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Accounting Chapter 2 Notes

Identify each account affected and its type asset

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Unformatted text preview: east two accs. - EX: Increase supplies means decrease cash, Increase equipment means increase in acc payable The T- Account - A shortened form of the general ledger account is the T- Account. Left = Debit Side, the Right = Credit Side. Cash Debit Credit Rules of Debit and Credit. Whether an account is increased or decreased by a debit or a credit depends on the type of accounts Assets Liabilities and Stockholder’s Equity Increase = Debit Decrease = Credit Decrease = Debit Increase = Credit - The amount remaining in an account is called its Balance. - Opening an Account: Process of creating a new Account List of Steps of the Transaction Recording Process - Accounts record transaction in a journal. The journalizing process has three steps: 1. Identify each account affected and its type (asset, liability, stockholders’ equity) 2. Determine whether each account is increased or decreased 3. Record the transaction in the journal, including a brief explanation. The debit side of the entry is entered first. Total debits should always equal total credits. - To help reinforce your learning of acc types, we will indicate after each acc in the journal what type of account it is and whether it is increasing or decreasing. (A+) = Assets Increasing, (Q+)= Equity Increasing/ Capital… Posting (Copying...
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