Accounting Equation Paper NAME ACC/300 INSTRUCTOR DATE The basic accounting equation is: Assets = Liabilities + Stockholders’ Equity. When looking at the balance sheet one can assume that assets must balance out each transaction and balance the claims to the assets (Kimmel‚ 2010). A balance sheet provides Assets of the company first and foremost‚ then Liabilities and Stockholders’ Equity and last retained earnings. This shows the companies incoming money‚ outgoing payments‚ and the
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What is the amount of total liabilities and equity that appears on the firm’s balance sheet? The amount of total liabilities and equity that appears on the firm’s balance sheet is
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(You will need to compute the missing figure for Notes Payable). (Be sure to list the assets and liabilities in order of their liquidity. Omit the "$" sign in your response.) THE SWEET SODA SHOP Balance Sheet September 30‚ 2011 Assets Cash Accounts receivable Building Furniture and fixtures Land Supplies Total Liabilities & Owners ’ Equity Liabilities: Notes payable Accounts payable Total Liabilities Owners ’ equity: Capital stock Retained earnings Total $ 7‚400 1‚250 45‚500 20‚000 55‚000 3‚440 $
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sales figures might not be met in the future which would severely lower the overall profit after tax. With this in mind‚ it is important to be prepared to meet the possibility that this positive forecast might not be met and that more debt and liabilities will have to be paid off than expected. Figuring out what the future markets have in store for a company is always tricky to determine. 2. If the future events of The Body Shop were to happen exactly as this forecast has said they would‚ then
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in millions) Assets 2007 2006 Current assets $8‚076 $7‚346 Property‚ plant‚ and equipment (net) 1‚678 1‚658 Other assets 934 866 Total assets $10‚688 $9‚870 Liabilities and Stockholders’ Equity Current liabilities $2‚584 $2‚612 Long-term liabilities 1‚079 973 Stockholders’ equity 7‚025 6‚285 Total liabilities and stockholders’ equity $10‚688 $9‚870 Complete the horizontal analysis of the balance sheet data for Nike using 2006 as a base. (If amount decreases‚ use either
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able to classify them into the respective categories (b) Understand the accounting equation and the relationship between assets‚ liabilities and owner’s equity. Classifications of accounts • • 1. 2. 3. 4. 5. An account is used to record all information regarding an item. The five major categories of account Revenues Expenses Assets Liabilities Owner’s Equity Revenue Account • • Revenues are income earned by a business Examples of revenue accounts 1. 2. 3. 4
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Nano Brewery 1 Evaluation of the Nano Brewery MBA Foundations Course Patten University James P. McQuiston Abstract The Nano Brewery is a very small business that has been operating for two years. The two owners have found that demand for their product has outstripped their ability to supply it. They are considering expanding their company to meet this demand. We will analyze their financial performance and evaluate broader environmental factors before providing a recommendation on company expansion
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Reorganization and Troubled Debt Restructuring 135 CHAPTER 8 MULTIPLE CHOICE ANSWERS AND SOLUTIONS 8-1: a Trade accounts payable (P52‚000 + P62‚700) P114‚700 12% preferred stock (5‚000 x P1) P 5‚000 Paid in capital in excess of par (5‚000 x P9) 45‚000 Cash (P62‚700 x P0.80) _50‚160 _100‚160 Gain from discharge of indebtedness P 14‚540 8-2: c 8-3: c 8-4: b Carrying value of the
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increase the owner ’s equity through solid revenues. These revenues increase assets or proceed to decrease the business liabilities. In the case shown above‚ for M.M. Smiths Company‚ the total amount of assets consists of $211‚500‚ while liabilities are listed at $30‚000. However‚ the owner ’s capital is $181‚500. Therefore‚ the loan assistant would subtract the total liabilities from the owner ’s equity and assets. This amount would be $363‚000.00. In the case shown above‚ for Full service
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(Less) accum depreciation Total Net Fixed Assets Other Assets Total Assets Liabilities and Stockholders’ Equity Current Liabilities Accounts Payable Notes Payable - banks Income Taxes Payable Current Installments - lt debt Total Current Liabilities Long Term Debt Term Loan Notes Payable to Bank Total Liabilities Stockholders’ Equity Common Stock Additional Paid in Capital Retained Earnings Total Stockholders’ Equity Total Liabilities and Equity 6/30/86 9/30/86 12/31/86 3/31/87 156 1‚556
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