New version page

MU ACC 221 - Assets, Liabilities, and Owner's Equity

Documents in this Course
Load more

This preview shows page 1 out of 2 pages.

View Full Document
View Full Document

End of preview. Want to read all 2 pages?

Upload your study docs or become a GradeBuddy member to access this document.

View Full Document
Unformatted text preview:

ACC 221 1st Edition Lecture 1 Outline of Current Lecture - Chapter 1: Assets, Liabilities, and owner’s equity Accounting Formula, Additional Factso Assets = Liability + Owner’s Equityo Additional Facts About Accounting CycleCurrent Lecture- Chapter 1: Assets, Liabilities, & Owner’s equity Assets, Liabilities, and Owner’s Equityo Assets - Something that is owned and will provide future benefit. Total of the “stuff”. Increase/ Decrease Rules:- Amount placed on left side of account (Dr.) balance increases- Amount placed on right side of account (Cr.) balance decreases Normal balance = Debit balance (Beginning balance = 0 in Dr. side)o Liabilities – Claims of the non-owners to the “stuff”.  Increase/ Decrease Rules:- Amount placed on left side of account (Dr.) balance decreases- Amount placed on Right side of account (Cr.) balance increases Normal Balance = Credit Balance (Beginning balance = 0 in Cr. Side)o Owner’s Equity – Claims of the owners to the “stuff”. Increase/ Decrease Rules:- Amount placed on left side of account (Dr.) balance decreases- Amount placed on Right side of account (Cr.) balance increases Normal Balance = Credit Balance (Beginning balance = 0 in Cr. Side) Accounting Formula, Additional Factso Assets = Liabilities + Owner’s Equity Creates the balance sheet of the organization What we want to know, start business with your sister:- How much of the money is in account at any given time?- How much of the money is mine?- How much of the money is my sister’s?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. Non-owners (Liabilities) cannot remove money from the account—only owners o Additional facts about accounting cycle:- Total assets must ALWAYS equal total liabilities + owner’s equity- Liability accounts – keep track of non-owner’s claim to assets- Equity accounts – keep track of owner’s claim to assets- Debit side for all accounts is on the left, credit side for all accounts is on the right- Only positive numbers are used in the accounting system- The general ledger lists all individual transactions; the trial balance equals onlythe ending balances for each account. - Accounts are shaped like a ‘T’, referred to as


View Full Document
Loading Unlocking...
Login

Join to view Assets, Liabilities, and Owner's Equity and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Assets, Liabilities, and Owner's Equity and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?