【正文】 ts, for example, cash, securities and bonds, are those that have a claim on a specified amount of money.n Land, buildings, equipment and inventory are nonmometary assets.n In general, monetary assets are reported at________。 2) must be valuable to the entity。2. How several types of transactions change the amounts reported on the balance sheet。1. Review Part? Securities are stocks and bonds. They give valuable rights to the entity that owns them, such as Treasury Bonds.? Marketable securities are that are expected to be converted into cash within a year.? ※Investment in safe, very shortterm funds, such as money market funds, are often included in the cash item rather than in marketable securities. The item is then called “cash and cash equivalents”.? Account receivable is an amount that is owed to the business ,usually by one of its customers, as a result of the ordinary extension of credit.? Example: a customer’s monthly electric bill? Inventories are goods being held for sale, as well as supplies, raw materials and partially finished products that will be sold upon pletion.? A truck owned by an automobile dealer for resale to its customers is inventories. [T/F/Not given]? A truck owned by an entity and used to transport its own goods is inventories. [T/F/Not given]Tangible Assets amp。? 2. they are _________ by Garsden Company。 that is they are amounts that [the pany owes to its suppliers/are owed to the pany by its customers].? Smith Company sold a personal puter to Brown Company for $3,000. Brown Company agreed to pay for it within 60 days. In Balance Sheet, Smith Company would report the $3,000 as Accounts ______ and Brown Company would report the amount as Accounts ________.? Bank Loan Payable is reported separately from Accounts Payable because the debt is evidenced by a promissory note.? ※ Amounts owed to employees and others for services they have provided for which they have not been paid are listed as Accrued Liabilities.? Estimated Tax Liability is the amount owed to the government for taxes. There are two reasons for showing it separately from other liabilities:? amount is large。 it is part of the owner’s claim on the assets.2. Balance Sheet Changes? The amounts of assets, liabilities and equity of an entity [remain constant/change from day to day]. Therefore the amounts shown on its balance sheet also [remain constant/change].? Each event that is recorded in the accounting records is called a transaction.? Cash is money on hand and money in bank accounts that can be withdrawn at any time. On January 2, if John Smith deposited $8,500 in the bank instead of $10,000 and kept $1,500 in the cash register, its cash at the close of business on January 2 would be ________.? Amounts on a balance sheet are listed according to the currency. Generally, the item with the most current is listed first.? Longterm Debt? Accounts Payable (due in 60 days)? Bank Loan Payable (due next October) ? When an entity borrows money, it may sign a written promise to repay. Such a written promise is termed a note. For example, if Business A borrows money from Business B, signing a note , Business A will record a [note receivable/note payable] on its balance sheet, while Business B will record a _______.? As we know that profitable operations result in an increase in equity, specifically in the item R_______ _______.? Example:? On January 3, Glendale Market borrowed $5,000 cash from a bank, giving a note therefore.? On January 4, Glendale Market purchased received inventory costing $2,000, paying cash.? On January 5, Glendale Market sold merchandise for $300, receiving cash. The merchandise had cost 200. (Retained Earnings)? On January 6, Glendale Market purchased merchandise for $2,000 and added it to its inventory. It agreed to pay the vendor within 30 days. (Accounts Payable)? On January 7, merchandise costing $500 was sold for $800, which was received in cash.? On January 8, merchandise costing $600 was sold for $900. The customer agreed to pay $900 within 30 days. (Accounts Receivable)? On January 9, Glendale Market purchased a oneyear insurance policy for $200, paying cash. (Prepaid Insurance)? On January 10, Glendale Market purchased two lots of land equal size for a total of $10,000. It thereby acquired an asset, Land. It paid $2,000 in cash and gave a tenyear mortgage for the balance of $8,000. (Mortgage Payable)? On January 11, Glendale Market sold one of the two lots of land for $5,000. The buyer paid $1,000 cash and assumed $4,000 of the mortgage。t affect Retained Earnings?252。 The purchase of inventory costing $2,000252。 The purchase of merchandise for $2,000252。 Selling merchandise for $900 which cost $600? The amount by which equity increase as a result of operation during a period of time is called the ine of that period.? An accounting report called the Ine Statement explains the ine of a period. ? The Ine Statement is for a [period of time/point in time], in contrast with the Balance Sheet, which is for a [period of time/point in time].? The increase in Retained Earnings resulting from operations is called a revenue.? The associated decrease in Retained Earnings is called an expense.? Example:? When Glendale Market sold merchandise for $300 that cost $200, the effect of the transaction on Retained Earnings can be separated into two parts: a _____ of $_____ and an ______ of $______.? The Ine Statement reports revenues and expenses for the period and the difference between them, which is _____.? Ine= Revenue－Expenses? The amount of Retained Earnings on a balance sheet is the total amount retained since the entity began operations.? The terms profit, earnings, surplus and ine all have the same meaning. They are the differences between the _______ of an accounting period and the _______of that period.? The Ine Stat