The Basics of Accounting Cheat Sheet by psx via cheatography.com/128773/cs/25357/ Elements of Financial Statements Account Classification Practice T-Accounts (cont) Official Account Types For Beginners Specific Account Types Classification KEEP IN MIND: The Debit and Credit Entry 1. Assets 1. Assets Accounts Payable Liability of Each Specific T-Account depends on 2. Liabilities 2. Liabilities Cash Asset 3. Capital/Equity 3. Capital/E‐ Notes Receivable Asset quity Equipment Asset 4. Revenues Company Name, Capital/Equity 4. Investments by Owners Capital 5. Distributions to 5. Expenses Owners 6. Revenues 7. Expenses 8. Gains 2. Liabilities (L) Debts you owe an individual or other Common Stock Capital/Equity Service Income Income/Re‐ venue Unearned Fees Liability Supplies Asset Accounts Receivable Asset Prepaid Expenses Asset Mortgage Payable Liability Account (Company Name, Company Name, Capital/Equity Capital) Drawing Income/ (+) will ultimately INCREASE Click Here for Video Reference Revenues Capital Expenses (-) will ultimately DECREASE T-Accounts Capital make Seperate Computations for Each Money from Personal Bank Account to a Business Click Here for Video Reference Cash or things like Land, Equipment, or Income/Re‐ Click Here for Video Reference Capital (-) Fees Earned Expense (+) when Owner transfers 1. Assets (A) Asset Miscellaneous Expense Beginning (+) Accounts Prepaid Rent Asset Computation for Total Owner's Equity Cr. Asset Office Equipment Equity Dr. Building 10. Comprehensive Income = Liabilities + Owner's Primary Classification of Expense 9. Losses Assets follows Supplies Expense venue The Accounting Equation their Primary Classification which are as Business Vehicles that could be CONVERTED into Cash (-) businesses (ex. Accounts Payable, Notes Payable, Loans, Unearned Revenue and etc.) 3. Capital/Equity (C) (-) Expenses also Owner's Equity = Assets - Liabilities 4. Income/Revenues (I) (-) (+) Cash earned through Sales (INCREASES CAPITAL) 5. Expenses (E) (+) (-) what you Spend money on to Operate the Business (DECREASES CAPITAL) Click Here for Video Reference Receivable, Supplies, Rent Expense and etc.) in the form of T-Accounts to Tally the Total of Each Account the Debit and Credit of Each T-Account must Balance each other out money Taken from your account to Cover Expenses Cred‐ (+) this is the Beginning Capital + Income - Specific Account Type (ex. Cash, Accounts Debits (+) money Coming Into your account its By psx Published 24th November, 2020. Sponsored by ApolloPad.com cheatography.com/psx/ Last updated 24th November, 2020. Everyone has a novel in them. Finish Page 1 of 1. Yours! https://apollopad.com
