A = L + [OE +[+R - [E]]] Financial Accounting 101A Paul R. St.

John, CPA
The Expanded Accounting Equation Fullerton College
Typical General Ledger Accounts

<<<<<<<<<<<<<<<Balance Sheet>>>>>>>>>>>>>>>> Retained Earnings <<<<<<Income Statement>>>>>>>>

As of December 31, 2010 Statement For the Year Ended Dec. 31, 2010
ASSETS = LIABILITIES + [OWNER'S EQUITY - [+ DIVIDENDS] + [ REVENUE - [ + EXPENSES ]]]
Debit [DR] Credit [CR] Credit [CR] Debit [DR] Credit [CR] Debit [DR]
Cash /checking acct. Accounts Payable Sales/Fees Revenue Cost of Goods Sold
Petty Cash/Change Fund Notes Payable Corporation: -Sales Returns/Allow. [DR] or
Savings or other cash a/c Salaries Payable Shareholders' Equity -Sales Discounts [DR] Purchases for Resale
Interest Payable Retained Earnings - -Purchase Retrn/Allow. [CR]
Accounts Receivable Rent Payable Common Stock 1/1/2010 -Purchase Discounts [CR]
Allowance for Bad Debts [CR] Accrued Expenses (beginning) +Freight-In
Rent Receivable
Notes Receivable Unearned Revenue + Net Income (loss) Selling Expenses
Interest Receivable Unearned Rent Gen'l & Admin. Expense
Inventory Unearned Interest - Dividends [DR] Other Revenue:
Mortage Pyble-current Interest Revenue
Office Supplies Retained Earnings - Retained Earnings - Dividend Revenue* Advertising Expense
Store Supplies 12/31/2010 (ending) 12/31/2010 (ending) Rent Revenue Salaries & Wages Expense
Prepaid Insurance Payroll Tax Expense
Prepaid Taxes Mortage Pyble-long term Gain/(Loss) on Disposition Miscellaneous Expense
Prepaid Interest of Fixed Assets (PPE) Rent Expense
Prepaid Rent Utilities Expense
Prepaid Expense Sole Proprietorship or Office Supplies Expense
Partnership: Store Supplies Expense
Investments in Securities Capital Drawing [DR] Depreciation Expense
Partner's Capital Partner's Drawing Other Expenses:
Land Interest Expense
Building
Accum. Depr. - Bldg.[CR] Revenues less Expenses equal Net Income
Office Equipment
Accum. Depr. - Off. Eq. [CR]

Current Assets and Current Liabilities are those accounts that will become cash or use cash or be used up with-in a year.
* This Dividend Revenue is connection with an investment in another corporation, nothing to do with Dividends paid or declared for this company.
Italicized accounts have subsidary ledgers listing detail & balances by customers, inventory parts or vendors.
Revenue, Expenses & Drawing or Dividend accounts are closed (zeroed out) at the end of the year and transferred to Owner's Equity.

AequalLOEpsj.xls Revision 2/1/2010