Chapter2 Accounting

Chapter2 Accounting - Transaction Analysis Identify how the...

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Transaction Analysis Identify how the transaction/event will impact the… Balance Sheet Equation Assets = Liabilities + Stockholder’s Equity Assets = Liabilities + Common Stock+ Retained Earnings Assets = Liabilities + Common Stock + bR/E + Revenue – Expenses - Dividends ______=________+______ ____+_____+_______-_______-_______ Recording Transactions
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Account An individual accounting record of increases and decreases in a specific asset, liability or stockholder’s equity item An Account consists of three parts: 1.Title 2.Left Side (Debit Side) DR 3.Right Side (Credit Side) CR A debit is an entry on the left side of an account A credit entry is an entry on the right side of an account. Any account balance is the difference between the debits and the credits recorded in the account. Accounts are assigned balanced sides based on their classification type. The normal balance of an account is the side used to record increases If the right side increases, the left side has to decrease and vice versa.
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This note was uploaded on 04/07/2008 for the course ACCT 2001 taught by Professor Lowe during the Spring '08 term at LSU.

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Chapter2 Accounting - Transaction Analysis Identify how the...

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