Discussion Topics

Discussion Topic 1 (a) The owner's equity section of the balance sheet has a capital account. From what statement do you derive the amount of this capital account? Explain why? (b) If the trial balance does not balance does not balance, and the difference between the total debit and total credit is multiple 9, that means that there is one of the two possible mistakes. b-1 Name them b-2 Define each of them. (c) of the three financial statements, which one is prepared first? (d) Why do we need the net income or net loss from the Income Statement to prepare the statement of owner's equity? (e) Why is the owner's withdrawal/Drawing called a "contra equity" or "contra capital" account? Discussion topic 2: (a) Define the worksheet (b) Why is the worksheet not an accounting statement? (c) The purpose of the worksheet being to bring some accounts up to date because they were not updated during the accounting period. List the types of accounts that are adjusted? (d) In the worksheet, which columns are used to prepare the income statement? (e) Which account in the balance sheet column does not go to the balance sheet? Discussion Topic 1 (a) The owner's equity section of the balance sheet has a capital account. From what statement do you derive the amount of this capital account? Explain why? (b) If the trial balance does not balance does not balance, and the difference between the total debit and total credit is multiple 9, that means that there is one of the two possible mistakes. b-1 Name them b-2 Define each of them. (c) of the three financial statements, which one is prepared first? (d) Why do we need the net income or net loss from the Income Statement to prepare the statement of owner's equity? (e) Why is the owner's withdrawal/Drawing called a "contra equity" or "contra capital" account? Discussion topic 2: (a) Define the worksheet (b) Why is the worksheet not an accounting statement? (c) The purpose of the worksheet being to bring some accounts up to date because they were not updated during the accounting period. List the types of accounts that are adjusted? (d) In the worksheet, which columns are used to prepare the income statement? (e) Which account in the balance sheet column does not go to the balance sheet