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Cash Basis Financial Statements; Accrual Basis Principles

Problem 1 -30a Interrelationship among financial statements, complete the Problem:O'Shea Enterprises start the 2002 accounting period with:(O'Shea Enterprise accounting Equation)
Total assets (all cash) of
Liabilities of
Common stock of

During the year ...there is more show problem
O'Shea Enterprises start the 2002 accounting period with:(O'Shea Enterprise accounting Equation)
Total assets (all cash) of
Liabilities of
Common stock of

During the year, O'Shea recorded the following transactions:
Cash revenues of
Paid cash expenses of
Paid cash dividends to stockholders of
Acquired additional cash from sale of common stock of
Paid cash to reduce a liability with the bank of

Required
Prepare an income statement, statement or changes in stockholders equity, period-end balance sheet, and statement of cash flows for the 2002 accounting period. (Hint; determine the amount of beginning retained earning before considering the effects of the current period events. It also might help to record all events under an accounting equation before preparing the statements.) hide problem

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Solution Summary

Using a Word 97-2003 document, this solution discusses the principles underlying the accrual basis of accounting, especially those regarding revenue recognition. Using an Excel 97-2003 spreadsheet, it then illustrates how to prepare a cash basis income statement, statement or changes in stockholders equity, period-end balance sheet, and statement of cash flows.

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