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  • Chapter 5 - The Expanded Ledger and Income Statement

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    crask26
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    This document discusses debit and credit accounting concepts and expanding the ledger. It provides examples of transactions where cash is received from a customer, the owner invests capital, and salaries are paid to employees. It then introduces the concept of expanding the ledger to include additional owner's equity accounts like capital to provide more information to the business. The document asks what reasons there are for expanding the ledger and what additional information it can provide to a business.

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    This document discusses debit and credit accounting concepts and expanding the ledger. It provides examples of transactions where cash is received from a customer, the owner invests capital, and salaries are paid to employees. It then introduces the concept of expanding the ledger to include additional owner's equity accounts like capital to provide more information to the business. The document asks what reasons there are for expanding the ledger and what additional information it can provide to a business.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    2 views4 pages

    Chapter 5 - The Expanded Ledger and Income Statement

    Uploaded by

    crask26
    This document discusses debit and credit accounting concepts and expanding the ledger. It provides examples of transactions where cash is received from a customer, the owner invests capital, and salaries are paid to employees. It then introduces the concept of expanding the ledger to include additional owner's equity accounts like capital to provide more information to the business. The document asks what reasons there are for expanding the ledger and what additional information it can provide to a business.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 4

    Let’s Practice…

    What Accounts are Debited vs Credited

    Received $200 The owner Paid $2500 for


    cash from a invested $500 the salaries of the
    customer for into the company. employees.
    painting a sign.

    1
    Expanding the Ledger: Capital Account

    Through the first four chapters we have looked


    at the fundamental accounting equation…

    Assets = Liabilities + Owner’s Equity

    This resulted in a single account for Owner’s


    Equity being Capital
    2
    Chapter 4 vs Chapter 5
    Question….

    1. Why are we expanding the ledger?


    2. What information might a business need to know
    that can only be told from an expanded ledger?

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