Basic Terminology Event Journal Transaction Posting Account Trial Balance o Real Account ·Adjusting Entries 0 Nominal Account Financial Statements Ledger Closing Entries Chapter 3-6 LO 1 Understand basic accounting terminology
Chapter 3-6
Debits and Credits An Account shows the effect of transactions on a given asset,liability,equity,revenue,or expense account. Double-entry accounting system (two-sided effect). Recording done by debiting at least one account and crediting another. DEBITS must equal CREDITS Chapter 3-7 LO 2 Explain double-entry rules
Chapter 3-7 An shows the effect of transactions on a given asset, liability, equity, revenue, or expense account. accounting system (two-sided effect). Recording done by debiting at least one account and crediting another. DEBITS CREDITS
Debits and Credits An arrangement that shows Account the effect of transactions on an account. ●Debit="Left" ●Credit="Right" An Account can Account Name be illustrated in a Debit Dr. Credit Cr. T-Account form. Chapter 3-8 LO 2 Explain double-entry rules
Chapter 3-8 Account Name Debit / Dr. Credit / Cr. An arrangement that shows the effect of transactions on an account. Debit = “Left” Credit = “Right
Debits and Credits If Debit entries are greater than Credit entries, the account will have a debit balance. Account Name Debit Dr. Credit/Cr. Transaction #1 $10,000 $3,000 Transaction #2 Transaction #3 8,000 Balance $15.000 Chapter 3-9 LO 2 Explain double-entry rules
Chapter 3-9 Account Name Debit / Dr. Credit / Cr. If Debit entries are Credit entries, the account will have a debit balance. $10,000 $3,000 Transaction #2 Transaction #3 8,000 Balance Transaction #1
Debits and Credits If Credit entries are greater than Debit entries, the account will have a credit balance. Account Name Debit Dr. Credit Cr. Transaction #1 $10,000 $3,000 Transaction #2 8,000 Transaction #3 Balance $1.000 Chapter 3-10 LO 2 Explain double-entry rules
Chapter 3-10 Account Name Debit / Dr. Credit / Cr. If Credit entries are Debit entries, the account will have a credit balance. $10,000 $3,000 Transaction #2 8,000 Transaction #3 Balance Transaction #1