Accounting 201A Formula Sheet PDF

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Accounting 201A Formula Sheet...

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ACCOUNTING 201A FORMULA SHEET 1. Accounting Equation Assets (A) = Liabilities (L) + Equities (E) Ending Retained Earnings (Ending RE)

= Beginning RE + Net Income (NI) – Dividends = Beginning RE + (Revenues – Expenses) – Dividends Normal Debit Balance: Assets, Expenses, Dividends Normal Credit Balance: Liabilities, Equities, Revenues 2. Basic Formulas Liquidity: C

Profitability:

Solvency:

3. Inventory Inventory Beginning Inventory + Cost of Goods Purchased - Cost of Goods Sold (COGS) = Ending Inventory

Purchases - Returns & Allowances - Discounts = Net Purchases + Freight in = Cost of Goods Purchases

4. Bad Debts a. Bad Debts Direct Write-off Method b. Bad Debts Allowance Method Allowance for Doubtful Accounts Beginning Balance - Uncollectible Debts + Plug-in Number = Ending Balance (=% of Account Receivables) 5. Straight-line Depreciation: 6. Bank Reconciliation Balance per Bank Adjustments: Add (+): Deduct (-):

Deposits in transits Outstanding checks

Add/Deduct (±): Bank errors Adjusted Balance per Bank

Balance per Book Adjustments: Add (+): Deduct (-):

Notes collected by bank NSF checks Bank service charges Add/Deduct (±): Bank errors Adjusted Balance per Book

7. Indirect Method of Preparing Cash Flows Provided by Operations Net Income +/- Adjustments = Cash Flow Provided by Operations Add (+) Subtract (–) + Depreciation, amortization, depletion + Loss on Sale of PPE - Gain on Sale of PPE + Decrease on Current Assets - Increase on Current Assets + Increase on Current Liabilities - Decrease on Current Liabilities ACCT 201A FORMULA SHEET

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