Accounting Notes- Day 8

Accounting Notes- Day 8 - Posting-process of transferring...

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ACCOUNTING 2000 9/12 Assets + exp + div = liab + CS + RE + Rev *AED=LRC “After eating dinner, let’s read comics” is a way to remember the equation 1. Sierra issued common stock in exchange for 10,000 cash Cash Common Stock DR CR DR CR 10,000 10,000 CLICKER: which of the following is a true statement? 1. Debits increase assets and revenues 2. Debits decrease assets and revenues 3. Credits decrease assets and increase revenues 4. Credits decrease assets and revenues Steps in recording process 1. Analyze 2. Enter 3. Transfer The Journal -recorded in chronological order -helps prevent or locate errors because debit should equal credit Ledger- contains entire group of accounts maintained by a company Chart of accounts- listing of accounts used by a company to record
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Unformatted text preview: Posting-process of transferring Follow these steps: 1. Determine what type of account is involved 2. Determine what items increase or decrease and how much 3. Translate the increase and decrease into debits and credits Trial balance-list of accounts and balances at a given time-purpose is to prove that debits=credits CLICKER: tiger company provide consulting services on account for a client 1. Debit accounts receivable and credit service revenue 2. Debit service revenue and credit accounts receivable 3. Debit cash and credit accounts receivable 4. Debit accounts payable and credit service revenue *LOOK AT THE SLIDES POSTED ON MOODLE...
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This note was uploaded on 01/19/2012 for the course ACCT 2000 taught by Professor Holmes during the Fall '08 term at LSU.

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Accounting Notes- Day 8 - Posting-process of transferring...

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