Week 3 – Accounts Payable
1 Concept Week 4 – Adjusting Entries
6 Concepts Week 5 – Dividends
1 Concept 
Equity
Equity is essentially how much the company is worth. It's the value of 100% stake in the company.
There are two types of equity accounts you need to know:
Common Stock
Common stock represents stockholder ownership in the company through the purchase of stock.
| Account | In relation to a lemonade stand... |
|---|---|
| Common Stock | Business has been booming, so you issue 100 shares of stock to raise more capital for expansion. |
Retained earnings
Retained earnings represents the net income kept by a company after they have paid their stockholders dividends.
| Account | In relation to a lemonade stand... |
|---|---|
| Retained Earnings | You've raised $10,000 in net income this semester, and issued $1,000 in dividends out to shareholders. |