Accounting

Byrde Company purchased a truck. The seller asked for $11,800, but Byrde paid only $10,800 after negotiation. The owner of Byrde Company believes he got a great deal and the truck is really worth $15,800. What amount does Byrde record on its financial statements for the truck?

$10,800

A = L + E 1. _____________= 68,000+31,000 2. 100,000 = 56,000+________ 3. 120,000 = __________+62,000

1. 99,000 2. 44,000 3. 58,000

FASB

A group that sets accounting principles in the United States

formula for statement of retained earnings

Beginning Retained Earnings + Net Income - Dividends = Ending Retained Earnings

date on balance sheet

December 31

date on Statement of Retained Earnings

For Month Ended December 31

date on income statement

For Month Ended December 31

Snell Company performs and completes services for a client in May and bills the client $1,800. In June, the client makes a partial payment of $700 cash for the services. In July, the remaining $1,100 cash is paid. Determine the monthly revenue recorded in May, June, and July for this service.

May $1,800 June $0 July $0

formula for income statement

Revenue - Expenses = Net Income

GAAP

a collection of accounting rules and concepts set by the FASB

SEC

a government agency that enforces proper use of GAAP

Public Accountants

accounting professionals who provide services to many clients

Net income

amount a business earns in excess of all expenses and costs associated with its sales and revenues

Audit

an assessment of whether financial statements follow GAAP

Identify the impact of each of the given transactions on the accounting equation: d. The company pays workers for wages earned

dec. an asset and dec. equity

Identify the impact of each of the given transactions on the accounting equation: f. the company purchases equipment for cash

inc. an asset and dec. an asset

Identify the impact of each of the given transactions on the accounting equation: c. The company purchases supplies on credit

inc. an asset and inc. equity

Identify the impact of each of the given transactions on the accounting equation: e. The company provides services and sent a bill for $500 to be received within 30 days

inc. an asset and inc. equity

Identify the impact of each of the given transactions on the accounting equation: a. The owner invests land in the business (in exchange for its stock)

increases an asset and increases equity

Identify the impact of each of the given transactions on the accounting equation: b. The company provides services for cash

increases an asset and increases equity

Ethics

principles that determine whether an action is right or wrong