terms to know
the assets an owner puts into the company.
what is owners investment?
credit
what is assets?
what accounts are affected Paid cash for rent.
expense, and cash
Cash, land, vehicles, equipment, store supplies, buildings
what is assets?
debit
what is liabilities and equity ?
what accounts are affected Paid cash on account, Office Supply,
cash, accounts payable
assets= liabilities + owners equity
what is accounting equation?
how many accounts are effected?
two accounts are always effected
what accounts are affected Received cash from sales
cash, revenue
owner investments, revenues, owner withdrawals, expenses.
what is equity?
what must the accounting equation always do?
stay in balance.
what accounts are affected Paid cash for insurance
prepaid insurance, cash
the side of the equation that increases.
what is normal balance? (NB)
You increase the Drawing, Expense, and Assets with a Debit.
what is Debit + DEA
what accounts are affected Paid cash to the owner for personal use.
cash, drawing