Cheat Sheet Balance Sheet Assets Cash Account Receivable Prepaid insurance/rent/consultant fee/ Inventory Total Current Assets: Building Accum. Dep. Land Accum. Dep. Equipment Accum. Dep. Total Fixed Assets: Total Assets: Liabilities Note Payable Interest Payable Account Payable Unearned Revenue Current/ Long-Term Liabilities: Income Statement Revenue Sales (Cost of Goods Sold) Income Fee Gross Profit: Expense Salary Expense Utility Expense Interest Expense Insurance Expense Depreciation Expense Total Expense: Gain/(Loss)Sale Land Net Income: Statement of Retained Earnings Beginning Balance Net Income (Dividends) Ending Balance: Total Liabilities: Stockholders’ Equity Common Stock End of Statement of Retained Earning Total Stockholders’ Equity: Total Liabilities + Stockholders’ Equity:       Cost of goods sold is Inventory (Revenue) NOT Expense! Unearned Revenue = Cash Gross Profit = Revenue – Cost of Goods Sold Prepaid amount is the total amount MINUS the month amount Expense is only the ONE month Land: o Subtract amount of land sold NOT the price sold o Land is always land amount subtract the amount received from selling the land  Accrual Accounting ALWAYS record money that is either received or not always record in revenue!!  Dividends comes out of Cash; Subtract in Statement of Retained Earnings Cheat Sheet Statement of Cash Flows Operating (Salaries) Unearned Revenue Sales (Account Payable) (Account Receivable) (Purchased Insurance) (Paid Consultant) Collected From Customers Total Cash For Operation: Investing (Land) (Building) (Equipment) Land Sale Total Cash For Investing: Financing Issued Common Stock Borrowed From Bank Total Cash For Financing: Ending Cash Balance: (Operation, Investing, Financing) Balance Sheet Assets=Liabilities Stockholders’ Equity Current assets less than a year/ Fixed more than a year Current assets: anything that can be turned into cash immediately Income Statement Net income=revenue -expenses Sold= receivable Purchase= payable End of Period Adjustment: Bank: interest Interest payable Building/Equipment Accumulated Depreciation/ Depreciation Prepaid: insurance, rent, consulting fee Cash Flows Financing  Transactions with stockholders  Transactions with bankers  Issuing stock Investing  fixed assets, buying and selling  Land  Equipement Cheat Sheet  Buildings Operating  Any other cash transactions Inflows  Sales  Collecting receivables  Collecting unearned revenues Outflows  Paying wages  Paying rent  Inventory  Utilities  Accounts payable  Interest