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젠does#Effect on Owner's EquityDate Nature Increased by No change    璠 N嬠$俁$$8$$$ $ 8N $ $ 8N  璠咠咠咠咠咠! 젠 $Š砢â婮#Effect on Owner's Equity DateNatureIncreased byNo change INCOME STATEMENTwhy䮍􍒠© ŠŠﬠŠԠ䮍ﬠŠԠ䮍򠤳© é󍒠 咠󍒠 咠 半GLENDALE MARKET䬠嬠ﬠĠ嬠嬠䬠宠Ԡ宍ﬠﬠ:٠٠ﬠĠENDALE MARKET  咠ĩ©咠ũéIncomeﬠԠ宍ﬠ䮍GL宍Š宍󮍲N󮍱Ġ򠤸宍Ů򠤹  쒠 庠Ġ蠸庍Date Revenues Expenses    򠤳revenue栤expense栤expenseﬠ宍revenue򠤳堤宍欠󺍨嬠謠欠increased䍨謠欠decreased欠򠤳/( 5 5 5ӠӠŠ󮠁Nﬠ宍ﬠŠ󮒠 䮠占嬠宍䮍N򠍠󮠠퍠䮠󮍊堮ݍ󧍠庠嬠䬠dfgh󮍠庠䬠좠􍠠䬠ꬲKEY POINTS TO REMEMBER占󠽠󮠠嬠嬠嬠宍䮍宩쬠宠宩婠嬠󮢍婠嬠󮢍宍󍒠©卒é 宍宍쬠宠itincomerevenuesexpensesprofit and loss statement⍒󍒠© Ӡ宠宠profN謠쬠󠤱栤䬠嬠  ((咠ﮠ󮠠堒 謠젒 "쒠 쒠 3(9) 7忍 (13,900) mopq GLENDALE MARKETASSETS#EQUITIES%%蠒堒 堒 ꬲ፠栤䮠䠤栤䮍ǠAMOUNT OF REVENUEwhen䮍䮍􍔨© ﬠ䮍ﬠ䮍adjusted䮍ﬠ䮍ӠӠafter 嬠before 􍔨© ݮ ﬠ宠󍠠  <݁庠墠栢客ﬠ䮍䮍interest revenue䮍©頤쮍ﬠ쮍廠䮍󠹿( 900)忍讍 ( 2,700)宍 ( 200)忍宍  忒ꬲ፠堤砤ᠤ䮍宍 (10,000)俒宍(25,700)00)宍 ( 200)忍(11,900) 迒󠱰( 900)忍ᠤ ( 2,7堒堒 堒 謠젒 䠒"쒠 쒠 2(10) 7忍 rtuv GLENDALE MARKETASSETS#EQUITIES%%蠒堒 堒 ፠򍤵䠤䠤廠宍宍()忒 䮍(17,700) GLENDALE MARKETASSETS#EQUITIES%%蠒堒 堒 堒堒 wyz{宍 ( 200)忍 ( 5,000)俒忍 ( 2,300)젒 䠒"쒠 쒠 2(14) 7忍 (12,400) 迒󠱴( 900)|~ASSETS#EQUITIES%%蠒堒 堒 堒堒 堒 謠ꬲ፠栤蠨 GLENDALE MARKET俒宍 (21,700)宍宍( 200)忍蠤 ( 5,000)󠱲( 900)忍 ( 2,700)堒 謠젒 䠒"쒠 쒠 2(12) 7忍 (12,900) 迒宍 (20,800)宍렒䠒"쒠 쒠 2(16) 7忍祉󠱶 ASSETS #EQUITIES%%蠒堒 堒 堒堒 堒 ꬲ፠䠲㮬򠤴讍GLENDALE MARKET, INC.ﮠﮠΠˠ뮢翠祉󠱵宁*"쒠 쒠 忍 (15)忠îîî ASSETS #EQUITIES蠒堒 堒 堒堒 堒 謠젒 󮍊GLENDALE MARKET㮠䠱󠤹󮠠ﬠ䮠ﬠ䮠ꬲINCOME STATEMENT䠤仍bad debts┨©宠reasonably certain䮍 must宍宍Ԡ嬠􍬠ﮍﬠ󠽠嬠ﮍĠ堤䮍堤䮍ﬠ󠽠嬠ﮍﬠ󠽠嬠ﮍĠŠﬠ󠽠󍔨䒠©咠éĩ䔠ũ 6how much䮍򠤱堤Ӡ嬠Ӡ嬠Ӡ嬠Ӡ嬠ﮍﮍ󮍒©荒é ҧӠNNNNéĩ!ŠŠﮍﮍ balance sheetŠŠﮍﮍ flowﮍﮍ©宍©􍍍卒éĩ򮠠flowed through䬠was in堍䮍嬍򍱹󠤱󠮰堤󠤵󠤱堍䮠協© Ҡ  協©ŠҠ̠Ӡﬠ䮍ﬠ堤󮠠writes off󮠠󠒮 嬠󠤱󠤱򠤱𠤱󮠠򠳱嬠󠒮宍ŠҠ̠Ӡﬠﬠ򠳱󮍠  協©ӠŠҠ̠ﬠ宍ﬠﬠԠﬠԠ栤宍© debitﬠԠ宍ﬠԠ宍credit嬍宍©嬍嬠䬠堁宍Allowance for DoubtfulAccounts協© ﬠ堤䬠堁宍ﬠ堤䮍٠asset宍󠤴 䮍conservatism conceptݠﬠ堤䠁䮍ﬠ堤䠁䮍嬠䮍ӠŠҠ̠ﬠ䮍ﬠ䮍䠍󍔨© 宩Ӡ젍󮍊򮍊獠宠ꬲKEY POINTS TO REMEMBER 堍宍宍協© Šﬠﬠ宍協© Šﬠﬠ嬠栵宍宠嬠栵ᠱ򬠱󠠽󍔔宍󺍚協󠠽󠯠ᮍ嬠򠳱 Days' Receivables䮠䮠DAYS' RECEIVABLESﬠ󍚍ﬠﬠ嬠ﬠﬠﬠ٠Π﩮 ĩ󠒮©堮ũé堒Ʃﬠ鮍ﬠﬠMONETARY ASSETSMonetary assets獠󍠠󮍊䍠䮍ݍ堤젤젠 󠽠󠤱뮢笠difference󮍨incomerevenueԠ宍젱19x2󮠠宍Nﮠ䮍堍䬠󍊔協󠯠䮍󮠠占䬠䬠򍠠󠚍嬠䮠䬍䮠󠍠shareholdersshareholders򠮮뮍󮠠Part 4ACCOUNTING RECORDS AND SYSTEMSNLearning Objectivesaccount󮍠쮍󠤳ﮍﮍ󮠠讠asset栤 򮠠嬠堤򠳱 卒© ̠idends󠽠󠭠䢮ﬠ󠤹earnings宠 div䍒© added toadded to򬠢䢮򬠢󍒠 Retained earnings堮  庍卒 䬠䍒󮍒󍒠©Ӡﮍﮍ嬠򬠢䢮򬠢䢮󠤱owners' equityshareholders뮠䠢뢍뮢嬠堢뢠䬠 THE ACCOUNT 쒠©򯱲ĮɢĢ)ﬠӬ讍 ﬠǠ讍뮒䠤򮒠䠤򮠠򠤸讒 ﬠ󩍁'箠쮠' ' ' ' 讠堢ɢĢ󮍊䠤宍 ﬠԠ宍ﬠԠ宍ԭ讍%Cash)宍© leftﬠ宍ﬠ宍宠ԭԭ©increasedecrease讠ԭ󮍊 %Cash ) 󩍁 ' ''䮩󠤱䮍宍ԭ砍䮍%Cash)'箠쮠 ' ' 'ԭԮ䍢袠%) ' ' ' '%CASH庠堁account宠Ԭﬠ堁ﬠ ﬠĠ嬠new balance%Cash)󩍒箠쮠!##쒠썒'©讍©ﬠﬠ left堤Accounts Receivable) 󩍁 ' 'ﬠﬠ謠嬠栤卒© 󩍁;; 2Accounts ReceivableӠԠԭ宍Accounts Receivableԭ Cash 2 #*#󩠁/塍塍堤宍堤宍䠤嬠宠ԭ宍© %Cash ) 󩍁'' leftӠԠ宍 leftﬠﬠ󠤱宠all宍© leftӠԠ宍䮍堁䮍RULES FOR INCREASES AND DECREASESԭ謠©宍码䮍码堤卤䬠堠堤宍󠤱󠤲殍ﬠ堨婠堁堨婮ﬠ堨婠堁堨婮ᠤ砤򠤲宍ﬠ宍讍䠤묠宍򭒠󩒠'' left堤宍ﬠ䠤묠宍䍠©􍠍Cash!Notes Payable䮍ﬠĮﬠĮ堭䮍ﬠĠ려ﬠĠ려 increased䮍宍 卒䒠© 䒠© increased堭䮍ﮠ䠤묠decrease宍© ﮠ򡠠򡠠ﮠincrease宠嬠嬠嬠䠍󮍒쒠© equal㮠栤+ﬠӮ򠤲+ﬠ㮠Š򠲠+俠,ɠ䬠Ġ䩍ˮ#󩍒 + ﬠŮ +俠,ɠ䬠Ġ䩍ﬠCash#俠󩒠 ɠ䬠Ġ䩍 Accounts Receivable#󩍒 Notes Receivable半right-hand宠半Cash Notes Payable󩒠&&󠤷debitcredit©󮍒堮堮堮讍謠debit宠debit栢䢠䠢䮠笠󬠢订© debitԠ讍ԠԬ宍䬠Ԭ宍Debitcredit󮠠謍謠䬠Ԭ宍ﬠ䬠Ԭ宍䬠Š嬍嬠䍒©宍© debitﬠCREDIT笠debit嬠credit宍өﬠӮﬠӮﬠӮDEBIT AND ﬠ٠Ӡﬠ٠Ӡө󮍨өﬠ٠Ӡﬠ٠Ӡ歍󩒠''' .󮍨ө宍Cash!Notes Payable٠Ԯ٠Ԯdecreasesright嬠decreasesleft嬠嬠宍© 堮ﬠӮﬠӮﬠӮﬠӮӮӮﬠӮﬠӮcredit砢䬢debit砢fourth󮩍  ##򮩠򮩔򮩠򮩍(((箠쮠쮍砤讍砤󠤳򮍠󠤵宍笲⍠堚ᐁ6ﬠ宍堤宍6>宍ﬠ宍宍 󮠠堢â客>箠쮍 Ӡ宍second󮩍  ##򮩠򮩔򮩠򮩍(((箠쮠 Ӡ쮍砤讍砤󠤳򮍒󠤵笲⍠堚庠嬠묠䠁󬠤󠤱宍󠽠䡍ˮˮ嬠䮩Ү䬠Ү䡍sh ) 箠쮠Ү䬠Үﬠ宍ﬠ宍ﬠ宍ﬠ宍debit򮬢credit򮢠󮍚Ca笠debitonlycredit©only© leftﬠԮﬠԮ宠+箠쮠 󮠠堢â客 ӠӠﬠϠ6ﬠ6>宍쮍©© d졠졠 ﬠ󠭭ﬠ󠭭ꬲ©©ŠﬠŠ increasesﬠŠﬠŠ ﬠŠ 䬠䠍© ©宍ﬠ嬠宍ﬠ嬠宍INCOME STATEMENT ACCOUNTS堍宠ﮩ堭嬠宍堭嬠宍ɮ宍宍 卒© 򮍊堍ﬠ堍new蠒򮒠堒򮍠堮򮒠렒 򮍠 򮒠󠮮򮍠󠒮ebitsﬠﬠ debitsﬠﬠ󺍨堠򃠍䬠Ҡ働嬠  ©宍褐砤򠤹󮍊revenues捤嬠砤򠤹󮠚嬠ﬠҮ䩍ҮﬠԮﬠԮĠ Dr.Ү積Үﬠﬠ é򮒠 ĩ󮠠䮍䒠©é򮒠 ĩ debitedﮠ䍒䒠©̮쬠󬠍卒© ﮠentryﬠ̮ledger嬠ﬠﬠﬠﬠTHE LEDGER AND THE JOURNALledger堮ﬠﬠﬠﬠﬠﬠﬠﬠ©󮩠堮堮堮堮堮ԠԠ砤ncome䮍 increases宩宩ﬠŠ 󠍔©䬠 󔠠©i̮ﬠ̮ ledgerTHE CLOSING PROCESSﬠ䮍 ﬠ嬠ݍ󮠚䍔©©ﬠﬠ宍5宍宍ﬠ宍퍹 5=ﬠ宍  â Accounts ReceivableRevenues  '''InventoryExpenses   ' 5렠讠嬠堢posting堮 󠒮 󠒮 ﬠﬠﬠԮﬠԮ$ ©򠤹󮍊expense捤inventoryﬠŠ ﬠŠﬠŠݠclosing entriesΠȬﮍΠȬŠ謍쮍 謠썔©ŠΠȬﬠﮍﬠincome䮠謠쮍󺠚󍔔#2,000 󍔔#1,300#1,3002,000ﬠŠﬠ䮍ﬠ䮍 ©Šﬠﬠﬠ笠卤©ŠﬠԠﮍﬠԠﮍŠ堤䬠 ԭĠ嬠 Dr.ҮҮﬠ堢墠宍ﬠ堢墠宍ݍ廠ݔ©ݍ$Cr.ҮҮԭĠ嬠Ǡ嬠󍔨ݔ©堤Revenues#宍宍宍Income Summary䮠䮠䬠嬠䮍󺍊Cash)򮍔咠䮠쮍쮠宍宍宍NﮠNﮠ䮠temporarypermanent󮍁©éﮠ󮠠temporary󮠠䮠捔© 堭ﬠ嬠嬠󮍔䮍󮠠ݠ󮠠宍嬠嬠婠䠲䠱GLENDALE MARKETIncome Statement for the period January 2-8󠒮󠒮堒堒謠젒 쒠 쒠 GLENDALE MARKET ASSETSEQUITIES%%蠒堒 堒 󍔨© Ӡﬠﬠ宍changecalculation宠宍宍宍ᚍ堍쮍ﬠ䠤  󮠠堢â客Ӡ宍 宍6third󮩍 ## 򮩠򮩒򮩠򮩍(((箠쮠>箠쮠>砤讍砤󠤳򮍒󠤵፠堚쮍󠤶ﬠ宍宍 ﬠ6ﬠ󠤶 󮠠堢â客+箠쮠 first󮩍"  򮩠򮩒򮩠򮩍(((箠쮠砤讍砤󠤳򮍒󠤵KEY POINTS TO REMEMBER󮠠󍠠󮠠宍󮠠ﮠ󮠠占䮍N䍠䮠򮍊󮠠荠䬠 󮠠捠󮍊쮠䍠