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Debits and Credits
The Journals
The Accounting Equation
Basic Accounting
Journal Entries
100
This is an asset account normal balance.
What is debit.
100
You record sales on account in this journal.
What is sales journal.
100
The three elements of the accounting equation.
What are assets, liabilities, and owner's equity.
100
Every transaction must have this.
What is a debit and a credit.
100
Debit this account when you buy new equipment for your business.
What is Equipment.
200
A revenue account has this for its normal balance.
What is credit
200
You record transactions in this journal when you pay bills with cash.
What is cash payments journal.
200
The accounting equation.
What is assets=liabilities+owner's equity
200
The amount of the debits and credits of every transaction must be this.
What is equal.
200
Revenue recieved in advance is credited to this account.
What is Unearned Revenue.
300
An expense account has this for its normal balance.
What is debit.
300
You record purchases on account in this journal.
What is purchases journal.
300
The balance of assets when owner's equity is $40000 and liabilities are $40000.
What is $80000.
300
Debts owed to outsiders.
What are liabilities.
300
Advertising paid for in advanced would be debited to this account.
What is prepaid advertising.
400
A liability account has a normal balance of this.
What is credit.
400
You record transactions in which you receive cash in this journal.
What is cash receipts journal.
400
Assets minus liabilities.
What is owner's equity.
400
The financial statement that looks at revenues and expenses.
What is the income statement.
400
Entries made at the end of the accounting period to bring the accounts up to date.
What are adjusting entries.
500
A contra asset account has this for its normal balance.
What is credit.
500
You record adjusting entries in this journal.
What is general journal.
500
This is the financial statement based on the accounting equation.
What is the balance sheet.
500
The three basic financial statements.
What are income statement, balance sheet, and statement of cash flows.
500
The entries used to close the books at the end of the year.
What are closing entries.