1-1 Vagabond TravelAgency Balance Sheet Decem ber 31,2011 A ssets Liabilities & O w ners'Equity C ash 22,500 $ Liabilities: N otes receivable 10,000 N otes payable 41,000 $ A ccounts receivable 60,500 A ccounts payable 36,000 S upplies 2,000 S alaries payable 3,000 Land 100,000 Totalliabilities 80,000 $ B uilding 90,000 O w ners'Equity: O ffice equipm ent 15,000 C apitalstock 150,000 R etained earnings 70,000 Total 300,000 $ Total 300,000 $ A Starting Point: A Starting Point: Statement of Financial Statement of Financial Position Position
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1-1 A Starting Point: Statement of Financial Position.
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Vagabond Travel AgencyBalance Sheet
December 31, 2011Assets Liabilities & Owners' Equity
Cash 22,500$ Liabilities:Notes receivable 10,000 Notes payable 41,000$ Accounts receivable 60,500 Accounts payable 36,000 Supplies 2,000 Salaries payable 3,000 Land 100,000 Total liabilities 80,000$ Building 90,000 Owners' Equity:Office equipment 15,000 Capital stock 150,000
Retained earnings 70,000 Total 300,000$ Total 300,000$
A Starting Point: A Starting Point: Statement of Financial Statement of Financial PositionPosition
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Vagabond Travel AgencyBalance Sheet
December 31, 2011Assets Liabilities & Owners' Equity
Cash 22,500$ Liabilities:Notes receivable 10,000 Notes payable 41,000$ Accounts receivable 60,500 Accounts payable 36,000 Supplies 2,000 Salaries payable 3,000 Land 100,000 Total liabilities 80,000$ Building 90,000 Owners' Equity:Office equipment 15,000 Capital stock 150,000
Retained earnings 70,000 Total 300,000$ Total 300,000$
AssetsAssets
Assets are economic
resources that are owned by the
business and are expected to benefit future operations.
Assets are economic
resources that are owned by the
business and are expected to benefit future operations.
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Vagabond Travel AgencyBalance Sheet
December 31, 2011Assets Liabilities & Owners' Equity
Cash 22,500$ Liabilities:Notes receivable 10,000 Notes payable 41,000$ Accounts receivable 60,500 Accounts payable 36,000 Supplies 2,000 Salaries payable 3,000 Land 100,000 Total liabilities 80,000$ Building 90,000 Owners' Equity:Office equipment 15,000 Capital stock 150,000
Retained earnings 70,000 Total 300,000$ Total 300,000$
LiabilitiesLiabilities
Liabilities are debts that represent
negative future cash flows for the enterprise.
Liabilities are debts that represent
negative future cash flows for the enterprise.
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Owners’ EquityOwners’ Equity
Vagabond Travel AgencyBalance Sheet
December 31, 2011Assets Liabilities & Owners' Equity
Cash 22,500$ Liabilities:Notes receivable 10,000 Notes payable 41,000$ Accounts receivable 60,500 Accounts payable 36,000 Supplies 2,000 Salaries payable 3,000 Land 100,000 Total liabilities 80,000$ Building 90,000 Owners' Equity:Office equipment 15,000 Capital stock 150,000
Retained earnings 70,000 Total 300,000$ Total 300,000$
Owners’ equity represents the owners’ claims on the assets of the business.
Owners’ equity represents the owners’ claims on the assets of the business.
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Vagabond Travel AgencyBalance Sheet
December 31, 2011Assets Liabilities & Owners' Equity
Cash 22,500$ Liabilities:Notes receivable 10,000 Notes payable 41,000$ Accounts receivable 60,500 Accounts payable 36,000 Supplies 2,000 Salaries payable 3,000 Land 100,000 Total liabilities 80,000$ Building 90,000 Owners' EquityOffice equipment 15,000 Capital stock 150,000
Retained earnings 70,000 Total 300,000$ Total 300,000$