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Financial Statement Analysis Summary

1. The document shows accounting transactions that affect a company's balance sheet and income statement. 2. Various transactions are recorded that increase or decrease assets, liabilities, contributed capital and earned capital. 3. The net effect of the transactions is an increase in the company's net income of $12,450 for the period.

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Abhishek Chandna
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6 views1 page

Financial Statement Analysis Summary

1. The document shows accounting transactions that affect a company's balance sheet and income statement. 2. Various transactions are recorded that increase or decrease assets, liabilities, contributed capital and earned capital. 3. The net effect of the transactions is an increase in the company's net income of $12,450 for the period.

Uploaded by

Abhishek Chandna
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Balance Sheet Income Statement

Cash Noncash Liabil- Contrib. Earned Rev- Expen- Net


Transaction + = + + =
Asset Assets ities Capital Capital enues ses Income

+11,400
11,400 +11,400
1) = (Retained = +11,400
(Fees Rec.) (Sales)
Earnings)

-4,800 -4,800 +4,800


2) (Prepaid = (Retained (Advert. = -4,800
Advertising) Earnings) Exp.)

+4,800
-4,800 -4,800
(Maint-
3) (Prepaid = (Retained = -4,800
enance
Expenses) Earnings)
Exp)

+1,920 -1,920 +1,920


4) = (Rent (Retained (Rent = -1,920
Payable) Earnings) Exp.)

+1,200 +1,200 +1,200


5) (Interest = (Retained (Interest = +1,200
Receivable) Earnings) Income)

-10,440 +10,440
-10,440
6) = (Retained (Depn = -10,440
(PPE, net)
Earnings) Exp.)

+15,000 -15,000 +15,000


7) = (Wages (Retained (Wages = -15,000
Payable) Earnings) Exp.)

+12,450
+12,450 +12,450
8) = (Retained = +12,450
(AR) (Sales)
Earnings)

+2,400 -2,400 +2,400


9) = (Interest (Retained (Interest = -2,400
Payable) Earnings) Exp.)

-12,000 +12,000
+12,000
10) = (Unearned (Retained = +12,000
(Sales)
Revenue) Earnings)

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