entity’s balance sheet and any personal expenditure of the owners in the entity’s expenses in the income statement. An example of personal transaction that has implications for the business entity is drawings. Drawings are the withdrawals of assets from the entity by the owners that are recorded as decreases in equity. 4.8 What is the link between the accounting equation and the balance sheet? The financial statement known as the balance sheet is based on the accounting equation. The balance sheet
Premium Balance sheet Generally Accepted Accounting Principles Accounts receivable
stock and retained earnings. The basic accounting equation is: Assets = Liabilities + Stockholders’ Equity (Wiley‚ Kimmel‚ Weygandt‚ & Kieso‚ 2011). A balance sheet is used to report the company’s assets‚ asset claims‚ and liabilities at a specific point in time. The basic accounting equation is what makes up the balance sheet. Assets are added together to come up with a total cost. Liabilities and stockholder’s equity is also added together. The two sums are then added together to figure
Premium Balance sheet Generally Accepted Accounting Principles Liability
been journalized and posted‚ all temporary accounts in the ledger should have zero balances. 11. Closing revenue and expense accounts to the Income Summary account is an optional bookkeeping procedure. 12. Closing the dividends account to Retained Earnings is not necessary if net income is greater than dividends during the period. 13. The dividends account is a permanent account whose balance is carried forward to the next accounting period. 14. Closing entries
Premium Balance sheet Revenue Generally Accepted Accounting Principles
the computer scoring sheet using pencils. 3. This is a CLOSED BOOK test. You are not to bring in any material other than your matriculation card‚ pens‚ pencils‚ erasers and University-approved calculators. 4. Write your name and student matriculation number on both this question paper and the computer scoring sheet. Also write your tutorial group number on the top righthand corner of both papers. 5. Submit both this paper and the computer scoring sheet at the end of the test
Premium Balance sheet Generally Accepted Accounting Principles Income statement
Kyle Zerbe When‚ where‚ why‚ and how the Business pro forma is used will be discussed in this paper. The purpose of a business pro forma and components (income statement‚ balance sheet‚ statement of cash-flows) will also be included. The roll and purpose of an executive summary will be discussed as well. The word pro forma is a Latin term meaning “as a matter of form”. Looking at its meaning in business‚ financial statements are a main focus. Business pro formas are prepared in advance of
Premium Balance sheet Generally Accepted Accounting Principles Liability
1/20/2013 MACC 594: LECTURE NOTES‚ MODULE I: INTRODUCTION TO ANALYSIS AND REVIEW OF BASIC CONCEPTS PART I. A. REVIEW OF FINANCIAL STATEMENTS ANALYZING THE BALANCE SHEET • The balance sheet lists the firm’s assets‚ liabilities and equity accounts and their balances at the end of the period. • What does the balance sheet reveal about a firm? • Size of the company (total assets or net assets) • Major assets owned and proportion of current vs. noncurrent assets: - Is the mix of assets consistent
Premium Generally Accepted Accounting Principles Cash flow Income statement
budgeting. Your assignment is to prepare a master budget for the next 3 months‚ starting April 1st. You are anxious to make a favorable impression on the president and have assembled the information below. The company desires a minimum ending cash balance each month of $10‚000. The ties are sold to retailers for $8 each. Recent and forecasted sales in units are as follows: The large buildup in sales before and during June is due to Father’s Day. Ending inventories are supposed to equal 90% of the
Premium Balance sheet Budget Income statement
Make accounting treatment of the revaluation of assets and liabilities and distribute the profit and loss on revaluation among the old partners. Make accounting treatment of unrecorded assets and liabilities Prepare capital Accounts‚ Cash A/c and Balance Sheet of the New firm Adjust the Partners‘ Capital Accounts Salient Points:1. Goodwill is the monetary value of business reputation. It is an intangible asset. 2. Goodwill may be of two types: a. Purchased goodwill b. Non-purchased goodwill 3. When
Premium Balance sheet Profit
#157146 sample solutions faq Maynard Company Income Statement Preparation Please help me prepare an income statement and answer the following questions for this situation: Diane Maynard was grateful for the balance sheets that her friend prepared. ( I attached the balance sheet I did) In going over the numbers‚ she remarked‚ "it’s sort of surprising that cash increased by $31677‚ but net income was only $19635. Why was that? Her friend replied‚ "A partial answer to that question is to look
Premium Generally Accepted Accounting Principles Balance sheet Asset
Lessees Posted on March 16‚ 2012 by James in Accounting‚ CFA Exam‚ CFA Exam Level 2 The table below summarizes the effects of operating and capital leases on selected financial reporting items for lessees. ITEM OPERATING LEASE CAPITAL LEASE Balance Sheet No impact. Leased asset and lease liability are created. Income Statement Rent expense occurs over the life of the least; this may be a constant value. Interest and depreciation expenses are recognized. In the initial years expenses will be
Premium Depreciation Balance sheet Income statement