Summary financial and management accounting y1q2

Financial and Management Accounting
Accounting process:
Financial facts > Journal Entry > T-account > trial balance > proft loss account /
income statement > statement of stockholder’s equity > Balance Sheet.
Income Statement:




Proft and Loss account:
Proft and Loss account
Debit (Expenses) Credit (revenues)
Cost of goods sold Sales revenues
Wages expense Fee revenue
Rent expense Interest revenue
Interest expense Rent revenue
Depreciation expense Service revenue
Advertising expense
Income tax expense
Insurance expense




Statement of Stockholder’s equity

, Balance sheet:
Company name, Balance sheet, date
Debit Credit
Current Assets Current Liabilities
Cash Accounts payable
Short-term investments Accrued expenses payable
Accounts Receivable Short-term notes payable
Notes Receivable Interest / Wages / Taxes payable
Inventory Unearned revenue
Supplies Non-current Liabilities
Prepaid expenses Long-term notes payable
Non-current Assets Stockholders’ Equity
Long-term investments Common stock (number of
PPE shares x par value per share)
Accumulated depreciation exp. Additional paid-in-capital
Intangibles (amount received – par value)
Retained earnings
Statement of Cash Flows:




Financial Accounting
Chapter 1