ACCT 200 1st Edition Lecture 4 Outline of Last Lecture I. Homework problem E1-5II. Homework Problem E1-10/E1-11III. Homework Problem E1-12IV. Homework Problem E1-20V. Homework Problem P1-5Outline of Current Lecture I. ControlsII. Some remindersIII. Ch.2 homeworkCurrent LectureI. Controlsa. Income Statement: net income must equal net effects of revenues plus expensesb. Balance Sheet: Assets equals Liabilities plus Owner’s Equityc. Statement of cash flows: ending cash must equal cash on Balance SheetII. Some remindersa. Note that all transactions should be listed on a chart like the following:Statement of Cash Flows Balance Sheet Income Statement and Statement of Retained EarningsAssets = Liabilities + EquityCash in/out from operatingactivitiesRevenues-Expenses=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/LossCash in/out from investing activities-DividendsCash in/out from financing activities=Increase/decrease to Retained earnings=Increase/decrease cashb. Issuing stock does not bring in revenuec. We use double entry accounting each transaction will affect 2 accountsd. Payable means it is a liability a company will be liable to pay back cash in the futuree. Earned=revenuef. Revenue increases assets and equity on the balance sheetg. Expenses are incurredh. Dividends are distributedi. Ending Retained Earnings goes to Owner’s Equity on balance sheetIII. Ch.2 Homeworka. E2-5i. 990,000=360,000+X; X=630,000ii. 1,190,000=X+745,000; X=445,000iii. 940,000=420,000 + X; X=520,000iv. 1,090,000=315,000+X; X=775,000v. 1,200,000=475,000+725,000
View Full Document
Unlocking...