You are an accountant in a medium-sized manufacturing company. You have been asked to mentor an accounting clerk who is new to your accounting department.
- Explain why adjusting entries are necessary.
- Describe the 4 types of adjusting entries, and provide a manufacturing industry example of each.
- Describe how these entries would be recorded in a computerized accounting system.
- Describe 1 ethical issue that could result from the preparation of these manufacturing entries
Select a company that you are familiar with from the transportation industry.
- Collect the 4 main financial statements from credible sources (e.g., nationally syndicated newspapers, peer-reviewed journals, investor relations, Web sites or annual reports.
- Create a flow chart that illustrates the steps in the accounting cycle.
- Include any other relevant information in the chart that would apply within the steps.
When reviewing the financial statements, focus your attention on the expenses and revenues incurred by the company