This chapter summarizes the accounting transaction, define the debits and credits, and explain the recording process, journal process and trial balance. Accounting transaction is a business event that have monetary impact on the financial statement of business, it use to record the accounting records of business. The most important point is the accounting equation must always balance. The chapter use several examples to analyze the transaction, what belongs to assets, what belongs to liabilities and stockholders equity. Then it taught us to use debit and credit to record the account. Debit is on the left and credit is on the right. The debit increases the assets and credit increases liabilities and stockholders equity. After that, the chapter summarize the steps in recording process.1. Identifying and analyzing business transactions.2. Maintaining the records of transactions in a journal.3. Posting a transaction to a ledger.4. Unadjusted trial balance.5. Adjusting entries.6. Adjusted trial balance.7. Closing entries.8. Post-closing trail balance.The recording process is very important today, the recording process is the whole process that goes on in maintaining financial statement.