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Principles of Managerial Finance Brief

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P3-2. Financial statement account identification
LG 1; Basic | (a) | (b) | Account Name | Statement | Type of Account | Accounts payable | BS | CL | Accounts receivable | BS | CA | Accruals | BS | CL | Accumulated depreciation | BS | FA* | Administrative expense | IS | E | Buildings | BS | FA | Cash | BS | CA | Common stock (at par) | BS | SE | Cost of goods sold | IS | E | Depreciation | IS | E | Equipment | BS | FA | General expense | IS | E | Interest expense | IS | E | Inventories | BS | CA | Land | BS | FA | Long-term debt | BS | LTD | Machinery | BS | FA | Marketable securities | BS | CA | Notes payable | BS | CL | Operating expense | IS | E | Paid-in capital in excess of par | BS | SE | Preferred stock | BS | SE | Preferred stock dividends | IS | E | Retained earnings | BS | SE | Sales revenue | IS | R | Selling expense | IS | E | Taxes | IS | E | Vehicles | BS | FA |
* This is really not a fixed asset, but a charge against a fixed asset, better known as a contra-asset.

P3-7. Balance sheet preparation
LG 1; Basic – Personal Finance
a.
Adam and Arin AdamsBalance SheetDecember 31, 2012 | Assets | | | Liabilities and Net Worth | | Cash | $ 300 | | Utility bills | $ 150 | Checking | 3,000 | | Medical bills | 250 | Savings | 1,200 | | Credit card balance | 2,000 | Money market funds | 1,200 | | Total Current Liabilities | $ 2,400 | Total Liquid Assets | $ 5,700 | | | | | | | Mortgage | 100,000 | IBM stock | 2,000 | | Auto loan | 8,000 | Retirement funds, IRA | 2,000 | | Personal loan | 3,000 | Total Investments | $ 4,000 | | Total Long-term Liabilities | $111,000 | | | | | | Total Real Estate | $150,000 | | Total Liabilities | $113,400 | | | | | | 2011

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