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Post by Henry Yook on Oct 13, 2013 11:13:47 GMT -5
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Post by Henry Yook on Oct 13, 2013 14:47:03 GMT -5
- Summary of Journal entries makes Trial Balance.
- Trial Balance have the all information for Debit/Credit amounts with both amounts equal all the time.
- Once the Trial Balance is finished, then Balance Sheet and Income Statement can be generated.
- Trial Balance = Balance Sheet + Income Statement
- Income Statement (Net Income) = Total Revenue (Sales) - Total Expenses
- Balance Sheet have all the Trial Balance Debit/Credit columns except Expenses and Revenue, which are separated into the Income Statement.
- Net Income on the Income Statement is used for the Equity and Earning section in the right bottom side.
For more details: accounting.yook.com |
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