Determining Normal Balance for Shareholder's Equity

in Chapter 3 (Video 2 of 8)

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	Determining Normal Balances For Assets & Liabilities	10:04
2	Determining Normal Balance for Shareholder's Equity You are here.	11:53
3	Normal Balance Shortcut: Double Entry	11:51
4	Normal Balance Shortcut: DEAD Mnemonic	2:36
5	The Journal, Ledger, Trial Balance	14:00
6	The Multistep Income Statement	12:44
7	Gross Profit vs Net Profit	6:15
8	Profit Margin	3:22

	Click Here to View All Chapter 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	Normal Balances	Moderate
7	What Should Be Journaled	Moderate
8	Calculating Operating Income	Hard