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

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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
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Unformatted text preview: Accounts 1. Assets-Accounts Receivable (outstanding checks)-Cash-Inventory/Equipment 2. Liabilities-Accounts Payable-Notes Payable-Wages Payable-Unearned Revenue 3. Owners 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 + Owners Equity Golden Rule #2 Debits = Credits...
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This note was uploaded on 01/16/2012 for the course ACCT 2001 taught by Professor Lowe during the Fall '08 term at LSU.

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

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