Review for AC202

Assets cash accounts receivable supplies 1800 total

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Unformatted text preview: ayable $ 4,000 Total Long Term Liabilities Total liabilities Stockholders’ equity Common stock $10,000 Retained earnings 6,200 Total Stockholders’ equity Total liabilities and stockholders’ equity $ 1,400 4,000 1,800 $ 7,200 16,000 $23,200 $ 3,000 4,000 $ 7,000 16,200 $23,200 Reporting Ownership Equity in the Balance Sheet Sole Sole Proprietorship Proprietorship Ow ner's Equity: Jill Jones, Capital $ 8,700 Partnership Partnership Partners' Equity: Jill Jones, Capital $ 4,350 Bill Jones, Capital 4,350 Total Partners' Equity $ 8,700 Corporation Corporation Owners' Equity: Capital Stock $ 8,000 Retained Earnings 700 Total Owners' Equity $ 8,700 Classified Balance Sheet Classified Balance Sheet Generally contains the following standard classifications: Current Assets Long­Term Investments Property, Plant, and Equipment Intangible Assets Current Liabilities Long­Term Liabilities Stockholders' Equity Property, Plant, Equipment These assets have another characteristic because they are used over a long period of time Because they are used over a long period of time, they are “expensed” over the period of time they are used Depreciation is... Practice of allocating an asset’s full purchase price to a number of years instead of expensing full cost in year of purchase. Depreciation Expense Accumulated Depreciation... Shows the total amount of depreciation that the company has expensed thus far in the asset’s life. Accumulated Depreciation Depreciation We “expense” it to an account that is an expense account called: Depreciation Expense We keep track of the amount that has been expensed in an asset account called: Accumulated Depreciation CSU CORPORATION Income Statement For the Year Ended December 31, 2004 Revenues Service revenue $17,000 Expenses Rent expense Depreciation Expense Insurance expense Supplies expense Total expenses Net Income $9,000 2,000 1,000 200 12,200 $ 4,800 Accumulated Depreciation... Shows the total amount of depreciation taken over the life of the asset. CSU CORPORATION Balance Sheet December 31, 2004 Assets That A Company Depreciates... Should be shown at cost less accumulated depreciation Assets Cash Accounts receivable Supplies Equipment Less: Accumulated Depreciation Total assets COST 24,000 8,000 $ 2,000 4,000 1,800 16,000 $23,800 Total Depreciation Expensed to Date Assets That A Company Depreciates... Should be shown at cost less accumulated depreciation Property, Plant and Equipment Figuring Depreciation Straight line – Cost of item _______________________ Number of years to be used. Stockholders' Equity Includes two ACCOUNTS Common stock (Capital stock) investments of assets in the business by the stockholders Retained earnings - earnings kept for use in the business We always have these two accounts under Stockholder’s Equity Statement of Cash Flows Provides information about cash receipts and cash payments Summarizes for period: month, quarter, year. Cash effects of operating, investing, and financing activities. Assets – typical asset Assets – typical asset accounts Resources owned by the business Cash Accounts receivable Invento...
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