Equations Flashcards
Amount purchased on account during the period =
total of accounts payable + beginning balance of accounts payable
Total of Accounts Payable =
ending balance of Accounts Payable + Paid on Account
Capital =
Ending Capital + net loss
Ending capital - net income
Amount invested during the period =
Capital - Beginning Capital balance
Total Prepaid Insurance =
Beginning balance of prepaid insurance + premium paid during period
Amount of Insurance Expired during the period =
Total prepaid insurance - Ending balance of prepaid insurance
Net Loss/Net Income =
Balance Sheet Credit Column - Balance Sheet Debit Column
Income Statement Credit Column - Income Statement Debit Column
Net Sales =
Sales - Sales Discount - Sales Returns and Allowances
Cost of Delivered Merchandise =
Purchases + Transportation In
Net Purchases =
Purchases + Transportation In - Purchases Returns and Allowances - Purchase Discount
Cost of Merchandise Available for Sale =
Net Puchases + Beginning Inventory
Ending Inventory =
- Income Summary(if DR)
Beginning Inventory
+ Income Summary(if CR)
Cost of Merchandise Sold =
Net Sales - Gross Profit
Cost of Merchandise Available for Sale - Ending Inventory
Gross Profit =
Net Sales - Cost of Merchandise Sold
Net loss/income =
Gross Profit - Expenses
