MGT120H5 Lecture Notes - Lecture 3: Cash Cash, Retained Earnings, General Ledger
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MGT120H5 Full Course Notes
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Document Summary
Account summarizes the changes that occur in the accounting. Every component of assets, liabilities and owners equity has an account. Transaction an event that both affects the financial position of the business entity and can be reliably recorded. The falks incorporated their business on may 1, 2014. Invested ,000 to begin a consulting business, falk consulting. Inc. and issued common shares: purchased land for their business, paying ,000 in cash, bought stationery and other supplies, agreeing to pay to, earned service revenue of ,750 and collected this amount in. Retained earnings: performed services for customers on account for ,200, paid ,400 for the following cash expenses: office rent ,500, employee salary ,400 and utilities . Cash: collected ,250 from a customer on account, declared and paid a dividend of ,500 to the shareholders. Retained earnings supplies in transaction #3: paid to the store from which it purchased worth of.
