Course BUSI 1004 B

Facilitator: Alex Nelson

Week: 2
Financial Accounting: Week 2
Core Concepts: Workshop Expectations: What to Bring:
1. Understanding Balance  Be respectful  Your notes
Sheets  Participate  Your phone / laptop
2. Understanding Income  Collaborate with others  This worksheet
Statements  Have fun! (digital or paper)
3. Understanding Business
Structures

Opener: Speed meeting (5 Minutes)

 As a quick introduction, find someone in the workshop you don’t know and take a minute to
introduce yourself.

Activity 1: Matrix (20 Minutes)

 Listed below are the accounts related to the activities of Alex Corp. They have asked you to sort
the balances.

Account Balance Which Statement? (Balance sheet, Asset, liability, equity,

income statement, shareholders revenue, expense?
equity)
Accounts Receivable $ 20,000.00 BS Current Asset
Sales $ 160,000.00 IS Revenue
Accounts payable $ 30,000.00 BS Current Liability
Cash $ 70,000.00 BS Current Asset
Cost of Goods Sold $ 60,000.00 IS Expense
Operating expense $ 30,000.00 IS Expense
Interest expense $ 10,000.00 IS Expense
Income tax expense $ 20,000.00 IS Expense
Retained earnings SSE Equity
$ 50,000.00
(Opening)
Common shares $ 20,000.00 SSE + BS Equity
Inventory $ 50,000.00 BS Current Asset
 Course BUSI 1004 B
Facilitator: Alex Nelson
Week: 2
Activity 2: Put it together! (20 Minutes)

 Using the matrix we made above, let’s try to make some financial statements for Alex Corp.
Namely the income statement, statement of changes in shareholders equity, and balance sheet.

Alex Corp
Income Statement
For the year ended December 31 2022
Sales 160,000
Cost of Goods Sold 60,000
Gross Margin 100,000

Operating Exp 30,000

Operating Income 70,000
Interest Exp 10,000
Net Income before tax 60,000
Income tax exp 20,000
Net Income 40,000

Alex Corp
Statement of changes in retained earnings
For the year ended December 31 2022
Common shares Retrained earnings Total
Balance Jan 2022 20,000 50,000 70,000
Net Income 40,000 40,000
Balance Dec 2022 20,000 90,000 110,000

Alex Corp
Balance Sheet
For the year ended December 31 2022
Assets
Current Assets
Cash 70,000
Accounts receivable 20,000
Inventory 50,000
140,000
Liabilities and shareholders equity
Current liabilities
Accounts payable 30,000

Shareholders equity
Common shares 20,000
Retained earnings 90,000
 Course BUSI 1004 B
Facilitator: Alex Nelson
Week: 2
110,000

140,000

Activity 3: Kahoot! (20 Minutes)

 In order to review everything from the lecture, we’re going to do a Kahoot!

Closer: Share a success! (10 Minutes)

 One by one, everyone will share a success from the week, academic or otherwise.

Centre for Student Academic Support (CSAS)

- Peer Assisted Study Sessions (PASS): https://carleton.ca/csas/pass/
- Writing Services: https://carleton.ca/csas/writing-services/
- Learning Support: https://carleton.ca/csas/learning-support/

Carleton University Student Resources on Campus

- https://carleton.ca/cuknowhow/student-resources/