ACCT 4111, Sumer 2015 Dr. Taewoo Park Office : #522 Robinson College of Business
(35 Broad Street)
Phone : (404) 413-7219
E-mail : tpark11@gsu.edu
Office Hour : Mondays and Wednesdays
02:30 - 03:30 PM, and by appointment 04:33:29 AM
2
COURSE DESCRIPTION
REQUIRED MATERIAL
Spiceland, Sepe and Nelson,
Intermediate Accounting, 7th edition
PREREQUISITE
CLASS FORMAT 04:33:29 AM
3
GRADING
Three exams
90 %
Attendance and Quizzes 10 %
Total
100 %
Exam Dates:
Quizzes
BrightSpace
04:33:29 AM
4
l a u act t a o k al o l s i
’
t c e n L fina ents. m e t sta
04:33:29 AM
5
Principal Financial Statements
•
•
•
•
•
Balance Sheet
Income Statement
Statement of Cash Flows
Statement of Retained Earnings
Footnotes
04:33:29 AM
6
MICROSOFT
BALANCE SHEETS (In millions) Assets
06/30/2014 06/30/2013
Current assets:
Cash and cash equivalents
Short-term investments
Accounts receivable, net of allowance Inventories
Deferred income taxes
Other
Total current assets
Property and equipment, net of depreciation Equity and other investments
Goodwill
Intangible assets, net
Other long-term assets
$8,669
77,040
$3,804
73,218
19,544
2,660
1,941
4,392
114,246
17,486
1,938
1,632
3,388
101,466
13,011
14,597
20,127
6,981
3,422
$
9,991
10,844
14,655
3,083
2,392
Liabilities and stockholders' equity
Current liabilities:
Accounts payable
Short-term debt
Accrued compensation
Income taxes
Short-term unearned revenue
Other
Total current liabilities
Long-term debt
Long-term unearned revenue
Deferred income taxes
Other long-term liabilities
Total liabilities
Stockholders' equity:
Common stock and paid-in capital
Retained earnings
Accumulated other comprehensive income $7,432
2,000
4,797
782
23,150
7,464
45,625
20,645
2,008
2,728
11,594
82,600
Information in the B/S : Assets
What is included in assets ?
Economic resources that have benefit to the firm in the future.
*** All assets should have future benefits, but not all future benefits are recorded as assets because of conservative current accounting rule in some area
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9
Assets
Future economic benefits obtained or controlled by an entity
Current Asset :
• Cash or cash equivalent : immediately available for payment • Accounts Receivable : Amounts of receivables from customers related to the main business of the company
• Marketable Securities : securities (stocks or bonds) issued by other companies or government
• Inventory : Merchandise for sale
• Others
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10
Assets
Future economic benefits obtained or controlled by an entity
Non-current Asset :
• Long-term Investments : to be held for more than one year
Investment securities
Any sinking fund
• Property, Plant and Equipment
Office or Factory Building
Land
Machinery & Equipment
• Intangible Assets : Not physically available
Patent, Copyright, Trademark, Goodwill
04:33:29 AM
11
Claims on the company’s assets
Liability
• Future sacrifices of economic resources
• Claims of the creditors : fixed amount
Current Liability : Due within one year from the B/S date
Accounts Payable : Amount of payables from the normal operations
Tax payable : which occurred up to the B/S date
Short-term debt
Salary Payable
Others
04:33:29 AM
Long-term liability : Due after one-year
12
Claims on the company’s assets
Equity
• Residual Interest in the entity’s assets that remains after deducting liabilities
• Equity = Assets - Liabilities
Preferred Stock : priority on dividend payment, but limited voting right Common Stock : regular shares of the company, recorded at issuance price : Contributed Capital
Detail : Common Stock (at par value)
Additional Paid-in Capital (Actual issuance price – par value)
Retained Earnings : Cumulative earnings, less dividend amount
*** Includes current period’s NET INCOME
