Financial Transaction Process & Interim Report Project

This project report focuses on processing financial transactions and compiling an interim report for the Beck Wik Company. It covers various aspects of bookkeeping, including identifying and categorizing accounts such as cash, supplies, equipment, common stock, retained earnings, and liabilities like accounts payable. The project also elaborates on revenue generation through service and inventory management while discussing expenses related to salary. Additionally, it provides insights into financial statements—balance sheets and income statements—and the role of equity accounts in financial reporting. References include works by Davies & Crawford (2011), Garleanu & Pedersen (2007), Garrison et al. (2010), and Noreen et al. (2011), offering a comprehensive overview of business accounting principles applicable to the scenario.

Running Head: Process of financial transaction
1
Project Report: Process financial transaction and extract interim report

Process of financial transaction 2
Que 1 a)
Books of Beck Wsik Company
Cash Supplies
Accounts
receivable Equipment
Accounts
payable
Common
stock
Retained
earnings
A 50000 50000
B 5000 5000
C -2000 -2000
Utility
Expenses
D 6000 6000
Service
Revenue
E 3000 -3000
F -5000 -5000
G 10000 10000
H -2200 -2200 Dividends
Total 43800 5000 3000 10000 10000 50000 1800
The above table depicts about the financial transaction of Beckwsik and its impact
over the various accounts (Garleanu & Pedersen, 2007). This table depicts that entire
transaction impacts over 2 or more than 2 accounts constantly. Further, it has also been found
that the impact of accounts make it easy for the accountant to analyze that whether the
transaction has been reported in a good manner.
Accounting equation:
Accounting equation depicts that all the financial transaction has impact over 2 or
more than 2 accounts. This accounting equation depict that all the assets of a company are
either bought by the company on cash or borrowing money (Noreen, Brewer & Crawford,
2011). Thus the accounting equation of the finance is:
Accounting Equation = Assets - Liabilities = capital
The above discussed equation has been analyzed over the above given calculation to
analyze that whether the above recorded transaction are correct or not. For analyzing it, all
the assets have been added and subtracted from liabilities which would be equal to the total
capital of the company.
In the given case, the total assets are = 43800+5000+3000+10000

Process of financial transaction 3
Whereas the total liabilities = 10000
And, the total capital of the company = 51800
If the following information is putted into the accounting equation than,
Accounting Equation = Assets - Liabilities = capital
So, = 43800+5000+3000+10000-10000 = 50000+1800
51800=51800 (Garrison et al, 2010)
It proves that the total assets and liabilities are equal to the capital of the company and
thus it has been proved that the financial transaction has been recorded in a good manner by
the accountant and in a correct way.
Que 2)
The following information depicts about the transaction and the account which would
be impacted through this transaction and the financial statement has also been analyzed
according to that.
ACCOUNT
TYPE OF
ACCOUNT
FINANCIAL
STATEMENT
1 Equipment Assets Balance sheet
2 Common Stock
Stockholder's
equity
Statement of
retained
earnings
3 Accounts Payable Liability Balance sheet
4 Service Revenue Revenue
Income
statement
5 Salary Expense Expenses
Income
statement
6 Inventory Assets Balance sheet
7
Accounts
Receivable Assets Balance sheet
8
Retained
Earnings
Stockholder's
equity
Statement of
retained
earnings
9 Notes Payable Liability Balance sheet
10 Prepaid Insurance Assets Balance sheet
11 Dividends
Liability
account Balance sheet
12 Cash Assets Balance sheet

Process of financial transaction 4
(Davies & Crawford, 2011)

Process of financial transaction 5
References:
Davies, T. & Crawford, I., (2011). Business accounting and finance. Pearson.
Garleanu, N. B., & Pedersen, L. H. (2007). Liquidity and risk management (No. w12887).
National Bureau of Economic Research.
Garrison, R. H., Noreen, E. W., Brewer, P. C., & McGowan, A. (2010). Managerial
accounting. Issues
Noreen, E. W., Brewer, P. C & Crawford, I., (2011). Managerial accounting. Pearson.