Chapter 2
Linking Personal Accounting to Business Accounting
48
+
+
+
+
CASH
ACCOUNTS RECEIVABLE
PREPAID INSURANCE
FURNITURE
ACCOUNTS PAYABLE
UNEARNED REVENUE
BANK LOAN
SMITH, CAPITAL
SMITH, DRAWINGS
-
-
-
-
INCREASE
INCREASE
INCREASE
INCREASE
DECREASE
DECREASE
DECREASE
DECREASE
DECREASE
OWNER’S EQUITY
DECREASE
DECREASE
DECREASE
DECREASE
INCREASE
INCREASE
INCREASE
INCREASE
INCREASE
As at March 31, 2016
For the Month Ended March 31, 2016
Ace Bookkeepers
Ace Bookkeepers
Balance Sheet
Income Statement
ASSETS (what we own)
Total Assets
Total Liabilities
Owner’s Equity*
$48,400
11,000
$37,400
$48,400
LIABILITIES (what we owe)
-
SERVICE REVENUE
+
DECREASE
INCREASE
LESS EXPENSES
+
+
+
+
+
INTEREST EXPENSE
RENT EXPENSE
SALARIES EXPENSE
TELEPHONE EXPENSE
TRAVEL EXPENSE
-
-
-
-
-
INCREASE
INCREASE
INCREASE
INCREASE
INCREASE
DECREASE
DECREASE
DECREASE
DECREASE
DECREASE
Total Revenue
Less: Total Expenses
Net Income (Loss)
9,600
$19,000
$9,400
-
-
-
-
-
+
+
+
+
1.
2.
4.
5.
15.
6.
7.
3.
3.
7.
8.
9.
10.
13.
14.
16.
15.
30,000
10,000
2,000
500
15,000
4,000
6,000
8,000
$29,900
$2,000
$19,000
$200
$1,100
$6,000
$300
$2,000
$2,000
$7,000
$30,000
$2,000
$3,500
$6,000
$8,000
8,000
6,000
1,100
6,000
200
3,000
2,000
300
500
11.
12.
5.
6.
10.
8.
9.
11.
12.
4.
2.
1.
14.
13.
300
2,000
16. 300
15,000
4,000
200
1,100
6,000
300
2,000
2,000
10,000
30,000
2,000
3,000
+
*Ending Owner’s Equity Balance = Beginning Owner’s Equity Balance
+ Owner’s Contributions + Net Income (Loss) - Owner’s Withdrawals
$37,400 = $0 + $30,000 + $9,400 - $2,000
______________
FIGURE 2.30
