Equity T-account transactions

/Equity T-account transactions

Equity T-account transactions

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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By | 2018-01-22T10:24:12+00:00 August 13th, 2015|0 Comments

About the Author:

John Gillingham is a CPA and Accounting App Developer in San Francisco, California. Check the iOS App Store for Accounting Flashcards and the Debits & Credits Game. On Android: Learn Accounting Flashcards. Also on Kindle and iBooks.

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