Financial statements

Statement of Income

Revenues

Expenses

Loss/Income before income tax

Income tax expense

Net Income / Net Loss

Statement of Changes in Equity

Top: common shares, retained earnings, total equity

Side: Balance, January 1, Issued common shares, net gain/loss, dividends declared, Balance, December 31

Statement of financial position

Assets (current assets, LT investments, PPE, Goodwill, Intangible Assets)

Liabilities (Current liabilities, noncurrent liabilities)

Shareholders Equity (common shares, retained earnings)

Post closing trial balance

Asset accounts

Liability accounts

Common shares

Retained earnings

Totals

(Used to show that assets = liabilities + equity after other accounts are closed)

Prepaid exp adjusting entry

Original:

Dr. Prepaid Exp

Cr. Cash or AP

Adjusted:

Dr. Expense

Cr. Prepaid Expense

Depreciation adjusting entry

Original:

Dr. Long lived asset

Cr. Cash or NP

Adjusted:

Dr. Depreciation Expense

Cr. Accum. Depreciation

Unearned revenue adjusting entry

Original:

Dr. Cash

Cr. Unearned (deferred) revenue

Adjusted:

Dr. Deferred revenue

Cr. Revenue

Accrued revenues follow up entry

Adjusted:

Dr. Receivable

Cr. Revenue

Follow-up:

Dr. Cash

Cr. Receivable

Accrued expenses

Adjusted:

Dr. Expense

Cr. Payable

Follow-up:

Dr. Payable

Cr. Cash