ch02 - Chapter 2 The Recording Process Financial...

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Chapter 2-1 The Recording Process Financial Accounting, Sixth Edition Chapter 2
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Chapter 2-2 The Account Debits and credits Debit and credit procedure Stockholders’ equity relationships Expansion of basic equation Steps in the Recording Process The Recording Process Illustrated The Trial Balance Limitations of a trial balance Locating errors Use of dollar signs Summary illustration of journalizing and posting The Recording Process Journal Ledger
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Chapter 2-3 Account Name Debit / Dr. Credit / Cr. Record of increases and decreases in a specific asset, liability, equity, revenue, or expense item. Debit = “Left” Credit = “Right” Account Account An Account can be illustrated in a be illustrated in a T-Account form. T-Account form. SO 1 Explain what an account is and how it helps in the recording process. Explain what an account is and how it helps in the recording process. The Account The Account
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Chapter 2-4 Double-entry Double-entry accounting system Each transaction must affect two or more accounts to keep the basic accounting equation in balance. Recording done by debiting at least one account and crediting another. DEBITS must equal must equal CREDITS . In the account form, we record the increases in assets as debits and the decreases in assets as credits SO 2 Define debits and credits and explain their use SO 2 Define debits and credits and explain their use in recording business transactions. in recording business transactions. Debits and Credits Debits and Credits
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Chapter 2-5 Account Name Debit / Dr. Credit / Cr. If Debits are greater than greater than Credits, the account will have a debit balance. $10,000 Transaction #2 $3,000 $15,000 8,000 Transaction #3 Balance Transaction #1 Debits and Credits Debits and Credits SO 2 Define debits and credits and explain their use SO 2 Define debits and credits and explain their use in recording business transactions. in recording business transactions.
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Chapter 2-6 Account Name Debit / Dr. Credit / Cr. If Credits are greater than greater than Debits, the account will have a credit balance. $10,000 Transaction #2 $3,000 Balance Transaction #1 Debits and Credits Debits and Credits SO 2 Define debits and credits and explain their use SO 2 Define debits and credits and explain their use in recording business transactions. in recording business transactions. $1,000 8,000 Transaction #3
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Chapter 2-7 Assets - Debits should exceed credits. Liabilities – Credits should exceed debits. The normal balance is on the increase side. SO 2 Define debits and credits and explain their use SO 2 Define debits and credits and explain their use in recording business transactions. in recording business transactions. Assets and Liabilities Assets and Liabilities Chapter 3-23 Assets Assets Debit / Dr. Credit / Cr. Normal Balance Normal Balance Chapter 3-24 Liabilities Liabilities Debit / Dr. Credit / Cr.
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This note was uploaded on 10/25/2008 for the course ACCT 2101 taught by Professor Sweeney during the Spring '08 term at CUNY Baruch.

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ch02 - Chapter 2 The Recording Process Financial...

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