notes for lecture #3

notes for lecture #3 - Lecture #3, Page 1 Financial...

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Lecture #3, Page 1 Financial Accounting Lecture #3 September 4, 2008 Notes 8. 1. Capital contribution: Someone gives an asset (cash) to firm in exchange for ownership 2. Dividend – take cash from firm and give out to owners…both cash and retained earnings decrease 3. assume debt: receive cash (typically), liability increases 9. 5. Cash goes up, receivable goes down 6. Long term debt becoming current….long term to short term 7. You declare a dividend, but don’t pay in cash, just say you will pay it – gets recorded in statement, when declared! 8. Recognize revenue when service is paid Case number 9: increase and decrease in equity….hard to find example L 14. Retained earnings is a component of equity Equity : retained earnings and contributed capital 16. Cash increases 10,000….contributed capital increases by 10,000 – both assets and equity increase 17. Cash decreases by 4000, inventory increase by 4000….assets increase and decrease so it cancels out Expense associated with purchasing goods goes in the income statement once it has been sold…
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This note was uploaded on 09/10/2008 for the course BUS 210 taught by Professor Sevier during the Spring '08 term at Emory.

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notes for lecture #3 - Lecture #3, Page 1 Financial...

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