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How to Make a Statement of Changes in Owner’s Equity

March 13, 2012 Vic 1 Comment

Sample statement of changes in owner's equity

The statement of changes in owner’s equity is a separate component of financial statements for a sole or single proprietorship business. It presents how the capital shown in the balance sheet equity section changes over a period of time. It also shows the effects on the capital … [Read more...]

Accounting accounting tips, business, equity, finance, financial accounting, Financial Statements

How to Prepare an Adjusted Trial Balance

March 10, 2012 Vic 1 Comment

The trial balance is an internal report, listing all the account titles and their balances from the general ledger. It is prepared at the end of accounting period to check errors in the accounting cycles, which include identifying transactions, analyzing them, recording journal … [Read more...]

Accounting business, financial accounting, journal, ledger, trial balance

Examples of Adjusting Journal Entries in Accounting

March 8, 2012 Vic 5 Comments

Adjusted general ledger cash

In our previous post titled how to make adjusting journal entries (AJE), we have discussed the common types of adjusting entries, namely, accrued revenues, accrued expenses, unearned revenues, prepaid expenses, depreciation (estimation), change in accounting estimate, and prior … [Read more...]

Accounting accounting tips, bookkeeping, business, financial accounting, journal entries, journalizing, recording

How to Make Adjusting Journal Entries

March 7, 2012 Vic Leave a Comment

sample adjusting journal entries

In our previous article, we’ve discussed about the preparation of a trial balance. After the trial balance is prepared, we need to ensure that our accounting records are accurate and our financial reports will be fairly presented. Adjusting journal entries (AJE) are necessarily … [Read more...]

Accounting accounting, accounting tips, business, financial accounting, journalizing

What are Notes to Financial Statements and their Purpose?

September 16, 2011 Vic 1 Comment

Notes to Financial Statements

What are notes to financial statements and what is their purpose? The financial statements tell us about the important financial information of a certain business or entity which also help us make more informed judgments, such as whether we should infuse more capital or not to … [Read more...]

Accounting business, company, financial accounting, Financial Statements, notes to financial statements

What is a Statement of Changes in Equity and its Purpose?

September 14, 2011 Vic Leave a Comment

Sample Statement of Changes in equity

What is a statement of changes in equity and what is its purpose? A statement of changes in equity is a separate component of financial statements. It presents an entity’s total comprehensive income for the period (profit or loss plus other comprehensive income for the period), … [Read more...]

Accounting capital, corporation, equity, financial accounting, Financial Statements, statement of changes in equity

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