Documentation of accounting information
The place where you post transactions in chronological order
Journal
The two equity accounts with a normal credit balance
Revenues and common stock
In a journal entry, there must be an equal amount of this
Debits and credits
This is an asset that is for machinery used in the production of goods
Equipment
The financial statement that shows our accounting equation
Balance sheet
This account has a normal debit balance and could be of the fire, car, or health variety.
Prepaid insurance
You would list this at the bottom of the income statement if your expenses were greater than your revenues
(net) loss
A liability you record when you need to pay your employees
Wages/salaries payable
The place to view all the debits and credits for a specific account
T-accounts
The two equity accounts with a normal debit balance
Expenses and dividends
When revenue is recorded
At the transfer of goods and services
What you record when you need to remember that someone owes you money
Accounts receivable
The financial statements
Balance sheet, income statement, and statement of retained earnings. (statement of cash flows)
The normal balance of accounts payable
Credit
The two equity accounts with a normal debit balance
Expenses and dividends
The account you would use to record things such as water and electricity bills
Utility expense