Chapter 1 study notes - Revenue – Expenses = Net Income...

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Unit 1 (Ch 1 - 3) File: Class Notes for Chapter 1 ACCT 2101 Chapter #1 Notes Classification of accounts: Assets: Definition- resources own by a business. Examples- Liabilities: Definition-the debts and obligation of a business. Liabilities represent the amounts owed to creditors. Examples- Stockholder’s Equity: Definition- the owner’s claim on total assets. Examples- Revenue: Definition- the increase in assets that result from the sale of a product or service in the normal course of business. Examples- Expenses: Definition- the cost of assets consumed or services used in the process of generating revenues. Examples- Financial Statements
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Unformatted text preview: Revenue – Expenses = Net Income Retained Earnings Statement Beginning RE + Net Income OR - - Dividends = Ending RE Balance Sheet Assets = Liabilities + Stockholder’s Equity (Common Stock + Retained Earnings ) Prepare financial statements for Jenkins Investments. Listed before are the accounts and their balances at the end of the first month of business, December. 2003. Accounts Payable $ 3,200 Accounts Receivable 9,800 Cash 4,500 Common Stock 4,500 Dividends 500 Equipment 14,900 Notes Payable 7,000 Rent Expense 5,000 Salary Expense 24,000 Service Revenue 45,800 Supplies 1,300 Utility Expense 500...
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