BUSI 1101 Lecture Notes - Lecture 11: Financial Statement, Accounting Equation, General Journal

• School: Memorial University
• Department: Business Administration
• Course: BUSI 1101
• Professor: N Wans

Document Summary

Learning objectives: analyze the effect of transaction on the accounting equation, explain how accounts, debits and credits are used to record transactions, journalize transactions in the general journal, post transactions to the general ledger, prepare a trial balance. Accounting information system: the system of collecting and processing transaction data and communicating financial information. Can vary widely based on factors such as: type of business and its transactions, size of company, amount of data, information requirements. Transactions are economic events that must be recorded in the financial statements. Not all events are recorded and reported as accounting transactions: only those that change assets, liabilities or shareholders" equity. Identify an economic event that would be recorded in the accounting system and one that would not be recorded. An individual accounting record of increases and decreases in a specific asset, liability, or shareholders" equity item. T account three parts: title of the account, a left or debit side, a right or credit side.