Assets, Liabilities and Owner's Equity

ASSETS LIABILITIES + OWNER'S EQUITY Assets Debit Credit Liabilities Debit Credit Owner's Equity/Revenue/Gain Debit Credit Cash Accounts Payable - + Name, Capital - + + - + Salaries & Wages - Accounts Receivable + Common Stock - + - Allowance for Payable Preferred Stock - + - Taxes Payable - + Retained Earnings - Doubtful Accounts + Dividends Payable - + Revenues (Sales, Service, Fees, - + Inventory - Interest Payable - + Supplies + Rent, Interest) - Unearned Sales - Gains - + Equipment + - Revenues Income - + Prepaid Advertising + - Utilities Payable - + Withdrawals + - Prepaid Insurance + - Notes Payable - + Dividends + - Prepaid Rent + - + Morgages Payable - + Capital Distributions - Notes Receivable - Bonds Payable - + Land + - PPE + - Patents, Copyrights + Expense & Loss Accounts & Debit Credit - Goodwill + Contra Revenue - Financial Statements Cost of Goods Sold + - Freight In & Postage Expense + - Balance Sheet = reports assets, liabilities & Purchases + - Contra Asset Debit Credit stockholders' (owner's) equity. These Advertising Expense + - Accounts accts. are permanent accts. - they are not Delivery Expense + - Allowance for - + closed at the end of an accting. year. Depreciation Expense + - Doubtful Accounts Profit & Loss or Income Statement = Salaries & Wages Expense + - Accumulated - + reports revenues/sales, expenses, gains, Rent Expense + - Depreciation losses, & net income. These accts. are Utilities Expense + - Purchases, Returns & - temporary accts. - they will be closed to an Allowances Supplies Expense + - equity acct. at the end of the accting. year. Bad Debt Expense + - Insurance Expense Statement of Cash Flow = The cash flow Interest Expense + - statement reports the cash generated & Income Tax Expense + - used during the time interval specified in Loss on Sale + - its heading. Contra Revenue - Sale Returns, + - Allowances, Discounts