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Acc200Day04 - Accy200 Accy200 Day4 PeterA.Silhan Agenda...

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Accy 200 Accy 200 Day 4 Peter A. Silhan
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Agenda Agenda Cash Account/ Cash Flows Horizontal Model Journal Entries Accrual Accounting: cash-timing  effects
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Cash Account (Current Asset) Cash Account (Current Asset) Cash Inflows (Debits) Outflows (Credits)
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Cash Account (Current Asset) Cash Account (Current Asset) Cash Inflows  (increase  cash “debit” to an asset account) Outflows   ( decrease   cash ; “credit” to an asset account) Cash Revenues Collections of AR Paid in Capital Obtain Loans Sale of PPE Cash Expenses Payments of AP Dividends Repay Loans Capital Expenditures
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Account Structure Account Structure C h a r t o f A c c o u n t s C u r r e n t A s s e t N o n c u r r e n t A s s e t A s s e t C u r r e n t L i a b i l i t y N o n c u r r e n t L i a b i l i t y L i a b i l i t y P a i d i n C a p i t a l R e t a i n e d E a r n i n g s O w n e r s ' E q u i t y A c c o u n t Note:  Claims = Liabilities + Owners’ Equity Working Capital = Current Assets – Current Liabilities 
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Basic Horizontal Model Basic Horizontal Model A = L + OE memorandum Beginning Balance Ending Balance A = L + OE
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Expanded Horizontal Model Expanded Horizontal Model Cash + AR + INV + PPE = CL+ LTL+ PIC+ RE memorandum Beginning Balance Ending Balance Cash + AR + INV + PPE = CL+ LTL+ PIC+ RE
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E2.3 Using Horizontal Model E2.3 Using Horizontal Model Firm A A = L + PIC + RE Beg 78,000 changes ???--> 102,000 net income (increase) (50,000) dividends (decrease) Ending 420,000 215,000 75,000 130,000 Firm B A = L + PIC + RE Beg ???--> 246,000 changes 83,000 net income (increase) (19,000) dividends (decrease) Ending 540,000 145,000 85,000 310,000 Firm C A = L + PIC + RE Beg 42,000 changes 113,000 net income (increase) (65,000) dividends (decrease) Ending 325,000 195,000 40,000 90,000 <--???
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E2.5 Using Horizontal Model E2.5 Using Horizontal Model A = L + PIC + RE Beg 311,800 Changes (4,700) net loss (decrease) (18,500) dividends (decrease) Ending 288,600 <--???
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E2.7 Using Horizontal Model E2.7 Using Horizontal Model Problem/Solution Firm A A = L + OE Beg 12,400 7,000 5,400 Changes 1,800 (1,200) 3,000 net income (increase) (2,400) nc (2,400) <--dividends (decrease) Ending 11,800 5,800 6,000
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P2.15 (Basic Transactions) P2.15 (Basic Transactions) A = L + OE memorandum Beginning Balance increase increase (a) Borrowed cash on a bank loan decrease decrease (b) Paid an account payable increase increase (c) Sold common stock increase increase (d) Purchased merchandise inventory on account decrease decrease (e) Declared and paid dividends increase/decrease = zero (f) Collected an account receivable increase/decrease = net increase increase (g) Sold
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