red barn

1. red barn

2. accounting model Uses Sources

3. accounting model Assets Liabilities & Equity

4. accounting model Assets Liabilities Shareholders’Equity

5. accounting model Assets Liabilities Shareholders’Equity

6. accounting model Cash Other C/A C/L LTDebt PP&E Intangibles RE+AOCI Contrib. Capital Assets Liabilities Shareholders’Equity

7. accounting model C/L LTDebt Cash Other C/A PP&E Intangibles R/E+AOCI Capital Expenses & Losses Revenues & Gains COGS Tax, Other Revenues Other Assets Liabilities Shareholders’Equity

8. accounting model C/L LTDebt Cash Other C/A PP&E Intangibles R/E+AOCI Capital Expenses & Losses Revenues & Gains COGS Tax, Other Revenues Other Assets Liabilities These are accounts are permanent. (Balance carries over period after period.) Shareholders’Equity These are accounts are temporary. (Balance closed at end of period.)

9. accounting model C/L LTDebt Cash Other C/A PP&E Intangibles R/E+AOCI Capital Expenses & Losses Revenues & Gains COGS Tax, Other Revenues Other Assets Liabilities Left-hand side accounts increase with DEBITS. Right-hand side accounts increase with CREDITS. Shareholders’Equity

10. accounting model C/L LTDebt Cash Other C/A PP&E Intangibles R/E+AOCI Capital The balance sheet (B/S) is a well structured presentation of the balances (beginning or ending) of all permanent accounts. Expenses & Losses Revenues & Gains COGS Tax, Other Revenues Other Assets Liabilities Shareholders’Equity

11. accounting model C/L LTDebt Cash Other C/A The income statement (I/S) is a well structured presentation of revenues, gains, expenses and losses. PP&E Intangibles R/E+AOCI Capital Expenses & Losses Revenues & Gains COGS Tax, Other Revenues Other Assets Liabilities Shareholders’Equity

12. accounting model C/L LTDebt Cash The statement of cash flows (SoCF) is a structured explanation of the change in the balance of CASH. Other C/A PP&E Intangibles R/E+AOCI Capital Expenses & Losses Revenues & Gains COGS Tax, Other Revenues Other Assets Liabilities Shareholders’Equity

13. accounting model C/L LTDebt Cash Other C/A PP&E Intangibles R/E+AOCI Capital Expenses & Losses Revenues & Gains COGS Tax, Other Revenues Other Assets Liabilities Shareholders’Equity The Changes in SE Statement explains changes in each of the SE accounts.

14. accounting model The Accounting Model Cash Other C/A C/L LT Debt PP&E Intangibles R/E+AOCI Capital COGS Tax, Other Revenues Other