Accounting equation
when you pay creditors on account, the emphasis is on PAY, meaning you subtract from cash and accounts payable.
Similar thing here. paying an expense, in this case rent, is a subtraction from the category--contra what Kahlina said.
Same thing with dividends. Dividends subtract the amount from dividends and subtract the same amount from cash.
It's just like an expense. All of the expenses in this homework used subtraction.
Looks like you smooshed the two smaller misc expenses together too, like they could have been two lines, but you added them as one--1,100 + 1,200 -> 2,300 I think. Or rather, it went as 2,300 (-) in cash, and then there were two lines in the equity column on the right side.
And one more thing it looks like. Remember the thing you couldn't think of? That last line? "i.Determined that the cost of supplies on hand was $1,750; therefore, the cost of supplies used was $1,000." You subtracted 1000 from supplies in assets and then there was a special column in equity for supplies expense.
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Income statement
Oh yea and you can't forget the top either, "For the Month Ended August 31, 20Y9"
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Statement of stockholders' equity/retained earnings???????
That was a trick! Look at how it's all zeros in row 2.
So note how it begins on 8/1, but then ends on 8/31, and then the statement is for the latter date (8/31).
That doesn't make any sense though because in the HW we're going through time linearly, whereas in the example it goes backwards.
Oh. Because it's two years. Or no, a year. Interesting.
Wasn't the common stock a problem? You were like stock, common stock, and then K was like ISSUED common stock...
Then the zeros too. I think she added in the zeros.
And the parentheses too. Although I think she put minuses and the program converted it to parentheticals.
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Balance sheet
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Statement of cash flow
Look at the minuses on the cash for land and cash for dividends. It's because they PAID cash for land, the cash went away.
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