Accounting Cheat Sheet

Topics: Generally Accepted Accounting Principles, Balance sheet, Revenue Pages: 6 (882 words) Published: September 24, 2013
 (1) Consolidated Statement of Income
Operating Revenues
Revenue from services
Sales revenue
Less: Credit Card Discount
Less: Sales Discount
Less: Sales Returns & Allowances
Total revenues
Operating Expenses
Cost of goods sold
Salaries expense
Rent expense
Advertising expense
General and administrative expenses
Depreciation expense
Other operating expenses
Total expenses
Operating Income
Other Items
Investment income
Interest expense
Loss on PPE sold
Income before Income Taxes
Income tax expense
Net Income
Earnings per Share

(2) Consolidated Statement of SE

Contributed Capital
Retained Earnings
Total SE
Beginning, date
$0
$0
$0
Additional contributions
X

X
Net Income

Y
Y
Dividends declared

(Z)
(Z)
Ending, date
X

Allowance for Doubtful Accounts
| Beginning balance
Write-offs| Bad debt expense
| Ending balance

Accounts Receivable
Beginning balance | Write-offs
Net Sales | Cash collections
Ending balance |

(3) Consolidated Balance Sheet
ASSETS
Current Assets
Cash and cash equivalents
Short-term investments
Inventories
Supplies
Accounts receivable
Less: Allowance for doubtful account
Short-term notes receivable
Prepaid expenses
Total current assets
Properties, plants & equipment
Less: Accumulated depreciation
Goodwill
Long-term investments
Long-term notes receivable
Intangibles
Non-current deferred income taxes
Total assets

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable
Dividends payable
Accrued expenses payable
Unearned revenue
Short-term notes payable
Total current liabilities
Non-current liabilities
Deferred lease credits
Deferred taxes
Non-current accrued income taxes
Long-term notes payable
Total non-current liabilities
Total liabilities
Shareholders’ equity
Contributed capital
Preferred stock
Common stock
Treasury stock
Retained earnings
Total shareholders’ equity
Total liabilities and shareholders’ equity

Determine Bad Debt Expense
1) Use Aging Method to compute Allowance for Bad Debts,
2) Difference between and Beginning Balance of Allowance for Bad Debts is Bad Debt Expense 3) Net AR is AR less Allowance for Bad Debt

(4) Consolidated Statement of Cash Flows
Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash
provided by Operating Activities:
Depreciation and amortization (expense) (+)
Changes in assets and liabilities:
(Decrease) Accounts receivable
(Decrease) Inventory
(Decrease) Prepaid expense
(Decrease) Gains
(Increase) Accounts payable
(Increase) Accrued expenses
(Increase) Losses
Interest expense (-)
Deduct if there’s an increase in Assets
Add if there’s an increase in Liabilites
Net cash provided (used) by operating activities
Cash flows for investing activities:
Purchase of PPE
Proceeds from disposal of PPE
Purchase of short-term investments
Proceeds from short-term investments
Sale of marketable securities
Net cash provided (used) by investing activities
Cash flows from financing activities:
Borrowings under line of credit
Payment on long-term debt
Payment of dividends
Purchase of treasury stock
Proceeds from issuance of stock
Net cash provided (used) by financing activities
Net change in cash & cash equivalents:
Cash & cash equivalents at beginning of period
Cash & cash equivalents at end of period

Indirect Method:
Net Income
Add: Depreciation Expense
Decrease in Accounts Receivables
Decrease in Inventories
Increase in Accounts Payable
Increase in Accrued Expenses Payable
Non-operating Losses
Net Cash provided (used) by Operating Activities

Direct Method:
Cash receipts from customers

Cash payments to suppliers

Cash payments for salary

Cash payments for Other Expenses

Definitions
The Balance Sheet is a statement of financial position that...
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