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Chapter 2 The Classified Balance Sheet

1 Balance AccountingSpring 2004 Professor School of ManagementMassachusetts Institute of TechnologyFeb 09, 20032 Some residual administrative matters Access web page Pass/Fail Yes Audit No First point of contact: TAs Syllabus3 Questions from last class Do private companies file with the SEC? Only if they have public debt Statements the Annual Report Management Discussion Auditors Report Consolidated Balance Sheet Consolidated Net Income Consolidated Statement of Stockholders Equity Consolidated Cash Flow Statements Notes to Accounts5 Balance Sheet : Assets Assets Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.

Initial Balance Sheet Starting a Company (1) Issues 50,000 shares of $10 par value common stock at par value for cash. (2) Acquires land and building costing $225,000 with the payment of $50,000 cash and the assumption of a 20-year, 8-percent mortgage for the balance. (3) Purchases a used crane for $13,200 cash

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Transcription of Chapter 2 The Classified Balance Sheet

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