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Download e-book for kindle: Advanced Financial Statements Analysis by Xiuli Wang

By Xiuli Wang

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1, 20X5 Balance forward Jan. 11, 20X5 Journal page 1 Date te ACCOUNT: Accounts Receivable Description Jan. 1, 20X5 Balance forward Jan. 11, 20X5 Journal page 1/Compton Jan. 12, 20X5 Jan. 24, 20X5 Jan. 30, 20X5 Debit Balance alance $ 30,000 $ 6,000 *Journal page 1/Fisher Journal page 2/Sunderman Journal page 2/Moore Credit 2,000 Debit Credit Balance $ $ 6,000 6,000 ACCOUNT: Fisher her ACCOUNTS RECEIVABLE: CONTROL LEDGER Date Description 36,000 Description Jan. 1, 20X5 Balance forward Jan. 12, 20X5 Journal page 1 Credit Balance $ 15,000 4,000 $ 11,000 ACCOUNT: Sunderman ACCOUNT $ 11,000 25,000 Date 8,000 17,000 Jan.

11, 20X5 Journal page 1 Date te ACCOUNT: Accounts Receivable Description Jan. 1, 20X5 Balance forward Jan. 11, 20X5 Journal page 1/Compton Jan. 12, 20X5 Jan. 24, 20X5 Jan. 30, 20X5 Debit Balance alance $ 30,000 $ 6,000 *Journal page 1/Fisher Journal page 2/Sunderman Journal page 2/Moore Credit 2,000 Debit Credit Balance $ $ 6,000 6,000 ACCOUNT: Fisher her ACCOUNTS RECEIVABLE: CONTROL LEDGER Date Description 36,000 Description Jan. 1, 20X5 Balance forward Jan. 12, 20X5 Journal page 1 Credit Balance $ 15,000 4,000 $ 11,000 ACCOUNT: Sunderman ACCOUNT $ 11,000 25,000 Date 8,000 17,000 Jan.

Note in the following illustration that the “2008 Fiscal Year” is so named because it ends in 2008: You should also consider that internal reports may be prepared on even more frequent monthly intervals. As a general rule, the more narrowly defined a reporting period, the more challenging it becomes to capture and measure business activity. This results because continuous business activity must be divided and apportioned among periods; the more periods, the more likely that “ongoing” transactions must be allocated to more than one reporting period.

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