LECTURER :

Saipul Arni Muhsyaf, SE, MM

Group 18

names of the group :

Fridayanti Setyono Putri (A1C011043)

Rahmatia Azzindani (A1C211123)

Aluh Rizki Amalia Lestari (A1C011007)

Diah Fatmawati (A1C211031)

The Balance Sheet

Comprehension (pemahaman)

A.

1. What is the final product of the accounting process?

The final product of accounting process is financial statement

2. What is a balance sheet?

A balance sheet is one type of financial statement, provides a summary of what a company owns and what it owes on one particular day.

3. Does the balance sheet provide financial information for a long period of time (for example, January to June 1993) or does it provide information for a specific point in time (for example, on June 30, 1993)?

It provides information for a specific point in time, for example, on June 30, 1993.

4. What is the difference between assets and liabilities?

Assets represent everything of value that is owned by a business, while liabilities are the debts that is a company owes.

5. How is owners’ or stokholders’ equity determined?

Owners’ or stokholders’ equity is determined by subtracting liabilities from assets.

6. How can the relationship between assets, liabilities, and owners’ equity be represented?

It can be represented by the fundamental accounting equation assets equal liabilities plus owners’ equity.

7. Does the accounting equation always remain in balance? *Why or why not?

Yes, it does. Because one side must equal the other. If not, it must be wrong with the recording.

8. How can a business use a balance sheet? *As a manager, how would you find a balance sheet useful?

A balance sheet is useful for a business, because it provide a financial picture of a company or a particular day.

B.

1. Assets 4. Liabilities

2. Current assets 5. Current liabilities

3. Fixed assets 6. Long-term liabilities

7. Stockholders equity

Vocabulary Exercise (latihan kosakata)

B.

1. Anything owned by a person ( g ) property (baris 6)

2. Have the same value as ( d ) equal (baris 13)

3. The existing circumstance ( f ) condition (baris 2)

4. Provide information item by item ( b ) detail (baris 23)

5. Assets equal liabilities plus owners’ equity ( a ) accounting equatin (baris 13)

6. Of or pertaining to money ( h ) monetary (baris 13)

7. A series of transactions, changes, or functions that bring about a particular result

( e ) process (baris 1)

8. Indicate by words or symbols ( c ) express (baris 16)

C.

1. What is the difference between accounts receivable and accounts payable?

Accounts receivable is assets and accounts payable is liabilities.

2. Why are accounts receivable and cash considered current assets while property and equipment are considered fixed assets? What do you think the difference is between current and fixed assets?

Because accounts receivable and cash are easy to convert into money for company, while property and equipment are not easy to convert into money for company. I think if current assets are flexible in nature and easy to convert into money for company, while fixed assets are those assets which are inflexible in nature and not easy to convert into money for company.

3. The owners’ equity in a company equals assets minus liabilities. What is meant by owners’ (or stockholders’) equity?

Net owning.

4. If you were a manager, how would you use the balance sheet to evaluate your company’s financial condition?

The manager known where the company’s financial healthy.

5. What do you consider your personal assets? Do you have any liabilities? What are they?Mobile

Text Analysis (analisis teks)

1. What does each of the following refer to?

BARIS KATA MERUJUK PADA

2 They Financial statements

9 This Assets – liabilities

12 This The relationship of assets, liabilities, and owners’ equity

16 these three factors Assets, liabilities, and owners’ equity

2. In line 6, what are property, equipment, and accounts receivable examples of?

Assets

3. In line 7, what do suppliers and bank refer to?

To whom the company has debts.

4. In lines 5-7, two different phrases are used to incorporate examples in the reading. What

are these phrases?

a. Assets.b. Liabilities.

5. Another method of classification by example is the use of mathematical representations.

From the reading, copy examples that use mathematical symbols.

a. The fundamental accounting equation: assets equal liabilities plus owners’ equity.ASSETS = LIABILITIES + OWNERS’ EQUITY

b. 25 = 15 + 10

6. In lines 32-34, two uses of the balance sheet are given. What are the key words that show

each of these uses is in a different area? What use does each word introduce?

KEY WORDS USES

a. Internally The balance sheet provides managers with financial information for company decision-making.

b. Externally It gives potential investors data for evaluating the company’s financial position.

Classification (klasifikasi)

- Class : Assets - Class : LiabilitiesMembers : Current assets Members : Current liabilities

Fixed assets Long-term liabilities

- Class : Current assets - Class : Current liabilitiesMembers : Cash Members : Accounts payable

Accounts receivable Income tax payable Inventories

- Class : Fixed assets - Class : Long-term liabilitiesMembers : Property Members : Bonds

Buildings Long-term notes Equipment

applications (Aplikasi)

1. Which of the following is not a fixed assets : office equipment, machinery, marketable securities, land, and buildings? Why? Marketable securities, because it is easy to convert into money.

2. Are the following liabilities current or long-term : bank loans payable, accounts payable, mortgage bonds payable, taxes payable, and long-term notes payable? List each under the correct heading.

CURRENT LIABILITIES LONG-TERM LIABILITIES

- Accounts payable - Bank loans payable

- Taxes payable - Mortgage bonds payable

- Long-term notes payable

3. If a companys assets are $140.017 and its liabilities total $74.215, what is the owners’ (or stockholders’) equity? Explain how you arrive this answer.

ASSETS = LIABILITIES + OWNERS’ EQUITYOWNERS’ EQUITY = ASSETS - LIABILITIES

= $140.017 - $74.215 = $65.802

4. The fundamental accounting equation for Burns Manufacturing Company is :

ASSETS = LIABILITIES + OWNERS’ EQUITY

$40.000 = $0 + $40.000

In the business’s nex transaction, the owner borrow $8.000 from the local bank in the form of a loan. Which of the following statements accurately describes how this transaction affects the accounting equation?

a. Assets would increase by $8.000 and owners’ equity would decrease by $8.000.b. Both assets and liabilities would decrease by $8.000.c. Assets would increase by $8.000 and liabilities would increase by $8.000.d. Liabilities would increase by $4.000 and owners’ equity would increase by

$4.000.5. Equity is the amount of money that remains when liabilities are subtracted from assets

(assets minus liabilities). Why is a distinction made between owners’ equity and stockholders’ equity?

Information transfer (transfer informasi)

A.

1. What is the long- term debt for Miles Laboratories. Inc? Deferred income tax

2. How much are the total current assets of this company? $149.023.000

The total fixed assets? $115.122.000

The total assets? $334.764.000

3. Which current liability equals $5.613.000? Taxes on income

4. Which type of asset is the highest current asset? Inventories

B.

1. There is no total given for long-term liabilities in this balance sheet. Which three

categories should be added together to get this total? Long-term debt, Deferred

income tax, and Other. What are the total long-term liabilities? $93.024.000

2. What is the accounting equation for Miles Laboratories. Inc., on December 31?

(ASSETS = LIABILITIES + OWNERS’ EQUITY)

$334.764.000 = $198.047.000 + $136.717.000

3. If Miles Laboratories. Inc., sells $50.000 in stock in order to raise capital for a new

warehouse, which figures in the balance sheet must be changed?

Assets (warehouse) increase $50.000

Assets (cash) decrease $50.000

4. Which one of items listed under shareholders’ equity must be subtracted from the total

shareholders’ equity rather than added to it?

Less cost of share capital held in treasury.