Review for AC202

Antages simpletoestablish ownercontrolled

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Unformatted text preview: 0 10,200 $ 6,800 Last - Subtract expenses from revenues to obtain net income. Income Statement Income Statement Example from pg. 13 in your text Do this statement first! Retained Earnings Statement Retained Earnings Statement Shows changes in retained earnings for period: month, quarter, year Beginning balance Add Net Income from income statement. Deduct Dividends Ending balance RETAINED EARNINGS is an account we use to accumulate the earnings of the company over the years it is in business. CSU CORPORATION Retained Earnings Statement For the Year Ended December 31, 2004 1st- head up the statement •name of company •name of statement •period of time covered CSU CORPORATION Retained Earnings Statement For the Year Ended December 31, 2004 Retained earnings, January 1 $2,000 2nd - Start with beginning retained earnings CSU CORPORATION Retained Earnings Statement For the Year Ended December 31, 2004 Retained earnings, January 1 Add: Net Income $2,000 6,800 $8,800 3rd - Add net income from the current year - subtotal CSU CORPORATION Retained Earnings Statement For the Year Ended December 31, 2004 Retained earnings, January 1 Add: Net Income $2,000 6,800 8,800 Less: Dividends Retained earnings, December 31 600 $8,200 Last - Subtract current year’s dividends and total Sole Proprietorship Instead of Retained Earnings Instead of Dividends Partnership Instead of Retained Earnings Instead of Dividends Retained Earnings Statement Retained Earnings Statement Do this statement Do second! second! Balance Sheet Balance Sheet Reports assets and claims to assets. Claims of creditors, liabilities. Claims of owners, stockholders’ equity. Assets = Liabilities + Stockholders’ Equity Specific date – one point in time! CSU CORPORATION Balance Sheet December 31, 2004 1st - head up the statement •name of company •name of statement •date Balance Sheet Dated with “specific” date Has three sections Assets Liabilities Equity Because we know the liabilities and equity are claims against the assets ABC Company Balance Sheet January 16, 2003 Assets Cash Accounts receivable Tools & equipment $ 2,650 Less: Accum. depr.: tools & eq. 50 Truck $ 15,000 Less: Accum. depr.: truck 250 Total assets Liabilities & Stockholders' Equity Liabilities: Notes payable Accounts payable Total liabilities Stockholders' equity: Capital stock $ 8,000 Retained earnings 200 Total stockholders' equity Total liabilities & stockholders' equity $ 3,925 75 2,600 14,750 $ 21,350 $ 13,000 150 $ 13,150 8,200 $ 21,350 CSU CORPORATION Balance Sheet December 31, 2004 Assets Cash Accounts receivable Supplies 1,800 Equipment Total assets $ 1,400 4,000 16,000 $23,200 2nd - list the assets and total CSU CORPORATION Balance Sheet December 31, 2004 Assets Cash Accounts receivable Supplies 1,800 Equipment Total assets $ 1,400 4,000 16,000 $23,200 Liabilities and Stockholders’ Equity Liabilities Notes payable Accounts payable Total liabilities $ 5,000 2,000 7,000 3rd - list the liabilit...
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This note was uploaded on 09/29/2013 for the course AC 202 taught by Professor Nancyeverett during the Fall '09 term at Park.

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