Accounting 1

QuickStudy Laminated Reference Guide

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

We've taken our popular Accounting 1 guide and made it even better! Updated content and an additional panel of information not only make this an essential companion for students in introductory accounting courses, but also a refresher for those in higher level courses. In this edition you will find more coverage of the subject including expanded sections on financial statements and accounting in business, making this a study tool you won't want to be without!

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