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Transcript of Slide 2-1 Opener Sit in your NEW TEAMS, delegate a note taker Sit in your NEW TEAMS, delegate a note...
Slide 2-1
OpenerOpener
Sit in your Sit in your NEW TEAMSNEW TEAMS, delegate a , delegate a note takernote taker Get your Get your outlinesoutlines for Chapter 1 out—turn in to me as a group for Chapter 1 out—turn in to me as a group
NAME, Email, phone #, cell phone # NAME, Email, phone #, cell phone # One person, send me and your teammates an One person, send me and your teammates an emailemail BEFORE BEFORE
next class with the above info. Confirm receipt of email.next class with the above info. Confirm receipt of email.
Assign homework chapter 1 (give me their names)Assign homework chapter 1 (give me their names) Give Give transparencytransparency to these people to these people Dim Sum activityDim Sum activity Finish Statements from Ch 1Finish Statements from Ch 1 Finish Ch 1Finish Ch 1 Begin Ch 2Begin Ch 2
Slide 2-2
Chapter 2
The Recording The Recording ProcessProcess
Financial Accounting, Seventh Edition
Accounting 201, Instructor: Judith Paquette
Slide 2-4
1. Explain what an account is and how it helps in the recording process.
2. Define debits and credits and explain their use in recording business transactions.
3. Identify the basic steps in the recording process.
4. Explain what a journal is and how it helps in the recording process.
5. Explain what a ledger is and how it helps in the recording process.
6. Explain what posting is and how it helps in the recording process.
7. Prepare a trial balance and explain its purposes.
Study ObjectivesStudy ObjectivesStudy ObjectivesStudy Objectives
Slide 2-5
The AccountThe AccountThe AccountThe Account
Debits and Debits and creditscredits
Debit and credit Debit and credit procedureprocedure
Stockholders’ Stockholders’ equity equity relationshipsrelationships
Summary of Summary of debit/credit debit/credit rulesrules
Limitations of a Limitations of a trial balancetrial balance
Locating errorsLocating errors
Use of dollar Use of dollar signssigns
Summary Summary illustration of illustration of journalizing and journalizing and postingposting
JournalJournal
LedgerLedger
PostingPosting
Steps in the Steps in the Recording Recording ProcessProcess
Steps in the Steps in the Recording Recording ProcessProcess
The Recording The Recording Process Process
IllustratedIllustrated
The Recording The Recording Process Process
IllustratedIllustratedThe Trial BalanceThe Trial BalanceThe Trial BalanceThe Trial Balance
The Recording ProcessThe Recording ProcessThe Recording ProcessThe Recording Process
Slide 2-6
Account Name
Debit / Dr. Credit / Cr.
Record of increases and decreases in a specific asset, liability, equity, revenue, or expense item.
Debit = “Left”
Credit = “Right”
AccounAccountt
An Account can An Account can be illustrated be illustrated
in a T-Account in a T-Account form.form.
SO 1 Explain what an account is and how it helps in the recording SO 1 Explain what an account is and how it helps in the recording process.process.
The AccountThe AccountThe AccountThe Account
Slide 2-7
Double-entry Double-entry accounting system
Each transaction must affect two or more accounts to keep the basic accounting equation in balance.
Recording done by debiting at least one account and crediting another.
DEBITS must equalmust equal CREDITS.
SO 2 Define debits and credits and explain SO 2 Define debits and credits and explain their use in recording business their use in recording business transactions.transactions.
Debits and CreditsDebits and CreditsDebits and CreditsDebits and Credits
Slide 2-8
Cash
Debit / Dr. Credit / Cr.
If Debits are greater thangreater than Credits, the account will have a debit balance.
$10,000 Transaction #2$3,000
$15,000$15,000
8,000Transaction #3
Balance
Transaction #1
Debits and CreditsDebits and CreditsDebits and CreditsDebits and Credits
SO 2 Define debits and credits and explain SO 2 Define debits and credits and explain their use in recording business their use in recording business transactions.transactions.
Slide 2-9
Accounts Payable
Debit / Dr. Credit / Cr.
If Credits are greater thangreater than Debits, the account will have a credit balance.
$10,000 Transaction #2$3,000
Balance
Transaction #1
Debits and CreditsDebits and CreditsDebits and CreditsDebits and Credits
SO 2 Define debits and credits and explain SO 2 Define debits and credits and explain their use in recording business their use in recording business transactions.transactions.
$1,000$1,000
8,000 Transaction #3
Slide 2-10
Chapter 3-23
AssetsAssets
Debit / Dr. Credit / Cr.
Normal BalanceNormal Balance
Chapter 3-27
Debit / Dr. Credit / Cr.
Normal BalanceNormal Balance
ExpenseExpense
Chapter 3-24
LiabilitiesLiabilities
Debit / Dr. Credit / Cr.
Normal BalanceNormal Balance
Chapter 3-25
Debit / Dr. Credit / Cr.
Normal BalanceNormal Balance
EquityEquity
Chapter 3-26
Debit / Dr. Credit / Cr.
Normal BalanceNormal Balance
RevenueRevenue
Normal Balance Credit
Normal Balance Credit
Normal Balance Debit
Normal Balance Debit
Debits and Credits Debits and Credits SummarySummaryDebits and Credits Debits and Credits SummarySummary
SO 2 SO 2
Slide 2-11
Balance Sheet Balance Sheet Income StatementIncome Statement
= + -Asset Liability
Equity Revenue
Expense
Debit
Credit
Debits and Credits SummaryDebits and Credits SummaryDebits and Credits SummaryDebits and Credits Summary
SO 2 Define debits and credits and explain SO 2 Define debits and credits and explain their use in recording business their use in recording business transactions.transactions.
Slide 2-12
Debits:
a. increase both assets and liabilities.
b. decrease both assets and liabilities.
c. increase assets and decrease liabilities.
d. decrease assets and increase liabilities.
Review QuestionReview Question
Debits and Credits SummaryDebits and Credits SummaryDebits and Credits SummaryDebits and Credits Summary
SO 2 Define debits and credits and explain SO 2 Define debits and credits and explain their use in recording business their use in recording business transactions.transactions.
Solution notes page
Debits:
a. increase both assets and liabilities.
b. decrease both assets and liabilities.
c. increase assets and decrease liabilities.
d. decrease assets and increase liabilities.
Slide 2-13
Assets - Debits should exceed credits.
Liabilities – Credits should exceed debits.
The normal balance is on the increase side.
SO 2 Define debits and credits and explain SO 2 Define debits and credits and explain their use in recording business their use in recording business transactions.transactions.
Assets and LiabilitiesAssets and LiabilitiesAssets and LiabilitiesAssets and Liabilities
Chapter 3-23
AssetsAssets
Debit / Dr. Credit / Cr.
Normal BalanceNormal Balance
Chapter 3-24
LiabilitiesLiabilities
Debit / Dr. Credit / Cr.
Normal BalanceNormal Balance
Slide 2-14
Issuance of stock and revenues increase equity (credit).
Dividends and expenses decrease equity (debit).
SO 2 Define debits and credits and explain SO 2 Define debits and credits and explain their use in recording business their use in recording business transactions.transactions.
Stockholders’ EquityStockholders’ EquityStockholders’ EquityStockholders’ Equity
Chapter 3-25
Debit / Dr. Credit / Cr.
Normal BalanceNormal Balance
Common StockCommon Stock
Chapter 3-23
DividendsDividends
Debit / Dr. Credit / Cr.
Normal BalanceNormal Balance
Chapter 3-25
Debit / Dr. Credit / Cr.
Normal BalanceNormal Balance
EquityEquity
Chapter 3-25
Debit / Dr. Credit / Cr.
Normal BalanceNormal Balance
Retained EarningsRetained Earnings
Slide 2-15
The purpose of earning revenues is to benefit the owner(s).
The effect of debits and credits on revenue accounts is the same as their effect on Owner’s Capital.
Expenses have the opposite effect: expenses decrease owner’s equity.
SO 2 Define debits and credits and explain SO 2 Define debits and credits and explain their use in recording business their use in recording business transactions.transactions.
Revenue and ExpenseRevenue and ExpenseRevenue and ExpenseRevenue and Expense
Chapter 3-27
Debit / Dr. Credit / Cr.
Normal BalanceNormal Balance
ExpenseExpense
Chapter 3-26
Debit / Dr. Credit / Cr.
Normal BalanceNormal Balance
RevenueRevenue
Slide 2-16
ASSETS LIABILITIESSTOCKHOLDERS' EQUITY Revenue Expense
Debit to Increase Credit to Increase Credit to Increase Credit to Increase Debit to Increase
Cash Notes Payable Common Stock Service Revenue Salaries Expense
Accounts Receivable Accounts Payable Additional Paid in Capital Sales Revenue Advertising Expense
Prepaid RentCurrent Portion of Long term debt Preferred Stock
Consulting Fees Earned Utilities Expense
Prepaid InsuranceUnearned Revenue Commissions Earned Rent Expense
Land Long Term Debt Retained Earnings
Ticket Sales Supplies Expense
Building Interest Income Travel Expense
Equipment Interest Expense
Slide 2-17
Accounts that normally have debit balances are:
a. assets, expenses, and revenues.
b. assets, expenses, and retained earnings.
c. assets, liabilities, and dividends declared.
d. assets, dividends declared, and expenses.
Review QuestionReview Question
Debits and Credits SummaryDebits and Credits SummaryDebits and Credits SummaryDebits and Credits Summary
SO 2 Define debits and credits and explain SO 2 Define debits and credits and explain their use in recording business their use in recording business transactions.transactions.
Solution notes page
Accounts that normally have debit balances are:
a. assets, expenses, and revenues.
b. assets, expenses, and retained earnings.
c. assets, liabilities, and dividends declared.
d. assets, dividends declared, and expenses.
Slide 2-18
Debits & CreditsDebits & Credits
This is called: DOUBLE ENTRY accounting This is called: DOUBLE ENTRY accounting system.system.
For every transaction, there is For every transaction, there is at leastat least one one debit and one credit debit and one credit or the accounting or the accounting equation won’t balance.equation won’t balance.
DEBITSDEBITS must equal must equal CREDITSCREDITS
Slide 2-19
Summary of Debit/Credit RulesSummary of Debit/Credit RulesSummary of Debit/Credit RulesSummary of Debit/Credit Rules
Relationship among the assets, liabilities and stockholders’ equity of a business:
The equation must be in balance after every transaction. For every Debit there must be a Credit.
SO 2 Define debits and credits and explain SO 2 Define debits and credits and explain their use in recording business their use in recording business transactions.transactions.
Slide 2-20
Business documents, such as a sales slip, a check, a bill, or a cash register tape, provide evidence of the transaction.
Steps in the Recording ProcessSteps in the Recording ProcessSteps in the Recording ProcessSteps in the Recording Process
SO 3 Identify the basic steps in the recording process.SO 3 Identify the basic steps in the recording process.
Analyze each transaction
Enter transaction in a journal
Transfer journal information to ledger
accounts
Illustration 2-13
Slide 2-21
Book of original entry.
Transactions recorded in chronological order.
Contributions to the recording process:
1. Discloses the complete effects of a transaction.
2. Provides a chronological record of transactions.
3. Helps to prevent or locate errors because the
debit and credit amounts can be easily compared.
The Journal – see your coursepack The Journal – see your coursepack journaljournalThe Journal – see your coursepack The Journal – see your coursepack journaljournal
SO 4 Explain what a journal is and how it helps in the recording SO 4 Explain what a journal is and how it helps in the recording process.process.
Slide 2-22
Journalizing - Entering transaction data in the journal.
JournalizingJournalizingJournalizingJournalizing
SO 4SO 4
Illustration: On September 1, stockholders invested $15,000 cash in exchange for shares of stock, and Softbyte purchased computer equipment for $7,000 cash.
Account Title Ref. Debit CreditDate
Cash
Common stock
Sept. 1 15,000
15,000
General Journal
Computer equipmentCash
7,000
7,000
Illustration 2-14
Solution on notes page
Slide 2-23
Account Title Ref. Debit CreditDate
Delivery equipment
Cash
14,000
8,000
6,000Accounts payable
Simple and Compound Entries
JournalizingJournalizingJournalizingJournalizing
Illustration: Assume that on July 1, Butler Company purchases a delivery truck costing $14,000. It pays $8,000 cash now and agrees to pay the remaining $6,000 on account.
Sept. 1
General Journal
Illustration 2-15
SO 4SO 4Solution on notes page
Slide 2-24
A General Ledger contains the entire group of accounts maintained by a company.
The General Ledger includes all the asset, liability, stockholders’ equity, revenue and expense accounts.
The Ledger – see coursepack – T acctsThe Ledger – see coursepack – T acctsThe Ledger – see coursepack – T acctsThe Ledger – see coursepack – T accts
SO 5 Explain what a ledger is and how it helps in the recording SO 5 Explain what a ledger is and how it helps in the recording process.process.
Illustration 2-16
Slide 2-25
T-account form used in accounting textbooks.
In practice, the account forms used in ledgers aremuch more structured.
Standard Form of AccountStandard Form of AccountStandard Form of AccountStandard Form of Account
SO 5 Explain what a ledger is and how it helps in the recording SO 5 Explain what a ledger is and how it helps in the recording process.process.
Illustration 2-17
Slide 2-26
Accounts and account numbers arranged in sequence in which they are presented in the financial statements.
Chart of AccountsChart of AccountsChart of AccountsChart of Accounts
Illustration 2-18
SO 5 Explain what a ledger is and how it helps in the recording SO 5 Explain what a ledger is and how it helps in the recording process.process.
Slide 2-27
Posting Posting – the process of transferring amounts from the journal to the ledger accounts.
PostingPostingPostingPosting
Illustration 2-19
SO 6 Explain what posting is and how it helps in the recording SO 6 Explain what posting is and how it helps in the recording process.process.
Slide 2-28
Coursepack - The Recording Process Coursepack - The Recording Process IllustratedIllustratedCoursepack - The Recording Process Coursepack - The Recording Process IllustratedIllustrated
Follow these steps:
1. Determine what type of account is involved.
2. Determine what items increased or decreased and by how much.
3. Translate the increases and decreases into debits and credits.
Illustration 2-20
SO 6 Explain what posting is and how it helps in the recording SO 6 Explain what posting is and how it helps in the recording process.process.
#1: On October 1, CR Byrd invests $10,000 cash in an
advertising company to be known as Pioneer Advertising Agency,
Inc.# DATE Account Titles AND Description Debit Credit
1 10/1
To record owner’s investment.
# DATE Account Titles AND Description Debit Credit
1 10/1 Cash 10,000
Common Stock 10,000
To record owner’s investment.
Slide 2-29
Use coursepack: The Recording Process Use coursepack: The Recording Process IllustratedIllustratedUse coursepack: The Recording Process Use coursepack: The Recording Process IllustratedIllustrated
Illustration 2-21
SO 6 Explain what posting is and how it helps in the recording SO 6 Explain what posting is and how it helps in the recording process.process.
#2: On October 1, Pioneer purchases office equipment costing $5,000 by signing a 3-
month, 12% note payable.
2 10/1 Office Equipment 5,000
Notes Payable 5,000
To record purchase of equipments, 3 month note, 12%
2 10/1
To record purchase of equipments, 3 month note, 12%
Slide 2-30
Use coursepack: The Recording Process Use coursepack: The Recording Process IllustratedIllustratedUse coursepack: The Recording Process Use coursepack: The Recording Process IllustratedIllustrated
Illustration 2-21
SO 6 Explain what posting is and how it helps in the recording SO 6 Explain what posting is and how it helps in the recording process.process.
#3: On October 2, Pioneer receives a $1,200 cash advance from R. Knox, a client, for
advertising services that are expected to be completed by December 31.
3 10/2 Cash 1,200
Unearned Revenue 1,200
To record cash advance
Slide 2-31
Use coursepack: The Recording Process Use coursepack: The Recording Process IllustratedIllustratedUse coursepack: The Recording Process Use coursepack: The Recording Process IllustratedIllustrated
Illustration 2-21
SO 6 Explain what posting is and how it helps in the recording SO 6 Explain what posting is and how it helps in the recording process.process.
#4: On October 3, Pioneer pays $900 office rent for October in cash.
4 10/3 Rent Expense 900
Cash 900
To record paying rent.
Slide 2-32
Use coursepack: The Recording Process Use coursepack: The Recording Process IllustratedIllustratedUse coursepack: The Recording Process Use coursepack: The Recording Process IllustratedIllustrated
Illustration 2-21
SO 6 Explain what posting is and how it helps in the recording SO 6 Explain what posting is and how it helps in the recording process.process.
#5: On October 3, Pioneer pays $600 for a one-year insurance policy that will expire
next year on September 30.
5 10/4 Prepaid Insurance 600
Cash 600
To record purchase of one year insurance policy
Slide 2-33
Use coursepack: The Recording Process Use coursepack: The Recording Process IllustratedIllustratedUse coursepack: The Recording Process Use coursepack: The Recording Process IllustratedIllustrated
Illustration 2-21
SO 6 Explain what posting is and how it helps in the recording SO 6 Explain what posting is and how it helps in the recording process.process.
#6: On October 5, Pioneer purchases an estimated 3-month supply of advertising
materials on account from Aero Supply for $2,500.
6 10/5 Advertising Supplies 2,500
Accounts Payable 2,500
Purchased supplies on account.
Slide 2-34
Use coursepack: The Recording Process Use coursepack: The Recording Process IllustratedIllustratedUse coursepack: The Recording Process Use coursepack: The Recording Process IllustratedIllustrated
Illustration 2-21
SO 6 Explain what posting is and how it helps in the recording SO 6 Explain what posting is and how it helps in the recording process.process.
#7: On October 9, Pioneer hires four employees to begin work on October 15.
Each employee is to receive a weekly salary of $500 for a 5-day work week, payable every 2 weeks—first payment made on
October 26.
7 10/9 No entry
Slide 2-35
Use coursepack: The Recording Process Use coursepack: The Recording Process IllustratedIllustratedUse coursepack: The Recording Process Use coursepack: The Recording Process IllustratedIllustrated
Illustration 2-21
SO 6 Explain what posting is and how it helps in the recording SO 6 Explain what posting is and how it helps in the recording process.process.
#8: On October 20, Pioneer’s board of directors declares and pays a $500 cash
dividend to stockholders.
8 10/20 Dividends 500
Cash 500
To pay dividend.
Slide 2-36
Use coursepack: The Recording Process Use coursepack: The Recording Process IllustratedIllustratedUse coursepack: The Recording Process Use coursepack: The Recording Process IllustratedIllustrated
Illustration 2-21
SO 6 Explain what posting is and how it helps in the recording SO 6 Explain what posting is and how it helps in the recording process.process.
#9: On October 26, Pioneer owes employee salaries of $4,000 and pays them in cash.
9 10/26 Salaries Expense 4,000
Cash 4,000
Paid salaries to employees.
Slide 2-37
Use coursepack: The Recording Process Use coursepack: The Recording Process IllustratedIllustratedUse coursepack: The Recording Process Use coursepack: The Recording Process IllustratedIllustrated
Illustration 2-21
SO 6 Explain what posting is and how it helps in the recording SO 6 Explain what posting is and how it helps in the recording process.process.
#10: On October 31, Pioneer receives $10,000 in cash from Copa Company for advertising services provided in October.
10 10/31 Cash 10,000
Service Revenue 10,000
To record payment for advertising services.
Slide 2-38
Use Course pack -Next steps – T AccountsUse Course pack -Next steps – T Accounts
Post to your T AccountsPost to your T Accounts Total your T Accounts – remember which Total your T Accounts – remember which
side to put the totalside to put the total Assets, Expenses – Debit sideAssets, Expenses – Debit side Liabilities, Stockholders’ Equity, Revenues – Liabilities, Stockholders’ Equity, Revenues –
Credit SideCredit Side Dividends – Debit SideDividends – Debit Side
Slide 2-39
Use Coursepack - Next steps – Trial Use Coursepack - Next steps – Trial BalanceBalance
List Accounts and their balancesList Accounts and their balances
Slide 2-40
Posting:
a. normally occurs before journalizing.
b. transfers ledger transaction data to the journal.
c. is an optional step in the recording process.
d. transfers journal entries to ledger accounts.
Review QuestionReview Question
PostingPostingPostingPosting
SO 6 Explain what posting is and how it helps in the recording SO 6 Explain what posting is and how it helps in the recording process.process.
Solution on notes page
Posting:
a. normally occurs before journalizing.
b. transfers ledger transaction data to the journal.
c. is an optional step in the recording process.
d. transfers journal entries to ledger accounts.
Slide 2-41
A list of accounts and their balances at a given time.
Purpose is to prove that debits equal credits.
The Trial BalanceThe Trial BalanceThe Trial BalanceThe Trial Balance
SO 7 Prepare a trial balance and explain its purposes.
Illustration 2-32
Slide 2-42
The trial balance may balance even when
1. a transaction is not journalized,
2. a correct journal entry is not posted,
3. a journal entry is posted twice,
4. incorrect accounts are used in journalizing or posting, or
5. offsetting errors are made in recording the amount of a transaction.
The Trial BalanceThe Trial BalanceThe Trial BalanceThe Trial Balance
Limitations of a Trial Balance
SO 7 Prepare a trial balance and explain its purposes.
Slide 2-43
A trial balance will not balance if:
a. a correct journal entry is posted twice.
b. the purchase of supplies on account is debited to Supplies and credited to Cash.
c. a $100 cash drawing by the owner is debited to Owner’s Drawing for $1,000 and credited to Cash for $100.
d. a $450 payment on account is debited to Accounts Payable for $45 and credited to Cash for $45.
Review QuestionReview Question
The Trial BalanceThe Trial BalanceThe Trial BalanceThe Trial Balance
SO 7 Prepare a trial balance and explain its purposes.
Solution on notes page
A trial balance will not balance if:
a. a correct journal entry is posted twice.
b. the purchase of supplies on account is debited to Supplies and credited to Cash.
c. a $100 cash drawing by the owner is debited to Owner’s Drawing for $1,000 and credited to Cash for $100.
d. a $450 payment on account is debited to Accounts Payable for $45 and credited to Cash for $45.
Slide 2-44
Use coursepack: StatementsUse coursepack: Statements
Income StatementIncome Statement Retained EarningsRetained Earnings Balance SheetBalance Sheet
DO IT!DO IT!
Slide 2-46
The accounts
come from the
ledger of
Christel
Corporation at
December 31,
2011.
Solution on notes page
The Trial BalanceThe Trial BalanceThe Trial BalanceThe Trial Balance
SO 7
Slide 2-47
David Edmondson, the president and CEO of well-known electronics retailer Radio Shack, overstated his accomplishments by claiming that he had earned a bachelor’s of science degree, when in fact he had not. Apparently his employer had not done a background check to ensure the accuracy of his résumé.
A chief financial officer of Veritas Software lied about having an M.B.A. from Stanford University.
Your Personal Annual Report
Slide 2-48
A former president of the U.S. Olympic Committee
lied about having a Ph.D. from Arizona State University.
When the truth was discovered, she resigned.
The University of Notre Dame discovered that its
football coach, George O’Leary, lied about his
education and football history. He was forced to resign
after only five days.
Slide 2-49
A survey by Automatic Data Processing reported that 40%
of applicants misrepresented their education or
employment history.
A survey by the
Society for Human
Resource
Management of
human resource
professionals
reported the
following responses
to the following
question.
Slide 2-50
Using Radio Shack as an example, what should the company have done when it learned of the falsehoods on Mr. Edmondson’s résumé? Should Radio Shack have fired him?
YES: Radio Shack is a publicly traded company. Investors, creditors, employees, and others doing business with the company will not trust it if its leader is known to have poor integrity. The “tone at the top” is vital to creating an ethical organization.
NO: Mr. Edmondson had been a Radio Shack employee for 11 years. He had served the company in a wide variety of positions, and had earned the position of CEO through exceptional performance. While the fact that he lied 11 years earlier on his résumé was unfortunate, his service since then made this past transgression irrelevant. In addition, the company was in the midst of a massive restructuring, which included closing 700 of its 7,000 stores. It could not afford additional upheaval at this time.
Slide 2-51
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the use of these programs or from the use of the
information contained herein.
CopyrightCopyrightCopyrightCopyright
Slide 2-52
Debit
Debit
Credit
Debit
Credit
Credit
Kathy Browne, president of Hair It Is, Inc., has
just rented space in a shopping mall in which
she
Solution on notes page
will open and operate a beauty salon. A friend has advised
Kathy to set up a double-entry set of accounting records in
which to record all of her business transactions. Following are
the balance sheet accounts that Hair It Is, Inc., will likely need
to record the transactions. Indicate whether the normal
balance of each account is a debit or a credit.
Summary of Debit/Credit RulesSummary of Debit/Credit RulesSummary of Debit/Credit RulesSummary of Debit/Credit Rules
SO 2 Define debits and credits and explain SO 2 Define debits and credits and explain their use in recording business their use in recording business transactions.transactions.
Cash
Supplies
Notes payable
Equipment
Accounts payable
Common stock
Slide 2-53 SO 5 Explain what a ledger is and how it helps in the recording SO 5 Explain what a ledger is and how it helps in the recording
process.process.
Slide 2-54
Kate Turner recorded the following
transactions in a general journal during the
month of March.
Solution on notes page
The Recording Process IllustratedThe Recording Process IllustratedThe Recording Process IllustratedThe Recording Process Illustrated
Post these entries to the Cash account.
SO 6SO 6