Lecture03 - Lecture 3 Balance Sheet Recording the Effects...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Lecture 3 Balance Sheet Recording the Effects of Transactions and Events
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Exercise II – Fill in the Gaps 1998 1999 2000 2001 Current Assets $ 8,435 a $ 9,975 $ 9,988 Non-current Assets 14,960 Total Assets 24,025 Current Liabilities 6,733 7,642 8,287 c Non-current Liabilities 5,999 9,207 Contributed Capital 1,149 1,399 Retained Earnings 6,719 7,922 b d Total L and E 20,468 25,535 a. Current Assets – Current Liabilities = $1,724 b. Net loss = $656 and Dividends = $1,117 c. Current Assets – Current Liabilities = $1,948 d. Net income = $2,524 and Dividends = $1,240
Background image of page 2
3 Exercise II – Fill in the Gaps 1998 1999 2000 2001 Current Assets $ 8,435 a $ 9,975 $ 9,988 Non-current Assets 14,960 Total Assets 24,025 Current Liabilities 6,733 7,642 8,287 c Non-current Liabilities 5,999 9,207 Contributed Capital 1,149 1,399 Retained Earnings 6,719 7,922 b d Total L and E 20,468 25,535 a. Current Assets – Current Liabilities = $1,724 b. Net loss = $656 and Dividends = $1,117 c. Current Assets – Current Liabilities = $1,948 d. Net income = $2,524 and Dividends = $1,240 20,468 12,033 1,017 9,366 14,659 24,025 7,312 24,935 24,935 6,149 1,292 25,535 15,547 8,040 7,433 8,663
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 How do we get the numbers in the balance sheet? Record financial effects of transactions in accounts Calculate the ending balance Report the ending balance on the balance sheet Balance sheet accounts are cumulative
Background image of page 4
5 Accounting Process Transaction analysis Recording transactions Deriving account balances Prepare financial statements
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6 Dual Effects of Transactions on the Balance Sheet Equation A = L + E Any single transaction must have two effects for the equation to hold at all times. 1) Increase an asset and increase a liability or
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 32

Lecture03 - Lecture 3 Balance Sheet Recording the Effects...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online