Up to this point we have been studying the Solana Beach Bicycle Company, which is an individual proprietorship. In other words, the business has one owner—Samantha. She has invested some of her own money into the company as well as borrowing some additional money. [Continue reading] about The Corporation Defined : what is a corporation?
Adjusting Journal Entries and Closing Journal Entries
Adjusting Journal Entries and Closing Journal Entries :Accounting records are not kept up to date at all times. To do so would be a waste of time, effort, and money because much of the information is not needed for day-to-day decisions. Adjusting … [Continue reading] about Adjusting Journal Entries and Closing Journal Entries
The general ledger : a book containing a record of each account
During the month, the journal entries made to record the January transactions would be posted from the general journal to the general ledger. The general ledger is a book containing a record of each account. (See boxed section below Figure 6.8.) … [Continue reading] about The general ledger : a book containing a record of each account
Double-Entry Accounting : The General Journal
The terms “debit” and “credit” are enough to induce fear in even the most intrepid non-accountant. But even though you may never become an accountant, you will need to understand these concepts in order to have a solid grasp of accounting and … [Continue reading] about Double-Entry Accounting : The General Journal
Preparing and Using a Statement of Cash Flows
After analyzing the Balance Sheet and the Income Statement for Solana Beach Bicycle Company, Samantha had a clear understanding of what her business owned and what she owed, as well as what its “bottom line” is for the year. Although things are … [Continue reading] about Preparing and Using a Statement of Cash Flows