Accounting Cycle and Transaction Analysis Final

School: University of Massachusetts, Amherst - Course: ACCOUNTG 321 - Subject: Accounting

Mary Koontz Accounting Cycle and Transaction Analysis Paula Edwards September 19th , 2022 Preparing an Adjusted Trial Balance Running a business can be very exciting, stressful, and scary. Every business has a lot of moving parts that make it function properly. One of these parts is accounting and the preparing of financial documents. To best understand how they types of documents work we're going to examine transactions for the fictional company Purity Inc. We're going to preparing several financial documents and analysis for the fictional company of Purity Inc. We will first prepare a journal entry for transactions that occurred in the month of June. We will also prepare a trial balance,a closing balance of all accounts at that point in time. But sometimes entries will need adjusting, we will show how theses entries will look by creating adjusted balances and trail balance to show changes that made occur using the information provided in the prompt. We will also discuss the different type of standards in accounting. We will discuss the differences in the two accounting standards and use real life examples on what can be the advantages and disadvantages of using both types. Below we can input the data of the accounts into out ledger using the information provided in the prompt.

Now we have been given he information on how to make adjusting entries for the company Purity Inc. We will do this using the following information given:Supplies on hand, $200. b) Depreciation, $100 equipment, $75 furniture, $330 vehicles. c) Services performed but unbilled, $1,900. d) Accrued salaries, $550.