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