01:198:170 Lecture Notes - Lecture 2: Trial Balance, Retained Earnings, General Ledger

• School: Rutgers University
• Department: Computer Science
• Course: 01:198:170
• Professor: F Geraci

Document Summary

The individual record of the ups and downs for a specific liability, asset, or stockholder"s equity item. Three parts to the account: title, left (debit side), right (credit side) Looks like a t, called a t-account. Writing an entry on the dr. side debiting. Assets + expenses + dividends = liabilities + common stock + revenue. Steps: determine what accounts are involved, which accounts increase/decrease and by how much, what type of account is it, what is the normal balance of the account, label increases or decreases as dr. or cr. Double-entry form/opposite form: an increase/decrease in an account will cause the opposite effect on another account (kept equal always, like the basic accounting equation) Common stock and retained earnings: income statement: Revenue expenses = net income/net loss: retained earnings statement: = ending retained earnings (same as re in [1]) Look at illustration 2-12 (page 61/ ipad page 91) *expenses and dividends both (-)*