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This 3 page Class Notes was uploaded by Charles Miller on Saturday September 10, 2016. The Class Notes belongs to COB 241 at James Madison University taught by Dr. Irving in Fall 2016. Since its upload, it has received 16 views. For similar materials see Financial Accounting in Business at James Madison University.
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Date Created: 09/10/16
COB 241 Week 2 Notes The Financial Statements A. Income Statement B. Statement of Changes in Equity C. Balance Sheet D. Statement of Cash Flow Flow Statement Keeps track of transactions over a time period, temporary accounts. Resets after a certain period of time. Stock Statement Articulates all of the flow statements, does not reset every year. Statement of Change in Equity Beginning Common stock Common Stock Issued Ending Common Stock Beginning Retained Earnings Net Income Dividends Statement of Cash Flows Operating activities Income Statement Current Liabilities Current Assets Income Statement Services Revenue Interest Revenue Interest Expense Rent Expense Salary Expense Net Income Balance Sheet Assets o Cash o Accounts Receivable o Prepaid Expense o Supplies/Inventory o Land o Building o Equipment Liabilities o Accounts Payable o Salaries Payable o Unearned Revenue o Notes Payable Equity o Contributed Capital o Retained Earnings Double Entry Accounting System Financial Transaction any event that affects the financial position of the company and can be reliably recorded TAccounts Organizes financial transactions into debits and credits for specific accounts o Debits go on the left of a Tchart and Credits on the right Journal Entries Individual transactions are first recorded in a journal Rules for Debits and Credits An account is debited if: An asset increases A liability decreases Contributed Capital decreases A dividend is paid An account is credited if: An asset decreases A liability increases Contributed Capital increases Accrual Accounting An entry that doesn’t involve an exchange of cash Inventory Something you get in raw form and sell as a finished product
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