会计专业英语：编制财务报表案例.ppt

Relationships Among Financial Statements Financial Statement Articulation 3 All of these transactions have been placed on this slide, in the appropriate columns for the accounts they’ve impacted. Let’s verify the balance in each account and get ready to prepare the financial statements for JJ’s Lawn Care. 3 Part IAll of the transactions that impacted the cash account will appear on the statement of cash flows.Part IIThe revenues and expenses that caused the change in retained earnings will appear on the income statement of the company.Part IILet’s begin by preparing the income statement and statement of cash flows for JJ’s Lawn Care for the period ended May 31, 2007. 3 Part IJJ’s Lawn care has one revenue for services for $750, and one expense for gasoline of $50. So the net income for the month of May is $700. Remember, net income is the excess of revenues over expenses incurred during the accounting period.Part IIInvestments by owners and payments to owners do not appear on the income statement. These amounts appear on the company’s balance sheet. 3 Here is the statement of cash flows for JJ’s Lawn Care for the month ended May 31, 2007. Notice the three sections of the statement. 3 Cash flows from operating activities include the $700 in net income calculated on the previous screen. Let’s analyze some transactions for JJ’s Lawn Care Service. On May 1, Jill Jones and her family invested $8,000 in JJ’s Lawn Care Service and received 800 shares of stock. On May 2, JJ’s purchased a riding lawn mower for $2,500 cash. On May 8, JJ’s purchased a $15,000 truck. JJ’s paid $2,000 down in cash and issued a note payable for the remaining $13,000. On May 11, JJ’s purchased some repair parts for $300 on account. Jill realized she had purchased more repair parts than needed. On May 18, JJ’s was able to sell half of the repair parts to ABC Lawns for $150, a price equal to JJ’s cost. JJ’s will receive the cash within 30 days. On May 25, ABC Lawns pays JJ’s $75 as a