西方财务会计02

Chapter2BasicFinancialStatementsIntroductiontoFinancialStatementsIncomeStatementBalanceSheetStatementofCashFlowsThreeprimaryfinancialstatements.Wewilluseacorporationtodescribethesestatements.IntroductiontoFinancialStatementsDescribeswheretheenterprisestandsataspecificdate.IncomeStatementBalanceSheetStatementofCashFlowsIntroductiontoFinancialStatementsDepictstherevenueandexpensesforadesignatedperiodoftime.IncomeStatementBalanceSheetStatementofCashFlowsIntroductiontoFinancialStatementsDepictsthewayscashhaschangedduringadesignatedperiodoftime.IncomeStatementBalanceSheetStatementofCashFlowsVagabondTravelAgencyBalanceSheetDecember31,2007AssetsLiabilities&Owners'EquityCash22,500$Liabilities:Notesreceivable10,000Notespayable41,000$Accountsreceivable60,500Accountspayable36,000Supplies2,000Salariespayable3,000Land100,000Totalliabilities80,000$Building90,000Owners'Equity:Officeequipment15,000Capitalstock150,000Retainedearnings70,000Total300,000$Total300,000$AStartingPoint:StatementofFinancialPositionHeading(p39)Body(p39)VagabondTravelAgencyBalanceSheetDecember31,2007AssetsLiabilities&Owners'EquityCash22,500$Liabilities:Notesreceivable10,000Notespayable41,000$Accountsreceivable60,500Accountspayable36,000Supplies2,000Salariespayable3,000Land100,000Totalliabilities80,000$Building90,000Owners'Equity:Officeequipment15,000Capitalstock150,000Retainedearnings70,000Total300,000$Total300,000$AssetsAssetsareeconomicresourcesthatareownedbythebusinessandareexpectedtobenefitfutureoperations.AssetsResourcesAssetsGeneratePositiveCashFlows(CashInflows)Directlyconvertedintocash(collectionofreceivables)Indirectly–usedinoperatingthebusinesstocreateotherassetsthatresultinpositivecashflows(usedtoproducetheproductsforsale)Tangible(havephysicalexistence)Intangible(likeintheformofvaluablerights)Asummaryofp40AssetsCostPrincipleGoing-ConcernAssumptionObjectivityPrincipleStable-DollarAssumptionTheseaccountingprinciplessupportcostasthebasisforassetvaluation.VagabondTravelAgencyBalanceSheetDecember31,2007AssetsLiabilities&Owners'EquityCash22,500$Liabilities:Notesreceivable10,000Notespayable41,000$Accountsreceivable60,500Accountspayable36,000Supplies2,000Salariespayable3,000Land100,000Totalliabilities80,000$Building90,000Owners'Equity:Officeequipment15,000Capitalstock150,000Retainedearnings70,000Total300,000$Total300,000$LiabilitiesLiabilitiesaredebtsthatrepresentnegativefuturecashflowsfortheenterprise.VagabondTravelAgencyBalanceSheetDecember31,2007AssetsLiabilities&Owners'EquityCash22,500$Liabilities:Notesreceivable10,000Notespayable41,000$Accountsreceivable60,500Accountspayable36,000Supplies2,000Salariespayable3,000Land100,000Totalliabilities80,000$Building90,000Owners'Equity:Officeequipment15,000Capitalstock150,000Retainedearnings70,000Total300,000$Total300,000$Owners’EquityOwners’equityrepresentstheowners’claimsontheassetsofthebusiness.Owners’EquityChangesinOwners’Equity•Owners’Investments•BusinessEarnings•PaymentstoOwners•BusinessLossesTheAccountingEquation•Theaccountingequationdisplaysthatallassetsareeitherfinancedbyborrowingmoneyorpayingwiththemoneyofthecompany’sstockholders.•Assets=Liabilities+Owners’EquityWhatthingsthebusinessownsWhosuppliedtheseresourcestothebusinessandhowmucheachgroupsuppliedVagabondTravelAgencyBalanceSheetDecember31,2007AssetsLiabilities&Owners'EquityCash22,500$Liabilities:Notesreceivable10,000Notespayable41,000$Accountsreceivable60,500Accountspayable36,000Supplies2,000Salariespayable3,000Land100,000Totalliabilities80,000$Building90,000Owners'EquityOfficeequipment15,000Capitalstock150,000Retainedearnings70,000Total300,000$Total300,000$TheAccountingEquationAssets=Liabilities+Owners’Equity$300,000=$80,000+$220,000P41YourTurn•Wouldtherebeanydifferentmotivationwhenyoureportthevalueofyourhometothecityassessor,whencomparingwithwhenreportingtothepotentialbuyers?OvernightAutoServicep44•Businessentity:OvernightAutoService•Accountingpolicies:–PrepareformalfinancialstatementsOvernightAutoServiceBalanceSheetJanuary20,2009AssetsCash8,000$CapitalStock8,000$Total8,000$Total8,000$Owners'EquityOnJan21,McBryanandhisfamilyinvested$8,000inOvernightAutoServiceandreceived800sharesofstock.OvernightAutoServiceBalanceSheetJanuary20,2009AssetsCash28,000$CapitalStock80,000$Land52,000Total80,000$Total80,000$Owners'EquityOnJan20,OvernightAutoServicepurchasedthelandfor$52000cash.OvernightAutoServiceBalanceSheetJanuary20,2009AssetsCash22,000LiabilitiesLand52,000NotesPayble30,000Building36,000CapitalStock80,000$Total110,000$Total110,000$Owners'EquityLiabilities&Owners'EquitiyOnJan22,Overnightpurchasedtheabandonedbusgaragefor$36000.Overnightmadeacashdownpaymentof$6000andissueda90-daynon-interest–bearingnotepayableforthe$30000balanceowned.Purchaseonaccount:adeferralofpaymentsInstallmentpaymentOnJan23,Overnightpurchasedtoolsandautomotiverepairequipmentonaccount.Thepurchasewas$13,800,duewithin60days.AssetsCash22,000Liabilities:Land52,000NotesPayable30,000Building36,000Accountspayable13,800ToolsandEquipment13,800Totalliabilities43,800Owner'sEquityCapitalS