Accounting 1

a QuickStudy Laminated Reference Guide

,

• Publisher: QuickStudy
• Year: 2009
• Print ISBN:
  9781423221500
• eBook ISBN:
  9781423211921
• Topic: Business
• Subtopic: Accounting
• Index: Business

Essentials of the college level Accounting 1 course often called Financial Accounting or Principles of Accounting 1. Expertly written in our time-tested condensed format and including example statements for support of students, their studies, grades, and for their professional life after graduation. Our experienced author, professor and consultant Michael Griffin, MBA, CMA, CFM, ChFC has outdone himself providing the clearest organization of concepts streamlined to offer facts, equations, examples and explanations in 6 laminated pages offering incredible value for quality course and professional support that you will not find anywhere else. Any business professional that deals with top-level management of multifaceted companies would also find this to be a great reference for facets they may not deal with on a daily basis, but that they are expected to understand regarding operations and strategy, again at an unbeatable value. 
6 page laminated guide includes:

• Accounting Basics
  • Accounting Standards
  • Concepts & Principles
  • The Accounting Equation
• Financial Statements: Formal Reports of an Entity
  • Balance Sheet (Statement of Financial Position)
  • Classified Balance Sheet
  • Retained Earnings Statement
  • Income Statement (Statement of Earnings or Operations)
  • Retained Earnings Statement
  • Statement of Cash Flows
• Transactions
• The Accounting Cycle
• Recording Transactions
• Operating Cycle of a Merchandise Business
• Types of Business Organizations
• Accounting in Business
• Inventory Systems
• Corporate Characteristics
• Assets
  • Cash
  • Accounts Receivable & Notes Receivable
  • Long-Lived Assets & Related Expenses
  • Cost Allocation Methods
  • Inventory
  • Depreciation
• Obligations
  • Payroll
  • Liabilities
• Owners' Equity
  • Stock
  • Appropriations on Retained Earnings
  • Dividends

Financial Statements: Formal Reports of an Entity

Balance Sheet (Statement of Financial Position)

1. Assets are balanced with the sum of liabilities and owners’ equity as of a specific date
2. Prepared after the income statement and the statement of retained earnings
3. Current assets
   1. Cash and other resources expected to be cash, sold, or used up during the normal operating cycle of the business (usually 1 year)
   2. Typical current assets: Cash, receivables, inventories, investments, supplies, and prepaid expenses
4. Noncurrent assets
   1. Assets that are not current assets
   2. Typical noncurrent assets: Buildings, equipment, furniture, fixtures, land, natural resources, and intangible assets (patents and goodwill)
5. Current liabilities
   1. Obligations that will be paid within the operating cycle (usually 1 year)
   2. Typical current liabilities: Accounts payable, wages and salaries payable, taxes pay­able, unearned revenues, and short-term notes payable
6. Noncurrent liabilities
   1. Liabilities that are not current liabilities
   2. Typical noncurrent liabilities: The noncurrent portion of any payable liabilities, capi­tal leases, pension benefit obligations, and long-term obligations under product or service warranties
7. Equity
   1. The difference between assets and liabilities
   2. Typical equity: Capital contributed by owners and retained earnings

Company Balance Sheet for Year Ended Dec. 31, 20XX ASSETS

CURRENT ASSETS:
Cash		$58,280
Accounts receivable	50,300
Allowance for doubtful accounts	3,100	47,200
Notes receivable		8,000
Merchandise inventory		58,000
Prepaid insurance		6,000
Total current assets			$177,480

LONG-TERM ASSETS (PLANT AND EQUIPMENT):
Land		$60,000
Building	110,000
Accum. depr.	65,000	45,000
Delivery truck #1	13,000
Accum. depr.	4,200	8,800
Total long-term assets			113,800
Total assets			$291,280

LIABILITIES

CURRENT LIABILITIES:
Accounts payable	$30,000
Notes payable	4,000
Salaries payable	2,000
Unearned rent	900
Total current liabilities		36,900
LONG-TERM LIABILITIES:
Notes payable		30,000
Total liabilities		$66,900

STOCKHOLDERS’ EQUITY

PAID-IN CAPITAL:
Common stock, $10 par (10,000 authorized and issued)	$10...

Table of contents

• Accounting Basics
• Financial Statements: Formal Reports of an Entity
• Transactions
• The Accounting Cycle
• Recording Transactions
• Operating Cycle of a Merchandise Business
• Types of Business Organizations
• Accounting in Business
• Inventory Systems
• Corporate Characteristics
• Assets
• Obligations
• Owners’ Equity