UWL ACC 221 - Exam 1 Study Guide (8 pages)

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Exam 1 Study Guide



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Exam 1 Study Guide

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A study guide containing notes from chapters 1-3.


Pages:
8
Type:
Study Guide
School:
University of Wisconsin-La Crosse
Course:
Acc 221 - Accounting Principles I
Accounting Principles I Documents

Unformatted text preview:

ACC 221 Exam 1 Study Guide Lectures 1 5 Chapters 1 3 Lecture 1 3 September 3rd 5th and 8th An Introduction to Accounting Statements Income Statement Retained Earnings Statement Balance Sheet Statement of Cash Flows 1 Income Statement Reports revenues and expenses for a specific period of time in order to show how your business preformed Revenues expenses Net Income Revenues expenses Net Loss Revenue and cash are not the same thing Dividends are not expenses Corner Store Corporation Income Statement July 31 2014 Revenues Service Revenue Rent Revenue Total Revenue Expenses Salaries and Wage Supplies Total Expense Net Income 80 500 5 000 90 000 50 000 10 500 60 000 3 000 2 Retained Earnings Statement Net income gathered from the Income Statement is needed to determine the ending balance in Retained Earnings Retained Earnings is how much money was retained in the business in order to promote future growth Net income Dividends Retained Earning Corner Store Corporation Retained Earnings Statement July 31 2014 Retained Earnings August 1 2013 Net Income 3 000 Less Dividends 5 000 Retained Earnings July 31 2014 34 000 32 000 3 Balance Sheet Ending balance in retained earnings is needed in preparing the balance sheet which displays all assets and liabilities Assets must equal liabilities Liabilities the claims of creditors things you have to pay for Assets Things that have value that the business owns 4 Cash If a they loss this on Corner Store Corporation Balance Sheet December 31 2014 Assets Current Assets Cash 10 000 Debt Investment 40 000 Accounts Recievable 50 000 Inventory 100 000 Total Current Assets 200 000 Plant Assets 10 000 Total Assets 210 000 Liabilities and Stockholder s Equity 132 000 Current Liabilities Accounts Payable 50 000 126 000 Income Tax Payable 70 000 Total Current Liabilities 120 000 6 000 Bonds Payable 10 000 Total Liabilities 130 000 Stockholder s Equity Common Stock 48 000 Retained Earnings 32 000 Total Stockholders Equity 80 000 Total Liabilities



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