By Carl S. Warren, James M. Reeve, Jonathan Duchac
New to this version, the authors created leading edge, specified content material providing actions which are best-suited for every element within the studying procedure. New content material just like the author-written Activation workouts, is helping scholars come to category extra ready, and permits them to extra simply attach the dots, increase their intensity of information and feature greater instruments for remediation and overview. the tip objective of Warren/Reeve/Duchac’s textual content and expertise studying procedure is to turn on studying and create extra empowered and ready students--ready to tackle the remainder of their academic and occupation ambitions. on hand with InfoTrac® pupil Collections http://gocengage.com/infotrac.
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Extra info for Accounting
Owner’s Equity on December 31, 2014 = $450,000 + $155,000 = $605,000 Practice Exercises: PE 1-2A, PE 1-2B Business Transactions and the Accounting Equation Paying a monthly bill, such as a telephone bill of $168, affects a business’s financial condition because it now has less cash on hand. Such an economic event or condition that directly changes an entity’s financial condition or its results of operations is a business transaction. For example, purchasing land for $50,000 is a business transaction.
2,000 Bal. 5,900 550 20,000 Owner’s Equity Accounts Chris Clark, Chris Clark, Fees Wages Rent Supplies Utilities Misc. = Payable + Capital – Drawing + Earned – Exp. – Exp. – Exp. – Exp. – Exp. +25,000 25,000 +1,350 +1,350 25,000 1,350 25,000 +7,500 7,500 1,350 –950 400 25,000 7,500 –2,125 –2,125 –800 –800 25,000 7,500 –2,125 –800 400 400 25,000 25,000 –2,000 –2,000 7,500 –2,125 –800 –800 –800 7,500 –2,125 –800 –800 –450 –450 –275 –275 –450 –275 –450 –275 –450 –275 The four types of transactions affecting owner’s equity are illustrated in Exhibit 5.
Thus, accounting can be defined as an information system that provides reports to users about the economic activities and condition of a business. ” This is because accounting is the means by which businesses’ financial information is communicated to users. The process by which accounting provides information to users is as follows: Note: Accounting is an information system that provides reports to users about the economic activities and condition of a business. Identify users. Assess users’ information needs.
Accounting by Carl S. Warren, James M. Reeve, Jonathan Duchac