Subject: Dr. Fiddle’s records
Hello Lisa,
I have reviewed Dr. Fiddle’s records and determined which documents should be included in the financial statements. Additionally, for each record that should be included, I have determined whether the record belongs in the income statement and/or balance sheet based on the accrual method. I have also indicated in what sections it should be captured such as revenue/expenses, or assets/liability/equity.
Synopsis of my findings:
• The money paid to the Poland Springs water delivery man should be recorded on the income statement because it was money spent within the reporting period which is considered an expense (SEC, 2007).
• The holiday gifts belongs on the income statement because it was money paid out which is …show more content…
This is considered a liability (SEC, 2007).
• The Psychologist lease should be recorded on the balance sheet under current assets because the checks were returned meaning no money has been received. This is money that is still owed to doctor Fiddle which makes it an asset (SEC, 2007).
• The flu shot clinic services should be reported on the income statement because money was spent, which is an expense, to host the flu shot clinic and money was received, which is revenue, by the patients to receive the flu shots (SEC, 2007).
• The court ordered monetary judgement should be reported on the balance sheet because it is money that has not been paid but is owed thus making it a liability (SEC, 2007).
• The state unemployment payroll tax notification should be recorded on the balance sheet because it money that needs to be paid out within six weeks making it a liability (SEC, 2007).
• The discounted medical services should be recorded on the income statement because it is money that was received despite it being discounted it is still considered revenue for the company (SEC,
Hello Lisa,
I have reviewed Dr. Fiddle’s records and determined which documents should be included in the financial statements. Additionally, for each record that should be included, I have determined whether the record belongs in the income statement and/or balance sheet based on the accrual method. I have also indicated in what sections it should be captured such as revenue/expenses, or assets/liability/equity.
Synopsis of my findings:
• The money paid to the Poland Springs water delivery man should be recorded on the income statement because it was money spent within the reporting period which is considered an expense (SEC, 2007).
• The holiday gifts belongs on the income statement because it was money paid out which is …show more content…
This is considered a liability (SEC, 2007).
• The Psychologist lease should be recorded on the balance sheet under current assets because the checks were returned meaning no money has been received. This is money that is still owed to doctor Fiddle which makes it an asset (SEC, 2007).
• The flu shot clinic services should be reported on the income statement because money was spent, which is an expense, to host the flu shot clinic and money was received, which is revenue, by the patients to receive the flu shots (SEC, 2007).
• The court ordered monetary judgement should be reported on the balance sheet because it is money that has not been paid but is owed thus making it a liability (SEC, 2007).
• The state unemployment payroll tax notification should be recorded on the balance sheet because it money that needs to be paid out within six weeks making it a liability (SEC, 2007).
• The discounted medical services should be recorded on the income statement because it is money that was received despite it being discounted it is still considered revenue for the company (SEC,