ACCT212 Course Project Discussions Week 5

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ACCT212 Course Project Discussions Week 5
Go to Course Home and review the Course Project Overview. Continue to use the…

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ACCT212 Course Project Discussions Week 5

ACCT212 Course Project Discussions Week 5

All Students Posts – 63 Pages 

Go to Course Home and review the Course Project Overview. Continue to use the Course Project template from the Files section. In this graded discussion, we will be examining the operation of the Accounting Information System (AIS) with the use of problems and exercises from your textbook. The goal is to cover all of the requirements to ensure an opportunity for your successful completion of the Course Project.

Let’s start with Exercise 3-30A. For the Anderson Production Company, select one adjusting and one closing entry requirement. Develop the journal entry for review by your peers. Make sure to reference any page numbers of examples you are using. Hint: Revisit the Week 2 Lecture.

The income summary account is a transitional account into which all income statement revenue and expense accounts are transferred at the end of an accounting period. The net amount transferred into the income summary account equals the net profit or loss that the business incurred during the period. Thus, shifting revenue out of the income statement means debiting the revenue account for the total amount of revenue recorded in the period, and crediting the income summary account. Likewise, shifting expenses out of the income statement requires you to credit all of the expense accounts for the total amount of expenses recorded in the period, and debit the income summary account. This is the first step you would take in using the income summary account.

If the resulting balance in the income summary account is a profit (which is a credit balance), then debit the income summary account for the amount of the profit and credit the retained earnings account to shift the profit into retained earnings. If the resulting balance in the income summary account is a loss then the credit income summary account for the amount of the loss and debit the retained earnings account to shift the loss into the retained earnings. This is the second step you would take in using the income summary account and this should result in that account balancing to a zero…