ACC120 Study Guide - Final Guide: Accounts Payable, Accounts Receivable, Capital Account

• School: Seneca College
• Department: ACC
• Course: ACC120
• Professor: Terry Margel

Document Summary

Sept. 1 cash 101: rodewald, capital 301. Unearned revenue : rodewald, capital , rodewald, drawings While grete is correct in making the connection that transactions involving investments, drawings, revenues, and expenses ultimately have an impact on the owner"s capital account, there remains a need for these separate accounts. Without them, a business is unable to report the revenues and expenses on the income statement, and the investments and drawings by the owner on the statement of owner"s equity. This detailed information is relevant and necessary to the users of the financial statements. Notes payable : abramson, capital , abramson, drawings The cash account shows an increase of ,188 during the month of may, whereas the company shows a loss of. for the month (,320 ,275 ,340 ). The change in the cash account does not reflect profit or loss because not all transactions that changed cash represent increases in revenues or expenses.