-
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.
-
Current Assets:
Cash & other resources sold, collected, or used within one year OR operating cycle, whichever longer.
-
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.
-
Plant Assets:
Long lived AND used to produce, sell products and services. Equipment, machinery, buildings, land used to produce and sell products and services.
-
Intangible Assets:
Long-term resources that benefit business operations. Lack physical form, and have uncertain benefits. Trademarks, patents, copyrights, franchises, goodwill.
-
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).
-
Long-term Liabilities:
Obligations NOT due within longer of 1 year or operating cycle. Mortgages P, Bonds P, Lease obligations.
-
Equity:
- Owner's claim on assets.
- Proprietorship: Owner, Capital
- Partnership: Owner, Capital1, ...
- Corporation: Common stocks, retained earnings.
-
Operating Cycle:
Time span from when cash is used to acquire goods and services until cash is received from sale of goods and services.
-
Land not used in operations
Long-term Investments
-
Notes Payable (due in 3 years)
Long-term liabilities
-
Accounts Receivable
Current Assets
-
Trademarks
Intangible assets
-
Accounts Payable
Current Liabilities
-
Store Equipment
Plant Assets
-
Wages payable
Current Liabilities
-
-
Owner's claim on the assets of company
Equity
-
COGS:
BI + Net Purchases - EI
-
Gross Profit
Net Sales - COGS
|
|
