Link between income and owner equity statement


Response to the following questions:

1. An owner invests $15,000 cash along with equipment having a market value of $23,000 in a company. Prepare the necessary journal entry.

2. Why are posting reference numbers entered in the journal when entries are posted to ledger accounts?

3. Where are dollar signs typically entered in financial statements?

4. Describe the link between the income statement and the statement of owner's equity.

5. Explain the link between the balance sheet and the statement of owner's equity.

 

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Accounting Basics: Link between income and owner equity statement
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