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U.S. GAAP Codification IFRS International Standards Accounting Topics

Further Analysis of Transactions

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Summary of Transactions from previous file.
 
No. Date   Transactions
(1) May 1   Owner invested $20,000 in the company.
(2) May 3   Borrowed $10,000 from a bank.
(3) May 6   Purchased $15,000 equipment in cash.
(4) May 8   Purchased $9,000 merchandise (900 units) on credit.
(5) May 15   Sold 500 units of merchandise at the price of $11,000.  
    Customer paid $8,000 in cash at the time of sale.
(6) May 25   Paid $2,500 salaries.
(7) May 26   Paid $1,500 rent.
 

Summary of Journal Entries from previous file.
 

No.

Journal Entries

Debit

Credit

     
(1) Cash

10,000

 
(1)   Owner's Equity  

10,000

Owner invested $10,000 in the company.     
 

 
(2) Cash

20,000

 
(2)   Borrowings  

20,000

Borrowed $20,000.    
     
(3) Equipment

12,000

 
(3)   Cash  

12,000

Purchased $12,000 equipment in cash.

 
     
(4) Merchandise

6,000

 
(4)   Accounts Payable  

6,000

Purchased $6,000 merchandise on credit.

 
     
(5)-1 Cash

9,000

 
(5)-1 Accounts Receivable

2,000

 
(5)-1   Sales  

11,000

Sold merchandise at $11,000 price and received $9,000 in cash.

 
     
(5)-2 Cost of Goods Sold

5,000

 
(5)-2   Merchandise  

5,000

To record the cost of goods sold ($5,000 merchandise).

 
     
(6) Salaries Expense

2,500

 
(6)   Cash  

3,500

Paid $2,500 salaries.

 
     
(7) Rent Expense

1,500

 
(7)   Cash  

1,500

Paid $1,500 rent.

 




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Calculating Accounting Balances
 

Cash

Debit

Credit

(1)

10,000

(3)

12,000

(2) 20,000

(6)

2,500

(5)-1 9,000

(7)

1,500

 

 

  

  

Balance 23,000

 

 

   

 

 

 

Accounts Receivable

Debit

Credit

(5)-1

2,000

  

 
 

 

  

  

Balance 2,000

 

 

   

 

 

 

Merchandise

Debit

Credit

(4)

6,000

(5)-2

5,000

 

 

 

 

Balance 1,000

 

 

   

 

 

 

Equipment

Debit

Credit

(3)

12,000

 

 

 

 

  

  

Balance 12,000

 

 

   

 

 

 

Accounts Payable

Debit

Credit

 

 

 (4)

6,000

 

 

  

  

      

 Balance

 6,000

   

 

 

 

Sales

Debit

Credit

  

  

 (5)-1

11,000

 

 

  

  

        

 Balance

 11,000

     

 

  

 

Cost of Goods Sold

Debit

Credit

(5)-2

5,000

 

 
 

 

    

  

Balance 5,000

   

  

   

  

 

 

Salaries Expense

Debit

Credit

(6)

2,500

  

 
 

 

  

  

Balance 2,500

 

 

   

 

 

 

Rent Expense

Debit

Credit

(7)

1,500

  

 
 

 

  

  

Balance 1,500

 

 

   

 

 




Balance Sheet and Income Statement
 

Balance Sheet
As of May 31, 20XX

Assets

Liabilities and Owner's Equity

Cash

$ 23,000

 

Accounts Payable

 $  6,000
Accounts Receivable

 2,000

 

Borrowings

  20,000

Merchandise

1,000

 

Equipment

 12,000

 

Owner's Equity

12,000

 (*1)

 

  

 

 

 

 
 
Total Assets $ 38,000    

Total Liabilities and Owner's Equity

 $ 38,000

 

 

Income Statement
For the Period from May 1 to May 31, 20XX

Revenue
      Sales $ 11,000
Total Revenue

$ 11,000

   
Expenses  
      Cost of Goods Sold $ 5,000
      Salaries Expense 2,500
      Rent Expense 1,500
Total Expenses

9,000

   
 
 
Net Income

$ 2,000

 (*2)

(*1) Owner's Equity=Investment by Owner+Net Income=$10,000+$2,000=$12,000
(*2)  Net Income = Total Revenue - Total Expenses = $11,000 - $9,000 = $2,000

 



Review of Accounting Topics


Principles of Accounting:  

This section provides study guides for students in the principles of accounting courses or introduction to financial accounting courses. 

  
  
  




Accounting for General Users:  
 
A guide to accounting for users who are interested in understanding accounting reports.  This section explains what users need to know to understand and analyze accounting information provided in the financial statements.  No prerequisite is required to read this section.  

  
  

    Accounting is an information system.

    Users of accounting information

    Financial accounting for external users

    Managerial accounting for internal users

    Statement of Cash Flows provides information about the cash flow of a company.

    Cash flow from operating activities

    Cash flow from investing activities

    Cash flow from financing activities


Intermediate Accounting:  

This section provides study guides for students in the intermediate accounting courses.  Following topics are discussed in this section.

  
  
 

    Depreciation Methods

    Straight Line Depreciation

    Declining Balance Method

    Sum-of-the-years-digits Method

    Accounting for Bonds Payable

    Price of bonds payable

    Discount on bonds payable

    Premium on bonds payable

    Amortization of discount and premium

    Early extinguishment of debts


U.S. GAAP by Codification Topic
  
 105  GAAP Hierarchy 
 105  GAAP History 

 205  Presentation of Financial Statements 
 205-20 Discontinued Operations 
 210  Balance Sheet 
 210-20 Offsetting 
 220  Comprehensive Income 
 225  Income Statement 
 225-20 Extraordinary and Unusual Items 
 230  Statement of Cash Flows 
 250  Accounting Changes and Error Corrections 
 260  Earnings per Share 
 270  Interim Reporting
 
 310  Impairment of a Loan
 320  Investment Securities 
 320  Other-Than-Temporary Impairments, FSP FAS 115-2 
 320-10-05 Overview of Investments in Other Entities 
 320-10-35 Reclassification of Investments in Securities
 323-10 Equity Method Investments
 323-30 Investments in Partnerships and Joint Ventures 
 325-20 Cost Method Investments 
 330  Inventory

 340-20 Capitalized Advertising Costs 
 350-20 Goodwill 
 350-30 Intangibles Other than Goodwill 
 350-40 Internal-Use Software 
 350-50 Website Development Costs 
 360  Property, Plant and Equipment
 360-20 Real Estate Sales 
 
 410  Asset Retirement and Environmental Obligations 
 420  Exit or Disposal Cost Obligations 
 450  Contingencies 
 450-20 Loss Contingencies 
 450-30 Gain Contingencies
 480  Redeemable Financial Instruments 

 505-20 Stock Dividends, Stock Splits 
 505-30 Treasury Stock 

 605  SEC Staff Accounting Bulletin, Topic 13 
 605-25 Revenue Recognition - Multiple Element Arrangements 
 
 715-30 Defined Benefit Plans - Pension
 718  Share-Based Payment 
 730  Research and Development 
 730-20 Research and Development Arrangements 

 805  Business Combinations  
 810  Consolidation 
 810  Noncontrolling Interests 
 810  Consolidation of Variable Interest Entities, SFAS 167 
 
 815  Derivatives and Hedging Overview 

 820  Fair Value Measurements  
 820  Fair value when the markets are not active, FSP FAS 157-4
 825  Fair Value Option 

 830  Foreign Currency Matters 
 830-20 Foreign Currency Transactions 
 830-30 Translation of Financial Statements 
 835  Interest 
 835-20 Capitalization of Interest 
 835-30 Imputation of Interest 

 840  Leases 
 840-20 Operating Leases 
 840-30 Capital Leases 
 840-40 Sale-Leaseback Transactions
 845  Nonmonetary Transactions 

 855  Subsequent Events 
 860-20 Sale of Financial Assets, SFAS 166 
 860-50 Servicing Assets and Liabilities, SFAS 156 

 985-20 Costs of software to be sold  
 
International Financial Reporting Standards (IFRS)







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