S02 Jana Juice June FS - Apuntes 2 PDF

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Summary

Lecture of the financial reporting and analysis...

Description

GENERAL LEDGER BEFORE ADJUSTMENTS Assets Bal. (1) (6a) (8) (10)

Bal. (7a) Bal.

Bal. (5) Bal.

Cash (A) 6,460 12,000 10,200 (2) 800 (3) 3,100 500 (4) 600 2,000 1,400 (9) 700 (11) 100 (12) 10,460 Accounts Receivable (A) 1,700 4,400 2,000 (10) 4,100 Inventory (A) 700 2,600 600 (6b) 1,100 (7b) 1,600

Bal. Bal.

Prepaid Insurance (A) 800 800

Bal. Bal.

Security Deposit (A) 1,800 1,800

Fixtures and Equipment (A) 10,200 (2) 10,200

Equity

Liabilities (4)

Accounts Payable (L) 500 Bal. 500 2,600 (5) 2,600 Bal. Unearned Revenue (L) 300 Bal. 600 (8) 900 Bal. Note Payable (L) 12,000 12,000

Share Capital (SE) 10,000 Bal. 10,000 Bal. Retained Earnings (SE) (12) 100 660 Bal. 560 Bal. Sales Revenue (R ) 3,100 (6a) 4,400 (7a) 7,500 Bal.

(1) Bal. (6b) (7b) Bal.

Cost of Goods Sold (E) 600 1,100 1,700

(9) Bal.

Wages Expense (E) 1,400 1,400

(11) Bal.

Rent Expense (E) 700 700

Advertising Expense (E) (3) 800 Bal. 800

Income statement accounts

PREPARING AN UNADJUSTED TRIAL BALANCE

Jana Juice Unadjusted Trial Balance June 30 Cash Accounts Receivable Inventory Prepaid Insurance Security Deposit Fixtures and Equipment Accounts Payable Unearned Revenue Long-term Notes Payable Share Capital Retained Earnings Sales Revenue Cost of Goods Sold Wages Expense Rent Expense Advertising Expense Totals

Debit $10,460 4,100 1,600 800 1,800 10,200

Credit

Assets Liabilities Equities $ 2,600 900 12,000 10,000 560 7,500

1,700 1,400 700 800 $33,560

Accounts are listed in accounting equation order:

$33,560

Revenues Expenses

The totals of debits and credits must be equal.

PREPARING FINANCIAL STATEMENTS

INCOME STATEMENT

The income statement is prepared first.

Jana Juice Income Statement For Month Ended June 30

Jana Juice reported net income of $1,414 for the month ending June 30

Revenues Sales revenue Expenses Cost of goods sold Wages expense Rent expense Advertising expense Insurance expense Depreciation expense Operating expenses Income from operations Interest expense Interest income Income before taxes Income tax expense Net income

$7,600 $1,700 1,950 700 800 200 170 5,520 2,080 (120) 60 2,020 606 $1,414

Jana Juice Statement of Changes in Equity For Months Ended in May 31 and June 30 Contributed Earned Capital Capital

Balance, April 30, 2016 Net income Common shares issued Cash dividends Balance, May 31, 2016

$

10,000 $ 10,000 Contributed Capital

Balance, June 1, 2016 Net income Common shares issued Cash dividends Balance, June 30, 2016

$10,000

$10,000

$ 1,060 (400) $ 660 Earned Capital

$

660 1,414 (100) $1,974

Total Equity

$

1,060 10,000 (400) $ 10,660 Total Equity

$10,660 1,414 (100) $11,974

BALANCE SHEET

The amount of retained earnings from the statement of changes in equity is linked to the balance sheet. Jana Juice Balance Sheet June 30 Assets Cash Accounts receivable Interest receivable Inventory Prepaid insurance Security deposit Current assets Fixtures and equipment Less: Accumulated depreciationFixt./equipment Equipment, net Total assets

Liabilities $10,460 4,100 60 1,600 600 1,800 18,620 $10,200 (170) 10,030 $28,650

Accounts payable Unearned revenue Wages payable Interest payable Income tax payable Current liabilities Notes payable Total liabilities

$ 2,600 800 550 120 606 4,676 12,000 16,676

Equity Share capital Retained earnings Total liabilities & equity

10,000 1,974 $28,650...