Acct115

Balance per Bank

+ deposits in transit - out standing checks +- mistakes made by bank

Balance per book

- Services charges + Interest bank has paid the company +notes bank has collected - non sufficient fund +- Errors company made

Revenue

-always causes an increase in owners equity -the price of goods sold and services rendered during an accounting period -revenue is recorded by credits

Expense

-always decreases owners equity -reduces assets if payment occurs @the same time

inventory flows

-begins with purchasing raw materials or consumer products from a supplier -produce consumer products and ship these items to distributors. -Distributors receive inventory products and hold them in anticipation for retail store orders.

Loss

A decrease in owners' equity resulting from any transaction other than an expense or a distribution to the owners. The most common example is the sale of an asset at a price below book value.

Dividend

A dividend is a payment made to shareholders that is proportional to the number of shares owned.

Amortization tables

A schedule that indicates how installment payments are allocated between interest expense and repayments of principal.

Gains

An increase in owners' equity resulting from a transaction other than earning revenue or investment by the owners. The most common example is the sale of an asset at a price above book value.

closing enties

Journal entries made at the end of the period for the purpose of closing temporary accounts (revenue, expense, and dividends accounts) and transferring balances to the Retained Earnings account.

in an amortization table d is

Labeled Balance the previous number given for d- c

in an amortization table b is

Labeled Interest notes payables that is listed at the header multiplied by the interest expense that is listed under the title

in an amortization table a is

Labeled Payments the monthly payments that you can find in the header

in an amortization table c is

Labeled Principle a-b

Bonds Payable

Long-term debt securities that subdivide a very large and long-term corporate debt into transferable increments of $1,000 or multiples thereof.

gross profit

Net sales revenue minus the cost of goods sold.

bond premium

The amount received for the bond (excluding accrued interest) that is in excess of the bond's face amount is known as the premium on bonds payable Entered as premium on bonds payable

balance sheet

assets, liabilities and owners equity

Stock holders equity in balance sheet

preferred stock common stock retained earning (-Less: Treasury Stock) = Total shareholder equity + T long term liabilities + T current liabilities = Total SH equity & liability

Retained earnings

retained earnings refers to the portion of net income it is retained by the corporation rather than distributed to shareholders as dividends.if the corporation incurs a loss, then that loss reduces the corporation's retained earnings balance.

Bank Reconciliation

Balance per Bank Balance per Book

adjusting entries

Entries made at the end of the accounting period for the purpose of recognizing revenue and expenses that are not properly measured as a result of journalizing transactions as they occur.

treasury stock

The portion of shares that a company keeps in their own treasury. Treasury stock may have come from a repurchase or buyback from shareholders; or it may have never been issued to the public in the first place.

Net Cost

The total premiums paid minus their cash value and any dividends generated by the policy as of the time the difference is being calculated.

Net Income

The total revenue in an accounting period minus all expenses during the same period. If income taxes and interest are not deducted, it is called operating profit (or Loss, as the case may be). Also called earnings, net earnings, or net profit.

Cost of Goods Sold

This amount includes the cost of the materials used in creating the good along with the direct labor costs used to produce the good.

Book Value per share of common stock

This is under the stock holders equity in balance sheet The stockholders' equity represented by each share of common stock, computed by dividing common stockholders' equity by the number of common shares outstanding.

purchases of treasury stock

Treasury stock is D Cash is C ***Treasury Stock account is debited for the cost of the shares purchased, not their par value

bond discount

When a bond is sold for less than its face amount, it is said to have been sold at a discount. The discount is the difference between the amount received (excluding accrued interest) and the bond's face amount. It is entered as Discount on Bonds Payable

reissuance of treasury stock

When treasury shares are reissued, the Treasury Stock account is credited for the cost of the shares reissued and Additional Paid-in Capital from Treasury Stock Transactions is debited or credited for any difference between cost and the reissue price.

contra revenue

a deduction from the gross revenue reported by a business, which results in net revenue.

income statement

a financial statement showing the profit or loss sustained by a company during a particular period, including all items of income and expenditure