Foundations of Accounting
The 2 ways to express the Accounting Equation.
Assets = Liabilities + Equity
Assets - Liabilities = Equity
A form for recording transactions in chronological order
Journal
Buying Supplies with Cash.
What do you Debit and what do you Credit?
Debit Supplies. Credit Cash.
what must you do to the account title on the 2nd line of an entry?
indent 1 cm
What tool can you use to help record an entry in the General Journal?
Draw T-Accounts
Recording transactions in a journal
Journalizing
Sold Services on Account.
What is debited and what is credited?
Credit Sales. Debit Accounts Receivable.
What column do you record the Source Document?
Doc. No.
A business paper from which information is obtained for a journal entry
Source Document
The source document for daily sales
Calculator Tape
What must you include after the Account Title "Accounts Payable" and "Accounts Receivable"?
The specific vendor they are buying/selling
Information for each transaction recorded in a journal
Entry
What is the title of your favorite Accounting song?
100 point bonus to sing/dance in front of the class.
The Debit Credit Theory
The 4 questions you must ask in order to record entries:
1. what are the 2 accounts affected?
2. how is each account classified?
3. how is each account affected?
4. how do you enter the debit/credit parts into the t-accounts
The recording of debit and credit parts of a transaction
Double-Entry Accounting
When is Mr. Miller's Birthday?
Halloween