Financial Accounting: An Integrated Statements Approach, 2nd Edition
108 Chapter 3 Accrual Accounting Concepts Balance Sheet Assets Liabilities Stockholders’ Equity Accts. Prepaid Office Notes A ...
Chapter 3 Accrual Accounting Concepts 109 Note that the accumulated depreciation account is subtracted in determining the total ...
Adjustment 6 (Accrued Fees Earned). This adjustment recognizes that Family Health Care has provided services to patients that ha ...
Chapter 3 Accrual Accounting Concepts 111 Exhibit 2 Family Health Care Summary of Transactions and Adjustments for November Stat ...
determined by deducting the operating expenses from the fees earned from normal operations. The other income—rental revenue—is t ...
Chapter 3 Accrual Accounting Concepts 113 Retained Earnings Statement The retained earnings statement shown in Exhibit 4 is prep ...
and analysis. In the following paragraphs, we describe some of these sections and subsections. Assetsare resources such as physi ...
Chapter 3 Accrual Accounting Concepts 115 Family Health Care’s other current liabilities consist of accounts payable, wages paya ...
ACCRUAL AND CASH BASES OF ACCOUNTING The financial statements of Family Health Care for November were prepared under ac- crual a ...
Chapter 3 Accrual Accounting Concepts 117 your primary accounting record. You keep track of your deposits (cash receipts) and ch ...
Family Health Care Under the Cash and Accrual Bases of Accounting All the transactions for Family Health Care in Chapter 2 invol ...
Chapter 3 Accrual Accounting Concepts 119 experiences negative cash flows from operations, even though it may report net in- com ...
120 Chapter 3 Accrual Accounting Concepts 3 The financial statements for Wendy’s and McDonald’s shown in Exhibit 9 were adapted ...
Chapter 3 Accrual Accounting Concepts 121 a common basis. Without a common basis, it is difficult to compare companies. For ex- ...
During November and December, Family Health Care used the accrual basis of ac- counting. The November financial statements are i ...
Chapter 3 Accrual Accounting Concepts 123 The increase in prepaid insurance represents an $8,400 payment of cash for insur- ance ...
GLOSSARY 124 Chapter 3 Accrual Accounting Concepts A classified balance sheet includes sections for current as- sets; property, ...
Chapter 3 Accrual Accounting Concepts 125 Assume that the December transactions for Family Health Care are as follows: a. Receiv ...
Deferred revenues: Unearned revenue earned, $360. Accrued expense: Wages owed employees but not paid, $340. Accrued revenue: ...
Chapter 3 Accrual Accounting Concepts 127 Cash flows from operating activities: Cash received from patients $15,300 Deduct cash ...
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