Accounts Found on a Balance Sheet and Income Statement PDF

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Account sFoundonaBal anceSheetandI ncomeSt at ement

Asset s–Nor malDebi tBal ance As set sar eex pendi t ur est hathav ef ut ur ev al ueandar eex pensedast heyar eusedupi nt heper i od i nwhi c ht heyar eused. As set scanal sobedefinedasr esour cesort hi ngsofv al ue( agai n,t heyhav ef ut ur ev al ue)t hatar e ownedbyacompany . ancesheet Someexampl esofas set swhi char eobv i oust hatwi l l ber epor t edonacompany ' sbal i ncl ude: 1. Cash 2. Acc ount sRecei v abl e 3. I nvent or y 4. I nv est ment s 5. Land 6. Bui l di ngs 7. Equi pment 8. Pr epai dExpenses Fori ns t ance,i facompanyi sr equi r edt opayi t sr entatt hebegi nni ngofeachquar t er ( Januar y1,Apr i l 1,et c. )t hepor t i ont hati spr epai d( notuseduporexpensed)asoft he bal ancesheetdat ewi l lbel i st edasanasset . Depr eci at i on( usi ngupofal ongt er m assetandi sexpensedasused)r educet heval ueofa l ongt er m assetont hebal ancesheet( exampl esabov ear ebui l di ngsandequi pment ) .Thi si s donebycr edi t i ngaccumul at eddepr eci at i onwhi chi neffectr educest hev al ueofal ongt er m assetont hebal ancesheetanddebi t i ngt heexpensecal l eddepr eci at i onexpense.

Li abi l i t i es–Nor malCr edi tBal ance Li abi l i t i esar eobl i gat i onsoft hecompany ;t heyar eamount sowedt ocr edi t or sf orapastt r ans act i on andt heyusual l yhav et hewor d" pay abl e"i nt hei raccountt i t l e. Li abi l i t i esal soi ncl udeamount sr ecei v edi nadvancef orf ut ur eser vi ces.Si ncet heamountr ecei v ed ( r ecor dedast heassetCash)hasnoty etbeenear ned,t hecompanydef er st her epor t i ngofr ev enues andi ns t eadr epor t sal i abi l i t ysuchasUnear nedRev enuesorCust omerDeposi t s . Ex ampl esofl i abi l i t yaccount sr epor t edonacompany' sbal ancesheeti ncl ude:

1.Not esPay abl e

2.Account sPay abl e 3.Sal ar i esPay abl e 4.WagesPay abl e 5.I nt er es tPay abl e 6.Ot herAc c r uedEx pens esPay abl e 7.I nc omeT ax esPay abl e 8.Cus t omerDepos i t s 9.War r ant yLi abi l i t y 10. Lawsui t sPay abl e 11. Unear nedRev enues 12. BondsPay abl e St ockhol der sEqui t y–Nor malCr edi tBal ance

Repr esent st hec api t al r ec ei v edf r om i nv es t or si nex c hangef ors t oc k( pai di ncapi t al ) ,and donat edc api t al . I tal s oi ncl udesr et ai nedear ni ngs ,ear ni ngsnotr et ur nedbac kt ot hes t oc khol der s . Ret ai nedear ni ngsacc umul at eov ert hey ear sast hec ompanyear nsmor ei nc omeand r et ai nsi ti nor dert ogr owt hec ompany .Ret ai nedear ni ngsar emadeupbas i cal l yoft wo c omponent s :1. Rev enues 2. Ex pens es .Rev enuesl essex pensesf oraper i od c r eat eneti nc ome.Someoft hi sneti nc omei sr et ur nedbackt ot hec ompany’ ss t oc k hol der s asdi v i dendsandt her emai ndernotdi s t r i but edasdi v i dendsbec omer et ai nedear ni ngs Ther ef or e,s t ock hol der sequi t yhasbas i cal l yf orc omponent s : 1. Capi t al 2. Di v i dends( ar educ t i onofr et ai nedear ni ngsandt huss t oc k hol der sequi t y) 3. Re v enues 4. Ex pens es

Ihav edi s c us s edcapi t alanddi v i dendsabov es ol et ’ sexpl ai nr ev enuesandex pens es . Rev enuesl es sex pens esbec omer et ai nedear ni ngsf oracompany . Revenue:Theamountofmoneyorr ecei v abl est hatac ompanyac t ual l year nsdur i nga s pec i ficper i odoft i me.Thi si sus ual l year nedasar es ul tofpr ov i di nggoodsors er vi c est o ot herent i t i esori ndi v i dual sdur i ngt heper i odt heyar eear ned.Rev enueseffec t i v el y i nc r eas es t oc k hol der sequi t yandt her ef or ehav enor mal c r edi tbal anc ei nor dert hatt heyc an i nc r eas es t oc k hol der sequi t y . Expenses:Theus i ngupofas s et si nor dert opr oducegoodsorpr ov i des er v i c esdel i v er ed t oot herent i t i esori ndi v i dual sdur i ngt het i met her ev enuef orpr ov i di ngt hes egoodsor

s er v i c eswer er ender ed.Ex pens eseffec t i v el ydec r eases t oc k hol der sequi t yandhav ea nor maldebi tbal anc et hateffec t i v el yr educ ess t oc k hol der sequi t y ....