会计基础horngrenacct7ch.ppt

1 AccountingandtheBusinessEnvironment Chapter1 2 TypesofBusinessOrganizations P Abusinessisownedbyasingleindividual P Abusinessisownedbytwoormoreowners C Abusinessisownedbystockholders 3 TypesofBusinessOrganizations Proprietorships Abusinessisownedbyasingleindividual Partnerships Abusinessisownedbytwoormoreowners Corporations Abusinessisownedbystockholders 4 Corporations Whataresomeadvantages separatelexistencellofstockholderstransferabilityofownershiprelativelyeasyWhataresomedisadvantages t possibledtaxationegovernmentalregulation 5 Corporations Whataresomeadvantages separatelegalexistencelimitedliabilityofstockholderstransferabilityofownershiprelativelyeasyWhataresomedisadvantages taxes possibledoubletaxationextensivegovernmentalregulation 6 ProprietorshipsandpartnershipsthataresetupasLLCsprovidelimitedliability CharacteristicsofBusinesses 7 ProprietorshipsandpartnershipsthataresetupasLLCsprovidelimitedliability CharacteristicsofBusinesses 8 GAAP GenerallyAcceptedAccountingPrinciplesAccountinggthatgovernhowaccountantsmeasure process andcommunicatefinancialinformationFormulatedbyFAStandardsB FASB Issues SofFAccountingS SFASandInterpretations 9 GAAP GenerallyAcceptedAccountingPrinciplesAccountingguidelinesthatgovernhowaccountantsmeasure process andcommunicatefinancialinformationFormulatedbyFinancialAccountingStandardsBoard FASB Issues StatementsofFinancialAccountingStandards SFASandInterpretations 10 EntityConcept AccountingEntity organizationthatstandsapartasaseunit 11 EntityConcept AccountingEntity organizationthatstandsapartasaseparateeconomicunit 12 Informationmustbereasonablya Informationmustbeffrombias Informationmustreportwhatactuallyh Individualswouldarriveatsconclusionsusingsdata TheReliability Objectivity Principle Accountinginformationisbasedonthemostrdataavailable 13 Informationmustbereasonablyaccurate Informationmustbefreefrombias Informationmustreportwhatactuallyhappened Individualswouldarriveatsimilarconclusionsusingsamedata TheReliability Objectivity Principle Accountinginformationisbasedonthemostreliabledataavailable 14 Assetsandservicesashouldberecordedattheirac hc TheCostPrinciple 15 Assetsandservicesacquiredshouldberecordedattheiractualcost historicalcost TheCostPrinciple 16 Assumesthattheewillremaininofortheffuture TheGoingConcernConcept 17 Assumesthattheentitywillremaininoperationfortheforeseeablefuture TheGoingConcernConcept 18 Stable Monetary UnitConcept Assumesthatthedollar sppisstable 19 Stable Monetary UnitConcept Assumesthatthedollar spurchasingpowerisstable 20 Acorporationwith2stockholdersgoesbankruptowing 10 000 Howmuchdoeseachstockholderowethecreditors Answer 0 Thestockholdersofacorporationhavelimitedliability whichmeansthatstockholdersarenotresponsibleforthedebtsofthecorporation 21 Acompanypurchaseslandfor 10 000 Anappraiservaluesthelandat 12 000 andthecountyassessesthevalueat 9 000fortaxpurposes Atwhichamountshouldthecompanyrecordtheland A 9 000B 10 000C 12 000D Thecompanymaychooseanyofthethreevalues 21 22 Acompanypurchaseslandfor 10 000 Anappraiservaluesthelandat 12 000 andthecountyassessesthevalueat 9 000fortaxpurposes Atwhichamountshouldthecompanyrecordtheland A 9 000B 10 000C 12 000D Thecompanymaychooseanyofthethreevalues 22 23 LisaSmithownsaconsultingbusiness Herpersonalresidenceislistedonthecompanyfinancialstatements Whichaccountingprincipledoesthisviolate A CostB GoingconcernC ReliabilityD Entity 23 24 LisaSmithownsaconsultingbusiness Herpersonalresidenceislistedonthecompanyfinancialstatements Whichaccountingprincipledoesthisviolate A CostB GoingconcernC ReliabilityD Entity 24 25 Objective3 Usetheaccountingequation 26 EconomicResources ClaimstoEconomicResources TheAccountingEquation Assets Liabilities Owner sEquity 27 Assets Economicresources expectedtobenefitthebusinessinthefutureCashAccountsreceivableMerchandiseinventoryFurnitureLand 28 ClaimstotheAssets Liabilities economicobligationspayabletoanindividualororganizationoutsidethebusinessAccountspayableNotespayableSalarypayable 29 Liability Whatisaliability Itissomethingacompanyowes moneyservice legalretainersproduct magazines 30 ClaimstotheAssets Owner sEquity capital claimofbusinessownertotheassetsofthebusinessItiswhat sleftoftheassetsafterliabilitieshavebeendeducted thesameasnetassetstheowner sclaimontheentity sassets 31 EconomicResources ClaimstoEconomicResources TheAccountingEquation Assets Liabilities Owner sEquity 32 Exercise1 18 81 000 32 000 21 000 72 000 33 TransactionsthatAffectOwner sEquity OWNER SEQUITYINCREASES OWNER SEQUITYDECREASES OwnerInvestments Revenues Expenses OwnerWithdrawals Owner sEquity 34 Investments aretheassetstheownerputsinthebusiness 35 arewithdrawalsofcashorotherassetsbytheownerforpersonalusedecreaseowner sequity Drawings 36 Revenues AmountsearnedbydeliveringgoodsorservicestocustomersSalesrevenueServicerevenueInterestrevenueDividendrevenue 37 Expenses Decreaseinowner sequitythatoccursfromusingassetsorincreasingliabilitiesinthecourseofdeliveringgoodsorservicestocustomersSalaryexpenseRentexpenseUtilitiesexpenseInterestexpense 38 Oneitemisomittedineachofthefollowingsummariesofbalancesheetandincomestatementdataforthreedifferentsoleproprietorships X Y andZ Determinetheamountsofthemissingitems identifyingeachproprietorshipbyletter ProprietorshipXYZBeginningoftheYear Assets 400 000 150 000 199 000Liabilities250 000105 000168 000EndoftheYear Assets450 000195 000195 000Liabilities280 00095 000169 000DuringtheYear AdditionalInvestmentbytheowner 79 00080 000Withdrawalsbytheowner90 00083 000 Revenue195 000 187 000Expenses170 000113 000185 000 39 Objective4 Analyzebusinesstransactions 40 Transaction Aneventthataffectsthefinancialpositionofaparticularentityandcanberecordedreliably 41 Exercise1 17 Increasedassets cash NoeffectontotalassetsDecreasedassets cash Increasedassets equipment 42 Exercise1 17 Increasedassets accountsreceivable Decreasedassets cash NoeffectontotalassetsIncreasedassets cash 43 Exercise1 22 Assets 45 000 Liabilities Owner sEquity 45 000 44 Exercise1 22 35 000 Assets 45 000 Liabilities Owner sEquity 45 000 45 Exercise1 22 2 000 Assets 47 000 Liabilities Owner sEquity 47 000 46 Exercise1 22 Assets 54 000 Liabilities Owner sEquity 54 000 47 Exercise1 22 Assets 51 000 Liabilities Owner sEquity 51 000 48 Exercise1 22 Assets 51 000 Liabilities Owner sEquity 51 000 500 49 Exercise1 22 Assets 49 500 Liabilities Owner sEquity 49 500 1 500 50 Objective5 Preparefinancialstatements Evaluatebusinessperformance Objective6 51 FinancialStatements IncomestatementStatementofowner sequityBalancesheetStatementofcashflows 52 IncomeStatement Summaryofanentity srevenues expenses andnetincomeornetlossforaspecificperiodRevenues ExpensesNetIncome Revenues ExpensesNetLoss Expenses Revenues 53 StatementofOwner sEquity Summaryofchangesinanentity sowner sequityduringaspecificperiodBeginningowner sequity Owner sinvestments Netincome Netloss Owner swithdrawalsEndingowner sequity 54 BalanceSheet Reportstheentity sassets liabilities andowner sequityasofaspecificdateAssets Liabilities Owner sEquity 55 StatementofCashFlows Reportscashreceiptsandcashpaymentsduringaperiod coveredinChapter17 56 MariaLange M D IncomeStatementFortheMonthEndedJuly31 2006 Revenue Feesearned 7 000Expenses Salaryexpense 1 700Rentexpense1 000Utilitiesexpense300TotalExpenses3 000Netincome 4 000 57 MariaLange capital July1 2006 0Add Investmentbyowner45 000Netincomeforthemonth4 000Subtotal 49 000Less Withdrawalsbyowner0MariaLange capital July31 2006 49 000 MariaLange M D StatementofOwner sEquityFortheMonthEndedJuly31 2006 58 MariaLange M D BalanceSheetJuly31 2006 AssetsCash 13 000Medicalsupplies1 500Land35 000Totalassets 49 500 LiabilitiesAccountspayable 500Owner sequity M Lange capital49 000Totalliabilitiesandowner sequity 49 500 59 Cash 2 000Accountsreceivable6 000Supplies500Equipment15 500TotalAssets 24 000 AllenSamuelRoadServiceBalanceSheetNovember30 2009 Liabilities Accountspayable 3 500Notepayable5 000Totalliabilities 8 500Owner sEquityA Samuel capital15 500Totalliabilitiesandowner sequity 24 000 Assets Exercise1 24 60 Exercise1 26 CiliottaDesignStudioIncomeStatementYearEndedDecember31 2006 Servicerevenue 158 100Expenses Salaryexpense 60 000Rentexpense24 000Utilitiesexpense6 800Suppliesexpense4 000Propertytaxexpense1 200Totalexpenses96 000Netincome 62 100 61 Exercise1 26 Owner swithdrawals Ciliottas capital beginningofyear 0Add Netincome62 100Investmentbyowner15 000Subtotal 77 100Less Ownerwithdrawal Ciliotta capital endofyear 27 100 50 000 62 EndofChapter1