ACC 110 Study Guide - Final Guide: Financial Statement, Issued Shares, Book Value

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Business activities: financing activities: borrowing cash from lenders by issuing debt or using cash to repay debt. Cash can also be obtained from shareholders by issuing shares, or paid to shareholders by repurchasing shares and then distributing dividends. For closing entries, all temporary accounts are close: all revenue accounts, all expense accounts, dividends accounts. Permanent accounts that are never closed: all asset accounts, all liability accounts, all shareholders" equity accounts. To update the retained earnings account by transferring profits(loss) and dividends to retained earnings. Prepare the temporary accounts (cid:523)revenue, expense, dividends,(cid:524) for the next period"s postings by reducing their balances to zero. Process: to close revenue accounts: debit each individual revenue account for its balance and credit income. Fob destination - seller"s until it reaches the buyer"s destination. Beginning inventory + cost of goods purchased = cost of goods available for sale ending inventory = cost of goods sold.

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