Sorting Accounts into Accounting Equation and Financial Statements by Catherina Wong

Cash

wongcatherina — 2023-03-25 02:07:37 UTC

wongcatherina — 2023-03-25 02:08:42 UTC

Accounts Receivable

wongcatherina — 2023-03-25 02:09:27 UTC

Assets

wongcatherina — 2023-03-25 02:09:53 UTC

Liabilities

wongcatherina — 2023-03-25 02:11:46 UTC

Capital

wongcatherina — 2023-03-25 02:13:22 UTC

Drawings

wongcatherina — 2023-03-25 02:14:03 UTC

Revenues

wongcatherina — 2023-03-25 02:14:56 UTC

Expenses

wongcatherina — 2023-03-25 02:15:13 UTC

Owner's Equity/Stockholder's Equity

wongcatherina — 2023-03-25 02:16:14 UTC

Business owned by one person uses owner's equity.
Business owned by many people in form of stock uses stockholder's equity.

Merchandise inventory

wongcatherina — 2023-03-25 02:17:35 UTC

Estimated returns inventory

wongcatherina — 2023-03-25 02:17:44 UTC

Supplies

wongcatherina — 2023-03-25 02:17:49 UTC

Prepaid rent

wongcatherina — 2023-03-25 02:17:57 UTC

Prepaid insurance

wongcatherina — 2023-03-25 02:18:04 UTC

Land

wongcatherina — 2023-03-25 02:18:10 UTC

Buildings

wongcatherina — 2023-03-25 02:18:16 UTC

Accumulated depreciation - building

wongcatherina — 2023-03-25 02:18:28 UTC

contra-asset
contra means counter or opposite
subtracts from the asset

Equipment

wongcatherina — 2023-03-25 02:18:34 UTC

Accumulated depreciation - Equipment

wongcatherina — 2023-03-25 02:18:44 UTC

Accounts payable

wongcatherina — 2023-03-25 02:18:52 UTC

Notes payable

wongcatherina — 2023-03-25 02:18:57 UTC

Wages payable

wongcatherina — 2023-03-25 02:19:04 UTC

Interest payable

wongcatherina — 2023-03-25 02:19:12 UTC

Interest receivable

wongcatherina — 2023-03-25 02:19:18 UTC

Unearned revenues

wongcatherina — 2023-03-25 02:19:28 UTC

obligation
gift cards
mileage points

Customer refunds payable

wongcatherina — 2023-03-25 02:19:39 UTC

Owner's name, capital

wongcatherina — 2023-03-25 02:19:51 UTC

Owner's name, drawings

wongcatherina — 2023-03-25 02:20:01 UTC

What is an Asset?

wongcatherina — 2023-03-25 02:22:22 UTC

An asset is a resource owned or a claim available to a business.

What is a liability?

wongcatherina — 2023-03-25 02:23:19 UTC

A liability is a right or claim to a business' assets.

What is owner's equity?

wongcatherina — 2023-03-25 02:24:08 UTC

Owner's equity is the rights of owners.
Increased by capital, revenues
Decreased by drawings, expenses

Fees earned

wongcatherina — 2023-03-25 02:24:32 UTC

Sales

wongcatherina — 2023-03-25 02:24:36 UTC

Interest revenue

wongcatherina — 2023-03-25 02:24:51 UTC

Cost of merchandise sold

wongcatherina — 2023-03-25 02:25:00 UTC

Wages expense

wongcatherina — 2023-03-25 02:25:14 UTC

Salaries expense

wongcatherina — 2023-03-25 02:25:20 UTC

Insurance expense

wongcatherina — 2023-03-25 02:25:25 UTC

supplies expense

wongcatherina — 2023-03-25 02:25:31 UTC

Miscellaneous expense

wongcatherina — 2023-03-25 02:25:38 UTC

Interest expense

wongcatherina — 2023-03-25 02:25:44 UTC

Advertising expense

wongcatherina — 2023-03-25 02:25:57 UTC

1) Income Statement

wongcatherina — 2023-04-05 22:08:54 UTC

Income statement reports a listing of revenues and expenses. Expenses are subtracted from revenues.
Revenues>Expenses --> Net income
Revenues Net loss

2) Statement of Owner's Equity

wongcatherina — 2023-04-05 22:13:40 UTC

Statement of Owner's Equity reports changes in equity for an accounting period.
Beginning balance of owner's equity + Capital contributed + Net income or - Net Loss - Withdrawals

3) Balance Sheet

wongcatherina — 2023-04-05 22:16:51 UTC

Balance sheet reports a listing of assets, liabilities and the owner's equity amount.
Balance sheet reports the financial position of a business, in other words, the accounting equation of a business.

What are revenues?

wongcatherina — 2023-04-05 22:33:18 UTC

Business earnings by providing services or selling goods.

What are expenses?

wongcatherina — 2023-04-05 22:33:46 UTC

Business uses of resources to generate earnings/revenues.

What is Capital?

wongcatherina — 2023-04-05 22:34:25 UTC

Investments contributed by owners.

What are drawings?

wongcatherina — 2023-04-05 22:45:53 UTC

Drawings are cash withdrawals from the business by owners. Dividends are cash withdrawals for stockholders.

Vehicles

2023-04-18 02:04:18 UTC