COMM321 Chapter Notes - Chapter 3: General Ledger, Capital Asset, Accounting
13 Apr 2017
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To record or enter an amount on the left side. To record or enter an amount on the right side. A = l + se se: cs + re re: re(t-1) +ni div ni: rev exp. A = l + cs + re(t-1) + rev exp div. Each transaction has at least one debit and at least one credit. When a transaction is in balance , the debit equal the credit. The accounting cycle: steps: analyze the transaction. Journalize the transaction: post the transaction to general ledger (and sub-ledgers) accounts. Income statement gives r/e: balance sheet need cash balance, cash flow statement. Issued common shares for cash: dr: cash 1000 cr common shares 1000. Feb 10: purchased supplies for cash + note: dr: supplies 100 cr: cash 50 cr: n/p 50. Feb 25: sold goods on credit : dr: a/r 100 cr: sales rev 100. Feb 28: paid utility bill : dr: utility exp 200 cr: cash 200.
