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Total Long Term Liabilities
Total Stockholders’ equity
Total liabilities and stockholders’ equity $ 1,400
$23,200 $ 3,000
$ 7,000 16,200
$23,200 Reporting Ownership Equity in the Balance Sheet
Proprietorship Ow ner's Equity:
Jill Jones, Capital $ 8,700 Partnership
Partnership Partners' Equity:
Jill Jones, Capital $ 4,350
Bill Jones, Capital
Total Partners' Equity
$ 8,700 Corporation
Corporation Owners' Equity:
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
Net Income $9,000
$ 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
Less: Accumulated Depreciation
Total assets COST 24,000
8,000 $ 2,000
$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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