Web Chapter 2 - Analyzing and Recording Transactions...

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Analyzing and Recording  Analyzing and Recording  Transactions Transactions Chapter 2 Chapter 2
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Analyzing and Recording Process Analyzing and Recording Process 1. Analyze each transaction and event from  source documents Apply double-entry accounting 2. Record relevant transactions and events in a  journal 3. Post journal information to ledger accounts T-account versus formal ledger account 4. Prepare and analyze the trial balance 5. Prepare financial statements
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Source Documents Source Documents (and double-entry accounting) (and double-entry accounting)
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Transaction Analysis Transaction Analysis J. Scott invests $20,000 cash to start the business.
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Journal Entries Journal Entries Date PR Debit Credit 1 Cash 25,000 Capital 25,000 Description
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Ledger Accounts Ledger Accounts A T-account represents a ledger account and is a  A T-account represents a ledger account and is a  tool used to understand the effects of one or more 
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Web Chapter 2 - Analyzing and Recording Transactions...

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