Statement of Changes in Equity

The statement of changes in equity is one of the main financial statements. The purpose of the statement is to show the equity movements during the accounting period and to reconcile the beginning and ending equity balances.

Last modified June 19th, 2017 by Team
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Treasury Stock Cost Method Journal Entries

The treasury stock cost method journal entries below act as a quick reference, and set out the most commonly encountered situations when accounting for treasury stock using the cost method.

In each case the journal entries show the debit and credit account together with a brief narrative.

Last modified November 6th, 2016 by Team
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Dividends

A dividend is a payment of a share of the profits of a corporation to its shareholders.

A dividend declared is a liability of the business on the dividend declaration date which becomes payable on the dividend payment dates.

Last modified March 5th, 2019 by Team
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Stockholders Equity Journal Entries

The stockholders equity journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of stock holders equity.

In each case the journal entries show the debit and credit account together with a brief narrative.

Last modified June 14th, 2017 by Team
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Drawings Accounting

Drawings accounting is used when an owner of a business wants to withdraw cash for private use. The bookkeeping entries are recorded on the drawings account.

If for example an owner takes 200 cash from the business for their own use, then the drawings accounting would be as follows:

Last modified July 28th, 2018 by Team
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Owners Equity, Capital and Retained Earnings

Owners Equity is that part of your business finance which is provided by the owners. Owners Equity includes two main components Capital which is invested as cash or cash equivalents by the owners as acapital introduction and Reserves which represent mainly profits of the business which have not been distributed to the owners.

Last modified November 14th, 2018 by Team
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Capital Introduction

When you start your business you need a capital introduction. Suppose for example you start by depositing 1,000 cash into a business bank account.

Last modified January 18th, 2019 by Team
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