BUSI 1004 Lecture 2: Chapter 2
4 Nov 2018
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: the trial balance-listing of all account balances, making necessary adjusting entries, creating an adjusted trial balance, financial statement preparation, preparing closing entries. Journal entries: accounting transactions are entered into a journal, whenever an entry is made, it is called a journal entry. Debits = credits: all debits must equal credits when journalized. A company purchases ,000 worth of inventory on account. Note: we are increasing an asset and increasing a liability, therefore, our equation holds true: Debit: named for its shape, which resembles a capital t , a t-account is a tool used by accountants to. Credit keep track of its entries that are made to individual accounts. Expenses: expenses increases on the left hand side and decreases on the left, for example: rent expense increases on the left and decrease on the left. Income statement: as a general rule, on the statement of income, increases on the left and decrease on the right.
