Beruflich Dokumente
Kultur Dokumente
McGraw-Hill/Irwin
The Ledger
Cash
Accounts Payable
Accounts are individual records showing increases and decreases. The entire group of accounts is kept together in an accounting record called a ledger.
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Capital Stock
Title of Account
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A = L + OE
ASSETS Debit Credit for for Increase Decrease LIABILITIES Debit Credit for for Decrease Increase EQUITIES Debit Credit for for Decrease Increase
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The Journal
In an actual accounting system, transactions are initially recorded in the journal.
GENERAL JOURNAL
Date 2009 May 1 Cash Capital Stock Owners invest cash in the business.
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Debit 8,000
Credit
8,000
Balance 8,000
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Balance 8,000
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T accounts are simplified versions of the ledger account that only show the debit and credit columns.
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A = L + OE
Increase Decrease Increase As income is earned, either an asset is increased or a liability is decreased. Net income always results in the increase of Owners Equity
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The costs of goods and services used up in the process of earning revenue.
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Dividends
Payments to owners decrease owners equity.
DIVIDENDS
Debit Credit for for Increase Decrease
EQUITIES
Debit Credit for for Decrease Increase
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End of Chapter 3
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