By Wallace W. Kravitz
This up-to-date version offers a simplified, step by step method of bookkeeping ideas for novices. The booklet additionally concentrates on educating proprietors of small companies who hold their very own files. Chapters reveal use of monetary statements, the ledger, the two-column basic magazine, and diverse different journals. guide comprises true-to-life bookkeeping issues of solutions.
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Extra resources for Bookkeeping the Easy Way
This will require some borrowing in order to pay for it. Lee wants to use $6,000 of cash from his business, arranging a bank loan for the balance. What will be the amount of the loan? What changes will occur in the fundamental bookkeeping equation? Does Lee have any other choice in deciding how to buy this equipment? < previous page page_13 next page > < previous page page_15 next page > Page 15 Chapter 3 The Balance Sheet WORDS TO REMEMBER Account Form the arrangement of a balance sheet, with assets listed on the left side, liabilities and owner's equity on the right side Balance Sheet a financial statement that lists all assets owned and all claims against assets, thus revealing one's financial condition Creditor one to whom a debt is owed Fiscal Period the length of time covered by the financial statements When all three elements of bookkeepingassets, liabilities, and owner's equityare examined together, they appear in the form of a BALANCE SHEET.
O. Jackson V. L. Witten Truck 150 225 85 5,750 Supplies 395 Accounts Payable: City Trust Company H. & H. Manufacturing Co. 1,250 800 (1) Open a ledger of T-accounts for each account, including Jacobs's owner's equity. (2) Prove that Assets = Liabilities + Owner's Equity. < previous page page_27 next page > < previous page page_28 next page > Page 28 4-3 Kimberley Travis completed the following transactions last week: Example: Paid Regal Bank, $150. (1) Bought $75 worth of supplies for cash. (2) Borrowed $1,000 from Regal Bank.
Previous page next page > page_12 Page 12 Questions Classify each of the following accounts as an asset, liability, or owner's equity. Indicate on which side of the fundamental equationleft or righteach account would appear. Account Classification Example: Cash (checking account) Side Left Asset 1. Delivery truck 1. 2. Account payable, J. Glover 2. 3. Paul Jacob, Capital 3. 4. Account receivable, K. Day 4. 5. Balance due J. C. Woolco 5. 6. Customer's account balance 6. 7. Equipment 7. 8. Balance owed on truck 8.