturer can write descriptions such as 2/10, n/30 on the invoice. The
“2” represents a discount... | {"file_name": "FinancialAccounting-OP.pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "creationdate": "2019-04-24T10:32:54-05:00", "file_size_mb": 156.7, "batch_upload": true, "title": "Principles of Accounting, Volume 1: Financial Accounting", "producer": "Prince 11 (www.princexml.com)", "file_hash": "89738e55... |
cd24d8bd-1054-44b6-9a64-52e60ee01616 | [
-0.10948139429092407,
0.0890311598777771,
0.022814569994807243,
-0.07514618337154388,
-0.0023423086386173964,
0.009287348948419094,
0.04384847730398178,
-0.001391898957081139,
0.07331957668066025,
0.06713222712278366,
0.08453232795000076,
-0.044741857796907425,
0.025440817698836327,
-0.046... | payment. The number of days allowed for both the discount period and the full payment period begins
counting from the invoice date.
If a merchandiser pays an invoice within the discount period, they receive a discount, which affects the cost of
the inventory. Let’s say a retailer pays within the discount window. The... | {"batch_upload": true, "file_size_mb": 156.7, "total_pages": 1055, "creationdate": "2019-04-24T10:32:54-05:00", "file_name": "FinancialAccounting-OP.pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "file_type": ".pdf", "creator": "DocBook XSL Stylesheets V1.79.1", "title": "Principles of Accounting, Volume 1: Fi... |
439b7ae6-e74c-4087-b72e-95c6a564de5a | [
-0.1362002193927765,
0.06854145228862762,
0.04145146906375885,
-0.06699256598949432,
-0.013600374571979046,
-0.01545677985996008,
0.0035440055653452873,
-0.05333288013935089,
0.06269768625497818,
0.0805409848690033,
0.10981152951717377,
-0.06623292714357376,
0.024451635777950287,
-0.041403... | reflect the discount taken, as demonstrated in the following example.
If the retailer does not pay within the discount window, they do not receive a discount but are still required to
pay the full invoice price at the end of the term. In this case, Accounts Payable is debited and Cash is credited,
but no reductions ... | {"upload_timestamp": "2026-02-07T07:23:08.167529", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "creator": "DocBook XSL Stylesheets V1.79.1", "moddate": "2020-08-05T15:26:11-05:00", "total_pages": 1055, "creationdate": "2019-04-24T10:32:54-05:00", "source": "downloads\\business\\acco... |
eb45295f-881d-4c70-9ad7-a05571838eb0 | [
-0.0665527880191803,
0.031655386090278625,
-0.0022640619426965714,
-0.045162323862314224,
0.048386506736278534,
0.010055175051093102,
0.009413857944309711,
0.0018754100892692804,
0.03128631412982941,
0.08396100997924805,
0.10604127496480942,
0.03583835810422897,
0.013294476084411144,
-0.00... | September 30. The entry would recognize the following instead.
There are two kinds of purchase discounts, cash discounts and trade discounts. Cash discount provides a
discount on the final price after purchase if a retailer pays within a discount window. On the other hand, a
trade discount is a reduction to the adve... | {"file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "creator": "DocBook XSL Stylesheets V1.79.1", "batch_upload": true, "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "uploaded_via": "batch_uploader", "file_size_mb": 156.7, "file_name": "FinancialAccounting-O... |
1203e534-8121-40fa-b25e-cd01ec7425e3 | [
-0.11067987233400345,
0.06918106228113174,
0.013069704174995422,
-0.04363846033811569,
-0.03452281653881073,
0.03523414954543114,
-0.035143349319696426,
0.04238570109009743,
0.011292863637208939,
0.06441126018762589,
0.08570753782987595,
0.013382414355874062,
0.03566954657435417,
-0.067998... | manufacturer offers the retailer a 15% discount on the price if they place the order by September 5. Assume
that the retailer places the $4,000 order on September 3. The purchase price would be $4,000 less the 15%
discount of $600, or $3,400. Since the trade discount is based on when the order was placed and not on a... | {"batch_upload": true, "file_type": ".pdf", "moddate": "2020-08-05T15:26:11-05:00", "uploaded_via": "batch_uploader", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_name": "FinancialAccounting-OP.pdf", "title": "Principles of Accounting, Volume 1: Financial Accounting", "creator": "DocBo... |
f8f8927a-a087-460c-94ab-655ea42af43b | [
-0.054453104734420776,
0.06556437909603119,
0.05494631454348564,
-0.0006125710206106305,
-0.005721305496990681,
0.06125841662287712,
0.06455400586128235,
-0.035471897572278976,
-0.018498040735721588,
0.01802670955657959,
0.09030171483755112,
0.021525312215089798,
-0.002366796135902405,
-0.... | allowances transaction. A purchase return occurs when merchandise is returned and a full refund is issued. A
purchase allowance occurs when merchandise is kept and a partial refund is issued. In either case, a
manufacturer will issue a debit memo to acknowledge the change in contract terms and the reduction in the
a... | {"producer": "Prince 11 (www.princexml.com)", "creationdate": "2019-04-24T10:32:54-05:00", "total_pages": 1055, "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "title": "Principles of Accounting, Volume 1: Financial Accounting", "batch_upload": true, "upload_timestamp": "2026-02-07T07:23:0... |
9071315d-e95c-4c42-9fe8-f1a6671b73cc | [
-0.05865820497274399,
0.07988569140434265,
0.052605465054512024,
0.02064262516796589,
0.022301575168967247,
0.048718634992837906,
0.03226564824581146,
-0.03315797448158264,
-0.03859959915280342,
0.020552825182676315,
0.05518585070967674,
0.041267067193984985,
0.007910634391009808,
-0.05825... | the refund.
To illustrate, assume that Carter Candle Company received a shipment from a manufacturer that had 150
candles that cost $150. Assume that they have not yet paid for these candles and 100 of the candles are badly
damaged and must be returned. The other 50 candles are marketable, but are not the right styl... | {"file_type": ".pdf", "producer": "Prince 11 (www.princexml.com)", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_name": "Financi... |
553593a6-4caf-4773-a233-4d77af1da7af | [
-0.03723075985908508,
0.043765053153038025,
-0.04154396429657936,
0.0017603486776351929,
-0.026055848225951195,
0.03344869986176491,
0.035320281982421875,
-0.01091420091688633,
0.03278394043445587,
0.03340673819184303,
0.08329614251852036,
0.009085637517273426,
-0.026096265763044357,
-0.05... | better understand the specific reasons for the reduction to inventory (either return or allowance) and
restocking needs.
E T H I C A L C O N S I D E R A T I O N S
Internal Controls over Merchandise Returns[1]
Returning merchandise requires more than an accountant making journal entries or a clerk restocking
item... | {"file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "file_size_mb": 156.7, "upload_timestamp": "2026-02-07T07:23:08.167529", "producer": "Prince 11 (www.princexml.com)", "total_pages": 1055, "title": "Principles of Accounting, Volume 1: Financial Accounting", "batch_upload": true, "moddate... |
dc2f6beb-f1d7-42fd-aded-b4e44e3df308 | [
-0.12170477211475372,
0.021570401266217232,
-0.054501984268426895,
0.00846945121884346,
0.009865906089544296,
0.048123933374881744,
0.0740746259689331,
-0.020439818501472473,
0.0018794710049405694,
0.03642585873603821,
0.10847201943397522,
-0.013458924368023872,
-0.02278895489871502,
-0.04... | have been recorded in the accounting records and that operational requirements have been met.
Merchandise return controls require that there be a separation of duties between the employee
approving the return and the person recording the return of merchandise in the accounting records.
Basically, the person performi... | {"creationdate": "2019-04-24T10:32:54-05:00", "producer": "Prince 11 (www.princexml.com)", "file_name": "FinancialAccounting-OP.pdf", "uploaded_via": "batch_uploader", "total_pages": 1055, "batch_upload": true, "file_type": ".pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "file_hash": "89738e550d63820fbb3a833d... |
80ffb382-cc83-4ad2-9964-8d4ed2b4de08 | [
-0.07181019335985184,
0.013830115087330341,
-0.03856422007083893,
-0.03687802702188492,
-0.06236449256539345,
0.0779697522521019,
0.07430098950862885,
-0.008312402293086052,
0.04029133915901184,
-0.007201459724456072,
0.12134802341461182,
0.02664855308830738,
0.01977805607020855,
-0.012032... | controls may include prescribed actions of employees, special tags on merchandise, specific store layouts
that ensure customers pass checkout points before leaving the store, cameras to record activity in the
facility, and other activities and internal controls that go beyond accounting and journal entries to ensure
... | {"title": "Principles of Accounting, Volume 1: Financial Accounting", "file_size_mb": 156.7, "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "file_name": "FinancialAccounting-OP.pdf", "creationdate": "2019-04-24T10:32:54-05:00", "producer": "Prince 11 (www.princexml.com)", "file_type": ".pdf", ... |
50801323-71a0-4bd9-96ac-bd2f434204b8 | [
-0.10290636867284775,
0.04336986690759659,
-0.032716959714889526,
-0.06967493891716003,
-0.01666243001818657,
0.02919980138540268,
0.01229014154523611,
0.03575789928436279,
0.05169030278921127,
0.019824659451842308,
0.08860550820827484,
-0.051484283059835434,
0.039972469210624695,
-0.02607... | discounts are demonstrated later in this section.
Sales with Cash or on Credit
As previously mentioned, a sale is usually considered a transaction between a merchandiser or retailer and a
customer. When a sale occurs, a customer has the option to pay with cash or credit. For our purposes, let’s
consider “credit” as... | {"creator": "DocBook XSL Stylesheets V1.79.1", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "producer": "Prince 11 (www.princexml.com)", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "uploaded_via": "batch_uploader", "batch_upload": true, "title": "Principles ... |
1782ccec-fd0e-4294-b605-ac5da1523610 | [
-0.02583463490009308,
0.023598648607730865,
-0.01570850796997547,
-0.07537931203842163,
-0.023633427917957306,
0.050601452589035034,
0.04328745976090431,
0.05196138098835945,
0.03454644978046417,
0.016133852303028107,
0.01775129698216915,
0.026519333943724632,
0.031348515301942825,
-0.0281... | 1
guidance/topics/Documents/Executive_Summary.pdf
This OpenStax book is available for free at http://cnx.org/content/col25448/1.4
Chapter 6 Merchandising Transactions
373
Cash or Accounts Receivable (if paying on credit), and a credit to the revenue account, Sales.
The amount recorded in the Sales account is the g... | {"file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "file_name": "FinancialAccounting-OP.pdf", "total_pages": 1055, "moddate": "2020-08-05T15:26:11-05:00", "file_type": ".pdf", "creationdate": "2019-04-24T10:32:54-05:00", "uploaded_via": "batch_uploader", "batch_upload": true, "file_size_m... |
8f54ab48-fe7f-4515-ab68-d313d9b7c13b | [
-0.017103156074881554,
0.029225345700979233,
0.01081121526658535,
-0.0480581633746624,
-0.01330582331866026,
0.05214553326368332,
0.0630527064204216,
0.08254756033420563,
0.010820465162396431,
0.011632588692009449,
0.03537440299987793,
-0.0019914302974939346,
0.022626968100667,
-0.04751195... | revenue when it is earned, and revenue is earned when a product or service has been provided.
Figure 6.7
Sales Transactions’ Effect on Gross Sales. Deducting sales discounts, returns, and allowances
from gross sales, will result in net sales. (attribution: Copyright Rice University, OpenStax, under CC BY-NC-SA
4.0 ... | {"creator": "DocBook XSL Stylesheets V1.79.1", "upload_timestamp": "2026-02-07T07:23:08.167529", "file_size_mb": 156.7, "uploaded_via": "batch_uploader", "producer": "Prince 11 (www.princexml.com)", "file_type": ".pdf", "file_hash": "89738e550d63820fbb3a833d14ab04029664bcb14dc631bb8a45f0af74d2d6b9", "total_pages": 1055... |
460fb66f-77f8-47c4-a51d-4db47198a239 | [
-0.07148714363574982,
0.04453206807374954,
0.021989459171891212,
-0.08350765705108643,
0.011143858544528484,
0.009137331508100033,
0.012564604170620441,
0.04604377597570419,
0.07981093972921371,
0.027094025164842606,
0.03083641640841961,
-0.0036212701816111803,
-0.021546289324760437,
-0.01... | purchase costs, shipping, taxes, insurance, stocking fees, and overhead related to preparing the product for
sale. By recording the cost of sale when the sale occurs, the company aligns with the matching principle. The
matching principle requires companies to match revenues generated with related expenses in the peri... | {"file_type": ".pdf", "batch_upload": true, "file_size_mb": 156.7, "creator": "DocBook XSL Stylesheets V1.79.1", "source_file": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "upload_timestamp": "2026-02-07T07:23:08.167529", "moddate": "2020-08-05T15:26:11-05:00", "file_name": "FinancialAccounting-OP.pd... |
ec315f8a-98bb-42cc-8131-5c2277b1b507 | [
-0.07388701289892197,
0.07678452134132385,
0.07503935694694519,
-0.08652706444263458,
0.03667554631829262,
0.051211826503276825,
0.0014213431859388947,
0.05508183687925339,
0.05349764972925186,
0.04354587569832802,
0.09765418618917465,
0.09826622158288956,
-0.00595582602545619,
-0.03048304... | the sales entry, the shoe store must also recognize the $900 cost of the shoes sold and the $900 reduction in
Merchandise Inventory.
You may have noticed that sales tax has not been discussed as part of the sales entry. Sales taxes are liabilities
374
Chapter 6 Merchandising Transactions
that require a portion of ... | {"creator": "DocBook XSL Stylesheets V1.79.1", "source": "downloads\\business\\accounting\\FinancialAccounting-OP.pdf", "moddate": "2020-08-05T15:26:11-05:00", "title": "Principles of Accounting, Volume 1: Financial Accounting", "file_type": ".pdf", "source_file": "downloads\\business\\accounting\\FinancialAccounting-O... |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.