Equity T-account transactions: Equity decreases with a debit and increases with a credit

Basic entries:

  • Increase equity from stock issue: Debit cash and credit equity
  • Increase equity from net income: Debit net income (income summary) and credit retained earnings
  • Decrease equity from a dividend: Debit dividends and credit retained earnings

M_5F_Equity_T-account_transactions

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