Explore BrainMass

Financial Accounting Income Statements

Comments from my Instructor:

1 - your closing entries must match the income statement, retained earnings statement and balance sheet you prepare. If they do not they you made an error somewhere.

2 - the syllabus requires that work be submitted on one excel sheet - do not submit multiple excel sheets for work due on the same day - use separate tabs on one sheet.

3 - the names of accounts being credited need to be indented, not flush left under the debit accounts.

4 - always use the comma for amounts of 1,000 or more.

5 - do not list zero balance accounts on the trial balance, balance sheet or post closing trial balance.

6 - one of the beautiful things about accounting is that if the balance sheet does not balance, or the retained earnings on it does not match the retained earnings on the statement of retained earnings, then you KNOW you made an error - go back and find it. I have little patience when I get a balance sheet that does not balance without at least a note from the student saying - I know it does not balance and I tried but could not find my error. At least that tells me the student was awake when they did the assignment.

7 - do not put debits in the credit column with ( ) or credits in the debit column with ( ) - put amounts where they belong in journal entries or on worksheets. I do not know where this habit came from - it is the first time I have seen it in teaching many ACC classes at UoP. Please stop it before it spreads like a virus.

8 - never use $ in journal entries or on worksheets.