- list of all accounts
- each shows increases, decreases, and balance of a specific item
- in numeric order
- 100's Assets (permanent)
- items of value owned or controlled by business
- 200's Liabilities (permanent)
- items that are payable (owed)
- 300's Stockholders' Equity
- Capital (Common) Stock (permanent)
- represents investments made by owners
- Retained Earnings (permanent)
- represents income earned by business after all expenses (less dividends distributed)
- dividends (temporary) closed to retained earnings
- income summary (temporary) closed to retained earnings
- 400's Revenues (temporary) closed to Income Summary
- Fees Earned
- represents income earned from providing services (before expenses)
- Sales
- represents income earned from selling goods (before expenses)
- 500's Expenses (temporary) closed to Income Summary
- day-to-day costs of generating revenue
Assignment:
- pg 85 BE 2-1
- pg 86 EX 2-2 through 2-3
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