ACCT 201 1st Edition Lecture 13 Outline of Last Lecture I Calculating interest and putting in into the accounting equation Outline of Current Lecture II III Income Summaries The Four Entries of Your Journal Current Lecture Remember If it s not on the journal it didn t happen Everything not on your balance sheet is temporary Temporary means it gets reset during closing Beginning Retained Earnings Net Income revenues and expenses Dividends Ending RE DR CR Revenue Wage Expense Insurance Exp Rent Exp 1500 1000 100 500 2000 1000 100 500 3500 Bal 0 0 0 3500 0 Income summary is solely for aiding in closing process once a year Dividends 300 300 0 Income Sum 3500 1600 Bal 1900 1900 0 Journal 1 Revenue 3500 Income Sum 3500 These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute 2 Income Sum 1600 Wage Exp 1000 Ins Exp 100 Rent Exp 500 3 Income Sum 1900 Retained Earn 1900 4 Retained Earn 300 Dividends 300
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