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

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Journal and adjusting entries

Journal and Adjusting Entries


Rules to remember

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 remember1

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 remember2

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

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


Paid rent 3 months in advance 300

Paid rent 3 months in advance $300


Purchased office equip on account 50

Purchased Office Equip on Account $50


Purchased office supplies for cash 40

Purchased Office Supplies for Cash $40


Collected 400 in cash for services rendered

Collected $400 in cash for services Rendered


Paid home electric bill from company funds 20

Paid Home Electric Bill from Company Funds $20


Provides services for 100 client will pay next month

Provides services for $100, client will pay next month


Paid wages 60

Paid wages $60


Placed ad for 70 will pay next month

Placed ad for $70, will pay next month


Balances as of 1 31 07 before adjustments

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


Balances as of 1 31 07 before adjustments1

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


Adjusting entry office supplies on hand total 6

Adjusting EntryOffice Supplies on hand total $6


Adjusting entry rent expense for month 100

Adjusting EntryRent Expense For Month $100


Adjusting entry office equip depr 20

Adjusting EntryOffice Equip Depr $20


Adjusting entry owe employees 50 at end of month

Adjusting EntryOwe Employees $50 at end of month


Balances as of 1 31 07 after adjustments

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


Income stmt balance sheet as of 1 31 07 after adjustments

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


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