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Define assets.

Define assets.

Description

.lst-kix_twyxyf6ictcl-4 > li:before{content:"○ "}.lst-kix_twyxyf6ictcl-5 > li:before{content:"■ "}ol.lst-kix_s0f2mmps4g7y-8.start{counter-reset:lst-ctn-kix_s0f2mmps4g7y-8 0}.lst-kix_wc2k3mted0e4-5 > li:before{content:"- "}.lst-kix_wc2k3mted0e4-6 > li:before{content:"- "}.lst-kix_twyxyf6ictcl-3 > li:before{content:"● "}.lst-kix_wc2k3mted0e4-7 > li:before{content:"- "}.lst-kix_twyxyf6ictcl-2 > li:before{content:"■ "}.lst-kix_wc2k3mted0e4-8 > li:before{content:"- "}.lst-kix_twyxyf6ictcl-0 > li:before{content:"● "}.lst-kix_s0f2mmps4g7y-2 > li{counter-increment:lst-ctn-kix_s0f2mmps4g7y-2}.lst-kix_twyxyf6ictcl-1 > li:before{content:"○ "}.lst-kix_todlmjo1zuew-6 > li:before{content:"- "}.lst-kix_iyhrmryph0bt-0 > li:before{content:"● "}.lst-kix_iyhrmryph0bt-1 > li:before{content:"○ "}.lst-kix_todlmjo1zuew-5 > li:before{content:"- "}.lst-kix_iyhrmryph0bt-2 > li:before{content:"■ "}.lst-kix_todlmjo1zuew-8 > li:before{content:"- "}.lst-kix_iyhrmryph0bt-3 > li:before{content:"● "}.lst-kix_todlmjo1zuew-7 > li:before{content:"- "}.lst-kix_iyhrmryph0bt-6 > li:before{content:"● "}.lst-kix_iyhrmryph0bt-4 > li:before{content:"○ "}.lst-kix_4qhbzdlg1qnk-1 > li{counter-increment:lst-ctn-kix_4qhbzdlg1qnk-1}.lst-kix_iyhrmryph0bt-8 > li:before{content:"■ "}.lst-kix_iyhrmryph0bt-5 > li:before{content:"■ "}.lst-kix_s0f2mmps4g7y-0 > li{counter-increment:lst-ctn-kix_s0f2mmps4g7y-0}.lst-kix_iyhrmryph0bt-7 > li:before{content:"○ "}.lst-kix_qqottu30wsu2-8 > li:before{content:"- "}ol.lst-kix_s0f2mmps4g7y-3.start{counter-reset:lst-ctn-kix_s0f2mmps4g7y-3 0}.lst-kix_qqottu30wsu2-3 > li:before{content:"- "}.lst-kix_qqottu30wsu2-4 > li:before{content:"- "}.lst-kix_qqottu30wsu2-5 > li:before{content:"- "}.lst-kix_qqottu30wsu2-6 > li:before{content:"- "}.lst-kix_qqottu30wsu2-7 > li:before{content:"- "}ol.lst-kix_s0f2mmps4g7y-2.start{counter-reset:lst-ctn-kix_s0f2mmps4g7y-2 0}.lst-kix_4qhbzdlg1qnk-3 > li{counter-increment:lst-ctn-kix_4qhbzdlg1qnk-3}.lst-kix_twyxyf6ictcl-6 > li:before{content:"● "}.lst-kix_wc2k3mted0e4-4 > li:before{content:"- "}.lst-kix_twyxyf6ictcl-7 > li:before{content:"○ "}.lst-kix_wc2k3mted0e4-3 > li:before{content:"- "}.lst-kix_wc2k3mted0e4-0 > li:before{content:"- "}.lst-kix_wc2k3mted0e4-2 > li:before{content:"- "}.lst-kix_twyxyf6ictcl-8 > li:before{content:"■ "}.lst-kix_wc2k3mted0e4-1 > li:before{content:"- "}.lst-kix_s0f2mmps4g7y-7 > li{counter-increment:lst-ctn-kix_s0f2mmps4g7y-7}.lst-kix_p9pupgua6x8-7 > li:before{content:"○ "}ol.lst-kix_4qhbzdlg1qnk-8{list-style-type:none}.lst-kix_4qhbzdlg1qnk-8 > li{counter-increment:lst-ctn-kix_4qhbzdlg1qnk-8}ol.lst-kix_4qhbzdlg1qnk-6{list-style-type:none}ol.lst-kix_4qhbzdlg1qnk-7{list-style-type:none}ol.lst-kix_4qhbzdlg1qnk-4{list-style-type:none}ol.lst-kix_4qhbzdlg1qnk-5{list-style-type:none}ol.lst-kix_4qhbzdlg1qnk-2{list-style-type:none}ol.lst-kix_4qhbzdlg1qnk-3{list-style-type:none}ol.lst-kix_4qhbzdlg1qnk-0{list-style-type:none}ol.lst-kix_4qhbzdlg1qnk-1{list-style-type:none}.lst-kix_p9pupgua6x8-1 > li:before{content:"○ "}.lst-kix_s0f2mmps4g7y-8 > li{counter-increment:lst-ctn-kix_s0f2mmps4g7y-8}ol.lst-kix_4qhbzdlg1qnk-3.start{counter-reset:lst-ctn-kix_4qhbzdlg1qnk-3 0}.lst-kix_s0f2mmps4g7y-8 > li:before{content:"" counter(lst-ctn-kix_s0f2mmps4g7y-8,lower-roman) ". "}.lst-kix_p9pupgua6x8-3 > li:before{content:"● "}.lst-kix_p9pupgua6x8-5 > li:before{content:"■ "}ol.lst-kix_s0f2mmps4g7y-8{list-style-type:none}ol.lst-kix_4qhbzdlg1qnk-6.start{counter-reset:lst-ctn-kix_4qhbzdlg1qnk-6 0}ol.lst-kix_s0f2mmps4g7y-7{list-style-type:none}ol.lst-kix_s0f2mmps4g7y-6{list-style-type:none}ol.lst-kix_s0f2mmps4g7y-7.start{counter-reset:lst-ctn-kix_s0f2mmps4g7y-7 0}ul.lst-kix_my0acjva2uqv-0{list-style-type:none}ul.lst-kix_my0acjva2uqv-1{list-style-type:none}ul.lst-kix_qqottu30wsu2-1{list-style-type:none}ul.lst-kix_my0acjva2uqv-2{list-style-type:none}ul.lst-kix_qqottu30wsu2-2{list-style-type:none}ul.lst-kix_my0acjva2uqv-3{list-style-type:none}ul.lst-kix_qqottu30wsu2-3{list-style-type:none}ul.lst-kix_my0acjva2uqv-4{list-style-type:none}ul.lst-kix_qqottu30wsu2-4{list-style-type:none}ul.lst-kix_my0acjva2uqv-5{list-style-type:none}ul.lst-kix_my0acjva2uqv-6{list-style-type:none}ol.lst-kix_s0f2mmps4g7y-4.start{counter-reset:lst-ctn-kix_s0f2mmps4g7y-4 0}ul.lst-kix_my0acjva2uqv-7{list-style-type:none}ul.lst-kix_my0acjva2uqv-8{list-style-type:none}ul.lst-kix_qqottu30wsu2-0{list-style-type:none}.lst-kix_s0f2mmps4g7y-6 > li{counter-increment:lst-ctn-kix_s0f2mmps4g7y-6}.lst-kix_qqottu30wsu2-2 > li:before{content:"- "}.lst-kix_4qhbzdlg1qnk-7 > li{counter-increment:lst-ctn-kix_4qhbzdlg1qnk-7}ul.lst-kix_arwedyyif758-0{list-style-type:none}.lst-kix_qqottu30wsu2-0 > li:before{content:"- "}ul.lst-kix_arwedyyif758-5{list-style-type:none}ul.lst-kix_arwedyyif758-6{list-style-type:none}ul.lst-kix_arwedyyif758-7{list-style-type:none}ul.lst-kix_arwedyyif758-8{list-style-type:none}ul.lst-kix_arwedyyif758-1{list-style-type:none}ul.lst-kix_arwedyyif758-2{list-style-type:none}ul.lst-kix_arwedyyif758-3{list-style-type:none}ul.lst-kix_arwedyyif758-4{list-style-type:none}ul.lst-kix_todlmjo1zuew-0{list-style-type:none}ul.lst-kix_todlmjo1zuew-1{list-style-type:none}.lst-kix_23turxsubup4-7 > li:before{content:"- "}.lst-kix_my0acjva2uqv-0 > li:before{content:"● "}ol.lst-kix_4qhbzdlg1qnk-4.start{counter-reset:lst-ctn-kix_4qhbzdlg1qnk-4 0}.lst-kix_my0acjva2uqv-6 > li:before{content:"● "}.lst-kix_23turxsubup4-1 > li:before{content:"- "}.lst-kix_23turxsubup4-3 > li:before{content:"- "}ul.lst-kix_qqottu30wsu2-5{list-style-type:none}.lst-kix_uge7ivhxxzz-0 > li:before{content:"● "}ul.lst-kix_qqottu30wsu2-6{list-style-type:none}ul.lst-kix_qqottu30wsu2-7{list-style-type:none}ul.lst-kix_qqottu30wsu2-8{list-style-type:none}.lst-kix_my0acjva2uqv-2 > li:before{content:"■ "}.lst-kix_uge7ivhxxzz-2 > li:before{content:"■ "}.lst-kix_todlmjo1zuew-2 > li:before{content:"- "}ul.lst-kix_todlmjo1zuew-8{list-style-type:none}ul.lst-kix_todlmjo1zuew-6{list-style-type:none}.lst-kix_23turxsubup4-5 > li:before{content:"- "}ul.lst-kix_todlmjo1zuew-7{list-style-type:none}.lst-kix_my0acjva2uqv-4 > li:before{content:"○ "}.lst-kix_todlmjo1zuew-4 > li:before{content:"- "}ul.lst-kix_todlmjo1zuew-4{list-style-type:none}ul.lst-kix_todlmjo1zuew-5{list-style-type:none}ul.lst-kix_todlmjo1zuew-2{list-style-type:none}ol.lst-kix_s0f2mmps4g7y-6.start{counter-reset:lst-ctn-kix_s0f2mmps4g7y-6 0}ul.lst-kix_todlmjo1zuew-3{list-style-type:none}ol.lst-kix_s0f2mmps4g7y-5{list-style-type:none}ol.lst-kix_4qhbzdlg1qnk-5.start{counter-reset:lst-ctn-kix_4qhbzdlg1qnk-5 0}ol.lst-kix_s0f2mmps4g7y-4{list-style-type:none}ol.lst-kix_s0f2mmps4g7y-3{list-style-type:none}.lst-kix_s0f2mmps4g7y-2 > li:before{content:"" counter(lst-ctn-kix_s0f2mmps4g7y-2,lower-roman) ". "}ol.lst-kix_s0f2mmps4g7y-2{list-style-type:none}.lst-kix_s0f2mmps4g7y-4 > li:before{content:"" counter(lst-ctn-kix_s0f2mmps4g7y-4,lower-latin) ". "}ol.lst-kix_s0f2mmps4g7y-1{list-style-type:none}ol.lst-kix_s0f2mmps4g7y-0{list-style-type:none}.lst-kix_uge7ivhxxzz-4 > li:before{content:"○ "}.lst-kix_uge7ivhxxzz-8 > li:before{content:"■ "}.lst-kix_s0f2mmps4g7y-6 > li:before{content:"" counter(lst-ctn-kix_s0f2mmps4g7y-6,decimal) ". "}.lst-kix_my0acjva2uqv-8 > li:before{content:"■ "}.lst-kix_todlmjo1zuew-0 > li:before{content:"- "}.lst-kix_uge7ivhxxzz-6 > li:before{content:"● "}.lst-kix_4qhbzdlg1qnk-7 > li:before{content:"" counter(lst-ctn-kix_4qhbzdlg1qnk-7,lower-latin) ". "}ol.lst-kix_s0f2mmps4g7y-5.start{counter-reset:lst-ctn-kix_s0f2mmps4g7y-5 0}.lst-kix_s0f2mmps4g7y-0 > li:before{content:"" counter(lst-ctn-kix_s0f2mmps4g7y-0,decimal) ". "}.lst-kix_s0f2mmps4g7y-1 > li{counter-increment:lst-ctn-kix_s0f2mmps4g7y-1}.lst-kix_4qhbzdlg1qnk-0 > li:before{content:"" counter(lst-ctn-kix_4qhbzdlg1qnk-0,decimal) ". "}.lst-kix_4qhbzdlg1qnk-1 > li:before{content:"" counter(lst-ctn-kix_4qhbzdlg1qnk-1,lower-latin) ". "}.lst-kix_4qhbzdlg1qnk-6 > li:before{content:"" counter(lst-ctn-kix_4qhbzdlg1qnk-6,decimal) ". "}.lst-kix_4qhbzdlg1qnk-5 > li:before{content:"" counter(lst-ctn-kix_4qhbzdlg1qnk-5,lower-roman) ". "}.lst-kix_arwedyyif758-0 > li:before{content:"- "}.lst-kix_4qhbzdlg1qnk-3 > li:before{content:"" counter(lst-ctn-kix_4qhbzdlg1qnk-3,decimal) ". "}.lst-kix_4qhbzdlg1qnk-2 > li:before{content:"" counter(lst-ctn-kix_4qhbzdlg1qnk-2,lower-roman) ". "}.lst-kix_4qhbzdlg1qnk-4 > li:before{content:"" counter(lst-ctn-kix_4qhbzdlg1qnk-4,lower-latin) ". "}.lst-kix_4qhbzdlg1qnk-2 > li{counter-increment:lst-ctn-kix_4qhbzdlg1qnk-2}.lst-kix_arwedyyif758-5 > li:before{content:"- "}.lst-kix_arwedyyif758-6 > li:before{content:"- "}.lst-kix_arwedyyif758-4 > li:before{content:"- "}.lst-kix_arwedyyif758-8 > li:before{content:"- "}ol.lst-kix_s0f2mmps4g7y-0.start{counter-reset:lst-ctn-kix_s0f2mmps4g7y-0 0}ul.lst-kix_iyhrmryph0bt-3{list-style-type:none}ul.lst-kix_iyhrmryph0bt-4{list-style-type:none}.lst-kix_arwedyyif758-1 > li:before{content:"- "}.lst-kix_arwedyyif758-2 > li:before{content:"- "}.lst-kix_s0f2mmps4g7y-3 > li{counter-increment:lst-ctn-kix_s0f2mmps4g7y-3}ul.lst-kix_iyhrmryph0bt-1{list-style-type:none}ul.lst-kix_iyhrmryph0bt-2{list-style-type:none}ul.lst-kix_iyhrmryph0bt-7{list-style-type:none}ul.lst-kix_iyhrmryph0bt-8{list-style-type:none}.lst-kix_arwedyyif758-3 > li:before{content:"- "}ul.lst-kix_iyhrmryph0bt-5{list-style-type:none}ul.lst-kix_iyhrmryph0bt-6{list-style-type:none}ul.lst-kix_iyhrmryph0bt-0{list-style-type:none}.lst-kix_4qhbzdlg1qnk-4 > li{counter-increment:lst-ctn-kix_4qhbzdlg1qnk-4}ol.lst-kix_4qhbzdlg1qnk-7.start{counter-reset:lst-ctn-kix_4qhbzdlg1qnk-7 0}.lst-kix_arwedyyif758-7 > li:before{content:"- "}.lst-kix_arw68w387c8i-6 > li:before{content:"- "}.lst-kix_arw68w387c8i-5 > li:before{content:"- "}.lst-kix_arw68w387c8i-7 > li:before{content:"- "}.lst-kix_arw68w387c8i-4 > li:before{content:"- "}.lst-kix_arw68w387c8i-8 > li:before{content:"- "}ul.lst-kix_23turxsubup4-8{list-style-type:none}ol.lst-kix_4qhbzdlg1qnk-8.start{counter-reset:lst-ctn-kix_4qhbzdlg1qnk-8 0}ol.lst-kix_4qhbzdlg1qnk-1.start{counter-reset:lst-ctn-kix_4qhbzdlg1qnk-1 0}ul.lst-kix_23turxsubup4-0{list-style-type:none}ul.lst-kix_23turxsubup4-1{list-style-type:none}ul.lst-kix_23turxsubup4-2{list-style-type:none}.lst-kix_s0f2mmps4g7y-5 > li{counter-increment:lst-ctn-kix_s0f2mmps4g7y-5}ul.lst-kix_23turxsubup4-3{list-style-type:none}ul.lst-kix_23turxsubup4-4{list-style-type:none}ul.lst-kix_twyxyf6ictcl-5{list-style-type:none}ul.lst-kix_23turxsubup4-5{list-style-type:none}ul.lst-kix_twyxyf6ictcl-6{list-style-type:none}ul.lst-kix_23turxsubup4-6{list-style-type:none}ul.lst-kix_twyxyf6ictcl-7{list-style-type:none}ul.lst-kix_23turxsubup4-7{list-style-type:none}ul.lst-kix_twyxyf6ictcl-8{list-style-type:none}ul.lst-kix_twyxyf6ictcl-1{list-style-type:none}ul.lst-kix_arw68w387c8i-6{list-style-type:none}ul.lst-kix_twyxyf6ictcl-2{list-style-type:none}ul.lst-kix_arw68w387c8i-7{list-style-type:none}ul.lst-kix_twyxyf6ictcl-3{list-style-type:none}ul.lst-kix_arw68w387c8i-4{list-style-type:none}ul.lst-kix_twyxyf6ictcl-4{list-style-type:none}ul.lst-kix_arw68w387c8i-5{list-style-type:none}ul.lst-kix_arw68w387c8i-2{list-style-type:none}ul.lst-kix_arw68w387c8i-3{list-style-type:none}ul.lst-kix_arw68w387c8i-0{list-style-type:none}ul.lst-kix_twyxyf6ictcl-0{list-style-type:none}ul.lst-kix_arw68w387c8i-1{list-style-type:none}.lst-kix_4qhbzdlg1qnk-6 > li{counter-increment:lst-ctn-kix_4qhbzdlg1qnk-6}ul.lst-kix_arw68w387c8i-8{list-style-type:none}ol.lst-kix_4qhbzdlg1qnk-2.start{counter-reset:lst-ctn-kix_4qhbzdlg1qnk-2 0}.lst-kix_arw68w387c8i-0 > li:before{content:"- "}.lst-kix_4qhbzdlg1qnk-0 > li{counter-increment:lst-ctn-kix_4qhbzdlg1qnk-0}.lst-kix_arw68w387c8i-2 > li:before{content:"- "}.lst-kix_arw68w387c8i-1 > li:before{content:"- "}.lst-kix_arw68w387c8i-3 > li:before{content:"- "}ul.lst-kix_p9pupgua6x8-6{list-style-type:none}ul.lst-kix_p9pupgua6x8-7{list-style-type:none}ul.lst-kix_p9pupgua6x8-4{list-style-type:none}ol.lst-kix_s0f2mmps4g7y-1.start{counter-reset:lst-ctn-kix_s0f2mmps4g7y-1 0}ul.lst-kix_p9pupgua6x8-5{list-style-type:none}ul.lst-kix_p9pupgua6x8-8{list-style-type:none}.lst-kix_p9pupgua6x8-6 > li:before{content:"● "}ul.lst-kix_wc2k3mted0e4-5{list-style-type:none}ul.lst-kix_wc2k3mted0e4-4{list-style-type:none}ul.lst-kix_wc2k3mted0e4-3{list-style-type:none}ul.lst-kix_wc2k3mted0e4-2{list-style-type:none}ul.lst-kix_wc2k3mted0e4-1{list-style-type:none}ul.lst-kix_wc2k3mted0e4-0{list-style-type:none}.lst-kix_p9pupgua6x8-8 > li:before{content:"■ "}ul.lst-kix_wc2k3mted0e4-8{list-style-type:none}ul.lst-kix_wc2k3mted0e4-7{list-style-type:none}.lst-kix_p9pupgua6x8-2 > li:before{content:"■ "}ul.lst-kix_wc2k3mted0e4-6{list-style-type:none}ul.lst-kix_p9pupgua6x8-2{list-style-type:none}ul.lst-kix_p9pupgua6x8-3{list-style-type:none}ul.lst-kix_p9pupgua6x8-0{list-style-type:none}ul.lst-kix_p9pupgua6x8-1{list-style-type:none}.lst-kix_p9pupgua6x8-4 > li:before{content:"○ "}ul.lst-kix_uge7ivhxxzz-1{list-style-type:none}ul.lst-kix_uge7ivhxxzz-0{list-style-type:none}ol.lst-kix_4qhbzdlg1qnk-0.start{counter-reset:lst-ctn-kix_4qhbzdlg1qnk-0 0}.lst-kix_p9pupgua6x8-0 > li:before{content:"● "}.lst-kix_qqottu30wsu2-1 > li:before{content:"- "}.lst-kix_s0f2mmps4g7y-4 > li{counter-increment:lst-ctn-kix_s0f2mmps4g7y-4}.lst-kix_4qhbzdlg1qnk-5 > li{counter-increment:lst-ctn-kix_4qhbzdlg1qnk-5}.lst-kix_my0acjva2uqv-1 > li:before{content:"○ "}.lst-kix_23turxsubup4-6 > li:before{content:"- "}.lst-kix_23turxsubup4-8 > li:before{content:"- "}ul.lst-kix_uge7ivhxxzz-7{list-style-type:none}ul.lst-kix_uge7ivhxxzz-6{list-style-type:none}ul.lst-kix_uge7ivhxxzz-8{list-style-type:none}ul.lst-kix_uge7ivhxxzz-3{list-style-type:none}ul.lst-kix_uge7ivhxxzz-2{list-style-type:none}.lst-kix_my0acjva2uqv-5 > li:before{content:"■ "}ul.lst-kix_uge7ivhxxzz-5{list-style-type:none}.lst-kix_todlmjo1zuew-1 > li:before{content:"- "}.lst-kix_23turxsubup4-2 > li:before{content:"- "}ul.lst-kix_uge7ivhxxzz-4{list-style-type:none}.lst-kix_uge7ivhxxzz-1 > li:before{content:"○ "}.lst-kix_uge7ivhxxzz-3 > li:before{content:"● "}.lst-kix_my0acjva2uqv-3 > li:before{content:"● "}.lst-kix_todlmjo1zuew-3 > li:before{content:"- "}.lst-kix_23turxsubup4-4 > li:before{content:"- "}.lst-kix_uge7ivhxxzz-5 > li:before{content:"■ "}.lst-kix_uge7ivhxxzz-7 > li:before{content:"○ "}.lst-kix_s0f2mmps4g7y-3 > li:before{content:"" counter(lst-ctn-kix_s0f2mmps4g7y-3,decimal) ". "}.lst-kix_s0f2mmps4g7y-7 > li:before{content:"" counter(lst-ctn-kix_s0f2mmps4g7y-7,lower-latin) ". "}.lst-kix_my0acjva2uqv-7 > li:before{content:"○ "}.lst-kix_23turxsubup4-0 > li:before{content:"- "}.lst-kix_s0f2mmps4g7y-5 > li:before{content:"" counter(lst-ctn-kix_s0f2mmps4g7y-5,lower-roman) ". "}.lst-kix_4qhbzdlg1qnk-8 > li:before{content:"" counter(lst-ctn-kix_4qhbzdlg1qnk-8,lower-roman) ". "}.lst-kix_s0f2mmps4g7y-1 > li:before{content:"" counter(lst-ctn-kix_s0f2mmps4g7y-1,lower-latin) ". "}

Chapter 1: Framework for Financial Accounting Don't forget about the age old question of Registry Type and Why?

Fundamentals:

  1. Assets: resources of a company
  2. Liabilities: amounts owed
  3. Stockholders equity: owners claims to resources
  4. Dividends: distributions to stockholders
  5. Revenue: sales of products or services to customers
  6. Expenses: costs of selling products or services

We also discuss several other topics like ectomorph personality traits

Assets = Liabilities + Stockholder Equity

If you want to learn more check out How the organism can be divided to produce identical halves?

  • Investor invests $25,000

     Cash  $25,000 = + $25,000

  • Purchase a truck for $10,000 with a loan

      Cash  $10,000 - $10,000 + Don't forget about the age old question of What is explained by the Logistic Growth Model?

Financial Statements

  • Income statement                                        RE= NI-div + beg.bal
  • Per period
  • Revenue - expenses = net income
  • Statement of stockholders equity
  • Per period
  • Retained earnings + net income - dividends = end balance
  • Balance sheet
  • Snapshot in time
  • Assets = liabilities + SE
  • Assets - liabilities = SE
  • Statement of cash flow
  • Operations
  • Investments
  • Financing                                 Cash flow = 0+1+F

If you want to learn more check out Draw the anatomy of the respiratory system.

FORMULAS

  • SE = A-L
  • A = L+SE
  • L = A-SE

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Example 1:

B/S        A cash = $2500

I/S        E salaries expense = $2500

B/S        L accounts payable = $2800

B/S        SE retained earnings = $4200

I/S        E utilities = $1600

B/S        A supplier = $13600

I/S        R service revenue = $12700

B/S        SE common stock = $3600

Income statement:

                                                        NI = rev - exp

Revenue = $12700

Salaries = $2500                                        *revenue = $12700

Utilities = $1600                                         salaries = <$15000>

_________________                                        _____________________

                                                          NET LOSS = <$2300>

Net income: $8600

Rev > exp = net income                                rev<exp = net loss

Statement of stockholders equity

Year                Net income                 Dividends                Retained earnings

1                $2100                        700                        1400

2                $2800                        1000                        3200

3                $3200                        1200                        5200

4                $3900                        1400                        7700

5                $4800                        1600                        10900

        Retained earnings = (net income - dividends) + beg. Bal

        Retained earnings + net income - dividends = net income

Example 2:

B/S A Equipment = $18200

B/S L Accounts payable = $4200

I/S SE Common stock = $12700

B/S A Land = $16800

B/S L Notes payable = $12200

I/S R revenue = $33000

B/S A cash = $7500

                        Balance Sheet

Assets                                 Liabilities

Cash $7500                        Accounts payable $4200

Equipment $18200                Notes payable $12200

Land $16800                                        _____________

        ______________                           $16400

$42500                

                        Stockholders Equity 

                        Common stock  $12700

$42500 = $16400 + $12700 + retained earnings

                $42500 - $29100 = retained earnings

                RE = $13400

Balance sheet:

Assets: thing you already own Ex: land/supplies/equipment

Liabilities: things you owe & haven’t paid Ex: payable

Owners equity: common stock & retained earnings

Formulas

OE = A - L

A = L + OE

L = A - OE

Income statement:

Revenue & expenses

Statement of cash flow:

Operating                Investing                Financing

-cash                         -assets                        -loans

-salaries                -equipment                -common stock

-supplies

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