Anyone here good at accounting? I can't figure out this assignment...

[SpringChickens]

Oh! Also, I saw that your assets should be 460 - not 440 (if my math is correct...)

 

[4boysmom]

Quote:
I think you need to break down what you're doing.....all of these items don't go on the balance sheet, so let's look at them 1 at a time.

1. Net sales revenue
Take the items above that relate to your sales
Sales $400,000
less: Cost of Goods Sold
2. Cost of goods sold
Can't remember the formula, it's been a while & I do loan acccounting - pick out the pieces from above that fit your formula

3. Gross profit
All your income

4. Net income
All your income less all your expenses

5. Balance sheet, December 31, 20X2

Cash $10,000
Inventory 12/31/02 $30,000

Liabilities should be items that add up to $10,000
OE $30,000


6. Statement of Owner's Equity, December 31, 20X2
Can't remember this one right off either, but you should have a template somewhere in your book
If it's wanting a rollforward, then, show how you get from beginning OE to ending OE.

 

[FarmerJamie]

Quote:
Oh heavens, I'm with you, greathorse. Three semesters of accounting, plus another for cost accounting, and years of project financial reporting, I thought I'd jump in. Then reality set in and I tried not to keeping reading, you BYCers rock! My head starting spinning after the first page of entries.

That's me in this whole course!!! I hate it!

Hang in there, I've seen your comments on many threads, I think you can do it. Relax and the "ah ha" moment will arrive.

 

[debilorrah]

Ok Missy you need to reverse your brain in order to understand accounting. In accounting, a credit is a MINUS and a debit is a PLUS. What everyone is telling you is correct. When you purchase goods for a busines it is a CREDIT to your account.

Everything in accounting is backwards from the normal way of thinking.

 

[chicken_china_mom]

Ok, backing up and trying to reverse the stubborn brain cells, lol. Man how I hate math! So...I think I boo booed and added my balance sheet to my Accounting sheet. Allow me a minute to fix my errors...

 

[chicken_china_mom]

Ok, here is my fixed accounting sheet:





Assets Column Liabilities Column


Purchases £250.000 Purchase Returns $7,000
Sales $400,000 Administrative Expenses $20,000
Inventory Purchase Discounts $3,000
December 31, 20X1 $20,000 Sales Discounts $4,000
December 31, 20X2 $30,000
Administrative Expenses $20,000
Freight In £8,000.00

For the assets side I got $430,000 in American and £258,000 in Euro, is that right?

For the Liabilities side I got $34,000 American. Is it looking right now? For the sake of my stubborn brain it's easier for me to work thinking assets and liabilities than it is thinking debit and credit, lol. Maybe as my brain adjusts I'll get that part right!

 

[debilorrah]

The main reason I am not tackling your problem head on is because I deal with finances all day long, government money too, and I am freakin burned out at the end of the day, much less the end of the week. You HAVE to consider debits, credits, assets AND liabilities. They are all four seperate considerations in a trial balance, balance sheet and income statement. Is this a beginning class for you? Have they broke out the T-accounting on you yet?

 

[chicken_china_mom]

Quote:
Yes, this is my first accounting class EVER, lol. They did intro the T accounting, but that just confuses me too. I guess my brain just can't think backwards when it's so used to thinking a certain way, and using words a certain way. When I think credit, I think in terms of like "credit it back to your account", like with a credit card. But here I'm suppose to think take away? It's like I'm battling myself, and that's my problem. I do not like accounting and may not even consider a Bachelor's in this field if it means more accounting classes, which I am sure it will.

 

[debilorrah]

Think of it like you are the BANK. A credit is NOT an addition if you are the bank. A debit is an addition if you are the bank. I is hard to wrap your brain around that concept.... But once done, it becomes easier BY FAR!!!

 

[chicken_china_mom]

Quote:
I hope so, I have only one more day to turn it in, after tomorrow. All my assignments are due by midnight the 4th. I wish that lightbulb would come on already! But I am exhausted, so I'm going to go lay down and try to NOT dream of Excel programs and accounting, like I did last night.

Sooooo tired, but I'll be back at this tomorrow. So glad I'm getting an A in Art Appreciation, lol, that class comes very easy to me!