Chapter 2

Front 1

Account

Back 1

Recorded transactions to show increase and decreases in financial statement.

Front 2

Ledger

Back 2

A group of accounts for a business entity.

Front 3

Charts of account

Back 3

A list of accounts in the ledger

Front 4

Assets

Back 4

are resources owned by business entity.

Front 5

Liabilities

Back 5

are debts owed to outsiders(creditor). (payable items). Cash receive before services are delivered creates a liability to perform service.

Front 6

Dividends account

Back 6

represents distributions of earnings to stockholders

Front 7

Revenues

Back 7

are infees earned, fares earned,increases in owners equity as a result to selling services or products to customer. e.g fees earned, fares earned, commissions revenue, and rent revenues.

Front 8

Expenses

Back 8

the using up of assets or consumming services in the process of generatig revenues.e.g wage expense, rent exspenses, utilities expenses, misc. exspenses.

Front 9

1. Assets

Back 9

11 Cash
12 Account Receivable
14 Supplies
15 Prepaid Ins
17 Land
18 Office Equipment

Front 10

2. Liabilities

Back 10

21. Account Payable
23. Unearned Rent

Front 11

3. Stockholder Equity(Owners equity)

Back 11

31 Capital Stock
32 Retained Earnings
33 Dividends

Front 12

4. Revenues

Back 12

41 Fees earned

Front 13

5. Expenses

Back 13

51 Wage expenses
52 Rent exspenses
54 Utilities exspenses
55 Supplies exspenses
59 Misc Exspenses