tailieunhanh - Lecture Accounting: Tools for business decision making (5th edition): Appendices I - Kimmel, Weygandt, Kieso

Appendices I - Accounting for sole proprietorships. After studying this chapter, you should be able to: identify the differences in equity accounts between a corporation and a sole proprietorship, understand what accounts increase and decrease owner’s equity, describe the differences between a retained earnings statement and an owner’s equity statement,. | I ACCOUNTING FOR SOLE PROPRIETORSHIPS Accounting, Fifth Edition After studying this chapter, you should be able to: Identify the differences in equity accounts between a corporation and a sole proprietorship. Understand what accounts increase and decrease owner’s equity. Describe the differences between a retained earnings statement and an owner’s equity statement. Explain the process of closing the books for a sole proprietorship. Learning Objectives The primary difference between accounting and reporting for a sole proprietorship and a corporation involves accounting for equity transactions. Sole Proprietorship Accounting LO 1 Identify the differences in equity accounts between a corporation and a sole proprietorship. Illustration I-1 Sole Proprietorship Accounting LO 2 Understand what accounts increase and decrease owner’s equity. Owner’s Equity Illustration I-2 (Drawings) Recording Transactions LO 2 Illustration I-3 Sierra’s transactions as a sole proprietor. Sole proprietor prepares an owner’s equity statement rather than a retained earnings statement LO 3 Illustration I-4 LO 4 Closing the Books Illustration I-5 LO 4 Closing the Books Illustration I-6 LO 4 Closing the Books Illustration I-8 Preparing a Post-Closing Trial Balance Post-closing trial balance List of all permanent accounts and their balances after closing entries are journalized and posted. Purpose is to prove the equality of the permanent account balances that are carried forward into the next accounting period. Contains only permanent—balance sheet—accounts. LO 4 Explain the process of closing the books for a sole proprietorship. “Copyright © 2013 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The . | I ACCOUNTING FOR SOLE PROPRIETORSHIPS Accounting, Fifth Edition After studying this chapter, you should be able to: Identify the differences in equity accounts between a corporation and a sole proprietorship. Understand what accounts increase and decrease owner’s equity. Describe the differences between a retained earnings statement and an owner’s equity statement. Explain the process of closing the books for a sole proprietorship. Learning Objectives The primary difference between accounting and reporting for a sole proprietorship and a corporation involves accounting for equity transactions. Sole Proprietorship Accounting LO 1 Identify the differences in equity accounts between a corporation and a sole proprietorship. Illustration I-1 Sole Proprietorship Accounting LO 2 Understand what accounts increase and decrease owner’s equity. Owner’s Equity Illustration I-2 (Drawings) Recording Transactions LO 2 Illustration I-3 Sierra’s transactions as a sole proprietor. Sole proprietor .