ACCTG 2600 Lecture Notes - Lecture 8: Karen Bradley, General Ledger, Accounting Equation
6 Mar 2017
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Document Summary
As transactions are recorded, the accounting equation must remain in balance: The equation can be expanded to show the linkage between the balance sheet and the income statement : Assets = liabilities + owner"s equity + revenue- expense. Tools to record increases and decreases in accounts. Debits increase asset accounts, and credits increase liability and stockholders" equity accounts. Additionally, debits increase expense accounts, and credits increase revenue accounts. Summary of the rules for increasing and decreasing accounts. General ledger: a book, a file, a hard drive, or another device containing all of the accounts. For every transaction recorded, total debits must equal total credits. T account: format for showing amounts coming into and leaving an account. Glengarry health club is started when karen bradley and kathy drake file articles of incorporation with the state to obtain a charter. In return, each receives 5,000 shares of capital stock. Company buys a piece of property for ,000.
