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Chapter 2
Financial Statement
Chapter 2
Financial Statement
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 22
• The financial position statement shows the assets, liabilities
and owner’s equity of a business at specified date.
• Assets are economic resources which are owned by a
business and are expected to benefit future operations.
• Liabilities are an obligation of business to pay a debt.
• Owner’s equity is the amount by which the business assets
exceed the business liabilities (Assets – Liabilities).
Financial Position StatementFinancial Position Statement (Balance Sheet)(Balance Sheet)11
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 33
500,000Total500,000Total
370,000Owner’s Equity
130,000Total Liabilities380,000Equipments
30,000Accounts Payable50,000Auto Supplies
100,000Long-term Liabilities50,000Accounts Receivable
Liabilities:20,000Cash
Liabilities & Owner’s EquityAssets
Financial Position Statement, December 31, 2005
Anatta
11 Financial Position StatementFinancial Position Statement
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 44
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 55
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 66
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 77
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 88
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 99
IIncome ncome StatementStatement12
• The income statement, sometimes called a profit and loss
statement, shows the revenues, expenses and net
income(net profit) or net loss for a specified period of time.
• Revenues are assets increased or liabilities decreased in
exchange for goods or services provided to customers.
• Expenses are assets decreased or liabilities increased in
operating a business.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 1010
100,000Operating Income
700,00030,000Depreciation Expense
130,000Utilities Expense
240,000Rent Expense
200,000Auto Supplies Expense
100,000Salaries Expense
Expenses:
800,000Revenue from repairing
Income Statement for the Year Ended December 31, 2005
Anatta
IIncome ncome StatementStatement12
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 1111
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 1212
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 1313
A business transaction is an exchange of goods or services, and
business transactions affect the elements (assets, liabilities and
owner’s equity) of the Financial Position Statement.
EffectsEffects ofof transactionstransactions onon
the the financial position statementfinancial position statement
13
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 1414
Liabilities and Owner's EquityAssets
Financial Position Statement, March 1, 2006
1) March 1, 2006: Miss Dararai invested ฿20,000 in cash in the
beauty shop.
13EffectsEffects ofof transactionstransactions onon
the the financial position statementfinancial position statement
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 1515
Liabilities and Owner's EquityAssets
Financial Position Statement, March 1, 2006
1) March 1, 2006: Miss Dararai invested ฿20,000 in cash in the
beauty shop.
13EffectsEffects ofof transactionstransactions onon
the the financial position statementfinancial position statement
Analysis of the transaction:
The asset equipment is increased,
and a liability (accounts payable) is increased.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 1616
20,000Total20,000Total
20,000Owner's Equity20,000Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 1, 2006
1) March 1, 2006: Miss Dararai invested ฿20,000 in cash in the
beauty shop.
13EffectsEffects ofof transactionstransactions onon
the the financial position statementfinancial position statement
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 1717
Liabilities and Owner's EquityAssets
Financial Position Statement, March 3, 2006
13
20,000Total20,000Total
20,000Owner's Equity20,000Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 1, 2006
2) March 3, 2006: Purchased equipment for cash, ฿11,500.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 1818
Liabilities and Owner's EquityAssets
Financial Position Statement, March 3, 2006
13
20,000Total20,000Total
20,000Owner's Equity20,000Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 1, 2006
2) March 3, 2006: Purchased equipment for cash, ฿11,500.
Analysis of the transaction:
The asset equipment is increased,
and the asset cash is decreased.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 1919
20,000Total20,000Total
11,500Equipments
20,000Owner's Equity8,500Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 3, 2006
13
20,000Total20,000Total
20,000Owner's Equity20,000Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 1, 2006
2) March 3, 2006: Purchased equipment for cash, ฿11,500.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 2020
Liabilities and Owner's EquityAssets
Financial Position Statement, March 7, 2006
20,000Total20,000Total
11,500Equipments
20,000Owner's Equity8,500Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 3, 200614
3) March 7, 2006: Purchased equipment on credit, ฿3,500.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 2121
Liabilities and Owner's EquityAssets
Financial Position Statement, March 7, 2006
20,000Total20,000Total
11,500Equipments
20,000Owner's Equity8,500Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 3, 200614
3) March 7, 2006: Purchased equipment on credit, ฿3,500.
Analysis of the transaction:
The asset equipment is increased,
and a liability (accounts payable) is increased.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 2222
23,500Total23,500Total
20,000Owner's Equity15,000Equipments
3,500Accounts Payable8,500Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 7, 2006
20,000Total20,000Total
11,500Equipments
20,000Owner's Equity8,500Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 3, 200614
3) March 7, 2006: Purchased equipment on credit, ฿3,500.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 2323
Liabilities and Owner's EquityAssets
Financial Position Statement, March 10, 2006
23,500Total23,500Total
20,000Owner's Equity15,000Equipments
3,500Accounts Payable8,500Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 7, 200614
4) March 10, 2006: Purchased supplies on credit, ฿1,200.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 2424
Liabilities and Owner's EquityAssets
Financial Position Statement, March 10, 2006
23,500Total23,500Total
20,000Owner's Equity15,000Equipments
3,500Accounts Payable8,500Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 7, 200614
4) March 10, 2006: Purchased supplies on credit, ฿1,200.
Analysis of the transaction:
The asset supplies are increased,
and a liability (accounts payable) is increased.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 2525
24,700Total24,700Total
15,000Equipments
20,000Owner's Equity1,200Supplies
4,700Accounts Payable8,500Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 10, 2006
23,500Total23,500Total
20,000Owner's Equity15,000Equipments
3,500Accounts Payable8,500Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 7, 200614
4) March 10, 2006: Purchased supplies on credit, ฿1,200.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 2626
Liabilities and Owner's EquityAssets
Financial Position Statement, March 15, 2006
24,700Total24,700Total
15,000Equipments
20,000Owner's Equity1,200Supplies
4,700Accounts Payable8,500Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 10, 200615
5) March 15: Completed beauty work and immediately collected ฿4,300 cash.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 2727
Liabilities and Owner's EquityAssets
Financial Position Statement, March 15, 2006
24,700Total24,700Total
15,000Equipments
20,000Owner's Equity1,200Supplies
4,700Accounts Payable8,500Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 10, 200615
5) March 15: Completed beauty work and immediately collected ฿4,300 cash.
Analysis of the transaction:
This revenue transaction increased
both asset cash and owner’s equity.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 2828
29,000Total29,000Total
15,000Equipments
24,300Owner's Equity1,200Supplies
4,700Accounts Payable12,800Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 15, 2006
24,700Total24,700Total
15,000Equipments
20,000Owner's Equity1,200Supplies
4,700Accounts Payable8,500Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 10, 200615
5) March 15: Completed beauty work and immediately collected ฿4,300 cash.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 2929
Liabilities and Owner's EquityAssets
Financial Position Statement, March 18, 2006
29,000Total29,000Total
15,000Equipments
24,300Owner's Equity1,200Supplies
4,700Accounts Payable12,800Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 15, 200615
6) March 18, 2006: Paid the rent for the beauty shop, ฿750.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 3030
Liabilities and Owner's EquityAssets
Financial Position Statement, March 18, 2006
29,000Total29,000Total
15,000Equipments
24,300Owner's Equity1,200Supplies
4,700Accounts Payable12,800Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 15, 200615
6) March 18, 2006: Paid the rent for the beauty shop, ฿750.
Analysis of the transaction:
This expense transaction decreased
both asset cash and owner’s equity.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 3131
28,250Total28,250Total
15,000Equipments
23,550Owner's Equity1,200Supplies
4,700Accounts Payable12,050Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 18, 2006
29,000Total29,000Total
15,000Equipments
24,300Owner's Equity1,200Supplies
4,700Accounts Payable12,800Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 15, 200615
6) March 18, 2006: Paid the rent for the beauty shop, ฿750.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 3232
Liabilities and Owner's EquityAssets
Financial Position Statement, March 21 , 2006
16
28,250Total28,250Total
15,000Equipments
23,550Owner's Equity1,200Supplies
4,700Accounts Payable12,050Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 18, 2006
7) March 21, 2006: Completed beauty work for two clients on credit, ฿1,300.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 3333
Liabilities and Owner's EquityAssets
Financial Position Statement, March 21 , 2006
16
28,250Total28,250Total
15,000Equipments
23,550Owner's Equity1,200Supplies
4,700Accounts Payable12,050Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 18, 2006
7) March 21, 2006: Completed beauty work for two clients on credit, ฿1,300.
Analysis of the transaction:
This revenue transaction increased
both asset accounts receivable and owner’s equity.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 343429,550Total29,550Total
15,000Equipments
1,200Supplies
24,850Owner's Equity1,300Accounts Receivable
4,700Accounts Payable12,050Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 21 , 2006
16
28,250Total28,250Total
15,000Equipments
23,550Owner's Equity1,200Supplies
4,700Accounts Payable12,050Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 18, 2006
7) March 21, 2006: Completed beauty work for two clients on credit, ฿1,300.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 3535
Liabilities and Owner's EquityAssets
Financial Position Statement, March 22, 2006
29,550Total29,550Total15,000Equipments1,200Supplies
24,850Owner's Equity1,300Accounts Receivable4,700Accounts Payable12,050Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 21 , 200616
8) March 22, 2006: Paid for the equipment purchased in transaction (3), ฿3,500.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 3636
Liabilities and Owner's EquityAssets
Financial Position Statement, March 22, 2006
29,550Total29,550Total15,000Equipments1,200Supplies
24,850Owner's Equity1,300Accounts Receivable4,700Accounts Payable12,050Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 21 , 200616
8) March 22, 2006: Paid for the equipment purchased in transaction (3), ฿3,500.
Analysis of the transaction:
The asset cash is decreased
and a liability (accounts payable) is decreased.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 3737
26,050Total26,050Total15,000Equipments1,200Supplies
24,850Owner's Equity1,300Accounts Receivable1,200Accounts Payable8,550Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 22, 2006
29,550Total29,550Total15,000Equipments1,200Supplies
24,850Owner's Equity1,300Accounts Receivable4,700Accounts Payable12,050Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 21 , 200616
8) March 22, 2006: Paid for the equipment purchased in transaction (3), ฿3,500.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 3838
Liabilities and Owner's EquityAssets
Financial Position Statement, March 25, 2006
26,050Total26,050Total15,000Equipments1,200Supplies
24,850Owner's Equity1,300Accounts Receivable1,200Accounts Payable8,550Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 22, 200617
9) March 25, 2006: Received ฿700 from customer on account in transaction (7).
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 3939
Liabilities and Owner's EquityAssets
Financial Position Statement, March 25, 2006
26,050Total26,050Total15,000Equipments1,200Supplies
24,850Owner's Equity1,300Accounts Receivable1,200Accounts Payable8,550Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 22, 200617
9) March 25, 2006: Received ฿700 from customer on account in transaction (7).
Analysis of the transaction:
The asset cash is increased
and the asset accounts receivable is decreased.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 4040
26,050Total26,050Total15,000Equipments1,200Supplies
24,850Owner's Equity600Accounts Receivable1,200Accounts Payable9,250Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 25, 2006
26,050Total26,050Total15,000Equipments1,200Supplies
24,850Owner's Equity1,300Accounts Receivable1,200Accounts Payable8,550Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 22, 200617
9) March 25, 2006: Received ฿700 from customer on account in transaction (7).
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 4141
Liabilities and Owner's EquityAssets
Financial Position Statement, March 26, 2006
26,050Total26,050Total15,000Equipments1,200Supplies
24,850Owner's Equity600Accounts Receivable1,200Accounts Payable9,250Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 25, 200617
10) March 26: Withdrew ฿1,000 from the shop to pay personal living expense.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 4242
Liabilities and Owner's EquityAssets
Financial Position Statement, March 26, 2006
26,050Total26,050Total15,000Equipments1,200Supplies
24,850Owner's Equity600Accounts Receivable1,200Accounts Payable9,250Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 25, 200617
10) March 26: Withdrew ฿1,000 from the shop to pay personal living expense.
Analysis of the transaction:
The asset cash is decreased
and owner’s equity is decreased.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 434325,050Total25,050Total
15,000Equipments1,200Supplies
23,850Owner's Equity600Accounts Receivable1,200Accounts Payable8,250Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 26, 2006
26,050Total26,050Total15,000Equipments1,200Supplies
24,850Owner's Equity600Accounts Receivable1,200Accounts Payable9,250Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 25, 200617
10) March 26: Withdrew ฿1,000 from the shop to pay personal living expense.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 4444
Liabilities and Owner's EquityAssets
Financial Position Statement, March 31, 2006
25,050Total25,050Total15,000Equipments1,200Supplies
23,850Owner's Equity600Accounts Receivable1,200Accounts Payable8,250Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 26, 200618
11&12) March 31: Paid the salary, ฿1,500 and the utilities expense, ฿950.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 4545
Liabilities and Owner's EquityAssets
Financial Position Statement, March 31, 2006
25,050Total25,050Total15,000Equipments1,200Supplies
23,850Owner's Equity600Accounts Receivable1,200Accounts Payable8,250Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 26, 200618
11&12) March 31: Paid the salary, ฿1,500 and the utilities expense, ฿950.
Analysis of the transaction:
The asset cash is decreased by $2,450 ($1,500 + $9500)
and owner’s equity is decreased.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 4646
22,600Total22,600Total15,000Equipments1,200Supplies
21,400Owner's Equity600Accounts Receivable1,200Accounts Payable5,800Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 31, 2006
25,050Total25,050Total15,000Equipments1,200Supplies
23,850Owner's Equity600Accounts Receivable1,200Accounts Payable8,250Cash
Liabilities and Owner's EquityAssets
Financial Position Statement, March 26, 200618
11&12) March 31: Paid the salary, ฿1,500 and the utilities expense, ฿950.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 4747
Accounting EquationAccounting Equation
Assets = Liabilities + Owner's Equity
18
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 4848
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
20
21
1) March 1, 2006: Invested ฿20,000 cash in the beauty shop.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 4949
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)
20
21
1) March 1, 2006: Invested ฿20,000 cash in the beauty shop.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 5050
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)
20
21
2) March 3, 2006: Purchased equipment for cash, ฿11,500.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 5151
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
20
21
2) March 3, 2006: Purchased equipment for cash, ฿11,500.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 5252
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
20
21
3) March 7, 2006: Purchased equipment on credit, ฿3,500.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 5353
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)
20
21
3) March 7, 2006: Purchased equipment on credit, ฿3,500.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 5454
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)
20
21
4) March 10, 2006: Purchased supplies on credit, ฿1,200.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 5555
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
20
21
4) March 10, 2006: Purchased supplies on credit, ฿1,200.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 5656
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
20
21
5) March 15: Completed beauty work and immediately collected ฿4,300 cash.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 5757
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)
20
21
5) March 15: Completed beauty work and immediately collected ฿4,300 cash.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 5858
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)
20
21
6) March 18, 2006: Paid the rent for the beauty shop, ฿750.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 5959
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)
20
21
6) March 18, 2006: Paid the rent for the beauty shop, ฿750.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 6060
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)
20
21
7) March 21: Completed beauty work for two clients on credit, ฿1,300.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 6161
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
20
21
7) March 21: Completed beauty work for two clients on credit, ฿1,300.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 6262
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
20
21
8) March 22: Paid for the equipment purchased in transaction (3), ฿3,500.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 6363
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)
20
21
8) March 22: Paid for the equipment purchased in transaction (3), ฿3,500.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 6464
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)
20
21
9) March 25: Received ฿700 from customer on account in transaction (7).
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 6565
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)-700+7009)
20
21
9) March 25: Received ฿700 from customer on account in transaction (7).
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 6666
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)-700+7009)
20
21
10) March 26: Withdrew ฿1,000 from the shop to pay personal living expense.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 6767
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)-700+7009)
Withdrawals-1,000-1,00010)
20
21
10) March 26: Withdrew ฿1,000 from the shop to pay personal living expense.
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 6868
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)-700+7009)
-1,000-1,00010)
20
21
11) March 31: Paid the salary, ฿1,500
Withdrawals
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 6969
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)-700+7009)
-1,000-1,00010)Salary-1,500-1,50011)
20
21
11) March 31: Paid the salary, ฿1,500
Withdrawals
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 7070
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)-700+7009)
-1,000-1,00010)Salary-1,500-1,50011)
20
21
12) March 31: Paid the utilities expense, ฿950.
Withdrawals
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 7171
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)-700+7009)
-1,000-1,00010)Salary-1,500-1,50011)Utilities-950-95012)
20
21
12) March 31: Paid the utilities expense, ฿950.
Withdrawals
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 7272
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)-700+7009)
-1,000-1,00010)Salary-1,500-1,50011)Utilities-950-95012)
21,4001,20015,0001,2006005,800
20
21
Withdrawals
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 7373
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)-700+7009)
-1,000-1,00010)Salary-1,500-1,50011)Utilities-950-95012)
20
21
22,600 22,600 Withdrawals
21,4001,20015,0001,2006005,800
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 7474
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)-700+7009)
-1,000-1,00010)Salary-1,500-1,50011)Utilities-950-95012)
20
21
Revenue 5,600
Expenses:
Rent 750
Salary 1,500
Utilities 950 3,200
Net Income 2,400
Income Statement for the month of March 2006
Withdrawals
21,4001,20015,0001,2006005,800
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 7575
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)-700+7009)
-1,000-1,00010)Salary-1,500-1,50011)Utilities-95012)
20
21
Financial Position
Statement
Revenue 5,600
Expenses:
Rent 750
Salary 1,500
Utilities 950 3,200
Net Income 2,400
Income Statement for the month of March 2006
Withdrawals
21,4001,20015,0001,2006005,800
-950
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 7676
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)-700+7009)
-1,000-1,00010)Salary-1,500-1,50011)Utilities-950-95012)
20
21
Financial Position
Statement
Revenue 5,600
Expenses:
Rent 750
Salary 1,500
Utilities 950 3,200
Net Income 2,400
Income Statement for the month of March 2006
Withdrawals
21,4001,20015,0001,2006005,800
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 7777
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)-700+7009)
-1,000-1,00010)Salary-1,500-1,50011)Utilities-950-95012)
20
21
Financial Position
Statement
Withdrawals
21,4001,20015,0001,2006005,800
Cash 5,800 Accounts Payable 1,200
Accounts Receivable 600 Owner's Equity:
Supplies 1,200 Beginning Cap. 20,000
Equipments 15,000 Add Net Income 2,400
Less Withdraw. (1000) 21,400
Total Assets 22,600 22,600
Financial Position Statement, March 31, 2006
Assets Liabilities and Owner's Equity
Total Lia. and Owner's Equity
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 7878
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)-700+7009)
-1,000-1,00010)Salary-1,500-1,50011)Utilities-950-95012)
20
21
Cash Flows Statement for the month of March 2006
5,000Cash receipts from customers
Cash flow from operating activitiesCash flow from operating activities
(Revenue on cash basis)
Withdrawals
21,4001,20015,0001,2006005,800
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 7979
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)-700+7009)
-1,000-1,00010)Salary-1,500-1,50011)Utilities-950-95012)
20
21
Cash Flows Statement for the month of March 2006
(3,200)Cash payments for expenses
5,000Cash receipts from customers
Cash flow from operating activitiesCash flow from operating activities
Withdrawals
21,4001,20015,0001,2006005,800
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 8080
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)-700+7009)
-1,000-1,00010)Salary-1,500-1,50011)Utilities-950-95012)
20
21
Cash Flows Statement for the month of March 2006
1,800Net cash provided by operating
(3,200)Cash payments for expenses
5,000Cash receipts from customers
Cash flow from operating activitiesCash flow from operating activities
(Net income on cash basis)
Withdrawals
21,4001,20015,0001,2006005,800
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 8181
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)-700+7009)
-1,000-1,00010)Salary-1,500-1,50011)Utilities-950-95012)
20
21
Cash Flows Statement for the month of March 2006
(15,000)Purchase of equipments
Cash flow from investing activitiesCash flow from investing activities
1,800Net cash provided by operating
(3,200)Cash payments for expenses
5,000Cash receipts from customers
Cash flow from operating activitiesCash flow from operating activities
Withdrawals
21,4001,20015,0001,2006005,800
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 8282
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)-700+7009)
-1,000-1,00010)Salary-1,500-1,50011)Utilities-950-95012)
20
21
Cash Flows Statement for the month of March 2006
(1,000)Drawing by owner
20,000Investment by owner
Cash flow from financing activitiesCash flow from financing activities
(15,000)Purchase of equipments
Cash flow from investing activitiesCash flow from investing activities
1,800Net cash provided by operating
(3,200)Cash payments for expenses
5,000Cash receipts from customers
Cash flow from operating activitiesCash flow from operating activities
Withdrawals
21,4001,20015,0001,2006005,800
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 8383
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)-700+7009)
-1,000-1,00010)Salary-1,500-1,50011)Utilities-950-95012)
20
21
Cash Flows Statement for the month of March 2006
19,000Net cash provided by financing
(1,000)Drawing by owner
20,000Investment by owner
Cash flow from financing activitiesCash flow from financing activities
(15,000)Purchase of equipments
Cash flow from investing activitiesCash flow from investing activities
1,800Net cash provided by operating
(3,200)Cash payments for expenses
5,000Cash receipts from customers
Cash flow from operating activitiesCash flow from operating activities
Withdrawals
21,4001,20015,0001,2006005,800
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 8484
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)-700+7009)
-1,000-1,00010)Salary-1,500-1,50011)Utilities-950-95012)
20
21
Cash Flows Statement for the month of March 2006
19,000Net cash provided by financing
5,800Net increase in cash
(1,000)Drawing by owner
20,000Investment by owner
Cash flow from financing activitiesCash flow from financing activities
(15,000)Purchase of equipments
Cash flow from investing activitiesCash flow from investing activities
1,800Net cash provided by operating
(3,200)Cash payments for expenses
5,000Cash receipts from customers
Cash flow from operating activitiesCash flow from operating activities
Withdrawals
21,4001,20015,0001,2006005,800
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 8585
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)-700+7009)
-1,000-1,00010)Salary-1,500-1,50011)Utilities-950-95012)
20
21
Cash Flows Statement for the month of March 2006
19,000Net cash provided by financing
-0-Cash at the beginning of the month
5,800Net increase in cash
(1,000)Drawing by owner
20,000Investment by owner
Cash flow from financing activitiesCash flow from financing activities
(15,000)Purchase of equipments
Cash flow from investing activitiesCash flow from investing activities
1,800Net cash provided by operating
(3,200)Cash payments for expenses
5,000Cash receipts from customers
Cash flow from operating activitiesCash flow from operating activities
Withdrawals
21,4001,20015,0001,2006005,800
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 8686
Owner's EquityLia.Assets
Capital + Rev. - Exp.A/PEquip.Sup.A/RCash
Capital+20,000+20,0001)+11,500- 11,5002)
+3,500+3,5003)+1,200+1,2004)
Revenue+4,300+4,3005)Rent-750-7506)Revenue+1,300+1,3007)
-3,500-3,5008)-700+7009)
-1,000-1,00010)Salary-1,500-1,50011)Utilities-950-95012)
20
21
Cash Flows Statement for the month of March 2006
19,000Net cash provided by financing
5,800Cash at the end of the month
-0-Cash at the beginning of the month
5,800Net increase in cash
(1,000)Drawing by owner
20,000Investment by owner
Cash flow from financing activitiesCash flow from financing activities
(15,000)Purchase of equipments
Cash flow from investing activitiesCash flow from investing activities
1,800Net cash provided by operating
(3,200)Cash payments for expenses
5,000Cash receipts from customers
Cash flow from operating activitiesCash flow from operating activities
Withdrawals
21,4001,20015,0001,2006005,800
Fundamental AccountingFundamental Accounting www.thailandaccount.com & www.ac13.tkwww.thailandaccount.com & www.ac13.tk 8787
End of ChapterEnd of Chapter 22The numbers in the topThe numbers in the top--left cornerleft corner of slide of slide
refer to page numbers of this book refer to page numbers of this book ((Fundamental AccountingFundamental Accounting))
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