Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana

The McGraw-Hill Companies, I nc., 2007

Completing the
Accounting Cycle
Chapter
4
100 Shares
$1 par value
Cycle????

Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Learning Objectives
Prepare a worksheet
and explain its
usefulness
Explain why temporary
accounts are closed
each period
Describe and prepare
closing entries
Explain and prepare a
post-closing trial
balance
Identify steps in the
accounting cycle
Explain and prepare a
classified balance sheet
Prepare reversing
entries and explain their
purpose
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Benefits of a Work Sheet
Aids the
preparation of
financial
statements.
Reduces
possibility of
errors.
Assists in
planning and
organizing an
audit.
Helps in
preparing
interim financial
statements.
Shows the
effects of
proposed
transactions.
Not a
required
report.

Links accounts
and their
adjustments.
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Dr. Cr. Dr. Cr. Dr. Cr.
Cash 3,950
Accounts receivable -
Supplies 9,720
Prepaid insurance 2,400
Equipment 26,000
Accum. depr. - Equip. -
Accounts payable 6,200
Salaries payable -
Unearned revenue 3,000
C. Taylor, Capital 30,000
C. Taylor, Withdrawals 600
Consulting revenue 5,800
Rental revenue 300
Depr. expense -
Salaries expense 1,400
Insurance expense -
Rent expense 1,000
Supplies expense -
Utilities expense 230
Totals 45,300 45,300
Adjusted
Trial Balance Adjustments
Unadjusted
Trial Balance
FASTFORWARD
WORK SHEET
FOR THE MONTH ENDED 31 DECEMBER 2006
First, enter
the
unadjusted
amounts to
the
worksheet.
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Dr. Cr. Dr. Cr. Dr. Cr.
Cash 3.950
Accounts receivable - f 1.800
Supplies 9.720 b 1.050
Prepaid insurance 2.400 a 100
Equipment 26.000
Accum. depr. - Equip. - c 375
Accounts payable 6.200
Salaries payable - e 210
Unearned revenue 3.000 d 250
C. Taylor, Capital 30.000
C. Taylor, Withdrawals 600
Consulting revenue 5.800 d 250
f 1.800
Rental revenue 300
Depr. expense - c 375
Salaries expense 1.400 e 210
Insurance expense - a 100
Rent expense 1.000
Supplies expense - b 1.050
Utilities expense 230
Totals 45.300 45.300 3.785 3.785
Adjusted
Trial Balance Adjustments
Unadjusted
Trial Balance
Next, enter the
adjustments.
FASTFORWARD
WORK SHEET
FOR THE MONTH ENDED 31 DECEMBER
2006
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Dr. Cr. Dr. Cr. Dr. Cr.
Cash 3,950 3,950
Accounts receivable - f 1,800 1,800
Supplies 9,720 b 1,050 8,670
Prepaid insurance 2,400 a 100 2,300
Equipment 26,000 26,000
Accum. depr. - Equip. - c 375 375
Accounts payable 6,200 6,200
Salaries payable - e 210 210
Unearned revenue 3,000 d 250 2,750
C. Taylor, Capital 30,000 - 30,000
C. Taylor, Withdrawals 600 600
Consulting revenue 5,800 d 250 7,850
f 1,800
Rental revenue 300 300
Depr. expense - c 375 375
Salaries expense 1,400 e 210 1,610
Insurance expense - a 100 100
Rent expense 1,000 1,000
Supplies expense - b 1,050 1,050
Utilities expense 230 230
Totals 45,300 45,300 3,785 3,785 47,685 47,685
Adjusted
Trial Balance Adjustments
Unadjusted
Trial Balance
Prepare
adjusted trial
balance.
FASTFORWARD
WORK SHEET
FOR THE MONTH ENDED 31 DECEMBER 2006
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
FastForward
Work Sheet
For Month Ended December 31, 2004
Sort adjusted trial balance
amounts to financial statements.
Dr. Cr. Dr. Cr. Dr. Cr.
Cash 3,950 3,950
Accounts receivable 1,800 1,800
Supplies 8,670 8,670
Prepaid insurance 2,300 2,300
Equipment 26,000 26,000
Accum. depr. - Equip. 375 375
Accounts payable 6,200 6,200
Salaries payable 210 210
Unearned revenue 2,750 2,750
C. Taylor, Capital 30,000 30,000
C. Taylor, Withdrawals 600 600
Consulting revenue 7,850 7,850
Rental revenue 300 300
Depr. expense 375 375
Salaries expense 1,610 1,610
Insurance expense 100 100
Rent expense 1,000 1,000
Supplies expense 1,050 1,050
Utilities expense 230 230
Totals 47,685 47,685 4,365 8,150 43,320 39,535
Balance Sheet &
Statement of Equity Statement
Adjusted
Trial Balance
Income
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Dr. Cr. Dr. Cr. Dr. Cr.
Cash 3,950 3,950
Accounts receivable 1,800 1,800
Supplies 8,670 8,670
Prepaid insurance 2,300 2,300
Equipment 26,000 26,000
Accum. depr. - Equip. 375 375
Accounts payable 6,200 6,200
Salaries payable 210 210
Unearned revenue 2,750 2,750
C. Taylor, Capital 30,000 30,000
C. Taylor, Withdrawals 600 600
Consulting revenue 7,850 7,850
Rental revenue 300 300
Depr. expense 375 375
Salaries expense 1,610 1,610
Insurance expense 100 100
Rent expense 1,000 1,000
Supplies expense 1,050 1,050
Utilities expense 230 230
Totals 47,685 47,685 4,365 8,150 43,320 39,535
Profit for the period 3,785 3,785
8,150 8,150 43,320 43,320
Balance Sheet &
Statement of Equity Statement
Adjusted
Trial Balance
Income
FastForward
Work Sheet
For Month Ended December 31, 2004
Total statement columns, compute income or loss, and
balance columns.
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
FASTFORWARD
INCOME STATEMENT
FOR THE MONTH ENDED 31 DECEMBER 2006
Revenues:
Consulting revenue $7,850
Rental revenue 300
Total revenues 8,150
Less:
Operating expenses:
Depr. expense - Equip. 375
Salaries expense 1,610
Insurance expense 100
Rent expense 1,000
Supplies expense 1,050
Utilities expense 230
Total expenses 4,365
Profit for the period $3,785
Prepare the Income
Statement.
Prepare the Financial Statements
A work sheet
does not
substitute for
financial
statements.
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Prepare the Statement of
Changes in Owners Equity.
FASTFORWARD
INCOME STATEMENT
FOR THE MONTH ENDED 31 DECEMBER 2006
Revenues
Consulting revenue $7,850
Rental revenue 300
Total revenues 8,150
Operating expenses
Depr. expense - Equip. (375)
Salaries expense (1,610)
Insurance expense (100)
Rent expense (1,000)
Supplies expense (1,050)
Utilities expense (230)
Profit for the period $3,785
FASTFORWARD
STATEMENT OF OWNER'S EQUITY
FOR THE MONTH ENDED 31 DECEMBER 2006
C. Taylor, Capital 1/12/06 $ -0-
Profit for the period $ 3,785
Investment by owner 30,000 $33,785
$33,785
Withdrawal by owner (600)
C. Taylor, Capital 31/12/06 $33,185


Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
FASTFORWARD
BALANCE SHEET
31 DECEMBER 2006
Non-current assets
Equipment $ 26,000
Less: accum. depr. 375 $25,625
Current assets
Cash 3,950
Accounts receivable 1,800
Supplies 8,670
Prepaid insurance 2,300
Total assets $42,345
Equity
C. Taylor, Capital $33,185
Current liabilities
Accounts payable 6,200
Salaries payable 210
Unearned consulting revenues 2,750
Total equity and liabilities $42,345
Total liabilities and equity 33,185 $
Prepare the
Balance Sheet.
FASTFORWARD
STATEMENT OF OWNER'S EQUITY
FOR THE MONTH ENDED 31 DECEMBER 2006
C. Taylor, Capital 1/12/06 $ -0-
Add: Profit for the period 3,785
Investment by owner 30,000 33,785
Total 33,785
Less: Withdrawal by owner 600
C. Taylor, Capital 31/12/06 $33,185


Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Resets revenue,
expense and
withdrawal account
balances to zero at
the end of the period.
Helps summarize a
periods revenues
and expenses in the
Income Summary
account.
Identify accounts for
closing.
Record and post closing
entries.
Prepare post-closing trial
balance.
Closing Process
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Temporary
Accounts
Revenues
Income
Summary
E
x
p
e
n
s
e
s

W
i
t
h
d
r
a
w
a
l
s

Permanent
Accounts
Assets
L
i
a
b
i
l
i
t
i
e
s

O
w
n
e
r

s

C
a
p
i
t
a
l

The closing process
applies only to
temporary accounts.
Temporary and Permanent Accounts
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Lets see how the
closing process
works!
Recording Closing Entries
Close Revenue accounts
to Income Summary.

Close Expense accounts
to Income Summary.

Close Income Summary
account to Owners
Capital.

Close Withdrawals to
Owners Capital.
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Balances before closing.
Income Summary
Owner's Capital
30,000
30,000
Revenue Accounts
25,000
25,000
Withdrawals Account
5,000
5,000
Expense Accounts
10,000
10,000
Closing Process
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Income Summary
25,000
25,000
Close Revenue
accounts to Income
Summary.
Owner's Capital
30,000
30,000
Revenue Accounts
25,000 25,000
-
Withdrawals Account
5,000
5,000
Expense Accounts
10,000
10,000
Closing Process
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Income Summary
10,000 25,000
15,000
Owner's Capital
30,000
30,000
Revenue Accounts
25,000 25,000
-
Withdrawals Account
5,000
5,000
Close Expense
accounts to Income
Summary.
Expense Accounts
10,000 10,000
-
Closing Process
The balance in Income
Summary equals profit
for the period
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Owner's Capital
30,000
15,000
45,000
Owner's Capital
30,000
15,000
45,000
Withdrawals Account
5,000
5,000
Withdrawals Account
5,000
5,000
Close Income
Summary to
Owners Capital.
Revenue Accounts
25,000 25,000
-
Expense Accounts
10,000 10,000
-
Income Summary
10,000 25,000
15,000
-
Closing Process
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Owner's Capital
30,000
15,000
45,000
Owner's Capital
5,000 30,000
15,000
40,000
Withdrawals Account
5,000
5,000
Withdrawals Account
5,000 5,000
-
Revenue Accounts
25,000 25,000
-
Expense Accounts
10,000 10,000
-
Income Summary
10,000 25,000
15,000
-
Closing Process
Close Withdrawals
account to Owners
Capital.
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
FASTFORWARD
ADJUSTED TRIAL BALANCE
31 DECEMBER 2006
Cash $3,950
Accounts receivable 1,800
Supplies 8,670
Prepaid insurance 2,300
Equipment 26,000
Accumulated depreciation-Equip. $375
Accounts payable 6,200
Salaries payable 210
Unearned consulting revenue 2,750
C. Taylor, Capital 30,000
C. Taylor, Withdrawals 600
Consulting revenue 7,850
Rental revenue 300
Depreciation expense-Equipment 375
Salaries expense 1,610
Insurance expense 100
Rent expense 1,000
Supplies expense 1,050
Utilities expense 230
Totals $47,685 $47,685
Using the
adjusted trial
balance, lets
prepare the
closing
entries for
FastForward.
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Close Revenue
accounts to
Income Summary.
FASTFORWARD
ADJUSTED TRIAL BALANCE
31 DECEMBER 2006
Cash $3,950
Accounts receivable 1,800
Supplies 8,670
Prepaid insurance 2,300
Equipment 26,000
Accumulated depreciation-Equip. $375
Accounts payable 6,200
Salaries payable 210
Unearned consulting revenue 2,750
C. Taylor, Capital 30,000
C. Taylor, Withdrawals 600
Consulting revenue 7,850
Rental revenue 300
Depreciation expense-Equipment 375
Salaries expense 1,610
Insurance expense 100
Rent expense 1,000
Supplies expense 1,050
Utilities expense 230
Totals $47,685 $47,685
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Close Revenue Accounts to Income
Summary
Dec. 31 Consulting revenue 7,850
Rental revenue 300
Income summary 8,150
Now, lets look at the ledger accounts after
posting this closing entry.
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Close Revenue Accounts to Income
Summary
Consulting Revenue
7,850 7,850
-
Rental Revenue
300 300
-
Income Summary
7,850
300
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The McGraw-Hill Companies, I nc., 2007
Close Expense
accounts to
Income Summary.
FASTFORWARD
ADJUSTED TRIAL BALNCE
31 DECEMBER 2006
Cash $3,950
Accounts receivable 1,800
Supplies 8,670
Prepaid insurance 2,300
Equipment 26,000
Accumulated depreciation-Equip. $375
Accounts payable 6,200
Salaries payable 210
Unearned consulting revenue 2,750
C. Taylor, Capital 30,000
C. Taylor, Withdrawals 600
Consulting revenue 7,850
Rental revenue 300
Depreciation expense-Equipment 375
Salaries expense 1,610
Insurance expense 100
Rent expense 1,000
Supplies expense 1,050
Utilities expense 230
Totals $47,685 $47,685
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Now, lets look at the ledger accounts after
posting this closing entry.
Close Expense Accounts to Income
Summary
Dec. 31 Income summary 4,365
Depreciation expense-Equipment 375
Salaries expense 1,610
Insurance expense 100
Rent expense 1,000
Supplies expense 1,050
Utilities expense 230
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Income Summary
4,365 7,850
300
3,785
Utilities Expense
230 230
-
Rent Expense
1,000 1,000
-
Profit for
the period
Close Expense Accounts to Income
Summary
Close Expense Accounts to Income
Summary







Supplies Expense
1,050 1,050
-
Depreciation
Expense- Eq.
375 375
-
Salaries Expense
1,610 1,610
-
Insurance Expense
100 100
-
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Close Income
Summary to
Owners Capital.
FASTFORWARD
ADJUSTED TRIAL BALANCE
31 DECEMBER 2006
Cash $3,950
Accounts receivable 1,800
Supplies 8,670
Prepaid insurance 2,300
Equipment 26,000
Accumulated depreciation-Equip. $375
Accounts payable 6,200
Salaries payable 210
Unearned consulting revenue 2,750
C. Taylor, Capital 30000
C. Taylor, Withdrawals 600
Consulting revenue 7,850
Rental revenue 300
Depreciation expense-Equipment 375
Salaries expense 1,610
Insurance expense 100
Rent expense 1,000
Supplies expense 1,050
Utilities expense 230
Totals $47,685 $47,685
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Now, lets look at the ledger accounts after
posting this closing entry.
Close Income Summary to Owners
Capital
Dec. 31 Income summary 3,785
C. Taylor, Capital 3,785
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
C. Taylor, Capital
30,000
3,785
33,785
Close Income Summary to Owners
Capital
Close Income Summary to Owners
Capital
Income Summary
4,365 7,850
3,785 300
-
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Close
Withdrawals to
Owners Capital.
FASTFORWARD
ADJUSTED TRIAL BALANCE
31 DECEMBER 2006
Cash $3,950
Accounts receivable 1,800
Supplies 8,670
Prepaid insurance 2,300
Equipment 26,000
Accumulated depreciation-Equip. $375
Accounts payable 6,200
Salaries payable 210
Unearned consulting revenue 2,750
C. Taylor, Capital 30,000
C. Taylor, Withdrawals 600
Consulting revenue 7,850
Rental revenue 300
Depreciation expense-Equipment 375
Salaries expense 1,610
Insurance expense 100
Rent expense 1,000
Supplies expense 1,050
Utilities expense 230
Totals $47,685 $47,685
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Now, lets look at the ledger accounts after
posting this closing entry.
Close Withdrawals to Owners
Capital
Dec. 31 C. Taylor, Capital 600
C. Taylor, Withdrawals 600
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
C. Taylor, Capital
600 30,000
3,785
33,185
C. Taylor,
Withdrawals
600 600
-
Close Withdrawals to Owners
Capital
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The McGraw-Hill Companies, I nc., 2007
Lets look at
FastForwards
post-closing trial
balance.
Post-Closing Trial Balance
List of permanent
accounts and their
balances after posting
closing entries.

Total debits and
credits must be equal.
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
FASTFORWARD
POST-CLOSING TRIAL BALANCE
31 DECEMBER 2006
Cash $3,950
Accounts receivable 1,800
Supplies 8,670
Prepaid insurance 2,300
Equipment 26,000
Accumulated depreciation-Equipment $375
Accounts payable 6,200
Salaries payable 210
Unearned consulting revenue 2,750
C.Taylor, Capital 33,185
Totals $42,720 $42,720
Post-Closing Trial Balance
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The McGraw-Hill Companies, I nc., 2007
Lets discuss
the
components
of a classified
balance
sheet.
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The McGraw-Hill Companies, I nc., 2007
Categories of a Classified Balance Sheet
Assets Liabilities and Equity
Current Assets Current Liabilities
Noncurrent Assets Noncurrent Liabilities
Long-Term Investments Equity
Fixed Assets
Intangible Assets
Current items are those expected to come due (both
collected and owed) within the longer of one year or
the companys normal operating cycle.
Classified Balance Sheet
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The McGraw-Hill Companies, I nc., 2007
SNOWBOARDING COMPONENTS
BALANCE SHEET
AS AT 31 JANUARY 2006
Non-current assets
Store equipment $33,200
Less accumulated depreciation 8,000 $25,200
Buildings 170,000
Less accumulated depreciation 45,000 125,000
Land 73,200
223.400 $
Long-term investments
Notes receivable 1.500
Investments in stocks and bonds 18.000
Land held for future expansion 48.000
Total investments 67.500
Intangible assets 10.000
Total non-current assets 300.900 $
Cash $6,500
Short-term investments 2,100
Accounts receivable 4,400
Merchandise inventory 27,500
Prepaid expenses 2,400
$42,900
Current Assets
Current assets are expected to be
sold, collected, or used within one
year or the companys operating
cycle.
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
SNOWBOARDING COMPONENTS
BALANCE SHEET
31 JANUARY 2006
Non-current assets
Store equipment $33,200
Less accumulated depreciation 8,000 $25,200
Buildings 170,000
Less accumulated depreciation 45,000 125,000
Land 73,200
$223,400
Long-term investments
Notes receivable 1,500
Investments in stocks and bonds 18,000
Land held for future expansion 48,000
Total investments 67,500
Intangible assets 10.000
Total assets $300.900
Current Assets
Cash 6.500
Short-term investments 2.100
Accounts receivable 4,400
Merchandise inventory 27,500
Long-term investments are
expected to be held for the longer
of one year or the operating cycle.
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
SNOWBOARDING COMPONENTS
BALANCE SHEET
31 JANUARY 2006
Non-current assets
Store equipment $33,200
Less accumulated depreciation 8,000 $25,200
Buildings 170,000
Less accumulated depreciation 45,000 125,000
Land 73,200
$223,400
Long-term investments
Notes receivable 1.500
Investments in stocks and bonds 18.000
Land held for future expansion 48.000
Total investments 67.500
Intangible assets 10.000
$300,900
Current assets
Cash $6,500
Short-term investments 2,100
Accounts receivable 4,400
Fixed assets are tangible long-lived
assets used to produce or sell
products and services.
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
SNOWBOARDING COMPONENTS
BALANCE SHEET
31 JANUARY 2006
Non-current assets
Store equipment $33,200
Less accumulated depreciation 8,000 $25,200
Buildings 170,000
Less accumulated depreciation 45,000 125,000
Land 73,200
$223,400
Long-term investments
Notes receivable $1,500
Investments in stocks and bonds 18,000
Land held for future expansion 48,000
$67,500
Intangible assets 10.000
$300.900
Current Assets
Cash 6.500
Intangible assets are long-term
resources used to produce or sell
products and services and that
lack physical form.
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
Current liabilities are obligations due
within the longer of one year or the
companys operating cycle.
SNOWBOARDING COMPONENTS
BALANCE SHEET
AS AT 31 JANUARY 2006
Current liabilities
Accounts payable 15.300 $
Wages payable 3.200
Notes payable 3.000
Current portion of long-term liabilities 7.500
Total current liabilities $29,000
Larson, Wild, Chiapetta, Ropidah, Haslinda, Aryati, Liana
The McGraw-Hill Companies, I nc., 2007
SNOWBOARDING COMPONENTS
BALANCE SHEET
AS AT 31 JANUARY 2006
Equity and liabilities
T.Hawk, Capital $164,800
Non-current liabilities
Notes payable (net of current portion) $150,000
Current liabilities
Long-term liabilities are obligations
not due within the longer of one year
or the companys operating cycle.
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The McGraw-Hill Companies, I nc., 2007
Equity is the owners claim on the
assets.
SNOWBOARDING COMPONENTS
BALANCE SHEET
AS AT 31 JANUARY 2006
Equity and liabilities
T.Hawk, Capital $164,800
Non-current liabilities
Notes payable (net of current portion) $150,000
Current liabilities
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The McGraw-Hill Companies, I nc., 2007
End of Chapter 4