Determining Normal Balance for Shareholder's Equity - COB 241, James Madison University

in Topic 3 (Video 4 of 7)

12 minutes

Shareholder's Equity has a normal balance, just like every other account. It's pretty simple to determine, not unlike Assets and Liabilities.

This Video Mentioned Some Formulas

Assets = Liabilities + Shareholder's Equity (Or Owner's Equity)

Contributed Capital

+ Retained Earnings

Shareholder's Equity (or Owner's Equity)

Beginning RE

+ Net Income

– Dividends

Ending RE

Revenues

– Expenses

Net Income

1	T-Accounts	3:15
2	Debits and Credits	6:49
3	Determining Normal Balances For Assets & Liabilities	10:04
4	Determining Normal Balance for Shareholder's Equity You are here.	11:53
5	Normal Balance Shortcut: Double Entry	11:51
6	Normal Balance Shortcut: DEAD Mnemonic	2:36
7	The Journal, Ledger, Trial Balance	14:00

	Click Here to View All Topic 3 Problems at Once	View
1	Account Classification	Easy
2	Journal Entry - Inventory	Easy
3	Journal Entry - Sales	Easy
4	Land Purchased With Cash	Easy
5	T/F: Liabilities and Equity	Easy
6	T/F: T-Account Logic	Easy
7	Normal Balances	Moderate
8	The Effect of Journal Entries	Moderate
9	What Should Be Journaled	Moderate