Financial Statements and Transactions Study Guide

Activity #1: (1) Using the account categories provided, match them to the correct financial statement (2) Draw a line between each financial statement to show how they tie together. AccountsBalance SheetStatement of Owners EquityIncome Statement Current LiabilitiesCurrent Assets ExpensesLong-term assetsCapital ContributionsRevenues Long-term AssetsTotal assetsRevenuesBeginning Retained EarningsNet Income Capital ContributionsCurrent liabilities+Net Income Net IncomeLong-term liabilities-Dividends Current AssetsTotal liabilitiesEnding Retained Earnings Retained Earnings DividendsCapital contributions Long-term LiabilitiesRetained Earnings EquityTotal Equity AccountsCurrent AssetsLong-term AssetsCurrent LiabilitiesLong-term LiabilitiesRevenuesExpenses Advertising ExpenseInterest Payable CashBuildingAccounts PayableMortgageSales RevenueAdvertising Expense Supplies ExpenseTelephone Expense SuppliesEquipmentSalary PayableNote PayableConsulting IncomeSupplies Expense EquipmentAccounts Receivable Accounts ReceivableInterest PayableRent IncomeRent Expense Salary PayableCash Interest IncomeInterest Expense Rent ExpenseNote Payable Salary Expense Accounts PayableBuilding Telephone Expense Interest ExpenseRent Income Salary ExpenseSupplies Consulting IncomeSales Revenue MortgageInterest Income AccountCurrent Assets+=+++Revenue-Expenses- Dividends Issued $100,000 of common stock Cash+=++Common Stock +-- 100,000100,000 Cash+Truck=+Note payable ++-- -10,00040,00030,000 Company paid $3,000 of wages in cash Cash+=+++-Wage Expense - -3,0003,000 +=Accounts payable+++-Rent Expense- 5,0005,000 Cash+=Accounts payable +++-- -2,000-2,000 Accounts Receivable+=+++Service Revenue--