HM1030 Week 2 Assignment

Question # 00620163 Posted By: neil2103 Updated on: 11/19/2017 08:40 PM Due on: 11/20/2017
Subject Accounting Topic Accounting Tutorials:
Question
Dot Image

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

Dot Image
Tutorials for this Question
  1. Tutorial # 00618832 Posted By: neil2103 Posted on: 11/19/2017 08:40 PM
    Puchased By: 3
    Tutorial Preview
    The solution of HM1030 Week 2 Assignment...
    Attachments
    Answer.xlsx (9.08 KB)
    HM1030_Wk2_Assignment.docx (139.13 KB)
    Recent Feedback
    Rated By Feedback Comments Rated On
    y...aqc Rating Quite presentable tutorials 12/19/2017

Great! We have found the solution of this question!

Whatsapp Lisa