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TA Notes 2.3.2011

TA Notes 2.3.2011 - • Matching principal recognize...

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February 3,2011 Debit means left The accounting equation is Assets= Liabilities +Equity The difference between an event and a transaction is a transaction is measurable Asset are things o have Liabilities are things you owe Revenue is what you get for doing what you do General Journal book of original entry General Ledger book of final entry T-Account is an accounting tool Trial Balance is used to check equality of debits and credits Recognize revenue when earned and measurable
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Unformatted text preview: • Matching principal: recognize expense when revenue associated with is recognized January 1 st bought 12 months of rent (12 months worth of an asset) • July 1 st ho much rent is used up and ho much do you have left o 6months rent left, 6 months of rent expense • Paid rent for the year o 9/1 Prepaid Rent 2400 Cash 2400 • 1 st month o 10/1 Rent Expense 200 PP rent 200...
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