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Unformatted text preview: 3,000,000.00 Cash ### Depreciaiton Expense 6,250.00 Accumulated Depreciation 6,250.00 Payroll Expense 2,000.00 Payroll Liaibilty 2,000.00 We record evetns and accruals (adjusting entries) in the journal. Each time we record and event or an accrual, debits must equal credits. For each account in our accountingn system, we will record the sum of all of the debits and credits in the general ledger Our trial balance has the year-to-date total of the debits and credits for every account in the accounting system At the end of the year, we do "closing entries" to summarize the information for our income statement Closing entries serve two purposes: 1. they reset all of our revenue and expense accounts to zero 2. they transfer our income to retained earnings...
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This note was uploaded on 12/17/2011 for the course ECON 101 taught by Professor Chapman during the Spring '11 term at Arcadia University.
- Spring '11