The CEO issued too many property dividends.
Add to purchases or lower the dividends to cover his mistake.
Retained earnings after net income
Less: Preferred stock dividends
Retained earnings, January 31
You might wan't to check purchases!
Preferred stock is paid more
than common stock.
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Example of property dividend
Retained Earnings 1
Purchases 1
Accounts payable 1
Cash 1
(To record the payment of property dividend.)
For more details see "How to Use," and Transactions - Oct 16.
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Liabilities and Stockholders' Equity
Total current liabilities
Total stockholders' equity
Total liabilities and
stockholders' equity
$
You bought counterfeit stock
Hope the boss doesn't find out
Real-Time Accounting
Start with income statement, make changes, and those changes will be reflected across the other financial statements. There are no safeties here. So a person could purchase 20 items, return 50, and throw the other statements out of whack.
This will all lead to ratio analysis later on.
The numbers are small and easy to follow. To maintain this, only 2 numbers are allowed in each text-box. While in actuality, the ACME Rat Chow Company is one of the Fortune 500 companies, maintaining billions in yearly sales, and employing almost one million employees worldwide.
Buy equipment and supplies with cash.
Need cash? Issue stock, sign a promissory note, or start Beginning Retained Earnings with a number. Adding to Beginning Retained Earnings will add that amount to Cash. In reality, Beginning Retained Earnings would be many things - cash, land, equipment...
Issuing stock is limited to what the state charter has allowed to issue. As more stock is left outstanding, that number will be changed in the account description.
Sales payment is sent to Accounts Receivable
Income statement account Ending inventory is reflected in balance sheet account Inventories
Purchase and freight-in payment is sent to Accounts Payable
Dividends declared and paid. Be generous and declare more, which lowers cash.
If preferred stock is equal or less than common stock, a notice will appear.
Property stock is ACME Rat Chow's gourmet variety pack. Normally, preferred stock is higher than common stock,
however, the preferred stockholders are in no hurry to file a complaint with this.
Treasury stock will be taken out of circulation and be held for later use.
Be carefull and try not to purchase counterfeit stock, ie, issued 60 shares and bought back 90 shares. This means 30 shares are counterfeit.
Fun Stuff
If an account is in the negative, get out the fire extinguisher.
Beware of "customers" trying to get at the inventory.
Every 7 seconds, 1-3 “customers” will leave add: purchases, and enter the income statement.
These same customers will attach themselves to the scrollbar, and hang out at ending inventory, and bad debt expense.
If balance sheet is un-balances, meditation kitty will appear giving advice.
Ralph Corbett, CEO
Acme Rat Chow Company
"The pinnacle of rat chow"
| Oct 1 |
Cash |
59 |
| |
Common Stock |
60 |
| |
| |
| Oct 2 |
Cash |
10 |
|
Note Payable |
10 |
| |
| |
| Oct 3 |
Prepaid rent |
9 |
|
Cash |
9 |
| |
| |
| Oct 4 |
Trademark |
1 |
|
Cash |
1 |
| |
| |
| Oct 5 |
Patent |
10 |
|
Cash |
10 |
| |
| |
| Oct 6 |
Supplies |
3 |
|
Cash |
3 |
| |
| |
| Oct 7 |
Office Equipment |
5 |
|
Cash |
5 |
| |
| |
| Oct 8 |
Accumlated Depreation |
1 |
|
Deperation Expense |
1 |
| |
| |
| Oct 9 |
Inventory |
10 |
|
Accounts Payable |
10 |
| |
| |
| Oct 10 |
Inventory |
30 |
|
Freight-In |
5 |
|
Accounts Payable |
35 |
| |
| |
| Oct 11 |
Accounts Payable |
10 |
|
Purchase Discounts |
5 |
|
Purchase Returns & Allowances |
5 |
| Oct 12 |
Accounts Receivable |
30 |
|
Sales Discount |
5 |
|
Sales Returns & Allowances |
5 |
|
Sales |
40 |
| |
| |
| Oct 13 |
COGS |
30 |
|
Inventory |
30 |
| |
| |
| Oct 14 |
Retained Earnigns |
2 |
|
Cash |
2 |
| Payment preferred stock |
| |
| |
| Oct 15 |
Retained Earnigns |
1 |
|
Cash |
1 |
| Payment common stock |
| |
| |
| Oct 16 |
Retained Earnings |
0 |
|
Purchases |
0 |
| |
| |
| Oct 16 |
Accounts Payable |
0 |
|
Cash |
0 |
|
October 16 Payment of property dividend with Rat Chow Variety Pack, lowering cash, A/P, and purchase. No transaction yet. This is what happens when property dividends are paid. |
| |
| |
| Oct 17 |
Bad Debt Expense |
1 |
|
Allowance for Doubtful Accounts |
1 |
| |
| |
| Oct 18 |
Treasury stock |
10 |
|
Cash |
10 |