Hi, please assist me with this group project.
Complete the answer sheet with the column headings shown here. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on the appropriate balance sheet category and on net income by selecting for each account affected the account name and amount and indicating whether it is an addition (+) or a subtraction (-). Net income is not affected by every transaction. In some cases only one column may be affected because all of the specific accounts affected by the transaction are included in that category. Can you explain why you chose your answers? This would help me to explain to group members.
a. Accrued interest income of $15 on a note receivable.
b. Recorded estimated bad debts in the amount of $775.
c. Wrote off an overdue account receivable of $534.
d. Converted a customer's $1,275 overdue account receivable into a note.
e. Accrued $54 of interest earned on the note (in d).
f. Collected the accrued interest (in e).
g. Recorded $3,600 of sales, 75% of which were on account.
h. Recognized cost of goods sold in the amount of $2,880.
The question deals with double entry classification in accounting.
Financial Accounting Cycle: Double entry accounting and financial statements explained.
Answer the following question in 3 to 4 paragraphs.
Your father runs a small auto body shop. He has decided to computerize his records and has asked you to explain the basics of accounting to him so that he can enter the data into his accounting software.
* Explain to him the rules of debits and credits for the balance sheet and income statement.
* Provide examples from the manufacturing industry of:
o a journal entry that would be recorded that impacts the balance sheet.
o a journal entry that would be recorded affecting the income statement.
* Please provide the assumptions behind the transactions and the full journal entries.