Unformatted text preview: credit ). o Increases in liabilities and stockholders equity are recorded by credits . Decreases in liabilities and stockholders equity are recorded by debits. o Dividends and expenses are increased by a debit they are contra equity accounts • Journal – chronological record of transactions. • Ledger – a grouping of all the T-accounts with their balances. o Contains the accounts grouped under these headings: Balance sheet accounts: assets, liabilities, stockholders equity Income statement accounts: revenues and expenses • Trial balance – list all accounts with their balances. Summarizes all the account balances for the financial statements and shows whether total debits equal total credits. • • • • • • •...
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This note was uploaded on 02/09/2012 for the course ACG 2021C taught by Professor Mcdonald during the Spring '08 term at University of Florida.
- Spring '08
- Financial Accounting