chapter2 - Chapter 2-1 CHAPTER 2 THE RECORDING PROCESS...

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Unformatted text preview: Chapter 2-1 CHAPTER 2 THE RECORDING PROCESS ACCT100 Autumn 2011 Teresa Chu Chapter 2-2 Account Name Debit / Dr. Credit / Cr. Record of increases and decreases in a specific asset, liability or owner’s equity item Debit = “Left” Credit = “Right” T-Account form The Account Chapter 2-3 Double-entry system Dual effect of transaction Each transaction MUST affect 2 or more accounts to keep the basic accounting equation balance DEBIT = CREDIT for each transaction Debits and Credits Chapter 2-4 Rules of Debits and Credits Illustration 2-11 Assets Liabilities = Owners’ Equity Basic Equation Expanded Basic Equation + Debits > Credits → Debit balance Credits > Debits → Credit balance Normal balance: the side to record increases Chapter 2-5 Chapter 3-23 Assets Assets Debit / Dr. Credit / Cr. Norm al Balance Normal Balance Chapter 3-27 Debit / Dr. Credit / Cr. Norm al Balance Normal Balance Expense Expense Chapter 3-24 Liabilities Liabilities Debit / Dr. Credit / Cr. Normal Balance Normal Balance Chapter 3-25 Debit / Dr. Credit / Cr. Norm al Balance Normal Balance Owners’ Equity Owners’ Equity Chapter 3-26 Debit / Dr. Credit / Cr. Normal Balance Normal Balance Revenue Revenue Normal Balance Credit Normal Balance Debit Normal Balance Chapter 3-27 Debit / Dr. Credit / Cr. Normal Balance Normal Balance Drawing Drawing Chapter 2-6 1) Analysis of transaction → Analyze business documents which provide evidence of transactions (e.g. sales invoice, check, bill or cash register tape) 2) Journalizing 3) Posting 3 Steps in the Recording Process Illustration 2-12 Analyze each transaction Enter transaction in a journal Transfer journal information to ledger accounts Chapter 2-7 Also refer to “General Journal” Book of original entry Record transactions in chronological order...
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chapter2 - Chapter 2-1 CHAPTER 2 THE RECORDING PROCESS...

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