1. What are the rules of debit and credit?

2. How do we journalize a transaction? And why do we journalize transactions?

First figure out what accounts are affected. Than translate the change into debits and credits. After
you’ve done this add the date of the transaction, reference number, and a brief description.

The first and most important purpose of journalizing transactions is to keep your business’ finances
accurate and well-organized. The journal records this data chronologically, through debits and
credits, which makes the information clear to overview and accounting errors easy to spot.

3. How do we post to the T-accounts? Why do we post to the T-accounts?

You have to take the information from the journals and post that to the general ledger. We do this
for illustrative purposes.

4. What is a trial balance? How can we use a trial balance to create financial statements?
A trial balance is a bookkeeping worksheet in which the balance of all ledgers are compiled into
debit and credit account column totals that are equal. You can use the information from the trial
balance to make financial statements. Look at the trial balance what accounts influence the
statement and use these.