CHAPTER 4

COMPLETING THE
ACCOUNTING CYCLE

Accounting Principles
Chapter
4-1
 Study Objectives
1. Prepare a worksheet.
2. Explain the process of closing the books.
3. Describe the content and purpose of a post-closing
trial balance.
4. State the required steps in the accounting cycle.
5. Explain the approaches to preparing correcting
entries.
6. Identify the sections of a classified balance sheet.

Chapter
4-2
 Completing the Accounting Cycle

Summary of
Using a Closing the Classified
Accounting
Worksheet Books Balance Sheet
Cycle

Steps in Preparing Reversing Current assets

preparation closing entries entries—An Long-term
Preparing Posting closing optional step investments
financial entries Correcting Property, plant,
statements Preparing a entries—An and equipment
Preparing post-closing trial avoidable step
Intangible assets
adjusting entries balance
Current liabilities
Long-term
liabilities
Owner’s equity
Chapter
4-3
 Using A Worksheet

Worksheet
A multiple-column form used in preparing
financial statements.
Not a permanent accounting record.
Five step process.
Use of worksheet is optional.

Chapter
4-4 LO 1 Prepare a worksheet.
 Steps in Preparing a Worksheet
Illustration 4-2

Chapter
4-5 LO 1 Prepare a worksheet.
 Steps in Preparing a Worksheet
P4-1A The trial balance for Undercover Roofing for the month
ended March 31, 2008, is as follows.

Trial Balance Other data:

Account Titles Dr. Cr.
Cash $ 2,500 1. Supplies on hand total $140.
Accounts Receivable 1,800 2. Depreciation for March is
Roofing Supplies 1,100
Equipment 6,000 $200.
Accumulated Depreciation $ 1,200 3. Unearned revenue amounted
Accounts Payable 1,400
Unearned Revenue 300
to $130 on March 31.
I. Spy, Capital 7,000 4. Accrued salaries are $350.
I. Spy, Drawing 600
Service Revenue 3,000 Instructions
Salaries Expense 700
Miscellaneous Expense 200 a. Prepare and complete the
Totals $ 12,900 $ 12,900 worksheet.

Chapter
4-6 LO 1 Prepare a worksheet.
 Steps in Preparing a Worksheet
1. Prepare a Trial Balance on the Worksheet
Adjusted Income
Trial Balance Adjustments Trial Balance Statement Balance Sheet
Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash 2,500
Accounts Receivable 1,800
Roofing Supplies 1,100
Equipment 6,000
Accumulated Depreciation 1,200
Accounts Payable 1,400
Unearned Revenue 300
I. Spy, Capital 7,000
I. Spy, Drawing 600
Service Revenue 3,000
Salaries Expense 700
Miscellaneous Expense 200

Trial balance amounts

Totals 12,900 12,900

come directly from

Include all ledger accounts.
accounts with
balances.
Chapter
4-7 LO 1 Prepare a worksheet.
 Steps
Steps in
in Preparing
Preparing aa Worksheet
Worksheet
2. Enter the Adjustments in the Adjustments Columns
Adjusted Income
Trial Balance Adjustments Trial Balance Statement Balance Sheet
Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash 2,500
Accounts Receivable 1,800
Roofing Supplies 1,100 (a) 960
Equipment 6,000 Adjustments Key:
Accumulated Depreciation 1,200 (b) 200
Accounts Payable 1,400 (a) Supplies used.
Unearned Revenue
I. Spy, Capital
300 (c) 170
7,000
(b) Depreciation expense.
I. Spy, Drawing 600 (c) Service revenue earned.
Service Revenue 3,000 (c) 170
Salaries Expense 700 (d) 350 (d) Salaries accrued.
Miscellaneous Expense 200
Totals 12,900 12,900
Supplies Expense (a) 960
Depreciation Expense (b) 200
(d) 350
Enter adjustment
Salaries Payable
Totals 1,680 1,680

amounts, total
Add additional adjustments columns,
accounts as and check for equality.
Chapter needed.
4-8 LO 1 Prepare a worksheet.
 Steps
Steps in
in Preparing
Preparing aa Worksheet
Worksheet
3. Complete the Adjusted Trial Balance Columns
Adjusted Income
Trial Balance Adjustments Trial Balance Statement Balance Sheet
Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash 2,500 2,500
Accounts Receivable 1,800 1,800
Roofing Supplies 1,100 (a) 960 140
Equipment 6,000 6,000
Accumulated Depreciation 1,200 (b) 200 1,400
Accounts Payable 1,400 1,400
Unearned Revenue 300 (c) 170 130
I. Spy, Capital 7,000 7,000
I. Spy, Drawing 600 600
Service Revenue 3,000 (c) 170 3,170
Salaries Expense 700 (d) 350 1,050
Miscellaneous Expense 200 200
Totals 12,900 12,900
Supplies Expense (a) 960 960
Depreciation Expense (b) 200 200
Salaries Payable (d) 350 350
Totals 1,680 1,680 13,450 13,450

Total the adjusted

trial balance columns
Chapter and check for equality.
4-9 LO 1 Prepare a worksheet.
 Steps
Steps in
in Preparing
Preparing aa Worksheet
Worksheet
4. Extend Amounts to Financial Statement Columns
Adjusted Income
Trial Balance Adjustments Trial Balance Statement Balance Sheet
Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash 2,500 2,500
Accounts Receivable 1,800 1,800
Roofing Supplies 1,100 (a) 960 140
Equipment 6,000 6,000
Accumulated Depreciation 1,200 (b) 200 1,400
Accounts Payable 1,400 1,400
Unearned Revenue 300 (c) 170 130
I. Spy, Capital 7,000 7,000
I. Spy, Drawing 600 600
Service Revenue 3,000 (c) 170 3,170 3,170
Salaries Expense 700 (d) 350 1,050 1,050
Miscellaneous Expense 200 200 200
Totals 12,900 12,900
Supplies Expense (a) 960 960 960
Depreciation Expense (b) 200 200 200
Salaries Payable (d) 350 350
Totals 1,680 1,680 13,450 13,450 2,410 3,170

Extend all revenue and expense

account balances to the income
Chapter statement columns.
4-10 LO 1 Prepare a worksheet.
 Steps
Steps in
in Preparing
Preparing aa Worksheet
Worksheet
4. Extend Amounts to Financial Statement Columns
Adjusted Income
Trial Balance Adjustments Trial Balance Statement Balance Sheet
Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash 2,500 2,500 2,500
Accounts Receivable 1,800 1,800 1,800
Roofing Supplies 1,100 (a) 960 140 140
Equipment 6,000 6,000 6,000
Accumulated Depreciation 1,200 (b) 200 1,400 1,400
Accounts Payable 1,400 1,400 1,400
Unearned Revenue 300 (c) 170 130 130
I. Spy, Capital 7,000 7,000 7,000
I. Spy, Drawing 600 600 600
Service Revenue 3,000 (c) 170 3,170 3,170
Salaries Expense 700 (d) 350 1,050 1,050
Miscellaneous Expense 200 200 200
Totals 12,900 12,900
Supplies Expense (a) 960 960 960
Depreciation Expense (b) 200 200 200
Salaries Payable (d) 350 350 350
Totals 1,680 1,680 13,450 13,450 2,410 3,170 11,040 10,280

Extend all asset, liability, and

equity account balances to the
Chapter balance sheet columns.
4-11 LO 1 Prepare a worksheet.
 Steps
Steps in
in Preparing
Preparing aa Worksheet
Worksheet
5. Total Columns, Compute Net Income (Loss)
Adjusted Income
Trial Balance Adjustments Trial Balance Statement Balance Sheet
Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash 2,500 2,500 2,500
Accounts Receivable 1,800 1,800 1,800
Roofing Supplies 1,100 (a) 960 140 140
Equipment 6,000 6,000 6,000
Accumulated Depreciation 1,200 (b) 200 1,400 1,400
Accounts Payable 1,400 1,400 1,400
Unearned Revenue 300 (c) 170 130 130
I. Spy, Capital 7,000 7,000 7,000
I. Spy, Drawing 600 600 600
Service Revenue 3,000 (c) 170 3,170 3,170
Salaries Expense 700 (d) 350 1,050 1,050
Miscellaneous Expense 200 200 200
Totals 12,900 12,900
Supplies Expense (a) 960 960 960
Depreciation Expense (b) 200 200 200
Salaries Payable (d) 350 350 350
Totals 1,680 1,680 13,450 13,450 2,410 3,170 11,040 10,280
Net Income 760 760
Totals 3,170 3,170 11,040 11,040

Compute Net income or Net loss.

Chapter
4-12 LO 1 Prepare a worksheet.
 Steps
Steps in
in Preparing
Preparing aa Worksheet
Worksheet
Review Question
Net income is shown on a work sheet in the:
a. income statement debit column only.
b. balance sheet debit column only.
c. income statement credit column and balance
sheet debit column.
d. income statement debit column and balance
sheet credit column.

Chapter
4-13 LO 1 Prepare a worksheet.
Preparing
PreparingFinancial
FinancialStatements
Statementsfrom
fromaaWorksheet
Worksheet

Worksheet
Income statement is prepared from the
income statement columns.
Balance sheet and owner’s equity statement
are prepared from the balance sheet columns.
Companies journalize and post adjusting entries.

Chapter
4-14 LO 1 Prepare a worksheet.
Preparing
PreparingFinancial
FinancialStatements
Statementsfrom
fromaaWorksheet
Worksheet

b. Prepare an income statement for the month ended

March 31, 2008.
Undercover Roofing
Income Statement
For the Month Ended March 31, 2008
Revenues $ 3,170
Service revenues
Expenses
Salaries expense $ 1,050
Supplies expense 960
Depreciation expense 200
Miscellaneous expense 200
Total expenses 2,410
Net income $ 760
Chapter
4-15 LO 1 Prepare a worksheet.
Preparing
PreparingFinancial
FinancialStatements
Statementsfrom
fromaaWorksheet
Worksheet

b. Prepare an owner’s equity statement for the month

ended March 31, 2008.

Undercover Roofing
Statement of Owner's Equity
For the Month Ended March 31, 2008
I. Spy, Capital, March 1 $ 7,000
Add: Net income 760
Less: Drawings (600)
I. Spy, Capital, March 31 $ 7,160

Chapter
4-16 LO 1 Prepare a worksheet.
Preparing
PreparingFinancial
FinancialStatements
Statementsfrom
fromaaWorksheet
Worksheet

b. Prepare a balance sheet as of March 31, 2008.

Undercover Assets
Current assets
Roofing Cash $ 2,500
Accounts receivable 1,800
Balance Sheet Roofing supplies 140
Total current assets 4,440
March 31, 2008 Property, plant, and equipment
Equipment 6,000
Less: Accumulated depreciation 1,400 4,600
Total assets $ 9,040

Liabilities and Owner's Equity

Current liabilities
Accounts payable $ 1,400
Salaries payable 350
Unearned revenue 130
Total current liabilities 1,880
Owner's equity
I. Spy, Capital 7,160
Total liabilities and owner's equity $ 9,040
Chapter
4-17 LO 1 Prepare a worksheet.
Preparing
PreparingAdjusting
AdjustingEntries
Entriesfrom
fromaaWorksheet
Worksheet

Adjusting Entries
The adjusting entries are prepared from the
adjustments columns of the worksheet.
Journalizing and posting of adjusting entries
follows the preparation of financial
statements when a worksheet is used.

Chapter
4-18 LO 1 Prepare a worksheet.
Preparing
PreparingFinancial
FinancialStatements
Statementsfrom
fromaaWorksheet
Worksheet
c. Journalize the adjusting entries from the
adjustments columns of the worksheet.

Date Account Title Ref. Debit Credit

Mar. 31 Supplies expense 960
Roofing supplies 960

Depreciation expense 200

Accumulated depreciation 200

Unearned revenue 170

Service revenue 170

Salaries expense 350

Salaries payable 350

Chapter
4-19 LO 1 Prepare a worksheet.
Preparing
PreparingFinancial
FinancialStatements
Statementsfrom
fromaaWorksheet
Worksheet

Discussion Question
Q4-2. Explain the purpose of the worksheet.

See notes page for discussion

Chapter
4-20 LO 1 Prepare a worksheet.
 Class Assignment
 Page 4-51
 P 4-5
 Anya Clark
 a-e

Chapter
4-21
 (a) Journal
Date Particulars Ref Debit Credit
July 1 Cash 20,000
Owner’s Capital 20,000
July 1 Equipment 12,000
Cash 4,000
Accounts Payable 8,000
July 3 Supplies 2,100
Accounts Payable 2,100
July 5 Prepaid Insurance 1,800
Cash 1,800
July Accounts Receivable 4,500
12 Service Revenue 4,500
July Accounts Payable 2,900
18 Cash 2,900
July Salaries and Wages Expense 2,800
20 Cash 2,800
Chapter
4-22
 (a) Journal
Date Particulars Ref Debit Credit
July Cash 3,400
21 Accounts Receivable 3,400
July Accounts Receivable 6,000
25 Service Revenue 6,000
July Gasoline Expense 350
31 Cash 350
July Owner’s Drawings 5,600
31 Cash 5,600

Chapter
4-23
 Adjusted Trial Balance
Sl No Particulars Debit Amount Credit Amount
1 Cash 5950
2 Accounts Receivable 9800
3 Supplies 600
4 Prepaid Insurance 1650
5 Equipment 12000
Accumulated Depreciation-
6 Equipment 500
7 Accounts Payable 7200
8 Salaries and Wages Payable 1000
9 Owner’s Capital 20000
10 Owner’s Drawings 5600
11 Service Revenue 13200
12 Supplies Expense 1500
13 Gasoline Expense 350
14 Salaries and Wages Expense 3800
15 Depreciation Expense 500
16 Insurance Expense 150
Chapter
4-24 41900 41900
 Anya Clark Washing
Income Statement
For the Month Ended July 31, 2020
Account Title Amount Amount
Revenues:
Service Revenue 13,200
Less: Expenses
Supplies Expense 1,500
Gasoline Expense 350
Salaries and Wages Expense 3,800
Depreciation Expense 500
Insurance Expense 150
Total Expenses 6,300
Net Income 6,900
Chapter
4-25
 Anya Clark Washing
Owner's Equity Statement
For July 31, 2020
Account Title Amount Amount
Owner's Capital 0
Add: Investment 20,000
Add: Net Income 6,900
Less: Drawings - 5,600

Owner's Capital Ending 21,300

Chapter
4-26
 Anya Clark Washing
Balance Sheet
For July 31, 2020
Account Title Amount Amount
Asstes:
Current Assets
Cash 5,950
Accounts Receivable 9,800
Supplies 600
Prepaid Insurance 1,650 18,000
Long-Term Investments -
Property, Plant, and Equipment
Equipment 12,000
Less: Accu. Depreciation 500 11,500
Intangible Assets 0
Total Assets 29,500

Liabilities and Owner's Equity

Current Liabilty
Accounts Payable 7200
Salaries and Wages Payable 1000 8200
Owner's Equity
Owner’s Capital 21,300
Chapter
Total
4-27 Liabilities and Owner's Equity 29,500
 Current Assets
Cash 5,950
Accounts Receivable 9,800
Supplies 600
Prepaid Insurance 1,650 18,000
Long-Term Investments -
Property, Plant, and Equipment
Equipment 12,000
Less: Accu. Depreciation 500 11,500
Intangible Assets 0
Total Assets 29,500

Liabilities and Owner's Equity

Current Liabilty
Accounts Payable 7200
Salaries and Wages Payable 1000 8200
Owner's Equity
Owner’s Capital 21,300

Total Liabilities and Owner's Equity 29,500

Chapter
4-28
 Closing
Closing the
the Books
Books
At the end of the accounting period, the company
makes the accounts ready for the next period.
Illustration 4-5

Chapter
4-29 LO 2 Explain the process of closing the books.
 Closing
Closing the
the Books
Books

Closing entries formally recognize, in the general

ledger, the transfer of
net income (or net loss) and
owner’s drawing
to owner’s capital.

Only at the end of the annual accounting period.

Chapter
4-30 LO 2 Explain the process of closing the books.
 Closing
Closing the
the Books
Books

Note:
Owner’s Drawing is closed Illustration 4-6

directly to Capital and not

to Income Summary
Owner’s Capital is a
because Owner’s Drawing permanent account; all
other accounts are
is not an expense. temporary accounts.

Chapter
4-31 LO 2 Explain the process of closing the books.
 Closing
Closing the
the Books
Books
d. Journalize the closing entries from the financial
statement columns of the worksheet.
Service revenue 3,170
Income summary 3,170
Income summary 2,410
Closing
Salary expense 1,050
Entries
Supplies expense 960
need
Depreciation expense 200
to be
Miscellaneous expense 200
Posted
Income summary 760
I. Spy, Capital 760

I. Spy, Capital 600

I. Spy, Drawing 600
Chapter
4-32 LO 2 Explain the process of closing the books.
 Preparing
Preparing aa Post-Closing
Post-Closing Trial
Trial Balance
Balance

Purpose is to prove the equality of the permanent

account balances after journalizing and posting of
closing entries.
Post-Closing
All temporary accounts Account Titles
Trial Balance
Dr. Cr.
will have zero balances. Cash $ 2,500
Accounts Receivable 1,800
Roofing Supplies 140
Equipment 6,000
Accumulated Depreciation $ 1,400
Accounts Payable 1,400
Salaries payable 350
Unearned Revenue 130
I. Spy, Capital 7,160
Totals $ 10,440 $ 10,440

Chapter
4-33 LO 3 Describe the content and purpose of a post-closing trial balance.
 Summary
Summary of
of the
theAccounting
Accounting Cycle
Cycle
Illustration 4-12
1.
1. Analyze
Analyze business
business transactions
transactions

9.
9. Prepare
Prepare aa post-closing
post-closing 2.
2. Journalize
Journalize the
the
trial
trial balance
balance transactions
transactions

8.
8. Journalize
Journalize and
and post
post 3.
3. Post
Post to
to ledger
ledger accounts
accounts
closing
closing entries
entries

7.
7. Prepare
Prepare financial
financial 4.
4. Prepare
Prepare aa trial
trial balance
balance
statements
statements

6.
6. Prepare
Prepare an
an adjusted
adjusted trial
trial 5.
5. Journalize
Journalize and
and post
post
balance
balance adjusting
adjusting entries
entries

Chapter
4-34 LO 4 State the required steps in the accounting cycle.
 Correcting
Correcting Entries—An
Entries—AnAvoidable
Avoidable Step
Step

Correcting entries
are unnecessary if the records are error-free.
are made whenever an error is discovered.
must be posted before closing entries.
Instead of preparing a correcting entry, it is possible
to reverse the incorrect entry and then prepare the
correct entry.

Chapter
4-35 LO 5 Explain the approaches to preparing correcting entries.
 Correcting
Correcting Entries—An
Entries—An Avoidable
Avoidable Step
Step
BE4-9 At Batavia Company, the following errors were
discovered after the transactions had been journalized and
posted. Prepare the correcting entries.
1. A collection on account from a customer was recorded as a
debit to Cash and a credit to Service Revenue for $780.

Incorrect Cash 780

entry Service revenue
780
Correct Cash 780
entry Accounts receivable
780
Correcting Service revenue 780
entry
Accounts receivable
Chapter 780
4-36 LO 5 Explain the approaches to preparing correcting entries.
 Correcting
Correcting Entries—An
Entries—An Avoidable
Avoidable Step
Step
BE4-9 At Batavia Company, the following errors were
discovered after the transactions had been journalized and
posted. Prepare the correcting entries.
2. The purchase of supplies on account for $1,570 was recorded
as a debit to Supplies and a credit to Accounts Payable $1,750.

Incorrect Supplies 1,750

entry Accounts payable
1,750
Correct Supplies 1,570
entry Accounts payable
1,560
Correcting Accounts payable 180
entry
Supplies
Chapter 180
4-37 LO 5 Explain the approaches to preparing correcting entries.
 The
The Classified
Classified Balance
Balance Sheet
Sheet
Presents a snapshot at a point in time.
To improve understanding, companies group
similar assets and similar liabilities together.

Standard Classifications Illustration 4-17

Assets Liabilities and Owner’s Equity

Current assets Current liabilities
Long-term investments Long-term liabilities
Property, plant, and equipment Owner’s (Stockholders’) equity
Intangible assets

Chapter
4-38 LO 6 Identify the sections of a classified balance sheet.
 The
The Classified
Classified Balance
Balance Sheet
Sheet
Current Assets
Assets that a company expects to convert to
cash or use up within one year or the
operating cycle, whichever is longer.
Operating cycle is the average time it takes
from the purchase of inventory to the
collection of cash from customers.

Chapter
4-39 LO 6 Identify the sections of a classified balance sheet.
 The
The Classified
Classified Balance
Balance Sheet
Sheet
Current Assets
Illustration 4-19

Companies usually list current asset accounts in the order

they expect to convert them into cash.
Chapter
4-40 LO 6 Identify the sections of a classified balance sheet.
 The
The Classified
Classified Balance
Balance Sheet
Sheet
Review Question
Cash, and other resources that are reasonably
expected to be realized in cash or sold or
consumed in the business within one year or the
operating cycle, are called:
a. Current assets.
b. Intangible assets.
c. Long-term investments.
d. Property, plant, and equipment.

Chapter
4-41 LO 6 Identify the sections of a classified balance sheet.
 The
The Classified
Classified Balance
Balance Sheet
Sheet
Long-Term Investments
Investments in stocks and bonds of other companies.
Investments in long-term assets such as land or
buildings that a company is not currently using in its
operating activities.
Illustration 4-20

Chapter
4-42 LO 6 Identify the sections of a classified balance sheet.
 The
The Classified
Classified Balance
Balance Sheet
Sheet
Property, Plant, and Equipment
Long useful lives.
Currently used in operations.
Depreciation - allocating the cost of assets to a
number of years.
Accumulated depreciation - total amount of
depreciation expensed thus far in the asset’s
life.

Chapter
4-43 LO 6 Identify the sections of a classified balance sheet.
 The
The Classified
Classified Balance
Balance Sheet
Sheet
Property, Plant, and Equipment
Illustration 4-21

Chapter
4-44 LO 6 Identify the sections of a classified balance sheet.
 The
The Classified
Classified Balance
Balance Sheet
Sheet
Intangible Assets
Assets that do not have physical substance.
Illustration 4-22

Chapter
4-45 LO 6 Identify the sections of a classified balance sheet.
 The
The Classified
Classified Balance
Balance Sheet
Sheet
Review Question
Patents and copyrights are
a. Current assets.
b. Intangible assets.
c. Long-term investments.
d. Property, plant, and equipment.

Chapter
4-46 LO 6 Identify the sections of a classified balance sheet.
 The
The Classified
Classified Balance
Balance Sheet
Sheet
Current Liabilities
Obligations the company is to pay within the
coming year.
Usually list notes payable first, followed by
accounts payable. Other items follow in order
of magnitude.
Liquidity - ability to pay obligations expected
to be due within the next year.

Chapter
4-47 LO 6 Identify the sections of a classified balance sheet.
 The
The Classified
Classified Balance
Balance Sheet
Sheet
Current Liabilities
Illustration 4-23

Chapter
4-48 LO 6 Identify the sections of a classified balance sheet.
 The
The Classified
Classified Balance
Balance Sheet
Sheet
Long-Term Liabilities
Obligations a company expects to pay after one year.
Illustration 4-24

Chapter
4-49 LO 6 Identify the sections of a classified balance sheet.
 The
The Classified
Classified Balance
Balance Sheet
Sheet
Review Question
Which of the following is not a long-term
liability?
a. Bonds payable
b. Current maturities of long-term obligations
c. Long-term notes payable
d. Mortgages payable

Chapter
4-50 LO 6 Identify the sections of a classified balance sheet.
 The
The Classified
Classified Balance
Balance Sheet
Sheet
Owner’s Equity
Proprietorship - one capital account.
Partnership - capital account for each partner.
Corporation - Capital Stock and Retained Earnings.
Illustration 4-25

Chapter
4-51 LO 6 Identify the sections of a classified balance sheet.
 Recording
Recording Process
Process
Discussion Question
Q4-18. (a) What is the term used to describe
the owner’s equity section of a corporation? (b)
Identify the two owners’ equity accounts in a
corporation and indicate the purpose of each.

See notes page for discussion

Chapter
4-52
 Assignment
Assignment
Discussion Question
Q4-18. (a) What is the term used to describe
the owner’s equity section of a corporation? (b)
Identify the two owners’ equity accounts in a
corporation and indicate the purpose of each.

See notes page for discussion

Chapter
4-53
 Copyright
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Chapter
4-54