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How do you determine closing entries from income stmt and balance sheet?

How do you determine closing entries from income stmt and balance sheet? Topic: Oh homework
June 16, 2019 / By Joni
Question: I'm taking a class and up until now...it's been easy to follow. Now it wants me to enter the closing entries in the GL, but it doesn't tell me what they are (which it always did in the past). I'm confused!!! Directions said use the income statement and balance sheet to enter closing entries...but how do I do that??? Help please! :) hmmmm...that was helpful! Go back to the makeup section wench! I might need to get some ice cream...good call! And hey...since you've cheered me up with the answers...you'll earn yourself 20 xtra points for best answers :D Oh...and L & L are driving me bonkers...they need a walk, but I'm trying to at least get half this homework done first. They might win the battle though :) Don't feel bad Soph...you helped without giving me the answers...and you deserve them :) It'll help make up for some of your stolen points today :) LOL...couldn't agree more!!! Thanks for the laughs...I'm off to walk L&L :) You're right...we'll be dead for chatting :D Awwww well...it's just YA's right :D Shouldn't you be sleeping??? It's almost 8pm here! Same to you my dear!
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Best Answers: How do you determine closing entries from income stmt and balance sheet?

Genevieve Genevieve | 8 days ago
Lmao Jen!!! So funny. Don't answer what you can't, love! (Says me.. but I'm here to help my dear friend who owns the most handsome dogs ever heehee) Hope L & L are good! Maybe you should reach for the ice-cream?? :P Oh no!! But I can't, I feel such a... point...stealer? :-( Duty calls!! :P Dogs first, ice cream next, homework after, it's always the rules! You'll be needing a break anyway. :) Your so kind. Alf isn't, its a miricale how this dog manages to steal ALL the room! And if anyone sees this, we are so dead for "chatting" and it'll be all my fault! So feel free to use that knobbly stick on me too :D I should be... can't, too many thoughts. Have fun walking the 2 L's, and hope you get everything sorted! And have a very groovy evening. :) Night Jen, take care!
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Genevieve Originally Answered: Help with accounting homework re balance sheet and income statement?
You need to go the companies investor relations page. Try Coke, see link below (go to item 8 - Financial Statements). Open any annual/quarterly report and you should see the balance sheet and income statement.
Genevieve Originally Answered: Help with accounting homework re balance sheet and income statement?
Every Publicly traded company (e.g. on NASDAQ or NYSE) should have the financial statements posted on their company website under investor relation section. If you are not sure what company is publicly traded, go to Yahoo! Finance and search for some. And actually Yahoo! Finance does supply a simplified version of the company financial statements too (no disclosure notes though)
Genevieve Originally Answered: Help with accounting homework re balance sheet and income statement?
amassed revenues (amassed asset) This has numerous elements to seem at. The adjusting get entry to for this accrual, is a debit to money owed receivable and a credit to expenses earned. The amassed asset will be coated in the steadiness sheet as an account receivable. The amassed revenues will be coated in the earnings actuality as expenses earned. If those money owed were no longer adjusted, money owed receivable and capital might want to be understated on the steadiness sheet and expenses earned and internet earnings might want to be understated on the earnings actuality.

Genevieve Originally Answered: How to analyze a balance sheet if you were working in the credit department of a bank?
First, look at the income statement to see if profits are growing. If not, then maybe at some point the company doesn't even generate a profit, and the bank shouldn't give the loan. You should look back at least 3 years, and a minimum of 5 years. Get the year-to-date period as well. Have financial statements at least compliled from an accountant, although this only means that the accountant aggregated data from the company. Reviewed or audited statements are best, because the auditor did work to veryify the authenticity of the numbers. Are sales growing? If yes, then this is good, as long as the company's gross profit margin isn't falling too fast. And if sales are of commodities, are higher sales merely reflecting the fact that a key commodity input has increased in value? If so, then this doesn't reflect growth, just higher cost of sales. Think sales unit growth on this one. Look at the gross margin (cost of sales / sales) over the time periods that you have. Increasing margins are good because they mean increasing profitability, all else eqal. Decreasing margins reflect the opposite. Incidentally, an increasing margin or an above-peer group margin can be indicative of brand strength. For instance, women pay way above cost for high-end brand names, but not so far above cost for low-end brand names. Look at expenses/sales. If this is increasing, find out why. Maybe sales units have been growing so fast that the company has had to expand the company by acquiring more equipment and employees. If it is decreasing, then that can be a sign of good management, because they are really focusing on improving profits through prudent expense management. Look for high tax rates in one or two of the periods. They are often anomolies, and maybe you want to figure out if they are actually more likely to be lower going forward. Calculate cash flow. There are different ways to do this, and maybe you just want to google for this. One way is to start with net income, add back amortization and non-cash expenses, and subtract non-cash income. Don't add back depreciation, because the company should be reinvesting this back into the company -- i.e., as it uses up assets, it should replace them. There can be some exceptions for this, but not adding back depreciation is most conservative. Cash flow should cover principal and interest at a ratio of at least 1.25x. Otherwise, the loan is too large. Maybe the loan term can be extended to help this, but not extended beyond the ecnomic life of the asset financed. Balance sheet ratios -- you are concerned with leverage. Debt-to-equity. Also, you are concerned with current assets to current liabilities. Higher is better, because the company is then more liquid and better able to come up with the cash to pay the loan sooner. Also, what is the collateral? Maybe this is strictly a loan based on cash flow coverage (which would then need to be high for protection) or maybe the loan also has collateral. If the collateral is real estate, don't lend over 80%. If it is for inventory, don't lend above 70% to 80%, and maybe lower. If you are financing seasonal, trendy items (clothing) or technology, then passage of time can seriously devalue the collateral for good. Maybe leave a cushion of financing 50%. Covenants. You need these as well. Do a search on commercial loan covenants and you can probably find them. Leverage ratios are important. If the company makes leverage too high, then the bank should be able to call the loan in and demand full repayment (a negative covenant). The borrower should provide quarterly statements that are prepared by an accountant (positive covenant).
Genevieve Originally Answered: How to analyze a balance sheet if you were working in the credit department of a bank?
No, of course not. I have better things to do with my life than sit around thinking of all the ways I've been "wronged," or how others have been "wronged" by me. Measuring the impact of ones actions has to do with how those actions affect others. Addiction is an illness, not a measure of morality. No amount of "good" justifies rape. "Murder" is a sticky subject, though-if you kill someone to prevent harm or suffering, I personally don't believe it's murder, but someone else may hold a different view. However, killing anyone, regardless of age, is still killing. The difference between whether it's murder or mercy is what defines the act as good or bad. I have no personal code. If I am truly wronged, and the person who did it thinks they did nothing wrong, then that person probably has serious psychological issues. Everyone, regardless of religious beliefs or "code," knows when they've done something harmful to another person, unless they have absolutely no morality, in which case they are a sociopath. Since I don't keep a balance sheet, "who decides" is rather a moot question. If, however, I am wronged in such a way that legal action is required, the courts can decide. Whether their decision is right or wrong, however, depends upon the court itself. Some laws are also wrong, and cause more harm than not.

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