HM1030 Week 2 Assignment

What accounting practices should be applied to
transactions in preparation for an adjusted trial balance?
|
|
This assignment helps you apply your knowledge from this week’s modules and readings. |
|
As future managers in the healthcare setting, it is important that graduates understand when making financial decisions for a practice or facility you should be guided by the business’s present financial status and future goals. Reading and interpreting financial data is critical to getting an accurate accounting of the current condition of the organization. |
55 |
Basic Vocabulary
Answer the following questions.
1. Match the terms below with the definations
provided:
A. Credit |
B. Ledger |
C. Debit |
D. Trial balance |
E. Account |
F. Charts of accounts |
G. Double-entry accounting |
___. |
A detailed record of increases and decreases; is a specific asset, liability, equity, revenue, or expense. Information from this is analyzed, summarized and presented in reports and financial statements. |
___. |
Is a record containing all accounts used by a company and their balances; it is referred to as “the books” |
___. |
A list of all accounts and usually includes an identification number assigned to each account |
___. |
Refers to left; increase: assets, expenses and withdrawals |
___. |
Refers to right; increase: liabilities, owner capital and revenues |
___. |
Each transaction affects at least two accounts; has at least one debit and one credit |
___. |
A list of accounts from the ledger showing their debit or credit balance in separate columns. A summary of the ledger’s contents; is useful in preparing financial statements and in revealing recordkeeping errors |
2. Match the terms below with the definations
provided:
A. Accrued expenses |
B. Accrued revenues |
C. The time period assumption |
D. Accrual basis accounting |
E. Profit Margin |
F. Prepaid expenses |
G. Unearned (or prepaid) revenues |
___. |
Recognized revenue when earned and expenses when incurred – not necessarily when cash inflows and outflows occur. This information is valuable in assessing a company’s financial position and performance. |
___. |
Refers to revenues earned in a period that are both unrecorded and not yet received in cash. Adjusted entries involve increasing (debiting) assets and increasing (crediting) revenues. |
___. |
Refers to items paid for in advance of receiving their benefits. Are assets. Adjusting entries involve increasing (debiting) expenses and decreasing (crediting) assets. |
___. |
The reporting period’s net income divided by its net sales; reflects on a company’s earning activities by showing how much income is in each dollar of sales. |
___. |
Refers to cash received in advance of providing products and services; are liabilities; adjusting entries involve increasing (crediting) revenues and decreasing (debiting) unearned revenue. |
___. |
Refers to costs incurred in a period that are both unpaid and unrecorded. Adjusting entries involve increasing (debiting) expenses and increasing (crediting) liabilities. |
___. |
Presumes that an organization’s activities can be divided into specific time periods for periodic reporting. |
Analyzing and Recording Transactions
Answer the following
questions.
3. Assign the correct order for analyzing and recording transactions:
A. Step 1 |
B. Step 2 |
C. Step 3 |
D. Step 4 |
___. |
Post journal information to ledger accounts. |
___. |
Prepare and analyze the trial balance. |
___. |
Record relevant transactions and events in journal. |
___. |
Presumes that an organization’s activities can be divided into specific time periods for periodic reporting. |
4. Classify the following accounts either as an “asset”, “liability”
or “equity”:
A. Asset |
L. Liability |
E. Equity |
___. |
Owner’s capital |
___. |
Unearned revenue |
___. |
Buildings |
___. |
Medical Equipment |
___. |
Cash |
___. |
Medical Supplies |
___. |
Accounts Payable |
___. |
Owner’s withdrawals |
___. |
Prepaid Accounts |
___. |
Accounts receivable |
___. |
Accrued Liabilities |
___. |
Inventory |
___. |
Revenues |
___. |
Short-term notes payable |
___. |
Expenses |
Recording Transactions, Using Journals and T-accounts
Answer the following questions.
5. Assume the following T-accounts reflect Belle Co.’s general ledger
and its first seven transactions, a through g, which are posted to
them. Identify the explanation from 1
through 7 below that best describes each transaction a through g
reflected in the T-accounts, and enter that letter in the blank space in front
of each numbered explanation.
Cash |
|||
(a) |
6,000 |
(b) |
4,800 |
(e) |
4,500 |
(d) |
800 |
(f) |
900 |
||
(g) |
3,400 |
Web Servers |
|||
(a) |
12,000 |
Accounts Payable |
|||
(f) |
900 |
(c) |
900 |
Supplies |
|||
(c) |
900 |
Dr. Belle, Capital |
|||
(a) |
25,600 |
Prepaid Insurance |
|||
(b) |
4,800 |
Services Revenue |
|||
(e) |
4,500 |
Selling Expenses |
|||
(d) |
800 |
Cash |
|||
(a) |
7,600 |
||
(g) |
3,400 |
___. |
The company paid $4,800 cash in advance for prepaid insurance
coverage. |
___. |
Dr. Belle created a new business and invested $6,000 cash, $7,600
of equipment, and $12,000 in web servers. |
___. |
The company purchased $900 of supplies on account. |
___. |
The company received $4,500 cash for services provided. |
___. |
The company paid $900 cash toward accounts payable. |
___. |
The company paid $3,400 cash for equipment. |
___. |
The company paid $800 cash for selling expenses. |
Debt Ratio and Profit Margin Calculations
Answer the following
questions.
6. Picture Perfect Physicians has total assets of $385, 000. Its total
liabilities are $100, 000 and its equity is $285, 000. Calculate the debt
ratio.
Type answer here
7. AAA Regional Hospital had $9,000,000 in net income for the year.
Its net sales were $13,200,000 for the same period. Calculate its profit
margin.
Type answer here
Reflection
Reflect on what you have
learned this week to help you respond to the question below. You may
choose to respond in writing or by recording a video!
8. Financial statements provide information about the financial
position, performance and changes in the financial position of the
organization. As a Healthcare Manager, would Accounts Receivable affect the
bottom line and how would you prevent loss of income??
Type answer here

-
Rating:
5/
Solution: HM1030 Week 2 Assignment