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Elliott108nl
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Prepare Worksheet:
- 1) Enter unadjusted TB.
- 2) Enter adjustments.
- 3) Prepare adj TB.
- 4) Sort adj TB amounts to BS & IS
- 5) Total columns, compute income or loss, balance columns.
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Current Assets:
Cash & other resources sold, collected, or used within one year OR operating cycle, whichever longer.
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Long-term Investments:
Non-current, durable. Notes receivable, investments in stocks & bonds. Expected to be held longer than longer of 1 year or operating cycle.
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Plant Assets:
Long lived AND used to produce, sell products and services. Equipment, machinery, buildings, land used to produce and sell products and services.
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Intangible Assets:
Long-term resources that benefit business operations. Lack physical form, and have uncertain benefits. Trademarks, patents, copyrights, franchises, goodwill.
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Current Liabilities:
- Obligations to be paid or settled within longer of 1 year or operating cycle. Settled by paying current assets, like cash.
- A/P, Notes P, Wages P, Taxes P, Interest P, Unearned revenues (are current L when will be settled by delivering products or services in longer of 1 year or operating cycle).
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Long-term Liabilities:
Obligations NOT due within longer of 1 year or operating cycle. Mortgages P, Bonds P, Lease obligations.
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Equity:
- Owner's claim on assets.
- Proprietorship: Owner, Capital
- Partnership: Owner, Capital1, ...
- Corporation: Common stocks, retained earnings.
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Operating Cycle:
Time span from when cash is used to acquire goods and services until cash is received from sale of goods and services.
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Land not used in operations
Long-term Investments
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Notes Payable (due in 3 years)
Long-term liabilities
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Accounts Receivable
Current Assets
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Trademarks
Intangible assets
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Accounts Payable
Current Liabilities
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Store Equipment
Plant Assets
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Wages payable
Current Liabilities
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Owner's claim on the assets of company
Equity
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COGS:
BI + Net Purchases - EI
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Gross Profit
Net Sales - COGS
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