ACCT 240 004 8 30 and 9 3 NOTE I ORIGINALLY WAS TAKING MY NOTES BY CHAPTER AS OPPOSED TO BY DAY THESE WERE MY NOTES FOR BOTH DAYS INCLUDING CHAPTER 2 WHICH INCLUDED AUGUST 30TH AND SEPTEMBER 3RD FOR THE FUTURE I WILL SEPARATE BY DAY STARTING WITH CHAPTER 3 Chapter 2 Objective of Financial reporting Qualitative Characteristics Primary Relevancy predictive value feedback value timeliness Reliability verifiability representational faithfulness neutrality Secondary Comparability across companies Consistency over time Elements of Statements Asset Liability Stockholders Equity Revenue Expense Gain Loss Assets Liabilities Shareholder equity Current Assetts or liabilities able to be made liquid paid in less than one year Noncurrent greater than one year Every transaction affects at least two accounts causing the net of the accounting equation to always remain in balance Dividends Subtracts from retained earnings SE adds to dividends payable a liability T Accounts Shorthand term for the entire ledger account the left side a debit and right side a credit Assets Debits Credits Liabilities Debits Credits Stockholder s Equity Journal Entries My Class Activity Results Contributes Capital Debits Credits Investments by owners Retained Earnings Debits Dividends declared Credits Net income of business Date c Letter number date Account Titles Explain Debit Property and Equipment Cash A Notes Payable L 10 000 Credit 2000 8000 Date E F G H I 12 000 Accounting Title Explain Debit Cash Contributed Capital Cash Notes Payable Intangibles Cash 3000 12 000 Credit 12 000 12 000 3000 Factory Building Cash Notes Payable 25 000 Cash Equipment 1000 9000 16 000 1000 Balance Sheet ASSETS COUGAR PLASTICS COMPANY Consolidated Balance Sheets Current Assets Cash 10 000 Accounts Receivable 3000 11 000 Investments Short Term 24 000 Inventory Total Current Assets 48 000 Accounts Receivable Notes Receivable Equipment Factory Building Intangibles Total Assets Liabilities and Shareholders Equity Current Liabilities Accounts Payable Accrued Expenses Payable Notes Payable Total Current Liabilities Long Term Notes Payable Total Liabilities Stockholder s Equity Contributed Capital Retained Earnings Total Stockholder s Equity Total Liabilities and Stockholders Equity 3000 8000 65 000 115 000 6000 242 000 15 000 2000 31 000 48 000 62 000 110 000 102 000 30 000 132 000 242 000