Question 4 0.2 pts The two key components of the Statement of Stockholders' Equity are Common Stock and Retained Earnings. According to page 1-3 of the VLN, at December 31st, what was the ending stockholders' equity balance for Bennett Drilling? Font Editing Paragraph Styles Financial statements summarize business activities. (Chapter 1 Video Lecture Outline Accounting Information and Decision Making PARTA: Accounting as a Measurement/Communication Process Who uses Accounting Information? Investor, creditor, customer supplies.competiter Financial Statement Heading NAME OF ENTITY NAME of FINANCIAL STATEMENT DATE OF FINANCIAL STATEMENT AND PERIOD IT COVERS UNIT OF MEASURE Purpose of Accounting: measure the activities of a company and communicate it to others. The Income Statement (IS) BUSINESS ACTIVITIES TO MEASURE Financing -creditors Example of a heading for an income statement A, Inc. Income Statement For the Year Ended June 30, 20XB (in thousands of dollars) "Period Ending" -Owners ELEMENTS OF THE INCOME STATEMENT Investing -Long term Assets For example landscape like lawn mower, a truck with a trailer Equipment or building or land on long term assets Operating Primary operations of the company -Revenue -Expenses Revenues (R) Sales Service revenue Expenses (E) Salaries expense Rent expense Forms of Business Organizations -Sole proprietorship = is one owner -Partnerships -Corporations is a stock owner Net Income (NI) The income statement equation is: (Revenue - Expenses=Net Income or Net Loss). R-E=NI COMMUNICATING THROUGH FINANCIAL STATEMENTS The Financial Statements 1. Income statement (IS) 2. Statement of Stockholders' Equity (SSE) Practice Rent expense Wage expense Painting supplies expense Painting revenue Supplies used Insurance expense Revenue-expensens $4,500 2,650 1,950 12,000 200 700 3. Balance sheet (BS) 4. Statement of Cash Flows (SCF) 18 Accessibility: Investigate Financial statements summarize business activities. Determine Net income: S2000 Financial Statement Heading NAME OF ENTITY NAME OF FINANCIAL STATEMENT DATE OF FINANCIAL STATEMENT AND PERIOD IT COVERS UNIT OF MEASURE The Income Statement (15) Example of a heading for an income statement A Inc. Income Statement For the Year Ended June 30, 20XB in thousands of dollars) "Period Ending" ELEMENTS OF THE INCOME STATEMENT Revenues (R) Sales Service revenue Expenses (E) Salaries expense Rent expense Net Income (NI) The income statement equation is: (Revenue - Expenses = Net Income or Net Loss) R=E=NI Practice Rent expense wage expense Painting supplies expense Painting revenue supplies used Insurance expense Revenue-eyensers $4,500 2,650 1,950 12,000 200 700 Question 4 0.2 pts The two key components of the Statement of Stockholders' Equity are Common Stock and Retained Earnings. According to page 1-3 of the VLN, at December 31st, what was the ending stockholders' equity balance for Bennett Drilling? Font Editing Paragraph Styles Financial statements summarize business activities. (Chapter 1 Video Lecture Outline Accounting Information and Decision Making PARTA: Accounting as a Measurement/Communication Process Who uses Accounting Information? Investor, creditor, customer supplies.competiter Financial Statement Heading NAME OF ENTITY NAME of FINANCIAL STATEMENT DATE OF FINANCIAL STATEMENT AND PERIOD IT COVERS UNIT OF MEASURE Purpose of Accounting: measure the activities of a company and communicate it to others. The Income Statement (IS) BUSINESS ACTIVITIES TO MEASURE Financing -creditors Example of a heading for an income statement A, Inc. Income Statement For the Year Ended June 30, 20XB (in thousands of dollars) "Period Ending" -Owners ELEMENTS OF THE INCOME STATEMENT Investing -Long term Assets For example landscape like lawn mower, a truck with a trailer Equipment or building or land on long term assets Operating Primary operations of the company -Revenue -Expenses Revenues (R) Sales Service revenue Expenses (E) Salaries expense Rent expense Forms of Business Organizations -Sole proprietorship = is one owner -Partnerships -Corporations is a stock owner Net Income (NI) The income statement equation is: (Revenue - Expenses=Net Income or Net Loss). R-E=NI COMMUNICATING THROUGH FINANCIAL STATEMENTS The Financial Statements 1. Income statement (IS) 2. Statement of Stockholders' Equity (SSE) Practice Rent expense Wage expense Painting supplies expense Painting revenue Supplies used Insurance expense Revenue-expensens $4,500 2,650 1,950 12,000 200 700 3. Balance sheet (BS) 4. Statement of Cash Flows (SCF) 18 Accessibility: Investigate Financial statements summarize business activities. Determine Net income: S2000 Financial Statement Heading NAME OF ENTITY NAME OF FINANCIAL STATEMENT DATE OF FINANCIAL STATEMENT AND PERIOD IT COVERS UNIT OF MEASURE The Income Statement (15) Example of a heading for an income statement A Inc. Income Statement For the Year Ended June 30, 20XB in thousands of dollars) "Period Ending" ELEMENTS OF THE INCOME STATEMENT Revenues (R) Sales Service revenue Expenses (E) Salaries expense Rent expense Net Income (NI) The income statement equation is: (Revenue - Expenses = Net Income or Net Loss) R=E=NI Practice Rent expense wage expense Painting supplies expense Painting revenue supplies used Insurance expense Revenue-eyensers $4,500 2,650 1,950 12,000 200 700