T-accounts - Lecture notes 69 PDF

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Summary

For this course, you will have lectures that will help you on your midterm, final, and projects, I got an A for this course so hope this helps...

Description

T-Accounts

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T-accounts capture increases and decreases to individual balance sheet and income statement accounts T-accounts illustrate the effect of each transaction § Assets’ normal balance is on the left. Asset T-accounts record increases on the left and decreases on the right § Liabilities’ normal balance is on the right. Liability T-accounts record increases on the right and decreases on the left

Journal Entries § § §

Journal entries capture the effects of transactions Journal entries reflect increases and decreases to accounts using the language of debits and credits Debits and credits simply refer to the left or right side of a T-account, respectively

Summary Relationship among the assets, liabilities and stockholders’ equity of a business:

The equation must be in balance after every transaction. For every Debit there must be a Credit...