CHAPTER 2
Prob 1.1
The features that makes this trial balance difficult to read, is the way it’s organizing the report. This trial balance should have two columns of debit and credit. Its also should verify the equality of the two columns so that we know if its balance or not. By looking at this trial balance, it’s hard to identify which one is debit and which one should be credit. Its also don’t have any date to testify which date, this report were recorded. Is it a past trial balance or a current trial balance? Last feature that will make it difficult to read, there were no $ sign to illustrates these numbers are in $ sign.
1.2
COVER LTD’S
Trial balance as in 31st of March 2008
Account title Debit Credit
Cash $1700
Supplies 5600
Account Payable 7500
Notes Payable 1200
Share Capital 5000
Service Revenue 15000
Dividends 500
Salary Expenses 3500
Rent Expenses 900
Other Expenses 500___ ______
$28700 $28700
Prob 2
2.1 The stakeholder in this situation is Thomas Carlisle Jr.
2.1 Ms Fremont should not agree to the change in Travel and Entertainment account to Property Development because it is illegal. They are two different accounts. But however in case of losing her job, she should agree to the changes because he is the owner of the company.
CHAPTER 3
Prob 1
All entities need to report their results in the form of either profit or operating surplus. This result is determined in particular periods of time, such as a months or a year, in order to get comparability of results. This division of the life of the entity into equal time intervals is knows at period assumption.
The reve ...