Accounting

Principles
Session (5)
The Recording Process
Mahmoud Mohamed Badwi ‫ واذكر الل‬،‫صلي علي النيب من قلبك‬

Chapter (2): The Recording Process “Double Entry System”

‫ن‬ ‫ن‬ ‫ن‬ ‫ن‬

‫ سيكون‬،‫ عىل سبيل المثال‬.‫المساهمي‬ ‫االلتامات أو حقوق‬ ‫معي من األصول أو‬ ‫محاسب فردي للزيادات والنقصان يف بند‬
‫ي‬ ‫الحساب هو سجل‬ •
.‫ حسابات منفصلة للنقد وحسابات القبض وحسابات الدفع وإيرادات الخدمة والرواتب ومرصوفات األجور وما إىل ذلك‬.Softbyte Inc ‫لدى‬
• An account is an individual accounting record of increases and decreases in a specific
asset, liability, or stockholders’ equity item. For example, Softbyte Inc. would have separate
accounts for Cash, Accounts Receivable, Accounts Payable, Service Revenue, Salaries and
Wages Expense, and so on. ‫ن‬
).‫ فإننا نكتب االسم باألحرف الكبتة‬،‫معي‬ ‫(الحظ أنه عندما نشت إىل حساب‬ •
• Note that whenever we are referring to a specific account, we capitalize the name.

ً .‫) الجانب األيمن أو جانب االئتمان‬3( ‫ و‬،‫) الجانب األيرس أو المدين‬2( ،‫) العنوان‬1( :‫ يتكون الحساب من ثالثة أجزاء‬،‫نف أبسط أشكاله‬
‫نظرا‬ •
‫ي‬
.T ‫ فإننا نشت إليه عىل أنه حساب‬،T ‫ألن تنسيق الحساب يشبه الحرف‬

• In its simplest form, an account consists of three parts: (1) a title, (2) a left or debit side,
and (3) a right or credit side. Because the format of an account resembles the letter T, we
refer to it as a T-account.

• We use this form often to explain basic accounting relationships.

❖ Account:
• Record of increases and decreases in a specific asset, liability, equity, revenue, or
expense item.
• Debit= “Left”
• Credit= “Right”

❖ An Account can be illustrated in a T-Account form

• If Debits are greater than Credits, the account will have a debit balance.
• If Credits are greater than Debits, the account will have a credit balance.

The equation must be in balance after every transaction. For every Debit there must be a
Credit.

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Mahmoud Mohamed Badwi ‫ واذكر الل‬،‫صلي علي النيب من قلبك‬

❖ Debits and Credits Summary:

1. Normal Balance Debit

2. Normal Balance Credit:

❖ Relationship among the assets, liabilities and equity of a business:

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Mahmoud Mohamed Badwi ‫ واذكر الل‬،‫صلي علي النيب من قلبك‬
‫ن‬ ً .Inc ،Hair It Is ‫ رئيسة رشكة‬،‫استأجرت كيت براون‬
For Example: ‫ نصح‬.‫مؤخرا مساحة يف مركز تسوق ستفتح فيه وتدير صالون تجميل‬ •
.‫أحد األصدقاء كيت بإعداد مجموعة من السجالت المحاسبية ذات القيد المزدوج لتسجيل جميع معامالتها التجارية‬
‫ لتسجيل المعامالت الالزمة إلنشاء‬.Inc ،Hair It Is ‫الب من المحتمل أن تستخدمها رشكة‬ ‫ن‬ •
‫حدد حسابات المتانية ًالعمومية ي‬
‫ر‬
.‫ وضح أيضا ما إذا كان الرصيد العادي لكل حساب مدين أم ائتمان‬.‫الرسكة وفتحها‬
Kate Browne, president of Hair It Is, Inc. has just rented space in a shopping mall in which she
will open and operate a beauty salon. A friend has advised Kate to set up a double-entry set of
accounting records in which to record all of her business transactions.

Identify the balance sheet accounts that Hair It Is, Inc. will likely use to record the
transactions needed to establish and open the business. Also, indicate whether the normal
balance of each account is a debit or a credit.
‫ن‬
:‫لتجهت صالون التجميل ليوم االفتتاح‬ ‫ الحسابات التالية لتسجيل المعامالت الالزمة‬.Inc ،Hair It Is ‫من المحتمل أن تستخدم رشكة‬ •

Hair It Is, Inc. would likely use the following accounts to record the transactions needed to
ready the beauty salon for opening day:

• Cash (debit balance) • Accounts Payable (credit balance)

• Equipment (debit balance) • Notes Payable (credit balance), if the business borrows money.
• Supplies (debit balance) • Common Stock (credit balance)

❖ The Recording Process

:)‫التوضيح ن يف عملية التسجيل (جزء ال يتجزأ من دورة المحاسبة‬
‫ي‬
‫ن‬
‫ تستخدم كل رشكة الخطوات األساسية الموضحة يف الرسم‬،‫عمليا‬ ً •
.‫ تحليل كل معاملة من حيث تأثتها عىل الحسابات‬.1
.)‫ أدخل معلومات المعاملة ن يف اليومية (قيد اليومية‬.2
ً ً ‫ن‬
‫ نقل معلومات دفت اليومية إىل الحسابات المناسبة ف دفت األستاذ (سجال كامال من المعامالت المالية طيلة فتة عمل ر‬.3
.)‫الرسكة‬ ‫ي‬
Practically every business uses the basic steps shown in Illustration in the recording process
(an integral part of the accounting cycle):
1. Analyze each transaction in terms of its effect on the accounts.
2. Enter the transaction information in a journal.
3. Transfer the journal information to the appropriate accounts in the ledger.

▪ The steps in the recording process occur repeatedly. In Chapter 1, we illustrated the first
step, the analysis of transactions, and will give further examples in this and later chapters.
The other two steps in the recording process are explained in the next sections.

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Mahmoud Mohamed Badwi ‫ واذكر الل‬،‫صلي علي النيب من قلبك‬

Credit ‫ والــ‬Debit ‫خالصـــة الــ‬

)‫كب ليها فلوس (حاجة‬ ‫ر‬ ‫ن‬ •

‫يعب " م ــديـ ــن" أي أن ش ي‬
‫ ي‬Debit ‫الـ ـ‬
“Credit” ‫الىل هتدفعها دائن‬ ‫ر‬ ‫ن‬ ‫ن‬ ‫ر‬ •
‫ والفلوس ي‬،"Debit" ‫المبب بالنسبة للرسكة مدين‬
‫ي‬ ‫بالتاىل‬
‫ي‬ ،‫مبب‬
‫الرسكة اشتت ي‬
Debit is an entry which is passed when there is an increase in asset or decrease in liabilities
and owner's equity.
)‫كب عليها فلوس (حاجة‬ ‫ر‬ ‫ن‬ •
‫يعب " دائـ ـ ـ ــن" أي أن ش ي‬
‫ ي‬Credit ‫الـ ـ‬
"Debit" ‫الىل هستلمها من البيع مدين‬ ‫ر‬ ‫ن‬ ‫ن‬ ‫ر‬ •
‫ والفلوس ي‬،“Credit” ‫المبب بالنسبة للرسكة دائن‬
‫ي‬ ‫بالتاىل‬
‫ي‬ ،‫مبب‬
‫الرسكة باعت ي‬
•
Credit is an entry which is passed when there is a decrease in assets or an increase in
liabilities and owner's equity.

The difference between debit and credit can be drawn clearly on the following grounds

.‫ بالجانب األيمن من حساب دفت األستاذ‬Credit ‫ إىل الجانب األيرس من حساب دفت األستاذ بينما يتعلق ال ـ‬Debit ‫يشت ال ـ‬ •

• Debit refers to the left side of the ledger account while credit relates to the right side of
the ledger account. ‫ن‬ ‫ن‬ ُ ،‫• نف الحسابات الشخصية‬
Credit ‫ ويتم وضع المانح ف ال ـ‬Debit ‫المتلق يتم وضعه ف ال ـ‬
‫ي‬ ‫ي‬ ‫ي‬ ‫ي‬
• In personal accounts, the receiver is debited whereas the giver is credited.
‫ن‬ ‫ نف ن‬،‫ نف الحساب حقيق‬Debit ‫ يتم وضعه نف الـ ـ‬،‫أيا كان ما يأت‬
Credit ‫حي يتم قيد كل ما يخرج يف الـ ـ‬ ‫ي ي‬ ‫ي‬ ‫ي‬ ‫ي‬ •
• Whatever comes in, is debited in real account, while whatever goes out is credited in it.
‫ن‬ ‫ن‬
.Credit ‫ يتم وضع جميع المداخيل والمكاسب يف الـ ـ‬،‫ ومع ذلك‬،Debit ‫ يتم وضع جميع النفقات والخسائر يف الـ ـ‬-‫االسم‬
‫ي‬ ‫بالنسبة للحساب‬ •
• For nominal account – all the expenses and losses are debited, however, all incomes and gains
are credited.
‫ ن‬،‫والتأمي‬
‫ن‬ ‫ن‬ ‫ن‬ ‫ن‬
.‫ وما إىل ذلك‬،‫ واألرباح‬،‫والرصائب‬ ،‫ والنفقات مثل الراتب‬،‫والمبات‬
‫ي‬ ‫اض‬
‫ واألر ي‬،‫ واآلالت‬،‫ والمخزون‬،‫تعود الزيادة ن يف المدين إىل ارتفاع النقد‬ •
‫ن‬
.‫ وما إىل ذلك‬،‫ والحساب المستحق‬،‫ واألرباح المحتجزة‬،‫ ودخل اإليجار‬،‫ ورسوم العضوية‬،‫المساهمي‬ ‫تعود الزيادة يف الدائن إىل ارتفاع أموال‬
• The increase in debit is due to rise in cash, inventory, plant and machinery, land and building,
expenses like salary, insurance, tax, dividend, etc. The increase in credit is due to rise in
shareholders fund, membership fees, rental income, retained earnings, Account payable, etc.

DEAD
D Debit
E Expenses
A Assets
D Drawings
CCLR
C Credit
C Capital
L Liabilities
R Revenues

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Mahmoud Mohamed Badwi ‫ واذكر الل‬،‫صلي علي النيب من قلبك‬

The Journal
‫ن‬ ‫ن‬ ‫ر‬
.)‫زمب (التتيب الذي تحدث به‬
‫تقوم الرسكات يف البداية بتسجيل المعامالت بتتيب ي‬ •

• Companies initially record transactions in chronological order (the order in which they occur)

.‫ يعرض قيد اليومية تأثتات الخصم واالئتمان عىل حسابات محددة‬،‫ لكل معاملة‬.‫األصىل‬
‫ي‬ ‫ يشار إىل قيد اليومية باسم كتاب اإلدخال‬،‫وبالتاىل‬
‫ي‬ •

• Thus, the journal is referred to as the book of original entry. For each transaction, the
journal shows the debit and credit effects on specific accounts.
‫ر‬ ‫ر‬ ً ‫ر‬
.‫وه قيود اليومية العامة‬‫ ي‬،‫ ولكن كل شكة لديها أكت أشكال المجالت األساسية‬،‫قد ًتستخدم الرسكات أنواعا مختلفة من قيود اليومية‬ •
‫ن‬
.‫المبلغي‬ ‫ر‬
‫عادة ما تحتوي المجلة العامة عىل مسافات للتواري ــخ وعناوين الحسابات والرسوحات والمراجع وأعمدة‬

• Companies may use various kinds of journals, but every company has the most basic form of
journal, a general journal. Typically, a general journal has spaces for dates, account titles and
explanations, references, and two amount columns.

:‫تقدم قيود اليومية عدة مساهمات مهمة ن يف عملية التسجيل‬

.‫ يكشف ن يف مكان واحد عن اآلثار الكاملة للمعاملة‬.1
.‫ يوفر سجال زمنيا للمعامالت‬.2
.‫ يساعد عىل منع أو تحديد األخطاء ألنه يمكن مقارنة مبالغ الدائن والمدين لكل قيد بسهولة‬.3

The journal makes several significant contributions to the recording process:

1. It discloses in one place the complete effects of a transaction.
2. It provides a chronological record of transactions.
3. It helps to prevent or locate errors because the debit and credit amounts for each entry
can be easily compared.

.‫ُيعرف إدخال بيانات المعامالت ن يف قيد اإلدخال باسم اليومية‬ •

.‫الرسكات بعمل إدخاالت يومية منفصلة لكل معاملة‬ ‫تقوم ر‬ •
❖ Journalizing
o Entering transaction data in the journal is known as journalizing.
o Companies make separate journal entries for each transaction. :‫يتكون الدخول الكامل من‬ •
o A complete entry consists of: .‫) تاريـ ــخ المعاملة‬1(
1. The date of the transaction. .‫الب سيتم خصمها وقيدها‬
‫) الحسابات والمبالغ ي‬2(
2. The accounts and amounts to be debited and credited. .‫) رشح مخترص للمعاملة‬3(
3. A brief explanation of the transaction.

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Mahmoud Mohamed Badwi ‫ واذكر الل‬،‫صلي علي النيب من قلبك‬

Shows the technique of journalizing, using the first two transactions of Softbyte Inc. On
September 1, stockholders invested $15,000 cash in the corporation in exchange for common
stock, and Softbyte purchased computer equipment for $7,000 cash.
The number J1 indicates that these two entries are recorded on the first page of the
journal. Illustration shows the standard form of journal entries for these two transactions.

General Journal J1
Date Account Titles and Explanation Ref. Debit Credit
Cash 2 15,000
2020 5
1 3 Common Stock 15,000
Sept.1
(Issued common stock for cash) 4
Equipment 7,000
2020
Cash 7,000
Sept.1
(Purchase of equipment for cash)

Technique of journalizing
‫ن‬
1. The date of the transaction is entered in the Date column. .‫يتم إدخال تاريـ ــخ المعاملة يف عمود التاريـ ــخ‬ •
‫ً ن‬
‫يتم إدخال عنوان الحساب المدين (أي الحساب الذي سيتم الخصم منه) أوال يف أقىص الهامش األيرس للعمود المعنون "عناوين‬ •
.‫ ويتم تسجيل مبلغ الخصم ن يف عمود المدين‬،"‫والرسح‬
‫الحساب ر‬

2. The debit account title (that is, the account to be debited) is entered first at the
extreme left margin of the column headed “Account Titles and Explanation,” and the
amount of the debit is recorded in the Debit column.
‫ن‬ ‫ن‬
‫التاىل يف العمود المعنون "عناوين‬
‫(أي الحساب المراد تقييده) وإدخاله يف السطر ي‬ ‫تم وضع مسافة بادئة لعنوان حساب االئتمان‬ •
‫ن‬ ‫الحساب ر‬
.‫ ويتم تسجيل مبلغ االئتمان يف عمود االئتمان‬،"‫والرسح‬
3. The credit account title (that is, the account to be credited) is indented and entered on
the next line in the column headed “Account Titles and Explanation,” and the amount of
the credit is recorded in the Credit column.
‫ يتم ترك مسافة ن‬.‫يظهر رشح موجز للمعاملة نف السطر الموجود أسفل عنوان حساب االئتمان‬
‫ تفصل‬.‫بي إدخاالت قيود اليومية‬ •
‫ي‬
.‫المساحة الفارغة إدخاالت دفت اليومية الفردية وتجعل قراءة القيد بأكمله أسهل‬
4. A brief explanation of the transaction appears on the line below the credit account title.
A space is left between journal entries. The blank space separates individual journal
entries and makes the entire journal easier to read.
ً ً
‫ يتم استخدام هذا العمود الحقا عند‬.‫ (الذي يرمز إىل المرجع) يتم تركه فارغا عند إجراء إدخال قيود اليومية‬.Ref ‫العمود المسم‬ •
.‫نقل إدخاالت دفت اليومية إىل حسابات دفت األستاذ‬
5. The column titled Ref. (which stands for Reference) is left blank when the journal entry
is made. This column is used later when the journal entries are transferred to the ledger
accounts.

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Mahmoud Mohamed Badwi ‫ واذكر الل‬،‫صلي علي النيب من قلبك‬

Recording Business Activities

As president and sole stockholder, Kate Browne engaged in the following activities in
establishing her salon, Hair It Is, Inc.:

1. Opened a bank account in the name of Hair It Is, Inc. and deposited $20,000 of her own
money in this account in exchange for shares of common stock.
2. Purchased equipment on account (to be paid in 30 days) for a total cost of $4,800.
3. Interviewed three people for the position of hair stylist.

Required:

Prepare the journal entries to record the transactions.

Solution

The three activities would be recorded as follows.

Account Titles and Explanation Debit Credit

Cash 20,000
1 Common Stock 20,000
(Issued common stock for cash)
Equipment 4,800
2 Account Payable 4,800
(Purchase of equipment on account)
3 No entry because no transaction has occurred.

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Mahmoud Mohamed Badwi ‫ واذكر الل‬،‫صلي علي النيب من قلبك‬

The Ledger

.‫ه دفت األستاذ‬ ‫ر‬ •

‫الب تحتفظ بها الرسكة ي‬‫المجموعة الكاملة للحسابات ي‬
.‫يوفر دفت األستاذ الرصيد ن يف كل حساب كما يتتبع التغيتات يف هذه األرصدة‬
‫ن‬
•
ً
.‫ لكن كل رشكة لديها دفت أستاذ عام‬،‫أنواعا مختلفة من دفاتر األستاذ‬ ‫قد تستخدم ر‬
‫الرسكات‬ •
‫ن‬
.‫المساهمي‬ ‫يحتوي دفت األستاذ العام عىل جميع األصول والخصوم وحسابات حقوق‬ •
• The entire group of accounts maintained by a company is the ledger.
• The ledger provides the balance in each of the accounts as well as keeps track of changes in
these balances.
• Companies may use various kinds of ledgers, but every company has a general ledger.
• A general ledger contains all the asset, liability, and stockholders’ equity accounts.

Posting
.‫ُيطلق عىل إجراء نقل إدخاالت دفت اليومية إىل حسابات دفت األستاذ اسم التحيل‬ •
.‫تجمع هذه المرحلة من عملية التسجيل آثار المعامالت المسجلة ن يف الحسابات الفردية‬ •
• The procedure of transferring journal entries to the ledger accounts is called posting.
• This phase of the recording process accumulates the effects of journalized transactions
into the individual accounts.

Simple entry: An entry that has only two accounts, one debit and one credit.
Compound entry: An entry that has three or more accounts.

❖ Accountants post transactions from the journal to the ledger because:

1. The journal does not consider the beginning balance of each account.
2. The journal cannot determine the ending balance of each account.
3. The journal cannot summarize changes of each account.

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Mahmoud Mohamed Badwi ‫ واذكر الل‬،‫صلي علي النيب من قلبك‬

The Accounting Cycle

10
Mahmoud Mohamed Badwi ‫ واذكر الل‬،‫صلي علي النيب من قلبك‬
How to prepare the Trial Balance?

‫ن‬ ‫ن‬ ‫ن‬

.‫معي‬ ‫ أي قائمة بالحسابات وأرصدتها يف وقت‬،‫ قائمة بجميع حسابات دفت األستاذ العام‬:)4 ‫متان المراجعة (الخطوة‬ •
• A Trial Balance (Step 4): is a list of all the general ledger accounts, i.e., is a list of
accounts and their balances at a given time.
‫ن‬
.‫الب قد تحدث يف عملية التدوين والتحيل‬
‫الهدف منه هو الكشف عن األخطاء ي‬ •
• The aim of it is to detect errors that may happen in journalizing and posting process.
‫ن‬
.‫متان المراجعة يثبت المساواة الرياضية للمدين واالئتمان بعد التحيل‬ •

• The trial balance proves the mathematical equality of debits and credits after posting.
.‫يفيد ن يف إعداد البيانات المالية‬ •
• It is useful in the preparation of financial statements.
‫ر‬ ‫ن‬ ‫من المرجح أن يكشف ن‬
.‫والنرس‬ ‫متان المراجعة عن أخطاء يف تسجيل دفت اليومية‬ •
• •
A trial balance is likely to uncover errors in journalizing and posting.
‫ن‬
:‫الجانبي لألسباب التالية‬ ‫قد توجد عدة أخطاء عىل الرغم من تساوي مجاميع ن‬
‫متان المراجعة عىل كال‬ •
• Several errors may exist even though the totals of the trial balance on both sides are equal
because: ‫ن‬ .‫ال يتم تسجيل المعاملة يف دفت اليومية‬ .1
.‫قيد اليومية الصحيح لم يتم ترحيله‬ .2
1. A transaction is not journalized. ‫ن‬
.‫مرتي‬ ‫قيد اليومية تم تسجيله‬ .3
2. A correct journal entry is not posted. .‫النرس‬ ‫ي‬
‫ن‬
‫يتم استخدام الحسابات غت الصحيحة ف كتابة دفت اليومية أو ر‬ .4
3. A journal entry is posted twice. .‫أخطاء التعويض تحدث ن يف تسجيل مبلغ الصفقة‬ .5
4. Incorrect accounts are used in journalizing or posting.
5. Offsetting errors are made in recording the amount of a transaction.

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Mahmoud Mohamed Badwi ‫ واذكر الل‬،‫صلي علي النيب من قلبك‬

Example: Shows the journal for Pioneer Advertising Inc. for October.

1. On October 1, Cash of $10,000 is invested in Pioneer Advertising by C. R. Byrd in exchange

for $10,000 of common stock.

Date Account Title & Explanation Debit Credit

2020 Cash 10,000

Oct 1 Common Stock 10,000
(Issued common stock for cash)
2. On October 1, Pioneer purchases office equipment costing $5,000 by signing a 3-month, 12%,
$5,000 note payable.

Date Account Title & Explanation Debit Credit

2020 Equipment 5,000

Oct 1 Notes Payable 5,000
(Issued 3-month, 12% note for office equipment)
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.

Date Account Title & Explanation Debit Credit

Cash 1,200
2020
Oct 2 Unearned Service Revenue 1,200
(Received advance from R. Knox for future services)
4. On October 3, Pioneer pays office rent for October in cash, $900.

Date Account Title & Explanation Debit Credit

Rent Expense 900
2020
Oct 3 Cash 900
(Paid cash for October office rent)
5. On October 4, Pioneer pays $600 for a one-year insurance policy that will expire next year
on September 30.

Date Account Title & Explanation Debit Credit

2020 Prepaid Insurance 600

Oct 4 Cash 600
(Paid one-year policy; effective date October 1)

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Mahmoud Mohamed Badwi ‫ واذكر الل‬،‫صلي علي النيب من قلبك‬

6. On October 5, Pioneer purchases an estimated 3-month supply of advertising materials on

account from Aero Supply for $2,500.

Date Account Title & Explanation Debit Credit

2020 Supplies 2,500

Oct 5 Accounts Payable 2,500
(Purchased supplies on account from Aero Supply)
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.

Date Account Title & Explanation Debit Credit

No Entry
8. On October 20, Pioneer’s board of directors declares and pays a $500 cash dividend to
stockholders.

Date Account Title & Explanation Debit Credit

Dividends 500
2020
Oct 20 Cash 500
(Declared and paid a cash dividend)
9. On October 26, Pioneer owes employee salaries of $4,000 and pays them in cash (see
October 9 event).

Date Account Title & Explanation Debit Credit

2020 Salaries and Wages Expense 4,000

Oct 26 Cash 4,000
(Paid salaries to date)
10. On October 31, Pioneer receives $10,000 in cash from Copa Company for advertising
services performed in October.

Date Account Title & Explanation Debit Credit

2020 Cash 10,000

Oct 31 Service Revenue 10,000
(Received cash for services performed)

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Mahmoud Mohamed Badwi ‫ واذكر الل‬،‫صلي علي النيب من قلبك‬

General ledger
Shows the ledger, with all balances

Cash Supplies
Debit Credit Debit Credit
Date Balance Date Balance Date Balance Date Balance
Oct 1 10,000 Oct 3 900 Oct 5 2,500
Oct 2 1,200 Oct 4 600 Balance 2,500

Oct 31 10,000 Oct 20 500

Oct 26 4,000
Balance 15,200

Prepaid Insurance Equipment

Debit Credit Debit Credit
Date Balance Date Balance Date Balance Date Balance

Oct 4 600 Oct 1 5,000

Balance 600 Balance 5,000

Notes Payable Account Payable

Debit Credit Debit Credit
Date Balance Date Balance Date Balance Date Balance
Oct 1 5,000 Oct 5 2,500

Balance 5,000 Balance 2,500

Unearned Service Revenue Common Stock

Debit Credit Debit Credit
Date Balance Date Balance Date Balance Date Balance
Oct 2 1,200 Oct 1 10,000

Balance 1,200 Balance 10,000

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Mahmoud Mohamed Badwi ‫ واذكر الل‬،‫صلي علي النيب من قلبك‬

Dividends Service Revenue

Debit Credit Debit Credit
Date Balance Date Balance Date Balance Date Balance
Oct 20 500 Oct 31 10,000

Balance 500 Balance 10,000

Salaries and Wages Expense Rent Expense

Debit Credit Debit Credit
Date Balance Date Balance Date Balance Date Balance
Oct 26 4,000 Oct 3 900

Balance 4,000 Balance 900

Trial Balance
Shows the trial balance prepared from Pioneer Advertising’s ledger

Pioneer Advertising Inc.

Trial Balance
October 31, 2020
Debit Credit
Cash $15,200
Supplies 2,500
Prepaid Insurance 600
Equipment 5,000
Notes Payable $5,000
Accounts Payable 2,500
Unearned Service Revenue 1,200
Common Stock 10,000
Dividends 500
Service Revenue 10,000
Salaries and Wages Expense 4,000
Rent Expense 900
Total $28,700 $28,700
❖ Note that: the total debits equal the total credits.

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