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Accounting Chapter 3 Homework Solutions
Accounting Chapter 3 Homework Solutions ,Welcome to the world of accounting! Accounting Chapter 3 can be a tricky chapter to tackle, with its complex calculations and concepts. But don’t worry – this article will provide you with homework solutions so that you can understand the material better. Here, you can access solutions that are broken down step-by-step, so that even the most difficult topics become easier to comprehend. With these helpful solutions and explanations, you’ll be able to master the material and increase your overall knowledge of accounting.
Accounting Chapter 3 Homework Solutions: How To Ace Your Assignments
If you’re enrolled in an Accounting course, you’ve probably already had your fair share of homework assignments—and you may be stuck on one or two right now! If that’s the case, don’t despair. This detailed list of answers to the assignment questions in your textbook chapter three can help you ace your assignments and study for exams!
1) Understand The Question
The solutions below are for the following questions. If you have any questions, please ask in the comments section.
1) What is an operating cycle? The operating cycle is the amount of time it takes to convert raw materials into finished goods, and then sell them.
2) What is a cost-of-goods sold expense? Costs that can be attributed directly to the production of goods or services. These costs include materials, labor, and overhead. In a manufacturing environment where there are many different phases of production (raw materials, components, assemblies), there may be multiple cost-of-goods sold expenses for each product produced.
2) Do The Math
1) What was the total cost of goods sold for the company in 2014?
- a) $370,000.00 b) $678,000.00 c) $718,000.00 d) $628,000.00 e) None of these answers is correct
2) Which accounts may be impacted by cost of goods sold?
- a) Income Summary; Cost of Goods Sold; Income Statement b) Cost of Goods Sold; Income Summary; Inventory c) Inventory; Accounts Payable; Accounts Receivable d) Cost of Goods Sold; Loss on Sale or Disposal of Long-Lived Assets e) None of these answers is correct
3) Check Your Work
If you’re working on Accounting Chapter 3 Homework Solutions, you’ll want to check your work. You’ll want to make sure that you’ve done the following things for Accounting Chapter 3 Homework Solutions:
-Gotten all the answers right
-Used all of the possible questions from a problem
-Not skipped any questions in a set or even gotten one question wrong
Problem 1 Solution
– The following is a partial list of the many accounting methods used in business today.
– Accrual accounting, which is also called double-entry accounting, records income and expenses when they are earned or incurred. This is usually done monthly or quarterly.
– Cash basis accounting reports income and expenses at the time cash transactions occur (usually on an annual basis). Income and expenses are not recorded if they are received but not yet spent.
– Historical cost accounting records assets at their original costs and does not adjust for inflation or changes in value. This method can result in assets being overvalued because it does not take into account the effects of inflation.
Problem 2 Solution
- Determine the cost of goods sold for the company with the following information: Beginning inventory $20,000; Purchases $120,000; Sales $200,000; Ending inventory $10,000.
- Prepare the income statement for this company and determine net income for the year.
- Calculate cost of goods sold percentage by dividing cost of goods sold by sales ($60,000/$200,000) = .30
Problem 3 Solution
Problem 1 – (1) Prepare a spreadsheet with the following information: Assets, Liabilities and Equity.
Current assets = $25,000.00; current liabilities = $0.00; owner’s equity = $25,000.00.
Fixed assets = $30,000.00; current liabilities = $0.00; owner’s equity = $20,000.00.
Problem 2 – (1) What is the company’s total current asset balance?
$25,000 + 30,000 + 25,000 + 20,000= 80,000
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FAQ
What is an example of a financial statement?
An example of a financial statement is an Income Statement, which tracks the company’s revenue and expenses over a given time period. The balance sheet (also known as the statement of financial position) highlights the company’s assets and liabilities, while the cash flow statement shows how much cash was generated or spent over a specific period. These three statements work together to give you a complete picture of your business’s finances.
What are the three main categories of income?
There are three main categories of income. These are earned, passive and portfolio. Earned income is the money that you make from a salary or wages. Passive income is the money that you earn from investments such as dividends, interest and capital gains. Finally, portfolio income is when your investment returns exceed your living expenses so that it’s possible to live on the difference between these two numbers.
What is the difference between a liability and an asset?
Liabilities are obligations or debts, while assets are items of value that can be converted into cash. Liabilities include accounts payable and other debt, while assets include cash and other investments.