Equity
Equity, what is left over after assets settle all liabilities or the owner’s contribution plus retained earnings. Assets = Liabilities + Equity is true for a sole proprietorship, a partnership, or a corporation.
| Proprietorship Accounts |
Corporation Accounts |
Capital
Drawing
|
Common Stock
Preferred Stock
Paid-in Capital
Dividends
Retained Earnings
|
In a proprietorship Net Income is emptied into the Capital Account instead of Retained Earnings.
Stockholders' Equity