27 - • Three steps Identify accounts impacted by...

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Debits and Credits Debit to increase Assets Dividends Expenses Credits to increase Liabilities Revenue Common stock Retained earnings Practicing Debits and Credits Increase cash Debit Increase accounts payable Credit Decrease accounts receivable Credit Increase revenue Credit Practicing Debits and Credits Increase rent expense Debit Increase common stock Credit Decrease notes payable Debit Decrease cash __________________________ The Journal Chronological record of transactions
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Unformatted text preview: • Three steps Identify accounts impacted by transaction Apply debit/credit rules for the increase or decrease in the accounts • You should have at least one debit and one credit Record transactions in journal Journal entry • Write the account debited first and the amount in the left column • Write (and indent) the account credited next and the amount in the right column • Debits must equal credits...
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This note was uploaded on 06/14/2011 for the course ACCOUNTING 23020 taught by Professor Na during the Spring '11 term at Kent State.

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