ACCT 201 1st Edition Lecture 8Outline of Last Lecture I. Securities and Exchange Commission (SEC)II. Financial Accounting Standards Board (FASB)III. Generally Accepted Accounting Principles (GAAP)IV. Assumptions in Financial ReportingV. Principles of Financial ReportingOutline of Current LectureVI. Examples for Completing a Balance SheetCurrent LectureA = L + SE1. Bought a machine for $10,000Giving up cash (asset)Get machine (asset)+10,000 machine-10,000 cash2. Take $5,000 loanGetting cash (asset)Give promise to pay (account payable)+5,000 cash = +5,000 acct payable3. Company issued $25,000 of common stock (ownership) *Adding to your ownershipGet cash (asset)Give up stock (SE)+25,000 cash = +25,000 common stock4. Pay $2,500 of previous loanGive up cashGetting back some of acct payable (Liability)-2,500 cash = -2,500 acct payableThese 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.A = L + SE5. Bought building on account $50,000Acct payable (liab)Get building (P,P,E) –asset+50,000 building = +50,000 acct
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