Assets = Liabilities + Owners Equity

Transaction Cash Accounts Building Accumulated Accounts Common Retained

Receivable Depreciation Payable Stock Earnings Revenue Expense Income statement Information
Total Sales Revenues 100
Beginning balance 0 0 0 0 0 0 0 Total Expenses (50)
Sells stock for $100. 100 100 Net Income 50
Buys a building for $50. (50) 50
Makes credit sales of $100 100 100
and subsequently collects $90 90 (90)
Accrues SG&A expense of $40 40 (40)
subsequently pays cash of $25 (25) (25)
depreciation expense of $10 (10) (10)

Subtotal Pre-closing 115 10 50 (10) 15 100 0 100 (50)

Closing Entry 50 (100) 50
Subtotal Post Closing 115 10 50 (10) 15 100 50 0 0

Total of all Assets Total of all Liabilities and Owners' Equtiy

165 165

Sells stock for $100.

Buys a building for $50. Its primary line of business is selling a service, so it has no COGS and no inventory.
Makes credit sales of $100, and subsequently collects $90.
Accrues SG&A expense of $40, and subsequently pays cash of $25.
Records depreciation expense of $10.

Beginning Ending
balance balance Change
Cash 0 115 115
Accounts Receivable 0 10 10
Building 0 50 50
Accumulated Depreciation 0 (10) (10)
Total assets 0 165 165
Accounts Payable 0 15 15
Common Stock 0 100 100
Retained Earnings 0 50 50
Total liabilities 0 165 165
 Assets = Liabilities + Owners Equity
Transaction
Cash Accounts Receivable Building Acc.Depreciation Accounts Payable Common Stock Retained Earnings Revenue Expense Income statement Information
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Total Sales Revenues 100
Beginning balance 0 0 0 0 0 0 0 Total Expenses 50
Sells stock for $100. 100 100 Net Income 150
Buys a building for $50. 50 50
Makes credit sales of $100 100 100
and subsequently collects $90 90 90
Accrues SG&A expense of $40 40 40
subsequently pays cash of $25 25 25
depreciation expense of $10 10 10

Subtotal Pre-closing 115 10 50 10 15 100 0 100 50

Closing Entry 50 100 50
Subtotal Post Closing 115 10 50 10 15 100 50 0 0

Total of all Assets Total of all Liabilities and Owners' Equtiy

165 165

Sells stock for $100.

Buys a building for $50. Its primary line of business is selling a service, so it has no COGS and no inventory.
Makes credit sales of $100, and subsequently collects $90.
Accrues SG&A expense of $40, and subsequently pays cash of $25.
Records depreciation expense of $10.

Beginning Ending
balance balance Change
Cash 0 115 115
Accounts Receivable 0 10 10
Building 0 50 50
Accumulated Depreciation 0 10 10
Total assets 0 165 165
Accounts Payable 0 15 15
Common Stock 0 100 100
Retained Earnings 0 50 50
Total liabilities 0 165 165