There will be an accrued wages that would have to be provided in the account by debiting to Salaries expense and crediting to Accrued wages. The Accrued wages is a liability account that will finally appear in the balance sheet under current assets while the Salary expense account will appear in the income statement. 1. Stan bought three new Subway aprons and hats for Wanda Smith for $20 each but forgot to post it to the Uniform account. How much will the closing balance be off? In what way will it be off? Multiplying three Subway aprons and hats for $20 each would give a product of $60 understatement in the Uniform account. The closing will off by $60 because of the failure to post to the Uniform Account which is an expense account. The same will result to understatement of the total debits of the accounts. This is because the total credits will be higher than the total debits in the preparation of the trial balance inside the worksheet (Meigs and Meigs, 2005).
2.Put yourself in Stan’s shoes: What is the value of doing a monthly closing, no matter how much – or little- business you do? The value of closing is make a proper cut off of transactions that is applicable to the accounting period. Failure therefore to make a closing cause either an understatement or overstatement of accounts depending of the effect of transactions. Such failure would in effect cause misstatement of the financial statements that would also result to wrong business decisions. Case facts confirm this observation that closing book will allow companies to clearly measure the net profit and loss for each period separate from all other periods (Subway Case: Closing Time, n.d.) The closing practice will also make activities like budgeting and comparing performance with similar business (or performance over time) possible as per case facts (Subway Case: Closing Time, n.d.).
The Research paper on Case Study – Make Green Delicious
The current Collective Bargaining Agreement includes a limited salary cap and entry-level salary cap, and expires September 15th, 2004. It is no longer successful at controlling rapid growth in player salaries and forming a direct link between salary growth and league revenues. The Unified Report of Operations claims that the majority of NHL teams have lost money in recent years. Owners believe ...
References: Meigs and Meigs (1995) Financial Accounting, McGraw-hill, New York, USA Subway Case: Closing Time (n.d.) Case Study
