Financial Accounting Principles!
You have a great start on your assessment thus far! Some of the results you posted in the first exercise look good; all calculations are missing though. Please apply my feedback below and revise the remaining exercises as well. Please refer to our textbook and reach out to our course tutor if you need further assistance.
Prior to moving forward, please take a few minutes to read my welcome announcement to know what to expect in our course.
Great start to our course!
Dr. Dana
Scoring Guide
Competency 1
Analyze the relationship between business events and accounting.
Criterion
Comparatively analyze two companies, including asset investments, return on assets, and company expenses.
Your Result:
BASIC
Comparatively analyzes two companies, but the analysis includes accounting errors or lacks one or more components of asset investments, return on assets, and company expenses.
Faculty Comments:
Good job posting all results! Please include all calculations that led to your results as well. As you make revisions, please focus on revising the calculations of the return on assets for both companies, then continue to discuss the overall performance of both companies based on the financial information provided. Please refer to https://www.myaccountingcourse.com/financial-ratios/return-on-assets if needed.
Show all Performance Ratings
Criterion
Analyze company equity, including correct net income and debt ratio calculations.
Your Result:
PROFICIENT
Analyzes company equity, including correct net income and debt ratio calculations.
Faculty Comments:
Very good job on the debt ratio and balance sheets for 2011 and 2012! Please continue to revise the calculations of the 2012 net income. In your calculations of the net income, you must take into consideration the changes in equity and the other amounts that could impact the net income amount. Please also refer to https://www.fool.com/knowledge-center/can-you-calculate-net-income-from-assets-liabiliti.aspx for an easier explanation on how to calculate the net income when the info provided consists in balance sheets and additional investment information.
Show all Performance Ratings
Competency 2
Apply accounting principles as the language of business.
Criterion
Prepare T-accounts, adjusting journal entries, and an adjusted trial balance.
Your Result:
BASIC
Prepares T-accounts, adjusting journal entries, and an adjusted trial balance. The work contains calculation errors or erroneous data.
Faculty Comments:
You have a great start on your T-accounts, adjusting entries and the adjusted trial balance! I highlighted on your worksheet the journal entries whose amounts need attention. Please revise them along with their T-accounts, add the missing entry for the $2,200 rent, then revise the amounts in all statements. As you make revisions to your T-accounts, please refer to our textbook and keep in mind that you should also reach out to one of our course graduate assistants if you need further assistance beyond out textbooks.
Please highlight all changes.
CONFIRMED
9 Apr 2024 07:29
Complete three accounting exercises related to transaction analysis and financial statements using a provided worksheet.
Introduction
Accounting is the language used by a business to communicate how well it is performing to its many stakeholders. Stockholders want to know how their money has been used and what return they will receive on their investment. Creditors want to know the business has the financial resources to continue their business relationship. Potential investors want to know if a business is a good investment. Lastly, employees of a business want to know that their hard work is paying off in continued employment. Each of these stakeholders has a vested interest in the success of the business, and financial reporting will provide them with the data needed to make sound business and investment decisions.
The Accounting Cycle
The accounting cycle begins when business events are translated to transactions, which affect the financial health of a business, and ends with the preparation of financial statements used to communicate financial health to the various stakeholders of the business.
Adjustments and Financial Statements
The annual reporting period is not always a calendar year ending on December 31. An organization can elect to adopt a fiscal year comprising any 12 consecutive months or 52 consecutive weeks. Regardless of which reporting period an organization chooses, the end of a reporting period requires adjustments that are often necessary to properly reflect revenues when earned and expenses when incurred.
Following these adjustments, an adjusted trial balance will be prepared, and it is from this adjusted trial balance that the necessary financial statements will be prepared. Lastly, certain ledger accounts will require their balances to be closed so they can begin the next accounting period with zero balances. These accounts are known as temporary or nominal accounts. When all of this work has been completed, a new accounting period will begin and the cycle will repeat itself.
Overview
This assessment consists of three accounting exercises. The exercises are provided in the Transaction Analysis and Financial Statements Worksheet. Use this worksheet to record and submit your solutions for Exercises 1-1, 1-2, and 1-3.
Preparation
In addition, practice problems for each exercise are provided in the Assessment 1 Practice Problems Worksheet. The worksheet and answer key can be found in the Capella Resources activity of this assessment and are optional.
The following resource is ;required to complete the assessment.
Capella Resources
Click the link provided to view the following resource:
Transaction Analysis and Financial Statements Worksheet [DOCX] Download Transaction Analysis and Financial Statements Worksheet [DOCX].
Submission Guidelines
Submit your completed Transaction Analysis and Financial Statements Worksheet for faculty evaluation. Please do not submit completed practice problems with your assessment.