Task Team of FUNDaMENTAL ACCOUNTING School of Business. Sun Yat-sen University Rent Other operating expenses 300.000 Total 650.000 Net income s115,000 Quartz Corporation Statement of Retained earnings For the year ending December 31, 20X3 Beginning retained earnings $400,000 Plus: Net income 115,000 $515000 Ending retained earnings $480 Quartz Corporation December 31. 20X3 Liabilities Cash $192000 Salaries payable $34,000 Accounts receivable 248.000 166.000 450.000 Total liabilities $200.000 Other assets 10.000 Stockholders'equity Capital stock Retained earnings 480.000 Total stockholders' equity 700.000 Total asset 900.000 Total Liabilities and equity $900.000 There are two major types of financial statements-stock reports and flow reports; Financial statement can serve as an important device to disclose information to investors in order for them to make better decisions, Four major financial statements are compared, explained and illustrated in this lesson; In this section, the former case of The Beauty Photo Store is picked up again here, and its four major financial statements are illustrated to show its performance and financial positions Case for Open Discussion You're a new board member, studying the numbers, hoping to decipher their meaning. Then you're hit with the accounting jargon: balance sheets and income statements; cash basis and accrual basis. You think you hear the financial statements quietly at you, and you begin to wonder if the board should hire a psychiatrist instead of an accountant Suggested Qu 1)How are financial statements prepared?Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University Rent 115,000 Other operating expenses 300,000 Total expenses 650,000 Net income $115,000 Quartz Corporation Statement of Retained Earnings For the year ending December 31, 20X3 Beginning retained earnings $400,000 Plus: Net income 115,000 $515,000 Less: Dividends 35,000 Ending retained earnings $480,000 Quartz Corporation Balance Sheet December 31, 20X3 Assets Liabilities Cash $192,000 Salaries payable $ 34,000 Accounts receivable 248,000 Accounts payable 166,000 Land 450,000 Total liabilities $200,000 Other assets 10,000 Stockholders' equity Capital stock $220,000 Retained earnings 480,000 Total stockholders' equity 700,000 Total assets $900,000 Total Liabilities and equity $900,000 Summary There are two major types of financial statements-stock reports and flow reports; Financial statement can serve as an important device to disclose information to investors in order for them to make better decisions; Four major financial statements are compared, explained and illustrated in this lesson; In this section, the former case of The Beauty Photo Store is picked up again here, and its four major financial statements are illustrated to show its performance and financial positions. Case for Open Discussion You’re a new board member, studying the numbers, hoping to decipher their meaning. Then you’re hit with the accounting jargon: balance sheets and income statements; cash basis and accrual basis. You think you hear the financial statements quietly laugh at you, and you begin to wonder if the board should hire a psychiatrist instead of an accountant. Suggested Questions: 1) How are financial statements prepared?