I‎dentify and describe transactions and events

‎entering the accounting system.

‎Source Documents
‎ ale receipts, checks, purchase orders, bills
S
‎Can be in hard copy or electronic form ‎from suppliers, payroll records, bank
‎statement

I‎dentify each transaction and event from

‎source documents

‎Debit for increases; credit for decreases

‎Cash

‎Accounts Receivable
‎ list of all ledger accounts and their
A
‎Note Receivable
‎balances at a point in time.

‎ ist each account title and its amount in the

L ‎Asset accounts ‎Prepaid Accounts
‎trial balance
‎Supplies Accounts
‎ ompute the total of debit balances and the
C
‎total of credit balances. ‎Equipment Accounts

‎ erify to total debit balances equal total

V ‎Building Accounts
‎credit balances.
‎Trial Balance
‎Land
‎ erify that the trial balance columns are
V
‎correctly added. ‎Debit for decreases; credit for increases
‎ nalyze each transaction and event using
A
‎ erify that account balances are accurately
V ‎the accounting equation ‎Account Payable
‎entered from the ledger.
‎Liability accounts ‎Note Payable
‎ ee whether a debit or credit balance is
S
‎mistakenly listed in the trial balance as a ‎Unearned Revenue Accounts
‎credit or debit.
‎Searching for Errors
‎Accrued Liabilities
‎ ecompute each account balance in the
R
‎ledger.
‎Owner Capital ‎Debit for decreases; Credit for increases
‎The processing transactions
‎ erify that each journal entry is properly
V
‎posted.
‎ANALYZING AND ‎Owner Withdrawals ‎Debit for increases; credit for decreases
‎Equity accounts
‎ erify that the original journal entry has
V ‎RECORDING ‎Revenue Accounts ‎Debit for decreases; Credit for increases
‎equal debits and credits.
‎TRANSACTIONS ‎Expense Accounts ‎Debit for increases; credit for decreases

‎ ecord relevant transactions and events in a

R
‎Date of transaction ‎journal

‎ nter titles of account debited and the enter

E ‎ Ledger or General ledge is used to collect
A
‎amounts in the Debit column on the same ‎all accounts and their balances
‎line. ‎ journal is a complete record of each
A
‎ hile companies can use various journals,
W ‎transaction in one place. It also shows debits
‎ list of all ledger accounts and has an
a
‎ nter titles of accounts credited and the
E ‎every company uses a general journal. ‎and credits for each transaction. Recording
‎Chart of Accounts ‎identification number assigned to each
‎enter amounts in the credit column on the ‎transactions in a journal is called journalizing.
‎account.
‎same line.
‎ epresents a ledger account and is used to
R
‎ nter a brief explanation of the transaction
E ‎show the effects of transactions.
‎on the line below the entry. ‎Post journal information to ledger accounts
J‎ ournalizing and Posting ‎ he left side of an account is called the debit
T
‎Identify transactions and source documents ‎side or Dr.
‎transactions
‎T-account
‎ nalyze transactions using the accounting
A ‎ he right side of an account is called the
T
‎equation. ‎credit side, of Cr.

‎Record journal entry

‎ he difference between total debits and total
T
‎Double-entry accounting ‎credits for an account, including any
‎Post entry to ledger.
‎beginning balance, is the account balance.

‎ t least two accounts are involved, with at

A
‎least one debit and one credit.
‎Double-entry system
‎ otal amount debited must equal total
T
‎amount credited.

‎ repare and analyze the trial balance and

P
‎financial statements.