中级财务会计英文ch03

Chapter3-1FinancialStatementsChapter3IntermediateAccounting12thEditionKieso,Weygandt,andWarfieldPreparedbyCobyHarmon,UniversityofCalifornia,SantaBarbaraChapter3-21.Understandthepurposesofthebalancesheet.2.Definetheelementsofabalancesheet.3.Explainhowtomeasuretheelementsofabalancesheet.4.Classifytheassetsofabalancesheet.5.Classifytheliabilitiesofabalancesheet.6.Reportthestockholders’equityofabalancesheet.7.Understandtheconceptsofincome.8.Explaintheconceptualguidelinesforreportingincome.LearningObjectivesChapter3-39.Definetheelementsofanincomestatement.10.Describethemajorcomponentsofanincomestatement.11.Computeincomefromcontinuingoperations.12.Computeresultsfromdiscontinuedoperations.13.Identifyextraordinaryitems.14.Prepareastatementofretainedearnings.15.Reportcomprehensiveincome.LearningObjectivesChapter3-4Resources(Assets)Claimsagainstresources(Liabilities)Remainingclaimsaccruingtoowners(Owner’sEquity)BalanceSheetChapter3-5A=L+OEBasicAccountingIdentityBalanceSheetChapter3-6AssetsProbablefutureeconomicbenefitsobtainedorcontrolledbyaparticularentityasaresultofpasttransactionsorevents.BasicDefinitions-SFACNo.6BalanceSheetChapter3-7BasicDefinitions-SFACNo.6LiabilitiesProbablefuturesacrificesofeconomicbenefitsarisingfrompresentobligationsofaparticularentitytotransferassetsorprovideservicestootherentitiesasaresultofpasttransactionsorevents.BalanceSheetChapter3-8Owners’EquityTheresidualinterestintheassetsofanentitythatremainsafteritsliabilitiesarededucted.BasicDefinitions-SFACNo.6BalanceSheetChapter3-9AssetClassificationsCurrentAssetsCashInventoriesReceivablesPrepaymentsBalanceSheetFormatChapter3-10AssetClassificationsNoncurrentAssetsInvestmentsandfundsIntangiblesProperty,Plant,&EquipmentDeferredChargesBalanceSheetFormatChapter3-11LiabilityClassificationsCurrentLiabilitiesAccountsPayableShort-termNotesPayableCollectionsinadvanceofunearnedrevenueAccruedExpensesBalanceSheetFormatChapter3-12CurrentassetsLess:CurrentliabilitiesEquals:WorkingCapitalCurrentassetsCurrentliabilities=WorkingCapitalRatioWorkingCapitalChapter3-13LiabilityClassificationsNoncurrentLiabilitiesCapitalLeasesLong-termNotesPayablePensionLiabilitiesBondsPayableBalanceSheetFormatChapter3-14EquityClassificationsOwners’EquityCapitalStockOtherContributedCapitalTreasuryStockRetainedEarningsBalanceSheetFormatChapter3-15Acorporationmustdisclosethechangesinitsstockholders’equityaccountwhenissuingfinancialstatements.Thisstatementshouldshowinvestmentsbyanddistributionstoownersduringtheperiod,amongotheritems.StatementofChangesinStockholders’EquityChapter3-16FASBStatementofConceptsNo.6definedinvestmentsbyownersanddistributionstoowners,asfollows:Investmentsbyownersareincreasesintheequityofacompanyresultingfromtransfersofsomethingvaluabletothecompanyfromotherentitiesinordertoobtainorincreaseownershipinterests.Distributionstoownersaredecreasesintheequityofacompanycausedbytransferringassets,renderingservices,orincurringliabilitiestoowners.StatementofChangesinStockholders’EquityChapter3-17Balance,Jan.1,2007$65,000$143,400$64,900$10,000$283,300Unrealizedincreaseinvalueofavailable-for-salesecurities2,0002,000Netincome62,50062,500Cashdividendspaid(11,200)(11,200)Commonstockissued6,50030,50037,000Balance,Dec.31,2007$71,500$173,900$116,200$12,000$373,600SCHEDULEACARONMANUFACTURINGCOMPANYAccumulatedCommonAdditionalOtherStockPaid-inRetainedComprehensive$5parCapitalEarningsIncomeTotalStatementofChangesinStockholders’EquityForYearEndedDecember31,2007StatementofChangesinStockholders’EquityChapter3-18OffsettingassetsandliabilitiesLossandgaincontingenciesValuationsreportedintheBalanceSheetTerminologyComparativeStatementsAdditionalReportingIssuesChapter3-19LossProbable(?)Reasonablyestimated(?)NoNoorDisclosureandYesYesReportamountinfinancialstatementsReasonablypossibleDiscloseinnotestothefinancialstatementsContingentLiabilitiesandAssetsChapter3-20CurrentvalueamountsgenerallyarenotshownontheBalanceSheet.Containsmanyestimates.CertainassetsandliabilitiesarenotshownontheBalanceSheet,e.g.,humanresources.LimitationsofBalanceSheetChapter3-21EconomicIncomeAccountingIncomevs.IncomeStatementChapter3-22CapitalMaintenanceConceptUnderthisconcept,corporateincomeforaperiodoftimeistheamountthatmaybepaidtostockholdersduringthatperiodandstillenablethecorporationtobeaswelloffattheendoftheperiodasitwasatthebeginning.ConceptsofIncomeChapter3-23Assumeacorporationhasnetassetsof$45,000atthebeginningand$80,000attheendoftheyear,andthatnoadditionalinvestmentsorwithdrawalsweremade.Endingnetassets$80,000Less:Additionalinvestment0Endingnetassetsexcludinginvestment$80,000Less:Beginningnetassets(45,000)Totalincomefortheyear$35,000CapitalMaintenanceConceptThecorporationcouldpayout$35,000tostockholdersandstillbeaswelloffatyear-end.ConceptsofIncomeChapter3-24Assumeacorporationhasnetassetsof$45,000atthebeginningand$80,000attheendoftheyear.Stockholdersmadeadditionalcapitalinvestmentsof$10,000.Endingnetassets$80,000Less:Additionalinvestment(10,000)Endingnetassetsexcludinginvestment$70,000Less:Beginningnetas