Double-entry bookkeeping system

$1,200 brokerage fees. Interest is payable semiannually on April 1 and October 1. July 1 Received a cash dividend of $0.80 per share on the NJF common stock. Aug. 1 Sold 200 shares of NJF common stock at $42 per share less brokerage fees of $350. Sept. 1 Received $2 per share cash dividend on the SEK common stock. Oct. 1 Received the semiannual interest on the CRT bonds. Oct. 1 Sold the CRT bonds for $77,000 less $1,300 brokerage fees. The fair values of the NJK and SEK common stocks were at $39 and $30 in every corresponding share at December 31. Instructions (a) Journalize the transactions and post to the accounts Debt Investments and Stock Investments. (Use the T account form.) (b) Prepare the adjusting entry at December 31, 2012, to report the investments at fair value. All securities are considered to be trading securities. (c) Show the balance sheet presentation of investment securities at December 31, 2012 (d) Identify the income statement accounts and give the statement classification of each account. GENERAL JOURNAL Date Account Titles and Explanation Debit Credit Feb1 Stock Investments 51600 Cash 51600 (To record purchase of 1200 shares of NJF common stock) Mar1 Stock Investments…

LOSS REPORTS Reported Losses per $1 Million of Payroll Mr. Sells announced that the pool has made significant progress toward a favorable trend and that loss values are currently stable. A graph was presented illustrating the stability of this program with the exception of the 2008-09 losses due to the economic downturn. Factors such as legislative changes and drought imposed project reductions have lowered the number of claims, showing positive results statewide. Ultimately, there has been a…

An unadjusted trial balance is simply a list of the accounts with the credit and debit balances with totals. The totals from the two columns must match. If they do not mach there is an error somewhere that needs to be uncovered. In my experience, the trial balance is simply printed from a program and a bookkeeper reviews the totals to be sure they match the journal entries and that all transactions have been recorded then makes sure that the debits and credits match. If there are errors, the…

World War II was a dark, terrible time in history. It was a time when maniacal, fascist dictators terrorized the masses, and showed signs of growing more powerful by the second. It was a time when citizens lived in fear of armies looting and burning their cities, and sought protection from bombs dropping mercilessly from the sky. It was a time when corruption ran deep into the government, and every official had suspicions about the others leaking information to the enemy. People were afraid,…

Often, small business owners interchange the important term ‘bookkeeping’ with ‘accounting’ or ‘accounting’ with ‘bookkeeping.’ They should not do that as both these accountancy terms are different. Bookkeeping and accounting have separate financial functions, and both of them are integral parts of small businesses. It is important to understand these terms because streamlined financial records and organized finances are key to the success of a small business. Understanding these terms also…

The purpose of accounting is to identify, record and provide financial information concerning a business. An effective accounting system is one of the most crucial aspects of having a successful business. No matter what type of business it is or how large or small it may be, accounting will play an important role in its overall success. Even though accounting systems can be traced back for thousands of years and have developed in many different ways over time, todays businesses primarily use…

T-accounts. Most health care organizations and for-profits use t-accounts to show impact of transactions. According to, (Finkler, S.A., Ward, D.M. & Calabrese, I.D. 2013), within the t-account any entries on the left side of the vertical line are debits, and any entries on the right side are credits. T-accounts can effectively be used for (NFP)’s even though they are not part of the accounting system. Negative signs are not used when creating t-accounts which can be a problem, but it’s the…

Renaissance, granting artists a chance to concentrate on their work without having to worry about money. The Medici supported many artists like Masaccio, Brunelleschi, Michelangelo, Raphael, Donatello, and Leonardo da Vinci. The Medici payed these artists to design and build things around Florence. Along with art, the Medici supported science. They supported Galileo in all his beliefs and theories. He also tutored most of the Medici children. I believe that the Medici earned their power fairly.…

Medici Bank became the official bank of the papacy which cemented the family’s economic and political importance. Despite Giovanni’s wealth and popularity in Florence, he never desired political power. It wasn’t until his son, Cosimo de Medici, took over leadership of the bank that the Medicis became the unofficial leaders of Florence. When Cosimo became the new leader of the bank, he used the Medici fortune to set up a network of contacts that meant the popularity and wealth of the bank grew,…

It has been relatively known that a society cannot prosper without the careful consideration of the past when making decisions for the future and Andrew Carnegie strongly believed that. “Because Andrew’s lifetime spanned two worlds, before and after mechanization, his actions continuously manifested an ambivalence rooted in his double exposure to the old world among the cottages, glens, and firths of Scotland and the new world among of smoky factories in America.” (Andrew Carnegie 13) Most of…