Accounting and The Business Environment Accounting and The Business Environment
Accounting and The Business Environment Accounting and The Business Environment
Accounting and The Business Environment Accounting and The Business Environment
Business Environment
Chapter 1
• Proprietorships
• Partnerships
• Corporations
Economic Claims to
Resources Economic
Resources
-
Beginning
Balance of
Owner’s Equity Expenses
+ =
Ending
Owner Owner
+ Net Income - = Balance of
Investments (Net Loss) Withdrawals Owner’s Equity
b. 1. Assets
_____
_____
a. 2. Liabilities
c. 3. Owner’s equity
_____
e
____ 1. Utilities Expense
a
____ 2. Accounts Receivable
____
c 3. Gay Gillen, Capital
a
____ 4. Office Supplies
e
____ 5. Lease Expense, Computer
____
e 6. Salary Expense
Copyright © 2007 Prentice-Hall. All rights reserved 31
S1-9
a. Assets b. Liabilities
c. Owner’s Equity d. Revenues e. Expenses
a
____ 7. Cash
____
e 8. Rent Expense, Office
d
____ 9. Service Revenue
b
____ 10. Accounts Payable
a
____ 11. Land
Gemstone $?
$82,800 $61,800 $21,000
Sampson
Hardware
72,000 38,000
? 34,000
Lundy
102,700 79,800 ?
22,900
Plumbing
Liabilities &
Assets = $60,000
Owner’s Equity = $60,000
DoesWhat
the account increase
accounts or decrease?
are involved?
(1) Dental Supplies (asset)
(2) Accounts Payable (liability)
When an expense is
incurred, owner’s
equity decreases
Liabilities &
Assets = $68,000
Owner’s Equity = $68,000
Copyright © 2007 Prentice-Hall. All rights reserved 43
Analyze This:
July 28: The business sold supplies to
another dentist for the cost of those
supplies, $500.
Does the
Whataccount increase
accounts or decrease?
are involved?
(1) Cash (asset)
(2) Medical Supplies (asset)
_____1.
BS Accounts Receivable
_____2.
BS Notes Payable
_____3.
IS Advertising Expense
_____4.
IS Service Revenue
OE
_____5. J. P., Capital, June 1
_____6.
BS Office Supplies
Expenses:
Rent expense 1,000
Net income $6,000
Double
underline
for your
final answer