Chapter 2 example #15049

A financial statement showing the financial position of an organization on a given date, such as June 30 or December 31. The balance sheet lists the balances in the asset, liability, and owner's equity accounts.

A transaction that requires more than one debit or more than one credit to be recorded.

The right side of a T account; to credit is to record an amount on the right side of a T account. Credits represent increases in liability, capital, or revenue accounts and decreases in asset, drawing, or expense accounts.

The left side of a T account; to debit is to record an amount on the left side of a T account. Debits represent increases in asset, drawing, or expense accounts and decreases in liability, capital, or revenue accounts.

The resources or assets owned by an organization at a point in time, offset by the claims against those resources and owner's equity; shown on a balance sheet.

A report prepared by accountants that summarizes the financial affairs of a business.

The totals of each side of a T account, recorded in small, pencil-written figures.

A financial statement showing the results of business transactions involving revenue and expense accounts over a period of time.

The result when total revenue exceeds total expenses over a period of time.

The result when total expenses exceed total revenue over a period of time.

The plus side of a T account.

The form of the balance sheet in which assets are placed at the top and liabilities and owner's equity are placed below.

An error in placing the decimal point in a number.

A financial statement showing the activity in the owner's equity, or Capital account, over the financial period.

A form of account shaped like the letter T in which increases and decreases in the account may be recorded. One side of the T is for entries on the debit or left side. The other side of the T is for entries on the credit or right side.

An error that involves interchanging, or switching around, digits during the recording of a number.

A list of all account balances to prove that the total of all the debit balances equals the total of all the credit balances.

Assets: Debit +, Credit -

Liabilities: Debit-, Credit +

Owner's Equity: Debit-, Credit +

Revenue: Debit-, Credit +

Expense: Debit+, Credit -

(Debit +) Assets, Drawing, Expense

(Debit -) Liabilities, Capital, Revenue

(credit -) Assets, Drawing, Expense

(credit +) Liabilities, Capital, Revenue

Assets, liabilities, OE, Revenue, Expenses.

NO.

...................................TRIAL BALANCE ACCT. TITLE......Debit Balances......Credit Balances .........................Assets..................Liabilities .........................Drawing................Capital .........................Expenses...............Revenue ...........................________.............. ________ ..........................X,XXX....................X,XXX ..........................Debits......=.......... Credits

1. Income statement, 2. Owner's Equity, 3.The Balance Sheet (Profit & Loss)

shows total revenue - total expenses yielding the NET INCOME or NET LOSS.

INCOME STATEMENT Revenue...........$X,XXX ..........................x,xxx ..........................x,xxx Expenses..........$X,xxx ...........................x,xxx ...........................x,xxx __________________________ Net Income/Loss..$X,xxx

Statement of Owner's Equity (#2)

To show how & why OE or capital has changed over a specific period of time.

Business Adventures Statement of Owner's Equity For the month ending __30 R. Anaya, Capital,June 1, 2012................$...........0 Investments in June........$95,200 Net Income for June........18,190 ...................................__________ Subtotal..........................$113,390 Less Withdrawals for June....3,500 ...................................___________ Increase in Capital....................................109,890 ..................................................................._______ R. Anaya, Capital, Jun30 2012.................$109,890 .............................................................._________ .............................................................._________