BA220 Financial Accounting
Textbook: 9th Edition
a., e. & f.
b. & g. NC = Net Change in Cash
May 13, 2014
What is meant by the net realizable value for ac ounts receivable? The total ac ounts receivable
minus the al owance for uncol ectible ac ounts (bad debt). Also cal ed the bo k value of ac ounts
What is meant by the net realiz
Exercise 2-9A on page. 99
Therapy Inc. experienced the following events in 2013, its first year in operation:
Performed counseling services for $18,000 cash.
On Feb. 1, 2013, paid 12,000 cash to rent office space for coming year.
Adjusted the accounts
Lang Enterprises was started when it acquired $4,000 cash from creditors and $6,000 from
owners. The company immediately purchased land that cost $9,000.
1. Record the events under an accounting equation.
Assets = Liabilities + Common Stock
Balance sheet is also known as statement of financial position. It is one of the
major financial statements. It is used by the owners and other parties. It
summarizes assets, liabilities, and shareholders equity. It has two sides that is
Exercise 2-15A Prepaid Items on Financial Statements
Life, Inc., experience the following events in 2016, its first year of operation:
1. Perform counseling services for $36,000 cash.
2. On February 1, 2016, paid $18,000 cash to rent office space f