The Accountant for Scott Industries Prepared the Following List of Accounting

question 5

Essay

The accountant for Scott Industries prepared the following list of accounting equation element balances from the company's records for the year ended December 31:
​

-Daniels Company is owned and operated by Thomas Daniels.The following selected transactions were completed by Daniels Company during May:1.Received cash from owner as additional investment,$55,000.2.Paid creditors on account,$7,000.3.Billed customers for services on account,$2,565.4.Received cash from customers on account,$8,450.5.Paid cash to owner for personal use,$2,500.6.Received the utility bill,$160,to be paid next month.​Note: Each transaction has two entries. ​

---

Definitions:

Credit Sale

A transaction where goods or services are provided to a customer with the agreement that payment will be made at a later date.

Other Comprehensive Income

A component of shareholders' equity that includes income and expenses not recognized in net income, such as unrealized gains and losses on investments.

Unrealized Gains

Increases in the value of an asset that have not been sold, hence not yet converting the gain into cash.

Available-For-Sale Securities

Financial assets that are purchased with the intention of selling before their maturity date, not held for long-term investment.