Is there any way to learn how to do all the balance sheets, income statements, and the debits and credits, I keep getting everything switched around. I just need to know how to keep everything straight. I have a final in that class tonight

Thanks for the help!:confused: :confused: :confused:

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Originally Posted by lhuff864

is there any way to learn how to do all the balance sheets, income statements, and the debits and credits, i keep getting everything switched around. I just need to know how to keep everything straight. i have a final in that class tonight

thanks for the help!:confused: :confused: :confused:

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Read the reviews at the end of every chapter? I'm in the same boat.

First of all, I do not think that there is a quick, easy way to learn all about balance sheets, income statements, balance sheets, and journal entries. From what I gather last two years taking accounting courses at school is that it takes time and practice. One instructor told me that I should do my home/personal bookkeeping practices this way to keep in good practice. Now for credits and debits, just remember that "debits on the left" and "credits on the right". The balance sheet is: Assets = Liabilities + Shareholders' Equity. Balance sheet: the assets are listed at the top, followed by liabilities and stockholders' equity. On the income statement: revenues are listed first, followed by expenses. Finally net income (or net loss) is determined. Hope this is what you were looking for and helps? Good Luck!

How to calculate the receivables turnover ratio and average collection period.

Accounts Receivables Turnover Ratio equation equals to Net Credit Sales divided by Average net accounts receivables.
*For example, in 2006, Company Z had net sales of $18,878 million for the whole year. It had a beginning accounts receivable (net) balance of $1,351 million and an ending accounts receivable (net) balance of $1,105 million.
**$18,878 divided by [($1,105 + $1,351)/2] = 15.4 times.

Average collection period is done by dividing the turnover ratio into 365 days.
For example, Company Z turnover of 15.4 times is divided into 365 days, to obtain approximately 23.7 days.

Hope this helps? Good Luck