Financial Accounting in Module 2, the $35,000 Essay

Open, View, and/or
Download this Document

Total Length: 496 words ( 2 double-spaced pages)

Total Sources: 0

Page 1 of 2

Financial Accounting

In Module 2, the $35,000 worth of goods was never purchased, so that figure is irrelevant. Now with Module 3, we begin with a balance sheet that does not balance. To this, several changes are to be made. The company raised an additional $225,000, which balances because Common Stock increases by that amount, and the company receives that much Cash. The dividends represent a decline in cash of that amount, and a decline in Retained Earnings. The asset is covered by $400,000 in the land less $50,000 in cash, and the other $350,000 goes to Notes Payable. The result is as follows:

The first major adjustment that needs to be made, based on Module 2, is that the company needs to add back the $35,500 worth of inventory.

Stuck Writing Your "Financial Accounting in Module 2, the $35,000" Essay?

View All Our Example Financial Accounting in Module 2, the $35,000 Essay

Have A Custom Example Essay Written

This should never have been removed. The second adjustment is that the profit would have been higher, by $35,500 because the cost of goods sold included this sale that never happened. That will increase equity by $35,500. This still leaves the balance sheet unbalanced.

31-Dec-12

Balance Sheet

Assets

Current Assets

Cash

16700

Accounts Receivable

24500

Inventory

60500

Total Current Assets

101700

Fixed Assets

Equipment, net

425,000

425,000

Total Assets

526700

Liabilities

Short-Term Liabilities

Accounts Payable

67,000

Total Current Liabilities

67,000

Long-term Liabilities

Long-Term Debt

145,000

145,000

Total Liabilities

212000

Equity

Common Stock

10,000

Paid-in capital

125,500

Total Equity

135,500

Total Liabilities and Equity

347,500

When the items for Module 3.....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Financial Accounting In Module 2 The 35 000" (2012, August 13) Retrieved June 4, 2026, from
https://www.aceyourpaper.com/essays/financial-accounting-module-2-35-000-81643

Latest MLA Format (8th edition)

Copy Reference
"Financial Accounting In Module 2 The 35 000" 13 August 2012. Web.4 June. 2026. <
https://www.aceyourpaper.com/essays/financial-accounting-module-2-35-000-81643>

Latest Chicago Format (16th edition)

Copy Reference
"Financial Accounting In Module 2 The 35 000", 13 August 2012, Accessed.4 June. 2026,
https://www.aceyourpaper.com/essays/financial-accounting-module-2-35-000-81643
   

Open, View, and/or
Download this Document
order custom essay example