Fluent Essays

I am seeking help with this assignment for my Prin. of Financial Accounting Class. Please make sure to read all the materials. I will include the template and the instructions needed. I have also included the last feedback I received from my professor as well as the last submission I did for this assignment. The first 3 attachments are the last template I submitted, the last Brief to the Owners and the last feedback I received from the professor. 2 Walter Jofre Jr. ACC-20132-XE001 Prin. of Financial Accounting 21DA05 Walter Jofre Jr SNHU Brief to Owner GAAP guarantees exactness by improving financial proclamations similarity by means of the normalization of introducing explanations and bookkeeping techniques (Dimitriou, 2020). It permits organizations to difference and analyze their financial assertions in different periods with reports from different organizations in a similar industry. With respect to, GAAP offers principles that ought to be followed when recording relevant data and exchanges required by the clients of financial explanations in settling on powerful choices. Inability to do as such diminishes the convenience of financial articulations (Dimitriou, 2020). In doing as such, the GAAP guideline limits and explains the data needed in making financial detailing as significant and exact as could be expected. GAAP works with dependability by permitting all evaluators to organizations financial reports to confirm the legitimacy of the organizations comments in financial proclamations, the last of which renders financial detailing profoundly solid for proprietors, financial backers, and different partners (Griffin, 2015). Under GAAP, just accumulation and money premise are the techniques used to distinguish, record, and impart financial records. This spots Jaime in a difficult spot since a portion of the expenses, for example, classes that will be gone to later, were recorded sooner than when they were brought about. Furthermore, submitting blunders of oversight disservices Jaime and her organization would lose validity with its moneylenders (Lillywhite, 2016). At long last, announcing financial data is related with different danger factors. They can emerge from outside, inner variables or any condition in the organization (Joe, 2012). They may likewise happen from inaction. In any case Jamies misquotes seem to have been inconsequential as they dont demonstrate misrepresentation or that Jamie methodically purposefully records mistaken data. Other than sheer greatness, the reason for the issue should likewise be contemplated. An unintentional mix-up of $100,000 is more averse to be passed judgment on material than one of $100,000 that came about because of a deceitful demonstration. Extortion happens when somebody needs to distort revealed numbers to make the association look uniquely in contrast to it is or to cover burglary. Extortion incorporates the plan to trick and is more irksome to chiefs than a simple blunder. Subsequently, both size and cause ought to be said something thinking about whether the presence of a misquote can affect the activities of any leaders (Joe, 2012). The standard articulation of explanations and bookkeeping systems can build the degree of correlations among various financial proclamations. In this manner, affirming the legitimacy by GAAP. (Dimitriou, 2020). It assists associations to contrast their financial data and different associations of similar ventures intermittently. As far as importance, GAAP gives such a perspective that can be embraced while recording significant information and exchanges. The clients require such important information and exchanges to make useful arrangements. Notwithstanding, its disappointment may blur the utilization of financial articulations. (Dimitriou,2020). Thusly, GAAP can extricate a piece of sufficient data. It will additionally help in making applicable and precise financial reports. GAA works with all examiners with admittance to approve the remarks of organization in financial proclamations. In this manner, guarantees its unwaveringness towards its clients. (Griffin, 2015). Inside GAAP, the accumulated sum and money installment are the solitary ways that are needed to perceive, report, and send financial data. Following this, Jaime was confused on the grounds that some piece of the absolute installment ought not be recorded before the genuine installment. All things considered, the installment of forthcoming workshops of things to come was recorded before the genuine installment. Exclusion blunders are additionally ascribed to her misfortune, and the associations validity with its partners would be in question. (Lillywhite, 2016). Also, numerous outer, inner, and other various elements can impact financial documentation. (Joe, 2012). In addition, carelessness likewise adds to it. Notwithstanding, the errors with respect to Jamie were immaterial because they dont address any fake or erroneous data. References Dimitriou, M. (2020). What is the importance of financial reporting from Local GAAP to IFRS for companies, and how can the accounting treatment influence this factor within firms’ valuation concept? In Multinational Finance Conference Booklet (Vol. 27, p. 25). Griffin, M. P. (2015). How to Read and Interpret Financial Statements: A Guide to Understanding What the Numbers Mean to You: Vol. Second edition. AMA Self-Study. Joe Ben Hoyle and C.J. Skender. (2012). Financial Accounting. Boston, MA: FlatWorld. Lillywhite, T. H. (2016). Corporate Financial Disclosure: The Importance of GAAP Mandated Earnings Amidst Declining Value-Relevance. Burgmann Journal, (V). Page 2 Walter Jofre Jr. Financial Review Template Transaction Description Accounting Principle Justification Based on Accounting Principle Include Transaction? (Yes / No) Types of Accounts Increases or Decreases Account Example: Pays utility bill Matching principle Provide justification for applying the principle to the transaction 1 Yes Expense Asset Increase Increase Her parents gave her $5000 (Invested) Historical cost The entry has been verified, and the transaction has been finalized. No Equity Asset Increase Increase The Computer was bought on the credit of $1,000 Accounting (Accrual) Cash payment was not completed, but the expenditure has ensued. Yes Expense Asset Increase Increase The Task was finished and the payment of $5,000 was made Revenue recognition Service was provided, and payment was received. Yes Asset Revenue Increase Increase $2,000 rent was paid Matching principle Under the matching principle, it is a periodic cost. Yes Asset Expense Decrease Increase Advance payment of $4,000 rent for upcoming two months Historical Cost Not qualify for matching principle though transaction is made and a part of future period. No Asset Asset (prepaid lease) Decrease Increase  The telephone bill was paid Matching principle The cost was a periodic one under the matching principle Yes Asset Expense Decrease Increase  Internet fee was paid Matching principle Under the matching principle, a periodic cost. Yes Asset Expense Decrease Increase Discussion of salary with the new employee ($15) Monetary Unit Assumption It is not a current cost but a theoretical cost. No Asset Liability Decrease Increase Task was completed with a total amount of $3,000 Revenue Recognition The service was provided, but it will be delivered after receiving the due payment. Yes Revenues Increase References Dimitriou, M. (2020). What is the importance of financial reporting from Local GAAP to IFRS for companies, and how can the accounting treatment influence this factor within firms’ valuation concept? In Multinational Finance Conference Booklet (Vol. 27, p. 25). Griffin, M. P. (2015). How to Read and Interpret Financial Statements: A Guide to Understanding What the Numbers Mean to You: Vol. Second edition. AMA Self-Study. Joe Ben Hoyle and C.J. Skender. (2012). Financial Accounting. Boston, MA: FlatWorld. Lillywhite, T. H. (2016). Corporate Financial Disclosure: The Importance of GAAP Mandated Earnings Amidst Declining Value-Relevance. Burgmann Journal, (V). Quarterly Business Transactions Quarter 2 (April 1–June 30) Date Transaction April 4 Jamie’s parents gave $5,000. Jamie decided to invest it in the consulting business. April 15 Jamie purchased a computer for $1,000 on account. April 16 Jamie completed some work and was paid in cash $5,000. April 27 Jamie paid monthly rent of $2,000. May 1 Jamie paid the next two month’s rent as well. May 3 Jamie paid the telephone bill. May 12 Jamie paid the internet bill. May 17 Jamie interviewed a potential admin and discussed $15 per hour. May 19 Jamie completed work in the amount of $3,000 and was told to send a bill. May 31 Jamie withdrew $1,000 for personal expenses. June 2 Jamie went to a business seminar costing $500. June 3 Jamie purchased supplies for work in the amount of $600. June 14 Jamie completed work and was paid half in cash and told to send a bill for the other half. The total bill was $4,000. June 20 Jamie paid monthly health insurance of $450. June 22 Jamie paid the insurance on the business for one year, $1,200. June 25 Jamie reimbursed an employee for mileage in the amount of $50. June 26 Jamie has a side business selling organic cat food. Jamie paid for shipping of cat food out of the consulting business funds. June 29 Jamie replenished petty cash and discovered a discrepancy of $0.02. June 30 Jamie received a bill for a business seminar that she will attend in August. Quarterly Business Transactions Q uarter 2 (April 1 – June 30) Date Transaction April 4 Jamie’s parents gave $5,000. Jamie decided to invest it in the consulting business. April 15 Jamie purchased a computer for $1,000 on account. April 16 Jamie completed some work and was paid in cash $5,000. April 27 Jamie paid monthly rent of $2,000. May 1 Jamie paid the next two month ’ s rent as well. May 3 Jamie paid the telephone bill. May 12 Jamie paid the internet bill. May 17 Jamie interviewed a potential admin and discussed $15 per hour. May 19 Jamie completed work in the amount of $3,000 and was told to send a bill. May 31 Jamie withdrew $1,000 for personal expenses. June 2 Jamie went to a business seminar costing $500. June 3 Jamie purchased supplies for work in the amount of $600. June 14 Jamie completed work and was paid half in cash and told to send a bill for the other half. The total bill was $4,000. June 20 Jamie paid monthly health insurance of $450. June 22 Jamie paid the insurance on the business for one year, $1,200. June 25 Jamie reimbursed an employee for mileage in the amount of $50. June 26 Jamie has a side business selling organic cat food. Jamie paid for shipping of cat food out of the consulting business funds. June 29 Jamie replenished petty cash and discovered a discrepancy of $0.02. June 30 Jamie received a bill for a business seminar that she will attend in August. Quarterly Business Transactions Quarter 2 (April 1–June 30) Date Transaction April 4 Jamie’s parents gave $5,000. Jamie decided to invest it in the consulting business. April 15 Jamie purchased a computer for $1,000 on account. April 16 Jamie completed some work and was paid in cash $5,000. April 27 Jamie paid monthly rent of $2,000. May 1 Jamie paid the next two month’s rent as well. May 3 Jamie paid the telephone bill. May 12 Jamie paid the internet bill. May 17 Jamie interviewed a potential admin and discussed $15 per hour. May 19 Jamie completed work in the amount of $3,000 and was told to send a bill. May 31 Jamie withdrew $1,000 for personal expenses. June 2 Jamie went to a business seminar costing $500. June 3 Jamie purchased supplies for work in the amount of $600. June 14 Jamie completed work and was paid half in cash and told to send a bill for the other half. The total bill was $4,000. June 20 Jamie paid monthly health insurance of $450. June 22 Jamie paid the insurance on the business for one year, $1,200. June 25 Jamie reimbursed an employee for mileage in the amount of $50. June 26 Jamie has a side business selling organic cat food. Jamie paid for shipping of cat food out of the consulting business funds. June 29 Jamie replenished petty cash and discovered a discrepancy of $0.02. June 30 Jamie received a bill for a business seminar that she will attend in August. PRIN OF FINANCIAL ACCOUNTING 08-10-2021 FEEDBACK You continue to make progress and have some minor adjustments to make.  However, the last ten transactions continue not to be included in your submissions. Looking forward to your next submission. Thanks, 1) Applies the most relevant accounting principle for each business transaction. NOT MASTERED!!!!! 8/10 $5000 Contribution/ Parents - Principle is incorrect. This information needs to be released/ shared based upon this Principle. Computer - Principle is incorrect. (Refer to Rent as it was correct & similar Principle) 2months Rent - Principle is incorrect. (Refer to Rent as it was correct & similar Principle) $3k Revenue - missing 2nd account; cash has not been received - yet - so what account on the Balance Sheet increased? You are still missing the last 10 transactions. 2) Explains rationale for applying each accounting principle. NOT MASTERED!!!!! Revisions will be needed once adjustments are made as well as for the missing scenarios. 3) Decides to include or omit each business transaction. NOT MASTERED!!!!! Revisions will be needed once adjustments are made as well as for the missing scenarios. 4) Determines the appropriate account type for each business transaction. NOT MASTERED!!!!!! Revisions will be needed once adjustments are made as well as for the missing scenarios. 5) Determines whether each account type results in an increase or decrease of the account. NOT MASTERED!!!!! Revisions will be needed once adjustments are made as well as for the missing scenarios.