Discussion Topic

Discussion Topic 1 (a) The owner's equity section of the balance sheet has a capital account. From what statement do you derive the amount of this capital account? Explain why? (b) If the trial balance does not balance does not balance, and the difference between the total debit and total credit is multiple 9, that means that there is one of the two possible mistakes. b-1 Name them b-2 Define each of them. (c) of the three financial statements, which one is prepared first? (d) Why do we need the net income or net loss from the Income Statement to prepare the statement of owner's equity? (e) Why is the owner's withdrawal/Drawing called a "contra equity" or "contra capital" account