ACCOUNTS
ACCOUNTS. WHERE SIMILAR TRANSACTIONS ARE GROUPED. ASSETS. CASH MARKETABLE SECURITIES ACCOUNTS RECEIVABLE INVENTORY PREPAID EXPENSES (SUPPLIES) EQUIPMENT BUILDING LAND. EXPENSES. RENT EXPENSE SALARY EXPENSE COST OF GOODS SOLD EXPENSE ETC. EXPENSE. DEBITS AND CREDITS.
ACCOUNTS
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Presentation Transcript
ACCOUNTS • WHERE SIMILAR TRANSACTIONS ARE GROUPED
ASSETS • CASH • MARKETABLE SECURITIES • ACCOUNTS RECEIVABLE • INVENTORY • PREPAID EXPENSES (SUPPLIES) • EQUIPMENT • BUILDING • LAND
EXPENSES • RENT EXPENSE • SALARY EXPENSE • COST OF GOODS SOLD EXPENSE • ETC. EXPENSE
DEBITS AND CREDITS • FOR EVERY DEBIT THERE IS A CREDIT • Debits on Left • Credits on Right
ASSETS AND EXPENSES • TO INCREASE AN ASSET OR EXPENSE IT IS DEBITED • TO DECREASE AN ASSET OR EXPENSE IT IS CREDITED
LET’S MAKE SOME JOURNAL ENTRIES • BUY SOME INVENTORY FOR $500. THE INVENTORY IS INCREASED (DEBITED), THE CASH IS DECREASED (CREDITED) • DEBIT CREDIT • INVENTORY $500 • CASH $500
RENT EXPENSE IS PAID DEBIT CREDIT RENT EXPENSE $300 CASH $300
SUPPLIES ARE PURCHASED • DEBIT CREDIT • SUPPLIES $100 • CASH $100
MAKE THE JOURNAL ENTRY • RENT EXPENSE OF $700 IS PAID IN CASH
DEBIT CREDIT • RENT EXPENSE $700 • CASH $700
MAKE THE JOURNAL ENTRY • INVENTORY IS PURCHASED FOR $900
DEBIT CREDIT • INVENTORY $900 • CASH $900
MEMORIZATION • MEMORIZE THE DIFFERENT TYPES OF ASSETS • MEMORIZE THE COMMON EXPENSES
