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Double Entry Bookkeeping & the T-Account

• Debits – Left side of the account • Credit – Right side of the account
Account
Debit Credit

General Ledger System Asset Debit Liability Credit Stockholders’ Equity Credit Revenue Credit Expenses Debit .

The Journal .

000 . Journal Date Journal Entry Jun 15 Cash Sales Revenue To record cash sales Debit 50.000 in Sales revenue on June 15.000 Credit 50.Accounting Cycle Journal Entries The company receive $50.

000 in Sales revenue on June 15.Accounting Cycle Posting to the General Ledger The company receive $50.000 Cr . Journal Date Journal Entry Jun 15 Cash Sales Revenue To record cash sales Cash Dr 50.000 Debit 50.000 Sales Revenue 50.000 Credit 50.

000 Cash To record advertising expense .000 Jun 1 Advertising Expense 5.000 for Advertising Expense on June 1.Accounting Cycle Journal Entries The company pays $5. Journal Date Journal Entry Debit Credit 5.

Accounting Cycle Posting to the General Ledger The company pays $5.000 Cash 5. Journal Date Journal Entry Debit Credit Jun 1 Advertising Expense 5.000 Cr .000 5.000 for Advertising Expense on June 1.000 To record advertising expense Advertising Expense Cash Dr 5.

Adjusting Entries The step before Financial Statements .

Adjusted Trial Balance The framework for you Financial Statements .