Hover or focus any line and follow it to the statement it lands on.
Hover any line. Revenues and expenses go to the income statement; net income carries to retained earnings; ending retained earnings carries to the balance sheet.
| Account | Debit | Credit |
|---|---|---|
| 101Cash | $4,350 | |
| 106Accounts receivable | 1,800 | |
| 126Supplies | 8,670 | |
| 128Prepaid insurance | 2,300 | |
| 167Equipment | 26,000 | |
| 168Accumulated depreciation—Equipment | 375 | |
| 201Accounts payable | 6,200 | |
| 209Salaries payable | 210 | |
| 236Unearned consulting revenue | 2,750 | |
| 307Common stock | 30,000 | |
| 319Dividends | 200 | |
| 403Consulting revenue | 7,850 | |
| 406Rental revenue | 300 | |
| 612Depreciation expense—Equipment | 375 | |
| 622Salaries expense | 1,610 | |
| 637Insurance expense | 100 | |
| 640Rent expense | 1,000 | |
| 652Supplies expense | 1,050 | |
| 690Utilities expense | 230 | |
| Totals | $47,685 | $47,685 |
| Revenues | |
| Consulting revenue | $7,850 |
| Rental revenue | 300 |
| Total revenues | 8,150 |
| Expenses | |
| Depreciation expense—Equipment | 375 |
| Salaries expense | 1,610 |
| Insurance expense | 100 |
| Rent expense | 1,000 |
| Supplies expense | 1,050 |
| Utilities expense | 230 |
| Total expenses | 4,365 |
| Net income | $3,785 |
| Retained earnings, Dec. 1 | $0 |
| Add: Net income | 3,785 |
| 3,785 | |
| Less: Dividends | 200 |
| Retained earnings, Dec. 31 | $3,585 |
| Assets | |
| Cash | $4,350 |
| Accounts receivable | 1,800 |
| Supplies | 8,670 |
| Prepaid insurance | 2,300 |
| Equipment | 26,000 |
| Less: Accumulated depreciation—Equipment | (375) |
| Total assets | $42,745 |
| Liabilities | |
| Accounts payable | $6,200 |
| Salaries payable | 210 |
| Unearned consulting revenue | 2,750 |
| Total liabilities | 9,160 |
| Equity | |
| Common stock | 30,000 |
| Retained earnings | 3,585 |
| Total equity | 33,585 |
| Total liabilities and equity | $42,745 |
Net income → Retained earnings → Balance sheet, one line at a time.
Touch the instrument to see what to notice.