Summary of Balance Sheet and Statement of Cash Flows
Explain the uses and limitations of a balance sheet
- Balance sheet provides information about the nature and amounts of investments
in a companys resources, obligations to creditors, and owners equity.
Summary of cash and receivables
Identify items considered cash
- Reported cash, an assets must be readily available for the payment of current
obligations and free from contractual restrictions that limit its use in satisfying
- Negotiable instrume
Summary of Income Statement and Related information
Understand the uses and limitations of an income statement.
- The income statement provides investors and creditors with information that
helps them predict the amounts, timing, and uncertainty of future
total prem to amortize 35,530
Getting Started with Research Cases (Case #1):
1. WHAT IS THE PURPOSE OF THE RESEARCH CASES THAT YOU
WILL COMPLETE IN THIS COURSE?
The purpose of these cases is to provide you with experience solving unstructured
problems that require searching accounting
1) On June 1, 2015, Pirate Company signs a $120,000 8-month note with a stated interest rate of 5%.
The companys fiscal year end is 12/31. Record all entries related to this note (issuance, adjusting entry
at year end and payoff).
2) On June 1, 2015, Pira
According to the Three Little Pigs, INC, there are three categories that the
company can use to evaluate the inventory. The three categories that the company will
use; live hogs, developing hogs,
To Recognize or Not to Recognize, That is the Question
FuelSource Co (FuelSource) is a U.S. company with a December 31st year-end that prepares its
financial statements in accordance with U.S. GAAP. FuelSource is planning to issue its financial
EXAMPLE 3: Another plain-vanilla bond with a couple of twists.
On April 1, 2015, North Inc. issued $700,000 of 12% (annual rate) bonds payable,
dated April 1. Interest is payable semi-annually on September 30 and March 31.
The bonds mature in three years.
Summary of Accounting and the Time Value of Money
Identify accounting topics where the time value of money is relevant
- Some of the applications of present value-based measurements to accounting
3) Pensions and other postretire
Presentation of the income statement under GAAP follows either a single-step or
multiple-step format. IFRS does not mention a single-step or multiple-step
Under GAAP, companies must report an item as extraordinar
Accrual-basis accounting is required for financial reporting
Cash-basis is accounting is used sometimes for tax reporting
and also for cash budgeting purposes
There is also something called the modified cash-basis where
you use cash basi
Balance Sheet Classifications
o Current Assets Cash and other assets a company expects
to convert into cash, sell, or consume either in one year or in
the operating cycle, whichever is longer.
Cash and cash equivalents