Your company uses account numbers as well as account names in its chart of accounts. They also utilize sub-accounts on the profit and loss accounts. Parent accounts typically end with a “0” and sub-accounts are located in the next 9 digits. For example, 510 would be the parent account, and all accounts 511-519 would be sub-accounts of account 510. Transactions should be recorded to the sub-accounts with no transactions recorded directly to the parent account. Review the expense section of the profit and loss report below. Did your company follow these standards? If not, explain why not.

 

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Expenses 600 Labor Costs Sampe Company Profit and Loss For the Month of February 20x1 608 Staff meetings expense 609 Contract Labor Total 600 Labor Costs 610 Professional Development 611 Technical reading materials expense 615 Software seminar expense Total 610 Professional 620 Facility Costs 621 Rent expense 625 Utilities expense Total 620 Facility Costs 622 Telephone expense 630 Marketing Costs 631 Advertising expense 635 Client relations expense 638 Bad debt expense Total 630 Marketing Costs 640 Office Costs 649 Depreciation expense Total 640 Office Costs 641 Office supplies expense 650 Taxes, Insurance, and Professional Fees Development 660 Workshop Costs 661 Space rental expense S 665 Workshop helpers Total 660 Workshop Costs 690 Other Costs 691 Bank service charges 698 Reimbursable Costs Total 690 Other Costs Total Expenses $ $ $ 651 Accounting and Consulting fees 653 Insurance Expense Total 650 Taxes, Insurance, and Professional F S $ S $ Total 134.32 1.530.00 1,664.32 150.00 488.51 638.51 2,100.00 333.43 2,433.43 428.40 370.00 131.85 200.00 701.85 888.75 888.75 395.00 1,000.00 935.00 210.00 2,145.00 1,200.00 680.00 1,880.00 139.93 0.00 139.93 11,315.19 Expenses 600 Labor Costs Sampe Company Profit and Loss For the Month of February 20x1 608 Staff meetings expense 609 Contract Labor Total 600 Labor Costs 610 Professional Development 611 Technical reading materials expense 615 Software seminar expense Total 610 Professional 620 Facility Costs 621 Rent expense 625 Utilities expense Total 620 Facility Costs 622 Telephone expense 630 Marketing Costs 631 Advertising expense 635 Client relations expense 638 Bad debt expense Total 630 Marketing Costs 640 Office Costs 649 Depreciation expense Total 640 Office Costs 641 Office supplies expense 650 Taxes, Insurance, and Professional Fees Development 660 Workshop Costs 661 Space rental expense S 665 Workshop helpers Total 660 Workshop Costs 690 Other Costs 691 Bank service charges 698 Reimbursable Costs Total 690 Other Costs Total Expenses $ $ $ 651 Accounting and Consulting fees 653 Insurance Expense Total 650 Taxes, Insurance, and Professional F S $ S $ Total 134.32 1.530.00 1,664.32 150.00 488.51 638.51 2,100.00 333.43 2,433.43 428.40 370.00 131.85 200.00 701.85 888.75 888.75 395.00 1,000.00 935.00 210.00 2,145.00 1,200.00 680.00 1,880.00 139.93 0.00 139.93 11,315.19

Answer rating: 100% (QA)

Answer Company not follow the above standard Reason Because Sub A... View the full answer