Accounting Primer

Accounting - Primer

See notes below.

In the video, I describe Owner Equity as the sum of all profits. Technically, these historical profits belong to Retained Earnings, an account inside the Owner Equity group. Owner Equity for private companies is comprised of four accounts:

Shareholder Contributions (Cr)
Retained Earnings (Dr/Cr)
Current Earnings (Dr/Cr)
Shareholder Distributions (Dr)

Public companies have additional stock considerations. The word shareholder can be replaced with "Owner" for sole-proprietor or "Member" for LLC. The name you choose depends on the type of company you operate.

Accounting - Primer Live Discussion

Account Types
Balance Sheet
Income Statements
Dr and Cr examples
Trial Balance