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3 44 credit analyzing some of papa johns transactions

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Unformatted text preview: e next several months. (c) Cash (+A) Franchise Fee Revenue (+R, +S E) Unearned Franchise Fees (+L ) Assets Cash = Liabilities +400 Unearned Franchise Fee +300 Debit 400 100 300 + S tockholders' Equity Franchise Fee Revenue (+R) +100 Equality checks: 1.Debits $400 equal Credits $400, 2.The accounting equation is in balance. 3-44 Credit Analyzing Some of Papa John’s Transactions (d) In January, Papa John’s paid $7,000 for utilities, repairs, and fuel for delivery vehicles, all considered general and administrative expenses incurred during the month. Hint: This one is easy, the simplest scenario of a transaction. 3-45 Analyzing Some of Papa John’s Transactions (d) In January, Papa John’s paid $7,000 for utilities, repairs, and fuel for delivery vehicles, all considered general and administrative expenses incurred during the month. (d) General & Administrative Expenses (+E, -S E) Cash (-A) Debit 7,000 Credit 7,000 Assets = Liabilities + S tockholders' Equity Cash -7,000 General & Administrative Expenses (+E) -7,000 Equality checks: 1.Debits $7,000 equal Credits $7,000, 2.The accounting equation is in balance. 3-46 The balances in the balance sheet accounts and income statement accounts (all income accounts begin with a zero balance). 3-47 How are Financial Statements Prepared and Analyzed? (GREAT slide for the exam) Income Statement Revenues – Expenses = Net Income Beginning Retained Earnings Statement of + Net Income Stockholders’ - Divid...
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