Submitted by: Submitted by Eightballer
Views: 328
Words: 2710
Pages: 11
Category: Business and Industry
Date Submitted: 01/18/2011 04:45 PM
Source Documents
( Invoices, Checks, etc.) |
Journals -Transactions first recorded using Debits and Credits |
General Ledger -Summarized transactions posted to the General Ledger Accounts using Debits and Credits |
Abbreviated Accounting Equation | Property = | Property Rights |
Expanded Accounting Equation | Assets = | Liabilities + | Owner's Equity |
| Balance Sheet Accounts
Permanent Accounts |
Types Of Accounts | Asset Accounts = | Liability Accounts + | Capital Accounts (Mom) |
Increase/Decrease Columns | Increase | Decrease | Decrease | Increase | Decrease | Increase |
Account -Left / Right Side Columns | Left Side | Right Side | Left Side | Right Side | Left Side | Right Side |
Debit / Credit Columns | Debit | Credit | Debit | Credit | Debit | Credit |
Owner's Equity Equation that illustrates the effect of closing the temporary accounts -revenue-expenses-draws to the permanent Equity Accounts. | Owner's Equity = Beginning Capital + Profit or - Loss - Owners Draws + Owner's Investments |
| Income Statement Accounts |
Accounts Closed To Capital Account at End Of Period | Temporary (Nominal) Accounts |
"Mom" Equity's "Kids" - Revenue - Expense - Draws | Expenses
Draws | Revenue |
Effect On "Mom" Equity (Capital) | Decreases | Increases |
Revenue , Expense, and Draw Account "Rules"
These accounts are often referred to as temporary or nominal accounts because at the end of a year (period) they are closed and their balances are transferred to a permanent Equity (Capital) Account (Balance Sheet Account).Debit / Credit Columns | Increase | Decrease | Decrease | Increase |
Left Side | Right Side | Left Side | Right Side |
Debit | Credit | Debit | Credit |
|
Profit / Loss Equation | Profit / Loss = Revenue - Costs and Expenses |
Note:Yellow highlighted items in my cheat sheet represent the Normal Type Of Balance For an Account - Debit or Credit
The purpose of my cheat sheet is to serve as an aid for those needing...