1A - Top 10 - LAS POSITAS COLLEGE BUSINESS 1B - PRINCIPLES...

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LAS POSITAS COLLEGE BUSINESS 1B - PRINCIPLES OF ACCOUNTING II FALL SEMESTER 2009 76928513bd17f610f01bf586d13b7f8e5824c14f.xls 02/03/2010 Accounting 1A Top 10 Things you should have learned in Accounting 1A 1 We use T accounts for 2 purposes: * As scrap paper - to help solve accounting problems * As a simplified ledger to post from the journal 2 The Accounting Equation is A = L + OE It can be shown with T accounts and normal balances (the side that has the positive number) A = L + OE + - - + - + Withdrawal Capital + - - + Income Summary - + Expenses Revenue + - - + 3 There are 4 Financial Statements that are prepared in this order * Income Statement (Net income or Net loss) * Statement of Owner's Equity (beginning OE + Net Income - Withdrawals = Ending OE) * Balance Sheet (using Ending OE) * Statement of Cash Flows (covered in 1B) 4 Corporations are more complex than sole proprietorships. Concepts of PIC, PAR and RE Common Stock PIC EOP - Com + + Retained Earnings - + Preferred Stock PIC EOP - Pre Net Loss Net Income + + Dividends More to come in 1B 5 Balance Sheet is based on the Accounting Equation
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This note was uploaded on 02/02/2010 for the course ACCT 1B taught by Professor Bobd during the Spring '09 term at Las Positas College.

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1A - Top 10 - LAS POSITAS COLLEGE BUSINESS 1B - PRINCIPLES...

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