UNIT 12 study guide - examples of debits and credits to...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
UNIT 12 1) General Ledger= the collection of T accounts a. General journal= updated version of T accounts a.i. Created at the time of transaction 3) Debit on left / Credit on right a. For assets and expenses ADD by debiting b. For liabilities and equity, and revenue , ADD by crediting c. Income statement c.i. Revenue c.ii. Expenses c.iii. Profit d. Balance sheet d.i. Assets d.ii. Liabilities d.iii. Equity •Journal entries are created at the time of the transaction •Later, the debits and credits are POSTED to the T accounts (the Ledger) Business Transactions - are recorded at the time of the transaction in a JOURNAL. - The transaction’s debit(s) must equal credit(s). - The journal entries are posted by accountants to the proper T-Accounts which make up the LEDGER Some accounts have sub-ledgers, too. 5) Define the terms “Debit” and “credit” with respect to “T” accounts and give
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: examples of debits and credits to various accounts Debit- cash- accounts receivable- inventory- supplies- cost of goods sold- SG&A Expenses Credit- accounts payable- long term loan- paid-in capital- long-term loan- retained earnings- revenue 6) Differentiate the use of debits and credits, vis-à-vis the asset/expense side of the accounting equation versus the liabilities/equity/revenue side of the equation 7) Recognize what is meant by the rule “debits must equal credits” and give examples of debits and credits generated by some common business transactions 8) When provided with a journal entry, tell whether each account’s balance is being increased or decreased by the entry...
View Full Document

This note was uploaded on 01/11/2012 for the course ACTG 241 taught by Professor Staff during the Fall '11 term at James Madison University.

Page1 / 2

UNIT 12 study guide - examples of debits and credits to...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online