Part 1 – Accounting Cycle
BUS-FPX2061 Assessment 2 Template
PART 1: Accounting Cycle
Respond to the following eight questions using grammatically correct language.
1. Describe the steps in recording and posting the effects of a business transaction. Provide some examples of source documents used in these steps. [Answer here]
2. Which steps in the accounting cycle are performed throughout the accounting cycle? [Answer here]
3. Which of the steps in the accounting cycle are performed only at the end of the accounting period? [Answer here]
4. How do ethical considerations impact each stage of the accounting cycle? Provide specific examples. [Answer here]
5. What is the purpose of the “dividends” account? Under what circumstances would this account be increased? [Answer here]
6. What are the rules of debit and credit for accounts appearing on a firm’s balance sheet and income statement? [Answer here]
7. Describe the nature and purposes of the general journal, ledger, and chart of accounts. [Answer here]
8. What are the purposes of an unadjusted trial balance? Describe the types of accounts that would appear on this type of trial balance. [Answer here]
9. If you found that the total of the debits column of the trial balance for a company is $200,000, while the total of the credits column is $180,000, what are some possible causes of this difference? [Answer here]
Part 2 – Journal Entries
PART 2: Journal Entries
Create appropriate journal entries for each of the following business events. Fill in the yellow cells in columns B, C, and D as appropriate.
Cash.
Prepaid insurance.
Land.
Buildings.
Equipment.
Accounts payable.
Unearned service revenue.
Owner’s capital.
Owner’s drawings.
Service revenue.
Advertising expense.
Salaries and wages expense.
1-May Invested $45,000 cash in the golf course business.
3-May Purchased Hampstead Golf Land for $40,000 cash. The price includes land $22,000, shed $16,000, and equipment $2,000.
5-May Paid advertising expenses of $8,800.
6-May Paid cash $12,000 for a one-year insurance policy.
10-May Purchased golf discs and other equipment for $12,075 from Discs Are Us, payable in 30 days.
18-May Received $9,985 in cash for golf fees earned (service revenue).
19-May Sold 370 coupon books for $25 each. Each book contains four coupons that enable the holder to play one round of disc golf.
25-May Withdrew $1,250 cash for personal use.
30-May Pay $2,500 as salaries for part-time employees.
30-May Paid Discs Are Us the full amount due.
31-May Received $31,000 cash for fees earned.
Note: The first two rows below are an example for cash.
Date Accounts Debit Credit
1-May Cash $20,000
Owner’s Capital $20,000

NEED ASSIGNMENT HELP?

We guarantee plagiarism-free and AI-free writing services. Every assignment is crafted with originality, precision, and care to meet your academic needs.

Ready to get started? Place your order directly on this post!

Let us help you achieve excellence—authentic work, every time.