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Introduction to Accounting and Business


Principles of Accounting
Indonesia Adaptation
2nd Edition

Reeve | Warren | Duchac | Suhardianto | Kalanjati | Jusuf | Djakman |

Copyright !" #ener$it Salem$a %mpat and Cengage &earning

After studying this chapter, you should be able to:


"' Descri$e the nature of a $usiness and the

role of ethics and accounting in $usiness'


' Summari(e the development of accounting

principles and relate them to practice' )' State the accounting e*uation and define each element of the e*uation'

After studying this chapter, you should be able to:


+' Descri$e and illustrate ho, $usiness

transactions can $e recorded in terms of the resulting change in the $asic elements of the accounting e*uation' -' Descri$e the financial statements of a proprietorship and e.plain ho, they interrelate'
)

1-1

/$jective /$jective " " Describe the nature of a business and the role of ethics and accounting in business.
+

Types of Businesses

1-1

Service Service0usiness 0usiness #la(a #la(a 1ndonesia 1ndonesia Realty Realty 2$k' 2$k' 3otel 3otel Sahid Sahid Jaya Jaya 2$k' 2$k' lodging lodging 0ank 0ank 4andiri 4andiri 2$k' 2$k' 6aruda 6aruda 1ndonesia 1ndonesia 2$k 2$k 1ndosat 1ndosat 2$k' 2$k'

Service Service Shopping Shopping mall mall 3ospitality 3ospitality and and 5inancial 5inancial services services 2ransportation 2ransportation 2elecommunication 2elecommunication
-

Types of Businesses

1-1

4erchandising 4erchandising 0usiness 0usiness #roduct #roduct 4atahari Clothes 4atahari #utra #utra #rima #rima 2$k' 2$k' Clothes and and apparel apparel 3ero 5ood 3ero Supermarket Supermarket 2$k' 2$k' 5ood and and groceries groceries 2oko 0ooks 2oko 6unung 6unung 8gung 8gung 2$k' 2$k' 0ooks and and stationeries stationeries 8ce 8ce 3ard,are 3ard,are 1ndonesia 1ndonesia 2$k' 2$k' Consumer Consumer electronics electronics 8lfa Consumer 8lfa Retailindo Retailindo 2$k' 2$k' Consumer goods goods

Types of Businesses

1-1

4anufacturing 4anufacturing 0usiness 0usiness Sepatu Sepatu 0ata 0ata 2$k' 2$k' 4ustika 4ustika Ratu Ratu 2$k' 2$k' 6udang 6udang 6aram 6aram2$k' 2$k' 4ayora 4ayora 1ndah 1ndah 2$k' 2$k' Kal$e Kal$e 5arma 5arma 2$k' 2$k'

#roduct #roduct Shoes Shoes Cosmetics Cosmetics Cigarettes Cigarettes 5ood 5ood and and $everages $everages #harmaceutical #harmaceutical

Common Forms of Business Organizations

1-1

#roprietorship #artnership Corporation Cooperatives

1-1

8 proprietorship <perusahaan perseorangan= is o,ned $y one individual and> 4ost of 0usiness entities in 1ndonesia is proprietorship Cost of organi(ing is lo, 1s limited to financial resources of the o,ner' 1s used $y small $usinesses'
;

1-1

8 partnership is similar to a proprietorship e.cept that it is o,ned $y t,o or more individuals and> 1n 1ndonesia ,e kno, firma and C? as t,o types of partnership' 5irma and C? ,ill $e discussed more in chapter " ' Com$ines the skills and resources of more than one person'
"!

1-1

8 corporation is organi(ed under government statues as a separate legal ta.a$le entity and>
1ncludes o,nership divided into shares of stock@ sold to shareholders <stockholders=' 1s a$le to o$tain large amounts of resources $y issuing stock' 1s used $y large $usinesses'

""

1-1

Cooperatives <Koperasi= 1s o,ned $y a group of people <named as mem$er=' Cooperatives mainly are organi(ed $y and for mem$er only' 5or e.ample %mployee Cooperatives <Koperasi Karya,an=@ 4ilk 5armer Cooperatives <Koperasi #engrajin Susu=@ 0atik 0usiness /,ner Cooperatives <Koperasi #engusaha 0atik=@ and many more
"

1-1

8 business stakeholder is a person or entity having an interest in the economic performance and ,ellA$eing of a $usiness'
")

1-1

Capital market stakeholders provide the major financing for the $usiness in order for the $usiness to $egin and continue its operations'

"+

1-1

Product or service market stakeholders include customers ,ho purchase the $usinessBs products or services as ,ell as the vendors ,ho supply inputs to the $usiness'
"-

1-1

Government stakeholders have an interest in the economic performance of a $usiness' #rovincial governments collect ta.es from $usinesses ,ithin their jurisdiction'
"7

1-1

Internal stakeholders include individuals employed $y the $usiness' 4anagers have an incentive to ma.imi(e the economic value of the $usiness' %mployees have an interest $ecause their jo$s depend on it'
"9

1-1

2he moral principles that guide the conduct of individuals are called ethics.

":

1-1

The answer to "' 1ndividual What went character wrong for these ' 5irm culture companies? )' &a,s and (Exhibit 2 enforcement in!o"!es three factors#
";

1-1

Accounting can $e defined as an information system that provides reports to stakeholders a$out the economic activities and condition of a $usiness'
!

1-1

The process by which accounting provides information to business stakeholders is as follows: 1dentify stakeholders' 8ssess stakeholdersB information needs' Design the accounting information system to meet stakeholdersB needs' Record economic data a$out $usiness activities and events' #repare accounting reports for stakeholders'
"

1-1

1-1

Financial accounting is primarily concerned ,ith the recording and reporting of economic data and activities for a $usiness' Managerial accounting uses $oth financial accounting and estimated data to aid management in running dayAtoAday operations and in planning future operations'
)

1-1

8ccountants employed $y a $usiness firm or a notAforAprofit organi(ation are said to $e employed in private accounting. 8ccountants and their staff ,ho provide services on a fee $asis are said to $e employed in public accounting.
+

1-2

/$jective /$jective Summari e the development of accounting principles and relate them to practice.
-

1-2 5inancial accountants follo, genera""$ accepted accounting princip"es (%AA& in preparing reports' 1n 1ndonesia@ 688# is ,ellAkno,n as #80C <#rinsip 8kuntansi 0erterima Cmum=' Indonesian 'inancia" Accounting (tandards Board (De,an Standar 8kuntansi Keuangan>DS8K) is the authoritative $ody having the primary responsi$ility for developing accounting standards' 2he DS8K pu$lishes Statement of 5inancial 8ccounting Standards <Pernyataan Standar Akuntansi euangan!PSA ) as ,ell as 1nterpretation of these standards <"nterpretasi Standar Akuntansi euangan!"SA ). 7

1-2 Currently@ the DS8K adopts international financial accounting standards developed $y Internationa" Accounting (tandard Boards (IA(B to enhance the international compara$ility of 1ndonesian companiesB financial reports' 18S0 is international accounting standard $ody that produces international accounting standards named Internationa" 'inancia" )eporting (tandards !IF"S# and Internationa" Accounting (tandards !IAS#.
9

1-2

2he business entit$ concept limits the economic data in the accounting system to data related directly to the activities of the $usiness' 2he $usiness is vie,ed as an entity separate from its o,ners@ creditors@ or other stakeholders

1-2

2he cost concept is the $asis for entering the e.change price@ or cost of an ac*uisition in the accounting records'
;

1-2

2he ob%ectivit$ concept re*uires that the accounting records and reports $e $ased upon o$jective evidence' 2he unit of measure concept re*uires that economic data $e recorded in rupiah'

)!

1-2 Example Exercise 1-1


/n 8ugust -@ 0engkel 8gung Jaya e.tended an offer of Rp" -@!!!@!!! for land that had $een priced for sale at Rp"-!@!!!@!!!' /n Septem$er )@ 0engkel 8gung Jaya accepted the sellerBs counteroffer of Rp")9@!!!@!!!' /n /cto$er !@ the land ,as assessed at a value of Rp;:@!!!@!!! for property ta. purposes' /n Decem$er +@ 0engkel 8gung Jaya ,as offered Rp"7!@!!!@!!! for the land $y a national retail chain' 8t ,hat value should the land $e recorded in 0engkel 8gung JayaBs recordsD

Follow My Example 1-1


Rp")9@!!!@!!!' Cnder the cost concept@ the land should $e recorded at the cost to 0engkel 8gung Jaya'
)"

1-3

/$jective /$jective ) ) State the accounting e&uation and define each element of the e&uation.
)

The Accounting Equation

1-3

Assets * +iabi"ities , -wner.s E/uit$ 2he resources o,ned $y a $usiness

))

The Accounting Equation

1-3

Assets * +iabi"ities , -wner.s E/uit$ 2he rights of the creditors@ ,hich represent de$ts of the $usiness
)+

The Accounting Equation

1-3

Assets * +iabi"ities , -wner.s E/uit$ 2he rights of the o,ners

)-

1-3 Example Exercise 1-2


8sep Sunarya is the o,ner and operator of #asti Sukses@ a motivational consulting $usiness' 8t theaccounts end of its accounting Decem$er )"@ $alance !!9@ #asti Sukses has 2he follo,ing appear inperiod@ the adjusted trial of assets of Rp:!!@!!!@!!! and lia$ilities of Rp)-!@!!!@!!!' Csing the accounting 3indsight Consulting' 1ndicate ,hether each account ,ould $e e*uation@ determine the follo,ing amountsF

reported in the <a= current assetE <$= property@ plant@ and a' /,nerBs e*uity@ as of Decem$er<d= )"@ longAterm !!9' e*uipmentE <c= current lia$ility@ lia$ilityE or <e= $' /,nerBs e*uity@ as ofof Decem$er )"@ !!:@)"@ assuming that assets sheet o,nerBs e*uity section the Decem$er !!9@ $alance increased $y Rp")!@!!!@!!! and lia$ilities decreased $y Rp -@!!!@!!! of 3indsight Consulting' during !!:'

Follow My Example 1-2


a'
8 G & H /% Rp:!!@!!!@!!! G Rp)-!@!!!@!!! H /% /% G Rp+-!@!!!@!!!

$'

8 G & H /% Rp")!@!!!@!!! G IRp -@!!!@!!! H /% /% G Rp"--@!!!@!!! /% on Dec' )"@ !!:F Rp7!-@!!!@!!! <Rp+-!@!!!@!!!HRp"--@!!!@!!!=

)7 )7

1-4

/$jective /$jective + +
Describe and illustrate ho' business transactions can be recorded in terms of the resulting change in the basic elements of the accounting e&uation.
)9

1-4

8 business transaction is an economic event or condition that directly changes an entityBs financial condition or directly affects its results of operations'
):

1-4

/n Jovem$er "@ !"!@ Cinta Cita $egins a $usiness that ,ill $e kno,n as Solusi(et'
);

1-4

Assets Cash
-@!!!@!!!

G G

-wner.s E/uit$ Cinta Cita@ Capital -@!!!@!!! 1nvestment $y Cinta Cita

a'

a' Cinta Cita deposits Rp -@!!!@!!! in a $ank account in the name of SolusiJet

+!

1-4 <in Rp!!!=

Assets Cash H &and 0al' -@!!! $' I !@!!! H !@!!! 0al' -@!!! !@!!!

G G

-wner.s E/uit$ Cinta Cita@ Capital -@!!! -@!!!

$' SolusiJet e.changed Rp !@!!!@!!! for land'


+"

1-4 <in Rp!!!= Assets Cash H Supplies H &and 0al' -@!!! c' 0al' -@!!! !@!!! H"@)-! "@)-! !@!!! G H"@)-! "@)-! G -wner.s +iabi"ities , E/uit$ 8ccounts Cinta Cita@ #aya$le Capital -@!!! -@!!!

c' During the month@ SolusiJet purchased supplies for Rp"@)-!@!!! and agreed to pay the supplier in the near future <on account='

1-4

0eginning ,ith entry <d= the asset section ,ill $e sho,n first@ then the lia$ilities and o,nerBs e*uity ,ill $e sho,n in the follo,ing slide'

+)

1-4 <in Rp!!!= Assets Cash H Supplies H &and -@!!! "@)-! !@!!! "@)-! !@!!!

0al' d' H9@-!! " @-!! 0al'

d' SolusiJet provided services to customers@ earning fees of Rp9@-!!@!!! and received the amount in cash'

++

<in Rp!!!= +iabi"ities , -wner.s E/uit$ 8ccounts Cinta Cita@ 5ees #aya$le H Capital H %arned 0al' "@)-! -@!!! H9@-!! d' "@)-! -@!!! 9@-!! 0al'

1-4

d' SolusiJet provided services to customers@ earning fees of Rp9@-!!@!!! and received the amount in cash'
+-

Expenses

1-4

2he amounts used in earning revenue are called e)penses' 8dding e.penses to the o,nerBs e*uity section results in a space pro$lem' 2o adjust for these added headings@ the ,ord K0al'L has $een omitted from Slides +:@ -!@ - @ and -+' 2he $ottom ro, in these four slides provides the $alances after each transaction'
+7

<in Rp!!!= Assets Cash H Supplies H &and 0al' " @-!! "@)-! !@!!! e' I)@7-! 0al' :@:-! "@)-! !@!!!

1-4

e' SolusiJet paid the follo,ing e.pensesF ,ages@ Rp @" -@!!!E rent@ Rp:!!@!!!E utilities@ Rp+-!@!!!E and miscellaneous@ Rp 9-@!!!'

+9

<in Rp!!!=
+iabi"ities , -wner.s E/uit$ 8ccounts Cinta Cita@ 5ees Wages Rent Ctilities #aya$le H Capital H %arned %.pense %.pense %.pense %.pense "@)-! -@!!! 9@-!! I @" "@)-! -@!!! 9@-!! I @" I:!! I:!! I+-! I+-!

1-4

4isc'

I 9I 9-

e'

e' SolusiJet paid the follo,ing e.pensesF ,ages@ Rp @" -@!!!E rent@ Rp:!!@!!!E utilities@ Rp+-!@!!!E and miscellaneous@ Rp 9-@!!!'

+:

<in Rp!!!= Assets Cash H Supplies H &and 0al' :@:-! "@)-! !@!!! f' I;-! 0al' 9@;!! "@)-! !@!!!

1-4

f' SolusiJet paid Rp;-!@!!! to creditors during the month'

+;

<in Rp!!!=

1-4

+iabi"ities , -wner.s E/uit$ 8ccounts Cinta Cita@ 5ees Wages Rent Ctilities 4isc' #aya$le H Capital H %arned %.pense %.pense %.pense %.pense I:!! I+-! I 9"@)-! -@!!! 9@-!! I @" I;-! +!! -@!!! 9@-!! I @" I:!! I+-! I 9-

f'

f' JetSolutions paid Rp;-!@!!! to creditors during the month'

-!

<in Rp!!!= Assets Cash H Supplies H &and 0al' 9@;!! "@)-! !@!!! g' 0al' 9@;!! I:!! --! !@!!!

1-4

g' 8t the end of the month@ the cost of supplies on hand is Rp--!@!!!@ so Rp:!!@!!! of supplies ,ere used'

-"

<in Rp!!!=
+iabi"ities , -wner.s E/uit$

1-4

8ccounts Cinta Cita@ 5ees Wages #aya$le H Capital H %arned %.p' +!! -@!!! 9@-!! I @" +!! -@!!! 9@-!! I @" -

Rent Supplies Ctil' 4isc' %.p' %.p' %.p' %.p' I:!! I+-! I 9g' I:!! I:!! I:!! I+-! I 9-

g' 8t the end of the month@ the cost of supplies on hand is Rp--!@!!!@ so Rp:!!@!!! of supplies ,ere used'

<in Rp!!!= Assets Cash H Supplies H &and 0al' 9@;!! --! !@!!! h' I @!!! 0al' -@;!! --! !@!!!

1-4

h' 8t the end of the month@ Cinta ,ithdre, Rp @!!!@!!! in cash from the $usiness for personal use'

-)

<in Rp!!!=
+iabi"ities ,

1-4

-wner.s E/uit$
Rent Supplies Ctil' %.p' I:!! I:!! %.p' %.p' %.p' I:!! I+-! I 9-

8ccounts Cinta Cita@ Cinta Cita 5ees Wages 4isc' #aya$le H Capital H Dra,ing %arned %.p' +!! -@!!! 9@-!! I @" -

I @!!!
+!! -@!!! I @!!! 9@-!! I @" I:!! I+-! I 9-

h'

h' 8t the end of the month@ Cinta ,ithdre, Rp @!!!@!!! in cash from the $usiness for personal use'

-+

1-4

-wner.s E/uit$
Increased b$ 0ecreased b$

-wner.s in!estments )e!enues

-wner.s withdrawa"s Expenses


--

1-4 Example Exercise 1-3 Simatupang %.press is o,ned and operated $y 0onar Simatupang' 2he follo,ing selected transactions ,ere completed $y Simatupang %.press during 5e$ruaryF "' Received cash from o,ner as additional investment@ Rp)-@!!!@!!' ' #aid creditors on account@ Rp"@:!!@!!!' )' 0illed customers for delivery services on account@ Rp""@ -!@!!!' +' Received cash from customers on account@ Rp7@9+!@!!!' -' #aid cash to o,ners for personal use@ Rp"@!!!@!!!' -7 Continued

1-4 Example Exercise 1-3 1ndicate the effect of each transaction on the accounting e*uation elements <8ssets@ &ia$ilities@ /,nerBs %*uity@ Dra,ing@ Revenue@ and %.pense= $y listing the num$ers identifying the transactions@ <"= through <-=' 8lso@ indicate the specific item ,ithin the accounting e*uation element that is affected' 2o illustrate@ the ans,er to <"= is sho,n $elo,' <"= 8sset <Cash= increases $y Rp)-@!!!@!!!E /,nerBs %*uity <0onar Simatupang@ Capital= increases $y Rp)-@!!!@!!!'

-9

1-4 Follow My Example 1-3 < = 8sset <Cash= decreases $y Rp"@:!!@!!!E &ia$ility <8ccounts #aya$le= decreases $y Rp"@:!!@!!!' <)= 8sset <8ccounts Receiva$le= increases $y Rp""@ -!@!!!E Revenue <Simatupang %.press= increases $y Rp""@ -!@!!!' <+= 8sset <Cash= increases $y Rp7@9+!@!!!E 8sset <8ccounts Receiva$le= decreases $y Rp7@9+!@!!!' <-= 8sset <Cash= decreases $y Rp"@!!!@!!!E /,nerBs %*uity <0onar Simatupang@ Dra,ing= increases $y Rp"@!!!@!!!' -: 5or #racticeF #% "A)8@ #% "A)0

1-5

/$jective /$jective Describe the financial statements of a proprietorship and e)plain ho' the$ interrelate.
-;

1-5

8ccounting reports@ called financial statements@ provide summari(ed information to the o,ner'

7!

1-5

2he income statement is a summary of the revenue and e.penses for a specific period of time@ such as a month or a year.

7"

Income Statement
$ol%si)et Income $tatement For t*e Mont* Ended )o+em,er 30- 2010 Fees earned Expenses !a"es expense Rent expense $%pplies expense &tilities expense Miscellaneo%s expense (otal expenses )et income Rp7 500 000 Rp2 125 #00 #00 '50 275 000 000 000 000 000 ' '50 000 Rp3 050 000

1-5

Jet income is carried to the statement of o,nerBs e*uity 7

1-5

8 statement of changes in e&uit$ is a summary of the changes in the o,nerBs e*uity that have occurred during a specific period of time.

7)

Statement of O,ner1s Equity


5rom the income statement
Solusi!et Statement of O,ner.s Equity For the 0onth En-e- !o"em#er )& %&$& Cinta Cita capital !o"em#er $ %&$& 'p & In"estment on !o"em#er $ %&$& 'p%( &&& &&& !et Income for !o"em#er ) &(& &&& 'p%* &(& &&& +ess ,ith-ra,als % &&& &&& Increase in o,ner.s equity %/ &(& &&& Cinta Cita capital !o"em#er )& %&$& 'p%/ &(& &&&

1-5

2o the $alance sheet

7+

1-5

8 statement of financial position !balance sheet# is a list of the assets@ lia$ilities@ and o,nerBs e*uity as of a specific date.

7-

Balance Sheet
Solusi!et Balance Sheet !o"em#er )& %&$& +ia#lities 'p ( 2&& &&& Accounts Paya#le ((& &&& O,ner.s Equity %& &&& &&& Cinta Cita capital Total +ia#ilities an'p%/ 3(& &&& O,ner.s equity

1-5

Assets Cash Supplies +anTotal assets

'p

3&& &&& %/ &(& &&&

'p%/ 3(& &&&

2his amount is compared to the net cash flo, on the statement of cash flo,s

5rom the statement of o,nerBs e*uity


77

1-5

8 statement of cash flo's is a summary of the cash receipts and payments for a specific period of time.

79

Statement of Cash Flo,s


Solusi!et Statement of Cash Flo,s For the 0onth En-e- !o"em#er )& %&$& Cash flo,s from operating acti"ities Cash recei"e- from customers 'p 4 (&& &&& 5e-uct cash payments for expense anpayments to cre-itors 3 /&& &&& !et cash flo, from operating acti"ities 'p % Cash flo,s from in"esting acti"ities Cash payments for purchase of lan6%& Cash flo,s from financing acti"ities Cash recei"e- as o,ner.s in"estments'p%( &&& &&& 5e-uct cash ,ith-ra,al #y o,ner % &&& &&& !et cash flo, from financing acti"ities %) !et cash flo, an- !o"em#er )& %&$& cash #alance 'p (

1-5

2&& &&& &&& &&&7

&&& &&& 2&& &&&

2his amount should match Cash on the $alance sheet'

7:

Income Statement

1-5

2he income statement reports the revenues and e.penses for a period of time $ased on the matching concept' 2his concept is applied $y matching the e.penses ,ith the revenue generated during a period $y those e.penses'
7;

1-5

2he e.cess of revenue over the e.penses is called net income or net profit. 1f the e.penses e.ceed the revenue@ the e.cess is a net loss'
9!

1-5 Example Exercise 1-'


2he assets and lia$ilities of Cimande 2ravel Service at 8pril )!@ !""@ the end of the current year@ and its revenue and e.penses for the year are listed $elo,' 2he capital of the o,ner@ 8dam Kuncoro@ ,as Rp:!@!!!@!!! at 4ay "@ !"!@ the $eginning of the current year'
8ccounts paya$le 8ccounts receiva$le Cash 5ees earned &and Rp " @ !!@!!! )"@)-!@!!! -)@!-!@!!! 7)@ !!@!!! :!@!!!@!!! 4iscellaneous e.pense /ffice e.pense Supplies Wages e.pense Rp " @;-!@!!! 7)@!!!@!!! )@)-!@!!! ")"@9!!@!!!

#repare an income statement for the current year ended 8pril )!@ !""'
9"

1-5 Follow My Example 1-'


1I2A30E T)A4E+ (E)4I1E 1JC/4% S282%4%J2
5or the Mear %nded 8pril )!@ !""

5ees earned %.pensesF Wages e.pense /ffice e.pense 4iscellaneous e.pense 2otal e.penses Jet income

Rp 7)@ !!@!!! Rp")"@9!!@!!! 7)@!!!@!!! " @;-!@!!! !9@7-!@!!! Rp --@--!@!!!

Statement of Changes in Equity

1-5

2he statement of changes in e*uity reports the changes in the o,nerBs e*uity for a period of time' 1t is prepared after the income statement'
9)

1-5 Example Exercise 1-5

Csing the data for Cimande 2ravel Service sho,n in %.ample %.ercise "A+@ prepare a statement of changes in e*uity for the current year ended 8pril )!@ !""' 8dam Kuncoro invested an additional Rp-!@!!!@!!! in the $usiness during the year and ,ithdre, cash of Rp)!@!!!@!!! for personal use'

9+

1-5 Follow My Example 1-5


1I2A30E T)A4E+ (E)4I1E S282%4%J2 /5 C38J6%S 1J %NC12M 5or the Mear %nded 8pril )!@ !""
8dam Kuncoro@ capital@ 4ay "@ !"! 8dditional investment $y o,ner during year Jet income for the year &ess ,ithdra,als 1ncrease in o,nerBs e*uity 8dam Kuncoro@ capital@ 8pril )!@ !"" Rp :!@!!!@!!! Rp -!@!!!@!!! --@--!@!!! Rp "!-@--!@!!! )!@!!!@!!! 9-@--!@!!! Rp "--@--!@!!!

9-

Balance Sheet

1-5

2he statement of financial position <$alance sheet= reports the amounts of a firmBs assets@ lia$ilities@ and o,nerBs e*uity at the end of a specific period'
97

1-5

2he account form of $alance sheet lists the assets on the left and the lia$ilities and o,nerBs e*uity on the right>similar to design of an account'
99

1-5

2he report form of $alance sheet presents the lia$ilities and o,nerBs e*uity sections $elo, the assets section'

9:

1-5 Example Exercise 1-.


Csing the data for Cimande 2ravel Service sho,n in %.ample %.ercise "A+ and "A-@ prepare the $alance sheet as of 8pril )!@ !""'

Follow My Example 1-.


1I2A30E T)A4E+ (E)4I1E 08&8JC% S3%%2

8ssets
Cash 8ccounts receiva$le Supplies &and 2otal assets

8pril )!@ !""

&ia$ilities
Rp " @ !!@!!! "--@--!@!!! Rp "79@9-!@!!!

Rp -)@!-!@!!! 8ccounts paya$le )"@)-!@!!! )@)-!@!!! /,nerBs %*uity :!@!!!@!!! 8dam Kuncoro@ capital Rp"79@9-!@!!! 2otal lia$' O o,nerBs e*'

9;

Statement of Cash Flo,s

1-5

2he statement of cash flo,s consists of three sectionsF


<"= /perating activities < = 1nvesting activities <)= 5inancing activities

:!

1-5

2he cash flo's from operating activities section reports a summary of cash receipts and cash payments from operations'

:"

1-5

2he cash flo's from investing activities section reports the cash transactions for the ac*uisition and sale of relatively permanent assets'

1-5

2he cash flo's from financing activities section reports the cash transactions related to cash investments $y the o,ner@ $orro,ings@ and cash ,ithdra,als $y the o,ner'
:)

Example Exercise 1-7

1-5

8 summary of cash flo,s for Cimande 2ravel Service for the year ended 8pril )!@ !""@ is sho,n $elo,'
Cash receiptsF Cash received from customers Cash received from additional investment of o,ner Cash paymentsF Cash paid for e.penses Cash paid for land Cash paid to o,ner for personal use Rp -"@!!!@!!! -!@!!!@!!! "!@!!!@!!! :!@!!!@!!! )!@!!!@!!!

2he cash $alance as of 4ay "@ !"!@ ,as Rp9 @!-!@!!!' #repare a statement of cash flo,s for Cimande 2ravel Service for the year ended 8pril )!@ !""'

:+ :+

Follow My Example 1-7


1I2A30E T)A4E+ (E)4I1E S282%4%J2 /5 C8S3 5&/WS 5or the Mear %nded 8pril )!@ !""
Cash flo,s from operating activitiesF Cash received from customers Deduct cash payments for e.penses Jet cash flo,s from operating activities Cash flo,s from investing activitiesF Cash payments for purchase of land Cash flo,s from financing activitiesF Cash received from o,ner as investment Deduct cash ,ithdra,als $y o,ner Jet cash flo,s from financing activities Jet decrease in cash during year Cash as of 4ay "@ !"! Cash as of 8pril )!@ !"" Rp -"@!!!@!!! "!@!!!@!!!

1-5

Rp +"@!!!@!!! <:!@!!!@!!!=

Rp -!@!!!@!!! )!@!!!@!!!

!@!!!@!!! Rp <";@!!!@!!!= 9 @!-!@!!! Rp -)@!-!@!!!

::-

Interrelationships Among Financial Statements

1-5

2he income statement and the statement of o,nerBs e*uity are interrelated' Jet income or net loss appears on $oth statements'

:7

1-5

2he statement of o,nerBs e*uity and the $alance sheet are interrelated' 2he o,nerBs capital at the end of the period on the statement of o,nerBs e*uity also appears on the $alance sheet as o,nerBs capital'
:9

1-5

2he $alance sheet and the statement of cash flo,s are interrelated'

2he cash on the $alance sheet also appears as the endAofAperiod cash on the statement of cash flo,s'
::

%nd of Chapter "

:;

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