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17 Cards in this Set
- Front
- Back
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Financial activities are:
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lending in and out
-Owners (stockholders' equity and dividends) -Lenders- Liabilites |
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Investing Activities are:
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Long-term resources (building)
2. Other resources |
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Operating Activities are:
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primary operations of company. Day-to-day.
1. Providing products and services to customers 2. Associated costs of producing revenue. |
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Balance Sheet equation
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Assets= Liabilites+ Stockholder's Equity
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Income statement equation
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Revenues- Expenses= Net Income
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Ex: Common Stock
To generate cash from external sources, Woods sells shares of common stock for $25,000 |
Cash 25,000
Common Stock 25,000 |
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Ex: Borrow form the Bank
Seeking cash from another external source, Woods Academy borrows $10,000 from the bank and signs a note for it. |
Cash 10,000
Notes Payable 10,000 |
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Ex: Purchase Equipment
Purchase equipment with cash, $24,000 |
Equipment Expense 24,000
Cash 24,000 |
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Ex: Incur Costs for Rent
Purchasing one year of rent in advance, $6,000 |
Prepaid Rent 6,000
Cash 6,000 |
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Ex: Incur Costs for Supplies
Purchase of supplies on account, $2,300 |
Supplies $2,300
Accounts Payable 2,300 |
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Ex: Receive Cash in Advance from Customer
-Receive cash in advance from customers, $600 |
Cash 600
Unearned Revenue 600 |
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Ex: Incur Cost for Salaries
Pay Salaries to Workers, $2,800 |
Salaries Expense 2,800
Cash 2,800 |
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Ex: Pay dividends to stockholders, $200
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Dividends 200
Cash 200 |
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Debit and Credit rules
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DEA LOR
Debit ^ Debit D Credit D Credit ^ |
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Ex: Adjusting Entry, Prepaid Rent. $500 a month
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Rent Expense 500
Prepaid Rent 500 |
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Ex: Adjusting Entry, Prepaid Supplies $800 used.
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Supplies Expense 800
Supplies 800 |
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_____: A Problem From Happening;
_______: A Problem that has Already Happened Reconciliations are _____ Controls |
Prevent
Detect -Detective |
