ACCT 200 1st Edition Lecture 4 Outline of Last Lecture I Homework problem E1 5 II Homework Problem E1 10 E1 11 III Homework Problem E1 12 IV Homework Problem E1 20 V Homework Problem P1 5 Outline of Current Lecture I Controls II Some reminders III Ch 2 homework Current Lecture I II Controls a Income Statement net income must equal net effects of revenues plus expenses b Balance Sheet Assets equals Liabilities plus Owner s Equity c Statement of cash flows ending cash must equal cash on Balance Sheet Some reminders a Note that all transactions should be listed on a chart like the following Statement of Cash Flows Balance Sheet Assets Cash in out from operating activities Liabilities Income Statement and Statement of Retained Earnings Equity RevenuesExpenses Net These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Income Loss Cash in out from investing activities Dividends Cash in out from financing activities Increase decreas e to Retained earnings Increase decrease cash III b Issuing stock does not bring in revenue c We use double entry accounting each transaction will affect 2 accounts d Payable means it is a liability a company will be liable to pay back cash in the future e Earned revenue f Revenue increases assets and equity on the balance sheet g Expenses are incurred h Dividends are distributed i Ending Retained Earnings goes to Owner s Equity on balance sheet Ch 2 Homework a E2 5 i 990 000 360 000 X X 630 000 ii 1 190 000 X 745 000 X 445 000 iii 940 000 420 000 X X 520 000 iv 1 090 000 315 000 X X 775 000 v 1 200 000 475 000 725 000 725 000 630 000 95 000
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