ACCT 729 Key Formulas Cheat Sheet
Key Formulas
SEE Articulation- Pg. 16
Income= Revenues - Expenses
Assets = Liabilities + Equity
Gross Profit = Sales Revenue- COGS
Pg. 12
Assets (Listed in order of solvency)
Cash………………………………………………………………..$1,955
Non-Cash………………………………………………………..13,043
Total Assets….....................................................$14998
Current yr net income
% Return on = Net Income =
[(Prev. yr S/E + Current yr. S/)/2]
Equity (ROE) Average S/E
Pg. 21
Beginning retained Earnings + Net Income (- Net Loss)Dividends = Ending Retained Earnings
Liabilities:
210 Accounts Payable
220 Interest Payable
230 Wages Payable
240 Taxes Payable
250 Unearned Revenue
260 Notes Payable
$3,444
$6905
$215
$9,754
522
2,133
2,133
(569)
(569)
Other Changes
(19)
(1,858)
(120)
(1,997)
$3,947
Balance, End of
Period
$5,801
$95
$9,843
Chapter 1
Liability Accounts
=
DR
Normal
Analyze, Journalize, Post Pg. 62
CR
-
+
CR
Normal
DR
DR
Normal
CR
**General Ledger Pg. 68: T-Accounts as Assets, Liabilities, Equity**
Pg. 60/61
Cash Asset + Non Cash Asset = Liabilities + Contributed Capital + Earned Capital
+ DR.
- CR.
Cash
Beg. Bal. 0
(1)
20,000 (3)
(2)
5,000
End Bal. 23,000
Revenues – Expenses = Net Income
Accounting Relation
Debit
Credit
A
Increase
Decrease
L
Decrease
Increase
S/E
Decrease
Increase
Income Statement
R
Decrease
Increase
Expense
E
Increase
Decrease
Balance Sheet
2,000
Pg. 60
DR…. To the Left
CR…. To the Right
Pg. 62
Current Ratio (#) = Current Assets
Current Liabilities
Pg. 69
More stringent test of liquidity
Net Working Capital ($)= Current Assets – Current Liabilities
Pg. 69
Expense Accts
Equity Accounts
CR
Normal
DR
FSET Template-Balance Sheet
Transaction
522
Net Income
Dividends
Measures Solvency (Ability to avoid bankruptcy) >1 is more risky
SEE Articulation- Pg. 16
Income= Revenues - Expenses
Assets = Liabilities + Equity
Gross Profit = Sales Revenue- COGS
Pg. 12
Assets (Listed in order of solvency)
Cash………………………………………………………………..$1,955
Non-Cash………………………………………………………..13,043
Total Assets….....................................................$14998
Current yr net income
% Return on = Net Income =
[(Prev. yr S/E + Current yr. S/)/2]
Equity (ROE) Average S/E
Pg. 21
Beginning retained Earnings + Net Income (- Net Loss)Dividends = Ending Retained Earnings
Liabilities:
210 Accounts Payable
220 Interest Payable
230 Wages Payable
240 Taxes Payable
250 Unearned Revenue
260 Notes Payable
$3,444
$6905
$215
$9,754
522
2,133
2,133
(569)
(569)
Other Changes
(19)
(1,858)
(120)
(1,997)
$3,947
Balance, End of
Period
$5,801
$95
$9,843
Chapter 1
Liability Accounts
=
DR
Normal
Analyze, Journalize, Post Pg. 62
CR
-
+
CR
Normal
DR
DR
Normal
CR
**General Ledger Pg. 68: T-Accounts as Assets, Liabilities, Equity**
Pg. 60/61
Cash Asset + Non Cash Asset = Liabilities + Contributed Capital + Earned Capital
+ DR.
- CR.
Cash
Beg. Bal. 0
(1)
20,000 (3)
(2)
5,000
End Bal. 23,000
Revenues – Expenses = Net Income
Accounting Relation
Debit
Credit
A
Increase
Decrease
L
Decrease
Increase
S/E
Decrease
Increase
Income Statement
R
Decrease
Increase
Expense
E
Increase
Decrease
Balance Sheet
2,000
Pg. 60
DR…. To the Left
CR…. To the Right
Pg. 62
Current Ratio (#) = Current Assets
Current Liabilities
Pg. 69
More stringent test of liquidity
Net Working Capital ($)= Current Assets – Current Liabilities
Pg. 69
Expense Accts
Equity Accounts
CR
Normal
DR
FSET Template-Balance Sheet
Transaction
522
Net Income
Dividends
Measures Solvency (Ability to avoid bankruptcy) >1 is more risky