Screencast assignment Financial Statements

Screencast assignment

Financial Statements By Maximilien Taisne Macchi 99211777

1) Statement of comprehensive income

2) Statement of changes in equity

3) statement of financial position

1) Statement of comprehensive income A Statement of Comprehensive income is done to report the companys revenues and expenses over a period of time

Net profit (or loss) = revenue expenses

What is an expense ? Decrease in resources resulting from the sales of goods or services What is a revenue ? Increase in resource resulting from the sales of goods or services

Example

A company makes the following transactions:

Merchandise sales and services : $ 36 728Selling an administrative : $ 8418 Credit revenues: $ 4343 Cost of sales: $ 27 212

2) Statement of changes in equity A statement of changes in equity is made to report all the changes in a companys retained earnings that can occur, and other equity accounts as well

You need to have done the Statement of comprehensive income before in order to get the net profit (or loss)

Beginning Balance +/- Net profit (or loss) Dividends = Ending Balance

Example

Quartz corporation information on the 31th December 2009:

Beginning Balance: $ 400 000Dividends: $ 35 000Profit: $ 115 000

( The profit comes directly from theStatement of Comprehensive Income)

3) Statement of financial positionA statement of Financial Position will have has an aim to reports a companys assets, liabilities and equitiy

What is an asset ? It is a ressource that we can measure and that will provide information about future benefit (ex: accounts receivable, cash, land etc..)

What is a liability? It is an obligation of any business that will in a certain way sacrifice resources in the future. Its all the businness owe to another entity. (ex: accounts payable, notes payable etc..)

What is the equity? It is calculated with the difference between the assets and liabilities, and that amount will represent the share of assets that the business own (ex: retained earnings, shares etc..)

Example

Quartz Corporation information on the 31th December 2009 Cash: $ 192 000Account receivable: $128 000Retained Earnings: $480 000Equipment: $50 000Account payable: $166 000 Other assets: $ 10 000

The end

Thank you