































Study with the several resources on Docsity
Earn points by helping other students or get them with a premium plan
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Community
Ask the community for help and clear up your study doubts
Discover the best universities in your country according to Docsity users
Free resources
Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors
Accounting Fundamentals Course Presentation
Typology: Lecture notes
1 / 39
This page cannot be seen from the preview
Don't miss anything!
The financial statements are a record of the financial activities of a business.
Total Assets Total liabilities & equity Non-current assets Last more than a year e.g. property, plant and equipment, technology, patents, trademarks Current assets Used within one year e.g. cash, inventory, accounts receivable Current liabilities Due within one year e.g. accounts payable Shareholders’ equity e.g. common shares and retained earnings Non-current liabilities Due in more than a year e.g. long-term debt
Two options:
Record the transaction on both sides of the balance sheet
Record the transaction twice on the same side of the balance sheet as both positive and negative number Assets Current assets Cash Non current assets (100) Total Assets (100) Liabilities & Shareholders’ Equity Current liabilities Short-term debt (100) Non current liabilities Shareholders’ equity Total Liabilities & SE (100) Assets Current assets Cash Non current assets Equipment (100) 100 Total Assets 0 Liabilities & Shareholders’ Equity Current liabilities Non current liabilities Shareholders’ equity Total Liabilities & SE 0
A company engaged in the following transactions:
Assets Current assets Cash [100 + 50] 150 Non current assets Total 150 Liabilities & Shareholders’ Equity Current liabilities Non current liabilities (^50) Shareholders’ equity Common stock (^100) Total (^150)
Assets Current assets Cash [100 + 50 ]– 80] 70 Non current assets Equipment (^80) Total 150 Liabilities & Shareholders’ Equity Current liabilities Non current liabilities (^50) Shareholders’ equity Common stock 100 Total 150
Assets Current assets Cash [100 + 50 – 80 – 60
Non current assets Equipment
Total 180 Liabilities & Shareholders’ Equity Current liabilities Non current liabilities Bank loan
Shareholders’ equity Common stock Retained earnings Revenues Cost of sales Total shareholders’ equity
Total 180
Assets Current assets Cash [100 + 50 – 80 – 60
Non current assets Equipment
Total (^160) Liabilities & Shareholders’ Equity Current liabilities Non current liabilities Bank loan
Shareholders’ equity Common stock Retained earnings Revenues Cost of sales Salaries Total shareholders’ equity
Total (^160)
Assets Current assets Cash [100 + 50 – 80
Non current assets Equipment
Total 180 Liabilities & Shareholders’ Equity Current liabilities Non current liabilities Bank loan
Shareholders’ equity Common stock Retained earnings Revenues Cost of sales Total shareholders’ equity
Total 180
Accounts receivable – amounts owed by customers to the company Accounts payable – amounts owed by the company to suppliers
Click on the link “Vadero Inc exercise” with instructions
Once you’ve had a go, click on the attachment link “Vadero Inc solution” Now it’s your turn…