Financial Statements

Directions: In Part I of the Assignment Document LP01 Accounting Assignment, identify next to each item which statement the item would appear. The items listed could appear on the income statement (I), balance sheet (B), or statement of cash flows (CF). Then, for each group, explain the difference between the items in the set.

In Part II of the Assignment Document, you will discuss the relationship between the financial statements.

 Financial Statements

Directions

In Part I, next to each item listed, you will identify which statement the item would appear. You will need to determine whether it would appear on the income statement (I), balance sheet (B), or statement of cash flows (CF).  Then, for each group, explain the difference among the items listed. Finally, in Part II, discuss the relationship between the three financial statements.

Part I

Set 1:

_____     Inventory, ending balance

_____     Cost of goods (inventory) sold during the period

_____     Cash paid to suppliers during the period

_____     Accounts payable, ending balance

Difference:

Set 2:

_____     Accounts receivable, ending balance

_____     Cash received from customers

_____     Sales

Difference:

Set 3:

_____     Wage expense for the period

_____     Wages payable, ending balance

_____     Cash paid for wages during the period

Difference:

Set 4:

_____     Property, plant, and equipment, ending balance

_____     Cash paid for property, plant, and equipment during the period

_____     Cash received from selling property, plant, and equipment during the period

_____     Depreciation expense during the period (expense of using property, plant, and equipment during the period)

Difference:

Set 5:

_____     Notes payable, ending balance

_____     Cash received from borrowing money during the period

_____     Cash used to pay off notes payable during the period

_____     Interest expense during the period (expense of using borrowed money during the period)

Difference:

Part II

Discuss the Relationship between the financial statements identified: