ORIE 3150 - II. T-accounts T-accounts have the following...

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ORIE 3150 September 6, 2011 Practice with journal entries and T-accounts. I. Journal Entries Recall that a journal entry has three important types of information: 1. Date of the transaction. 2. Accounts affected 3. Dollar amounts associated with each account for the transaction Also: 1. Each transaction has its own journal entry, they are not combined or summarized. 2. The total amount in the debit column must equal the total amount in the credit column. 3. All of the accounts with debits are listed first. 4. The titles of the credit accounts are indented 5 spaces. 5. A journal entry is a concise way to record a business transaction.
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Unformatted text preview: II. T-accounts T-accounts have the following features: 1. A title at the top 2. A t-shaped figure to clearly depict a debit side and a credit side 3. Non-negative dollar amounts on the debit side and/or the credit side Also: 1. A T-account balance consists of a dollar figure and the word debit or the word credit. The dollar amount is not sufficient. 2. Numbers are entered on either the debit side or on the credit side. 3. Negative numbers never appear in a T-account 4. Many problems must be solved using T-accounts. There is no other method....
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