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ACCOUNTING
EQUATION
BY
SYAMWIL
Accounting Principles, Tenth Edition
Chapter
1-1
Study Objectives
Chapter
1-2
Accounting in Action
Owners
Investment Drawings
Payment Borrow
Business Creditors
Customers
Entity
Sell Payment
Buy Payment
Employees
Pertemuan
1- 4
& Supplier
Accounting Process
1. (Prepare
of (Record, accounting
economic (Quantify Classify Report)
events in $ and ) and 2. (Analyze
(Transactions) Summarize) and
Interpret)
The Basic Accounting Equation
The Assets must always Equal to sum of
Creditor (Liabilities) and Ownership claims
(Capital or Owner Equity) against the
business
Liabilities
Obligation arising from past transactions of the entity to transfer
assets or services to others entities or individuals in the future;
such as Accounts payable, Notes payable, Salary Payable, etc.
Revenues
Services revenue $7,400
Expenses
Salaries expense $1.200
Rent expense 800
Supplies expense 1.500
Advertising expense 750
Utilities expense 500
Total expenses -4,750
Net income $2,650
Financial Statement
Owners Equity Statement or Capital
Statement
It summarizes the changes in owners
equity for a specific period of time
SOFTBYTE
Owners Equity (Capital) Statement
For the Month Ended July 31, 2017