Accounting Notes Ch.2

Accounting Notes Ch.2 - original entry. Write the year...

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Accounting Notes Chapter 2 State the rules for debits and credits Account Title Debit Side Credit Side Increase Assets Decrease Assets Increase Dividends Decrease Dividends Increase Expenses Decrease Expenses Decrease Liabilities Increase Liabilities Decrease Common Stock Increase Common Stock Decrease Revenues Increase Revenues Decrease Retained Earnings Increase Retained Earnings Analyze transactions using debits and credits in T accounts - Identify the accounts that change - Identify the amount of that change and whether they are increases or decreases - Use the rules to decide whether to debit or credit each account Explain the purpose of a journal and enter transactions in a general journal - The journal is the record keeping device in which we first record transactions. It is a chronological record of these transactions. - The simplest form of the journal is the general journal. - Journalizing is recording transactions in the general journal, a book of
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Unformatted text preview: original entry. Write the year Write the Month Write the dates in the date column Write the account title of the debited account Write the amount in the debit amount column Write the account title of the credited account a few spaces over Write the amount in the credit column Write an explanation containing all the essential information about the account Prepare a trial balance and use it to prepare financial statements-Preparing a trial balance: List each ledger or T account and place the ending debit or credit balance in the appropriate amount column. Total the debits and credits Compare the totals to see that the debits and credits are equal-Preparing financial statements Income Statement Statement of owners Equity Balance Sheet Analyze financial statement information for real-life companies...
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This note was uploaded on 04/07/2008 for the course ACCT 131 taught by Professor Dickkochanek during the Spring '08 term at UConn.

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Accounting Notes Ch.2 - original entry. Write the year...

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