Classified Bal. Sheet
Definitions
Transactions
Adjustments
Cash Flow Activities
100
Cash
What is a current asset?
100
Created by selling merchandise or services on credit
What is accounts receivable?
100
Received $1,800 from ABC Company as rent for 6 month's in advance.
What is an increase to cash and an increase in unearned revenue?
100
Prepaid insurance expired, $1,000.
What is a decrease to prepaid insurance and a decrease to retained earnings?
100
Cash received from customers.
What is an operating activity?
200
Patent
What is an intangible asset?
200
The cost of a fixed asset minus accumulated depreciation on the asset
What is book value?
200
An additional $5,000 was invested in the business in exchange for capital stock.
What is an increase in cash and an increase in capital stock?
200
Supplies used, $150.
What is a decrease to supplies and a decrease to retained earnings?
200
Issurance of capital stock.
What is a financing activity?
300
Accounts Payable
What is a current liability?
300
Delayed recordings of expenses or revenues
What are deferrals?
300
Purchased $250 worth of supplies on account.
What is an increase to supplies and an increase to accounts payable?
300
Unearned rent earned, $600.
What is a decreased in unearned revenue and an increase in retained earnings?
300
Cash payments for expenses.
What are operating activities?
400
Equipment
What is a fixed asset?
400
The systemic periodic transfer of the cost of a fixed asset to an expense account during its expected useful life
What is depreciation?
400
Provided services of $6,000 to customers on account.
What is an increase in accounts receivable and an increase to retained earnings?
400
Wages owed but not paid to employees, $200.
What is an increase to wages payable and a decrease to retained earnings?
400
Purchase of office equipment.
What is an investing activity?
500
Unearned revenue
What is a current liabilities?
500
Recognition of revenue when earned or expenses when incurred regardless of when cash is received or disbursed
What is an accrual?
500
Paid dividends of $1,000 to stockholders.
What is a decrease to cash and a decrease to retained earnings?
500
Depreciation on office equipment, $200.
What is an decrease to accumulated depreciation and a decrease to retained earnings?
500
Deduct cash dividends.
What is a financing activity?
M
e
n
u