Financial Statements

Assets = Liabilities + Owner’s Equity Balance Sheet Assets Cash Petty Cash Accounts Receivable Supplies Insurance Normal Balance Debit Assets INCREASE on the debit side Assets = Liabilities + Owner’s Equity

Balance Sheet Assets = Liabilities + Owner’s Equity Liabilities = Accounts Payable Normal Balance = Credit Owner’s Equity = Capital (credit) & Drawing (debit)

Sales – Expenses = Net Income Income Statement Sales Expenses Reduce O.E. Advertising Misc. Supplies Repairs Utilities Tax Normal Balance Credit Normal Balance Debit Sales – Expenses = Net Income