The Weirdest Roller Coaster
Stark Industries sells a 1-year service contract for $12,000 in cash.
Assets increase by $12,000
Liabilities increase by $12,000
Types of business organizations.
What are sole proprietorship, partnership, and corporation?
A financial statement that reflects a corporation's financial position as of a specific date.
What is Balance Sheet?
The accounting equation.
What is Assets = Liabilities + Stockholder's Equity?
Dunder Mifflin Paper Co. pays office rent for the month in the amount of $1,000.
Rent Expense 1,000
Cash 1,000
The Krusty Krab caters an event and is paid $4,000 cash.
Assets increase by $4,000
Stockholder's Equity increases by $4,000
Types of business activities.
If you post a debit to the wrong asset account, what will happen to the totals of trial balance?
What is nothing?
Net Income.
What is Revenues - Expenses = Net Income?
Stark Industries buys $72,000 worth of materials for making missiles on account to be paid in 30 days.
Supplies 72000
Accounts Payable 72000
Dunder Mifflin Paper Co. pays $5,000 for the next 3 months of insurance in advance.
Assets decrease by $5,000
Assets increase by $5,000
Families of accounts with normal debit balances.
What are assets, expenses, and dividends?
Cost of Goods Sold can be found on which section of which financial statement?
What is the expenses section of the Income Statement?
The Statement of Retained Earnings.
What is Beginning R/E + Net Income - Dividends = Ending R/E?
The Krusty Krab pays $45 in wages to its employees for the month.
Wages Expense 45
Cash 45
Doofenshmirtz Evil, Inc., uses a LOT of electricity in their experiments. The company pays its electricity bill in $7,250 cash.
Assets decrease by $7,250
Stockholder's Equity (Retained Earnings) decreases by $7,250
Families of accounts with normal credit balances.
What are liabilities, stockholder's equity, and revenues?
Retained earnings 77,500
Accounts Receivable 32,000
Accounts payable 74,500
Cash 86,000
Property, plant & equipment 125,000
Unearned Revenue 4,000
Long-term debt 48,500
Capital stock 38,500
What are total assets?
What is 243,000?
Working capital.
What is current assets - current liabilities?
Doofenshmirtz Evil, Inc., sells 500 shares of its common stock for $10,000.
Cash 10,000
Common Stock 10,000
Wonka Industries bought a new industrial candy-making machine for $36,500. Wonka Industries paid a $6,500 down payment and signed a 1-year note for the remaining balance.
Assets increase by $30,000
Liabilities increase by $30,000
The standard accounting rules and the two organizations that create those rules.
What are GAAP (Generally Accepted Accounting Principles), SEC (Securities and Exchange Commission), and FASB (Financial Accounting Standards Board)?
On January 1, 2015, Dunder Mifflin Paper Co. reported liabilities of $3,500,000 and stockholders' equity of $2,000,000. During 2016, assets increased by $800,000 and liabilities increased by $950,000. What is the amount of stockholders' equity reported on December 31, 2016?
What is $1,850,000?
Current ratio.
What is current assets / current liabilities?
Wonka Industries accepts $5000 in advance payment from a customer for a special order of chocolate to be delivered next month.
Cash 5000
Unearned revenue 5000