Part 1 - Accounting Cycle

BUS-FPX3061 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 and 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. What is the purpose of the "dividends" account and under what circumstances would this account be increased?[Answer here]
5. What are the rules of debit and credit for accounts appearing on a firm's balance sheet and income statement?[Answer here]
6. Describe the nature and purposes of the general journal, ledger, and chart of accounts.[Answer here]
7. 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]
8. 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.
  Prepaid insurance.
  Accounts payable.
  Unearned service revenue.
Owner's capital.
 Owner's drawings.
Service revenue.
 Advertising expense.
 Salaries and wages expense.
1-MayInvested $20,000 cash in the golf course business.
3-MayPurchased Hampstead Golf Land for $15,000 cash. The price includes land $12,000, shed $2,000, and equipment $1,000.
5-MayPaid advertising expenses of $700.
6-MayPaid cash $600 for a one-year insurance policy.
10-MayPurchased golf discs and other equipment for $1,050 from Discs Are Us, payable in 30 days.
18-MayReceived $1,100 in cash for golf fees earned (service revenue).
19-MaySold 150 coupon books for $10 each. Each book contains four coupons that enable the holder to play one round of disc golf.
25-MayWithdrew $800 cash for personal use.
30-MayPay $250 as salaries for part-time employees.
30-MayPaid Discs Are Us the full amount due.
31-MayReceived $2,100 cash for fees earned.
Note: The first two rows below are an example for cash.
Owner's Capital$20,000

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