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Presentation transcript:

$200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 $200 $300 $400 $500 $100 Topic 1 Topic 2Topic 3Topic 5Topic 6

Cash, coin, money orders, bills

CASH

Something owned by the business

ASSET

DAILY DOUBLE

Scarce items which require effort to produce and for which a price must be paid? The employees of a business are called ___ ?

1. ECONOMIC RESOURCES 2. HUMAN RESOURCES

Furniture is a(an)...

ASSET

Bank Loan Payable is considered a …

LIABILITIES

Supplies on hand are called...

ASSETS

Loan from friends...

LIABILITIES

True or False A bank loan is always considered a liability.

TRUE

An amount owing to an outside person or business

ACCOUNT PAYABLE AND/OR LIABILITY

 Assets = $ OE = $ Liabilities = ?

$21 800

Explain the order of listing liabilities in a balance sheet

LISTED IN THE ORDER OF DEBT MATURITY ORDER THAT THES DEBTS MUST BE PAID ON A TIME BASIS

Borrower must be prepared to pay the loan when the bank wants payment

DEMAND LOAN (ON DEMAND)

Accounts Payable A ? L ? OE ?

LIABILITY

DAILY DOUBLE

1.Owned by many people and governed by government rules. 2.Owned by two or more people. 3.Owned by one person.

1. CORPORATION 2. PARTNERSHIP 3. SOLE PROPRIETORSHIP

True or False The owner’s equity section of a Balance Sheet does not vary as to the form of ownership.

FALSE

True or False Would investing the 2 nd car of the family into the business increase owner’s equity?

TRUE

Is the claim of the owner has against the total assets of the business

OWNER’S EQUITY

Assets - $ Liabilities - ? Owner’s Equity - $5000

LIABILITIES - $15 000

What is the accounting equation?

A = L + OE

What are 2 similarities between the accounting equation and the balance sheet?

1.SIMILAR SIDES 2.TOTALS ON BOTH SIDES EQUAL

General Rule for $

$ BEGINNING OF EACH MONEY COLUMN & TOTAL

____________ ?

SOME FORM OF CALCULATION

__________________ ?

FINAL TOTAL

DAILY DOUBLE #1 What is included in the heading of the balance sheet?

DAILY DOUBLE #1 ANSWER WHO WHAT WHEN (AS AT)

DAILY DOUBLE #2 GAAP Entity Concept

DAILY DOUBLE #2 ANSWER 1.GENERALLY ACCEPTED ACCOUNTING PRINCIPLES - a broad guide or rule in accounting 2.A BUSINESS IS AN ECONOMIC UNIT AND IS SEPERATE AND DISTINCT FROM IT OWNERS

FINAL JEOPARDY OTHER: debtitor, creditor, Concept – basic idea that acts as the foundation of all accounting theory In case of business failure, the assets are distributed first to ______________ As a team decide how many points you want to wager before the question is asked

FINAL JEOPARDY QUESTION The topic is obviously a practical problem Ms. Lapointe’s Dental Service (cash $15000, Bank Loan Payable $8000, Mortgage Payable $45000, Land $12000, car $ 12000, Dental Equipment $2000, Building $69000, Accounts Payable Joe $1600, Account Payable Nick $ Find OE 2.Prepare a formal balance sheet for Ms. Lapointe’s Dental Service on a piece of loose leaf if no sheet is provided.

FINAL JEOPARDY ANSWER Ms. Lapointe’s Dental Service Balance Sheet As at August 26, 2010 AssetsLiability Cash$15000BLP$8000 Car 12000Acc.Pay. Land Joe $1600 Dental Equ 2000 Nick Building 69000Mortgage P Total Liabilities $ Owner’s Equity Lapointe, Capital ___________________ Total Assets$110000Total L & OE$110000

Final Final Jeopardy Return back to your original seat

Final Final Jeopardy –Hand in chapter problems, questions, mini cases –Test (multiple choice and practical problems – balance sheet) –Review study guide –Good luck studying