Journal and adjusting entries
This presentation is the property of its rightful owner.
Sponsored Links
1 / 21

Journal and Adjusting Entries PowerPoint PPT Presentation


  • 85 Views
  • Uploaded on
  • Presentation posted in: General

Journal and Adjusting Entries. Rules To Remember. Accounts are not your checking or saving accounts They are storage devices for your financial transactions

Download Presentation

Journal and Adjusting Entries

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Journal and Adjusting Entries


Rules To Remember

  • Accounts are not your checking or saving accounts

  • They are storage devices for your financial transactions

  • When a Bank “Credits Your Account” for your deposits it is because your money is a Liability to them …. Our transactions are the opposite of the banking transactions


Rules To Remember

  • Assets have a Normal Balance of DEBIT

    • To increase an Asset, make a Debit Entry

    • To decrease an Asset, make a Credit Entry

  • Liabilities have a Normal Balance of Credit

    • To increase a Liability, make a Credit Entry

    • To decrease a Liability, make a Debit Entry


Rules To Remember

  • Equity has a Normal Balance of Credit

    • To increase an Equity, make a Credit Entry

    • To decrease an Equity, make a Debit Entry

  • Revenues have a Normal Balance of Credit

    • To increase a Revenue, make a Credit Entry

    • To decrease a Revenue, make a Debit Entry

  • Expenses have a Normal Balance of DEBIT

    • To increase an Expense, make a Debit Entry

    • To decrease an Expense, make a Credit Entry


Rolon Kern Invested $1,200 in cash and $100 in Office Supplies to start Company


Paid rent 3 months in advance $300


Purchased Office Equip on Account $50


Purchased Office Supplies for Cash $40


Collected $400 in cash for services Rendered


Paid Home Electric Bill from Company Funds $20


Provides services for $100, client will pay next month


Paid wages $60


Placed ad for $70, will pay next month


Balances as of 1-31-07 (Before Adjustments)


Balances as of 1-31-07 (Before Adjustments)


Adjusting EntryOffice Supplies on hand total $6


Adjusting EntryRent Expense For Month $100


Adjusting EntryOffice Equip Depr $20


Adjusting EntryOwe Employees $50 at end of month


Balances as of 1-31-07 (After Adjustments)


Income Stmt & Balance Sheet as of 1-31-07 (After Adjustments)


  • Login