In this presentation, we’re going to take a look at the formatting of a statement of activities or income statement, we’ll take a look at customizing the statement of activities and customizing it for internal use, as well as external use and then saving those customized income statements so that when we go into them into the future, it will be as easy as possible, get ready, because here we go with aplos. Here we are on our not for profit organization dashboard, we’re going to be opening up our reports, let’s go to the reports on the right hand side to do so we’re then going to go into the income statement by fund. So let’s take a look at the income statement five fund which is going to be our statement of activities report.
Advanced financial accounting PowerPoint. In this presentation we will discuss a situation where there is a sale of inventory or transfer of inventory from parent to subsidiary, the subsidiary not having yet sold the inventory. So in that sense, we have an intercompany type of transfer. When we consider the parent and subsidiary as a whole with regard to a consolidation process, the parent sold to the subsidiary the inventory, the subsidiary still holding on to that inventory has not resold it externally at this point, get ready to account with advanced financial accounting. What we want to do now is think about the transaction on p side and then on SSIS, and then what the elimination entry will be. So there’s a couple ways you can think about this, you can kind of memorize what the elimination process will be what the elimination entry will be and put together worksheets to do that elimination process kind of by just routine by just filling out the worksheet. And then you also want to analyze the worksheet and think about it in detail in terms of what is actually happening.
This presentation we’re going to take a look at the consolidation process for a 100% owned subsidiary. In other words, when we’re thinking about one company owning another company in advanced financial accounting, we’re usually looking at the situation and spending most of our time where we have some kind of consolidation process. So we want to Vin take the consolidation process and look at it in levels of complexity. So we’re going to start with a level of complexity, that’s going to be an easier setting where we will have 100% owned subsidiary, and then we’ll go from there and add more complications to it. Get ready to account with advanced financial accounting to ownership and control and prior presentations, we took a look at different methods based on different levels of ownership and control. We said in general, if we had zero to 20%, we use the carried value and then 20 percents kind of an arbitrary number, but if we’re over that amount, we’re really looking at the term of significant influence it for over the 20% from 20 to 50% then The assumption is that we would be using the equity method because the assumption would be if over 20% unless spoken otherwise, unless some unreal, some reason, otherwise, we would then have this significant influence and therefore be justified to use the equity method. And then if you’re over 51%, then you may have the consolidation. Now, when we think about these two methods that they carried value in the equity method, we can basically explain those as we go, you know, if you got anything from zero to 20%, then we could just basically say, yeah, then you fall into this category, let’s talk about the accounting in general.
In this presentation, we will take a look at the statement of cash flows using the direct method. Here’s going to be our information we got the comparative balance sheet, the income statement and some additional information. And we will use this information to put together our worksheet which will be the primary source used to create the statement of cash flows using the direct method. This is going to be our worksheet. Now most of this worksheet will be similar to what we have done for the indirect method, in that we took the difference in the balance sheet accounts. So we’re taking the current year and the prior year, the current period, the prior period, all the balance sheet accounts, we’ve got cashed down to the retained earnings for the balance sheet accounts. But we’re also in this case going to give us the income statement accounts for the current period. So in other words, we’re going to break out the retained earnings the amount to its component parts, meaning we’ve got net income being broken out on the income statement. We’ve got sales cost of goods sold, the income statement accounts. So it’s going to be our same kind of worksheet here, we’re going to be in balance, we’ve converted it from a plus and minus format, we’ve removed all of the subtitles as we did under the indirect method.
This presentation we will continue on with our statement of cash flows, we’re not going to enter the final adjustments that we will need to finalize the statement of cash flows to bring those last few numbers to the correct balances. In order to do that, we’re going to use this information we’ve got our comparative balance sheet, our income statement and additional information. We put together most of our information so far with the comparative balance sheet, which we made into a worksheet. Now we’re going to use some of these other resources, the income statement, the additional resources to make those final adjustments, those fine tunings that are needed to get those few numbers that we have left and noted into balance. And this is going to be part of the normal practice where once we get this information set up, we can then make some comparisons such as net income does it tie out, such as depreciation does it tie out on the cash flow statement to what we see here on the income statement, then we can have this other information which will be given in both problems in practice, of course, we’ll just go to the gym. General Ledger. And we’ll get this information in a book problem, we don’t want to give all the detail of a general ledger or just when we’re going over an example.
In this presentation, we will continue on with our statement of cash flows. Taking a look at the investing activities, specifically the purchase of equipment, we’re going to be using the comparative balance sheet, the income statement and additional information focusing here on the comparative balance sheet, which we use to make this worksheet. So this worksheet is our comparative balance sheet. We’ve been going through this worksheet and really looking for the differences. We’re finding a home for all the differences. Once we do that, we’re feeling pretty good. We have done this all the way through the operating activities. So are the cash flows from operations. So we’ve gone through here we’ve kind of picked and choose the items that are going to be cash flows from operations, which is probably the way most people approach this. But just note that as we’ve done that, we’ve tried to pick up the exact differences here. We haven’t gone to the income statement and thought about it separately outside of this worksheet, and then we’re going to go back and make adjustments. So we found a home for the difference in cash because that’s Kind of like our bottom line. And then we’ve got accounts receivable, inventory prepaid expenses, and then we skipped equipment and went down to accounts payable.
In this presentation, we will continue on with our statement of cash flows using the indirect method looking in on the change in accounts payable, we’re going to be using this information or a comparative balance sheet income statement and other information focusing primarily on comparative balance sheet creating a worksheet with it, looking like this. This basically being the comparative balance sheet. But in a post closing trial balance format, we have our two periods and the difference between those periods here. Our goal is to find a home for all of these differences. Once we do so we’ll end up with basically the change in cash. That being our bottom line that we’re looking for. We’ve gone through this information in terms of the cash flows from operations. We’re currently looking through the current assets, and now we’re moving on to the current liabilities. So we’ve looked at the accounts receivable, the inventory, prepaid expenses, we have these here. We’re moving on now to a liability and notice when we do that, when we’re working From the worksheet, we’re kind of skipping over some things here.
In this presentation, we will continue with the statement of cash flows indirect method looking at the change in prepaid expenses, we’re going to be using this information, we’ve got the comparative balance sheet, we’ve got the income statement and some additional information, we will be working primarily with the difference in the comparative balance sheet with the use of a worksheet taking this information to create this worksheet. So this is just basically a comparative balance sheet that has been condensed down to something that looks like a post closing trial balance. We are constructing our cash flows from operations from it, we have all of our differences. We’re basically just finding a home for these differences. We know if we do so that if we find a home for all of these differences, then it’ll add up to that difference, the difference in cash, which is basically the bottom line of our cash flow statement, or that’s what we want to get to in terms of adding up the cash flows. So we’ve gotten so far We’re working on the cash flows from operations. And we’ve done the cash flows in terms of the accounts receivable, inventory. Now we’re on prepaid expenses. We’re just going through these.
Hello in this section we will define the post closing trial balance. When seeing the post closing trial balance, it’s easiest to look at it in comparison to the adjusted trial balance and consider where we are at in the accounting cycle in the accounting process. When we see these terms such as the adjusted trial balance and post closing trial balance, as well as an unadjusted trial balance, we’re really talking about the same type of thing. We’re talking about a trial balance, meaning we’re going to have the accounts with balances in them. And we’re going to have the amounts related to them. And of course, the debits and the credits will always remain in balance. If it is a trial balance, no matter the name, whether it be just a trial balance on an adjusted trial balance and adjusted trial balance or a post closing trial balance.
In this presentation, we will continue putting together the statement of cash flows using the indirect method focusing here on the change in accounts receivable. The information will be a comparative balance sheet, the income statement and some added information we will be focusing in on a worksheet that was composed from the comparative balance sheet. So here is our worksheet. So our worksheet that we can pay that we made from the comparative balance sheet, current period, prior period change. So we have all of our balances here for the current period, the prior period and the change, we have put in this change. And this is really the column that we are focusing in on we’re trying to get to this change in cash by finding a home for all other changes. Once we find a home for all other changes. We will get to this change in cash the bottom line here 61,900. The major thing we’re looking for is right here. We’ve already taken a look at the change in the retained earnings. And the change in the accumulated depreciation. Now we’re going to look at the changes in current assets and current liabilities.
