【正文】 E q u i t y 7 1 , 0 0 0 1 6 3 , 0 0 0 T o t a l L i a b i l i t i e s a n d S t o c k h o l d e r s 39。 E q u i t y 7 1 , 0 0 0$ 1 6 3 , 0 0 0$ C O N N E R C O N S U L T A N T SI n c o m e S t a t e m e n t sF o r t h e Y e a r s E n d e d D e c e m b e r 3 1238 Vertical Financial Statements 2022 2022A s s e t sC a s h 5 3 , 0 0 0$ 9 0 , 0 0 0$ A c c o u n t s R e c e i v a b l e 2 4 , 0 0 0 1 8 , 0 0 0 I n t e r e s t R e c e i v a b l e 3 , 0 0 0 C e r t i f i c a t e o f D e p o s i t 6 0 , 0 0 0 T o t a l A s s e t s 7 7 , 0 0 0$ 1 7 1 , 0 0 0$ L i a b i l i t i e sS a l a r i e s P a y a b l e 6 , 0 0 0$ 8 , 0 0 0$ S t o c k h o l d e r s 39。 E q u i t yL i a b i l i t i e s C a s h F l o w 236 LO 6 amp。 E q u i t yL i a b i l i t i e s C a s h F l o w P r i nc i pa l ? ? ? A nnua l i nt e r e s t r a t e ? ? ? Ti m e out s t a ndi ng = I nt e r e s t e x pe ns e 9 0 , 0 0 0$ ? ? ? 0 . 0 9 ? ? ? 8 / 1 2 = 5 , 4 0 0$ 234 On August 31, 2022, the maturity date of the note, three events are recognized. Second, cash is paid for $8,100, the total amount of interest due on the note. 1. Decrease assets (cash). 2. Decrease liabilities (interest payable). Asset Use Transaction = + C a s h + = N o t e s P a y a b l e + I n t e r e s t P a y a b l e + C o m m o n S t o c k + R e t a i n e d E a r n i n g s R e v e n u e E x p e n s e s = N e t I n c o m e ( 8 , 1 0 0 ) + = n / a ( 8 , 1 0 0 ) + n / a + n / a n / a n / a = n / a ( 8 , 1 0 0 ) OA C a s h F l o w A s s e t s S t o c k h o l d e r s 39。 E q u i t y 1 7 1 , 0 0 0$ A s o f D e c e m b e r 3 1 , 2 0 0 9C O N N E R C O N S U L T A N T SB a l a n c e S h e e tequal 230 Preparing Financial Statements C a s h Fl ow s f r om O pe r a t i ng A c t i v i t i e sC a s h R e c e i pt s f r om C us t om e r s 1 0 2 , 0 0 0$ C a s h P a y m e nt s f or S a l a r y E x pe ns e ( 2 0 , 0 0 0 ) N e t C a s h Fl ow f r om O pe r a t i ng A c t i v i t i e s 8 2 , 0 0 0$ C a s h Fl ow s f or I nv e s t i ng A c t i v i t i e sC a s h P a y m e nt s t o P urc ha s e C D ( 6 0 , 0 0 0 ) C a s h Fl ow s f r om Fi na nc i ng A c t i v i t i e sC a s h R e c e i pt s f r om I s s ui ng C om m on S t oc k 2 5 , 0 0 0 C a s h P a y m e nt f or D i v i de nd s ( 1 0 , 0 0 0 ) N e t C a s h Fl ow f r om Fi na nc i ng A c t i v i t i e s 1 5 , 0 0 0 N e t I nc r e a s e i n C a s h 3 7 , 0 0 0 P l us B e gi nn i ng C a s h B a l a nc e 5 3 , 0 0 0 E nd i ng C a s h B a l a nc e 9 0 , 0 0 0$ C O N N E R C O N S U LT A N TSS t a t e m e nt of C a s h Fl ow sFo r t he Y e a r E nd e d D e c e m be r 3 1 , 2 0 0 9231 Steps in an Accounting Cycle Record Transactions Adjust Accounts Prepare Statements Close Nominal Accounts Now, let’s look at some more transactions for Conner Consultants. 232 On September 1, 2022, Conner borrowed $90,000 cash from First City Bank by issuing a 1 year note at 9% interest. 1. Increase assets (cash). 2. Increase liabilities (notes payable). Asset Source Transaction = + C a s h + = N ot e s P a y a bl e + I nt e r e s t P a y a bl e + C om m on S t oc k + R e t a i ne d E a r ni ng s R e v e nu e E x pe ns e s = N e t I nc om e 9 0 , 0 0 0 + = 9 0 , 0 0 0 n/ a + n/ a + n/ a n/ a n/ a = n/ a 9 0 , 0 0 0 FAA s s e t s S t oc k ho l de r s 39。 E q u i t yC o m m n S t o c k 3 0 , 0 0 0$ R e t a i n e d E a r n i n g s 1 3 3 , 0 0 0 T o t a l S t o c k h o l d e r s 39。 E q u i t y 1 6 3 , 0 0 0$ C O N N E R C O N S U L T A N T SI n c o m e S t a t e m e n tF o r t h e Y e a r E n d e d D e c e m b e r 3 1 , 2 0 0 9C O N N E R C O N S U L T A N T SS t a t e m e n t o f C h a n g e s i n S t o c k h o l d e r s 39。 E q u i t y P r i nc i pa l ? ? ? A nnua l i nt e r e s t r a t e ? ? ? Ti m e out s t a ndi ng = I nt e r e s t r e v e nue 6 0 , 0 0 0$ ? ? ? 0 . 0 6 ? ? ? 1 0 / 1 2 = 3 , 0 0 0$ 226 Adjusting Entries Update account balances Prior to preparing financial statements 227 = Li a b. +E v e nt N o. C a s h + A c c ou nt s R e c e i v a bl e + I nt e r e s t R e c e i v a bl e + C e r t i f i c a t e of D e po s i t = S a l a r i e s P a y a bl e + C om m on S t oc k + R e t a i ne d E a r ni ng s O t he r A c c ou nt Ti t l e s B e g. B a l . 5 3 ,0 0 0 2 4 ,0 0 0 6 ,0 0 0 5 ,0 0 0 6 6 ,0 0 0 1 2 5 ,0 0 0 2 5 ,0 0 0 2 9 6 ,0 0 0 9 6 ,0 0 0 C on s . R e v . 3 1 0 2 , 0 0 0 ( 1 0 2 , 0 0 0 )4 2 2 ,0 0 0 ( 2 2 ,0 0 0 ) S a l . E x p. 5 ( 2 0 ,0 0 0 ) ( 2 0 ,0 0 0 )6 ( 1 0 ,0 0 0 ) ( 1 0 ,0 0 0 ) D i v i de nd s 7 ( 6 0 ,0 0 0 ) 6 0 ,0 0 0 8 3 ,0 0 0 3 ,0 0 0 I nt . R e v . E nd . B a l . 9 0 , 0 0 0 + 1 8 , 0 0 0 + 3 , 0 0 0 + 6 0 , 0 0 0 = 8 , 0 0 0 + 3 0 , 0 0 0 + 1 3 3 , 0 0 0 A s s e t s S t oc k ho l