LN_Ch3 Review of Accounting Concepts

LN_Ch3 Review of Accounting Concepts - Chapter 3: Review...

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Chapter 3: Review basic accounting concepts ACCT 401 SP 11 1 1. IMPORTANT ACCOUNTING EQUATIONS 1) Accounting Equation for a Corporation Assets = Liabilities + Shareholders’ Equity Paid-in Capital Retained Earnings Revenues (+) Expenses (-) Dividends (-) Gains (+) Losses (-) 2) Accounting Equation: Debits and Credits, Increases and Decreases Assets = Liabilities + Paid-in Capital + Retained Earnings ___________ ____________ _____________ ________________ Debit Credit Debit Credit Debit Credit Debit Credit + - - + - + - +   Expenses and Losses Revenues and Gains ________________ ________________ Debit Credit Debit Credit + - - +
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Chapter 3: Review basic accounting concepts ACCT 401 SP 11 2 2. ACCOUNTING PROCESSING CYCLE: THE STEPS 1) Definition: The procedures involved in recording and preparing financial statements. 2) Steps of an accounting processing cycle A) Step 1. Identify event B) Step 2. Analyze event C) Step 3. Record the transaction in a journal. D) Step 4. Post from the journal to the general ledger accounts. E) Step 5. Prepare an unadjusted trial balance. F) Step 6. Record adjusting entries and post to the ledger accounts . G)
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This note was uploaded on 02/22/2012 for the course ACCT 401 taught by Professor Winchel during the Spring '10 term at South Carolina.

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LN_Ch3 Review of Accounting Concepts - Chapter 3: Review...

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