{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter-2 - Accounts 1 Assets-Accounts...

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

View Full Document Right Arrow Icon
1 ACCT 2001 Chapter 2 Friday, January 26 Accounting Cycle -Where we record, compile, and make reports from business transactions for a given time period. Time Period = monthly, quarterly, yearly, or all three Steps of Accounting Cycle 1). Business transaction takes place 2). Must make a record of that transaction -Recorded in a general journal -The record for each transaction is called a journal entry 3). Take the journal entry and post it to the individual account(s) that it affects -These separate accounts are called ledgers 4). Compile and record -When we refer to ledgers, we will called them “T” accounts
Background image of page 1

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

View Full Document Right 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: Accounts 1. Assets-Accounts Receivable (outstanding checks)-Cash-Inventory/Equipment 2. Liabilities-Accounts Payable-Notes Payable-Wages Payable-Unearned Revenue 3. Owner’s Equity-Paid in Capital-Revenue (service revenue, sales revenue)-Expenses (rent expenses, utility expenses)-Dividends Double Entry Accounting-In every business transaction, you give something and you receive something. NOTE: See “T” chart in notebook dealing with debit and credit transactions. 2 Golden Rule #1 Assets = Liabilities + Owner’s Equity Golden Rule #2 Debits = Credits...
View Full Document

{[ snackBarMessage ]}

Page1 / 2

Chapter-2 - Accounts 1 Assets-Accounts...

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

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