Table of Contents

Accounting Homework Chapter 1

In this article, we will be discussing accounting homework chapter 1. This chapter is all about the basic concepts of accounting and how to apply them. We will be covering topics such as financial statements, debits and credits, and more. By the end of this article, you should have a good understanding of these concepts and be able to apply them to your own accounting homework.

‘How To Ace Your Accounting Homework In Chapter 1’

In the first chapter of your accounting homework, you’re introduced to the basic concepts of the four primary financial statements and how they work together to paint an overall picture of your business’s health. In this guide, we’ll take you through each of these statements and explain what they mean and how they relate to one another. This can help you answer questions on exams that may be asked on these statements in the future and will also help you identify areas where you might want to improve your financial situation as your business grows.

Understand The Different Types Of Business Transactions

Accounting homework can be a difficult task, but following these steps will help you ace your accounting homework. First, read the chapter and identify the different types of business transactions. Second, categorize each transaction as an asset or liability. Third, draw a general journal entry for each transaction based on its type. Last, post all journal entries in T-account format with a debit balance on the left column and a credit balance on the right column.

Live Chat Support

Know The Key Terms Associated With Each Type Of Transaction

Accounting homework chapter 1- Transactions and journal entries 

Accounting homework chapter 2- Accounting Equation 

Accounting homework chapter 3- Financial statements 

Accounting homework chapter 4- Cash flow statement

Get Free Quote

Journalize The Transactions

1. On December 31, 2017, a company purchased some machinery for $100,000 cash. The company paid a 10% sales tax on the purchase of this machinery. What is the total cost of this machinery? $110,000 
2. On February 2, 2018, a company purchased inventory at a cost of $20 per unit. The company paid a 6% state sales tax on this purchase. What was the total amount paid for these items? $24 per unit 
3. On March 2, 2018, a company purchased some inventory at a cost of $40 per unit and paid no state sales tax on this purchase. What was the total amount paid for these items?

Post The Transactions To The Ledger

1. On January 1, 20XX, a company started with $5,000 cash and no other assets or liabilities. What is the accounting equation balance for the company? $5,000 
2. On March 10th, 20XX the company paid its first expense of $1,000 for rent. What is the new balance of Cash after this transaction? $4,000 
3. On April 2nd, 20XX another expense of $500 was recorded for supplies. What is the new balance of Cash after this transaction? $3,500 
4. The company made its first sales on April 5th and sold inventory worth $1,200. How much did they make from these transactions?

Hire Experts

Prepare A Trial Balance

A trial balance helps identify any mistakes that you may have made while completing your work. It also helps you confirm that your work is finished and correct. Here are the steps to completing a trial balance: 

1. Enter all the debits and credits from the journal entries into an empty account form (make sure you enter them in alphabetical order). 
2. Add up all of the columns at the bottom of each column on the left-hand side of the account form. This should give you a total for each row across all columns on the left-hand side of your account form. 
3. Total the right-hand column by adding up all of the numbers in that column. You should now have totals at the top and bottom of both columns. If these totals match, then you can be confident that your trial balance is accurate. 
4. Double-check every entry to make sure there are no mistakes or missing transactions before proceeding with preparing financial statements or reports based on this information.

Facebook
Twitter
Telegram
WhatsApp
Email

FAQ

What is an example of a financial statement?

A financial statement is a snapshot of a company’s financial health at a given point in time. It lists the assets, liabilities, equity and income for the organization. The three most important statements are the balance sheet, cash flow statement, and income statement. The balance sheet lists what an organization owns as well as what it owes; on either side of these two sides are known as assets and liabilities respectively.

What is the difference between a balance sheet and a profit and loss statement?

The balance sheet and the profit and loss statement are two financial statements that present different information about a company. The balance sheet provides a snapshot of the company’s assets, liabilities, and owner’s equity. The profit and loss statement tells you whether or not the company made money by subtracting expenses from revenues.

What is the difference between an income statement and a cash flow statement?

The income statement is a report on the profitability of an organization for a specific period of time, often one year. A cash flow statement is a report on the inflow and outflow of cash from operating activities during that same period.