Accounting Notes Ch.1

Accounting Notes Ch.1 - ASSET= LIABILITIES OWNERS’ EQUITY...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Accounting Notes Chapter 1 Construct the accounting equation and define assets, liabilities, and owners’ equity - The accounting equation is ( Assets= Liabilities + Owners’ Equity) - Assets Everything of value held by the business - Liabilities (debts) or claims against the total assets of a business. - Owners’ Equity The su m of all claims against business assets by the owners. ASSETS = LIABILITIES + OWNERS’ EQUITY Dr Cr Dr Cr Dr Cr + - - + - EXPENSES REVENUES Dr Cr Dr Cr + - - + Analyze business transactions using the accounting equation CASH INVESTMENT BY OWNER ASSET= LIABILITIES + OWNERS’ EQUITY Cash + Com mon Stock + ASSET PURCHASED FOR CASH ASSET= LIABILITIES + OWNERS’ EQUITY Cash – Property and Plant + ASSETS PURCHASED ON ACCOUNT
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
ASSET= LIABILITIES + OWNERS’ EQUITY Asset + Accounts Payable + REVENUE EARNED FOR CASH ASSET= LIABILITIES + OWNERS’ EQUITY Cash + Retained Earnings LIABILITY PAID WITH CASH ASSET= LIABILITIES + OWNERS’ EQUITY Cash - Accounts Payable – REVENUE EARNED ON ACCOUNT
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ASSET= LIABILITIES + OWNERS’ EQUITY Accounts Receivable + Retained Earnings + EXPENSE INCURRED FOR CASH ASSET= LIABILITIES + OWNERS’ EQUITY Cash -Retained Earnings – RECEIVABLE COLLECTED IN CASH ASSET= LIABILITIES + OWNERS’ EQUITY Cash + Accounts Receivable – EXPENSE INCURRED ON ACCOUNT ASSET= LIABILITIES + OWNERS’ EQUITY Accts. Payable + Retained Earnings – CASH DIVIDENDS DECLARED AND PAID ASSET= LIABILITIES + OWNERS’ EQUITY Cash -Retained Earnings – Prepare simple versions of the four basic financial statements-Income Statement • Revenues – Expenses = Net income (net loss)-Statement of owners’ equity • Common Stock - Retained Earnings • Beginning Bal. – Dividends + Net Income-Balance Sheet • Assets • Liabilities + Owners’ Equity Analyze financial Statement Information for real-life companies...
View Full Document

{[ snackBarMessage ]}

Page1 / 3

Accounting Notes Ch.1 - ASSET= LIABILITIES OWNERS’ EQUITY...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online