F3 Topics Single Entry RelatedParties Etc.batuyong Concepcion
Single Entry Formulas
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PAGE 1 Single entry Formulas: 1. Computation of net income using Single Entry Method A. For Single Proprietorship and Partnership Increase/Decrease in Net Assets: Capital balance, end Pxx Capital balance, beginning (xx) Pxx Withdrawals xx Additional Investments / Contributions ( xx) Net Income Pxx B. For Corporation Increase/Decrease in Retained earnings: Retained earnings, end Pxx Retained earnings, beginning (xx) Pxx Dividends declared xx Net Income Pxx 2. Computation of Net Income by Analyzing Changes in Account Balances A. For Single Proprietorship and Partnership Dr(Cr) Increase in Assets Pxx Decrease in Assets (xx) Increase in Liabilities (xx) Decrease in Liabilities xx Increase in Net Assets xx Withdrawals xx Additional Investments/Contributions (xx) Net Income Pxx B. For Corporation Dr(Cr) Increase in Assets Pxx Decrease in Assets (xx) Increase in Liabilities (xx) Decrease in Liabilities xx Increase in Stockholders’ Equity xx Increase in Contributed Capital (xx) Decrease in Contributed Capital xx Increase in Retained Earnings xx Add: Dividends declared xx Net Income Pxx SE
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Transcript of Single Entry Formulas
PAGE 1
Single entry
Formulas:
1. Computation of net income using Single Entry Method
A. For Single Proprietorship and Partnership
Increase/Decrease in Net Assets:Capital balance, end PxxCapital balance, beginning (xx) Pxx
Withdrawals xxAdditional Investments / Contributions ( xx)Net Income Pxx
B. For Corporation
Increase/Decrease in Retained earnings:Retained earnings, end PxxRetained earnings, beginning (xx) Pxx
Dividends declared xxNet Income Pxx
2. Computation of Net Income by AnalyzingChanges in Account Balances
A. For Single Proprietorship and Partnership
Dr(Cr)Increase in Assets PxxDecrease in Assets (xx)Increase in Liabilities (xx)Decrease in Liabilities xxIncrease in Net Assets xxWithdrawals xxAdditional Investments/Contributions (xx)Net Income Pxx
B. For Corporation
Dr(Cr)Increase in Assets PxxDecrease in Assets (xx)Increase in Liabilities (xx)Decrease in Liabilities xxIncrease in Stockholders’ Equity xxIncrease in Contributed Capital (xx)Decrease in Contributed Capital xxIncrease in Retained Earnings xxAdd: Dividends declared xx Net Income Pxx
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PAGE 2
Cash vs. Accrual
Formulas:
Cash Basis Accrual Basis1. Total Sales
Cash Sales xx xxAdd: Sales on account:
AR and NR, end xxCollections of AR /NR xx xxNR Discounted xxWrite off xxSales returns and allowances xxSales discounts xxAR and NR, beginning . . (xx)
Total Sales xx xx
Cash Basis Accrual Basis2. Total Purchases
Cash Purchases xx xxAdd: Purchases on account:
AP and NP, end xxPayments on AP/NP xx xxPurchase returns and allowances xxPurchase discountsAP and NP, beginning . . (xx)
Total Purchases xx xx
Cash Basis Accrual Basis3. Expenses in General
Expenses Paid xx xxAdd/(Deduct):
Prepaid expenses, beginning xxAccrued expenses, end xxPrepaid expenses, end (xx)Accrued expenses, beginning . . (xx)
Total Expenses Incurred xx xx
Cash Basis Accrual Basis4. Other Income
Income (cash) received xx xxAdd/(Deduct):
Unearned income, beginning xxAccrued income, end xxUnearned income, end (xx)Accrued income, beginning . . (xx)
Total Income Earned xx xx
5. Depreciation (applicable to cash and accrual basis)
PPE beg xxAdd: Acquisition / Purchase of PPE xxTotal xxLess: PPE end xx
Sale or Disposal of PPE xx xxDepreciation expense xx
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