Essay on Halo~

953 Words Dec 5th, 2013 4 Pages
CHAPTER 2

THE RECORDING PROCESS
ACCT100 Fall 2013 Teresa Chu
Chapter 2-1

The Account
Record increases and decreases in a specific asset, liability or equity item Debit = “Left” Credit = “Right”

Account Name

T-Account form

Debit / Dr.

Credit / Cr.

Chapter 2-2

Debits and Credits Double-entry system

Dual effect of transaction

Each transaction MUST affect 2 or more accounts to keep the basic accounting equation balance DEBIT = CREDIT for each transaction

Chapter 2-3

Summary of Debit/Credit Rules

Debits > Credits → Debit balance Credits > Debits → Credit balance Normal balance: the side to record increases
Chapter 2-4

Steps in the Recording Process
1) Analysis of transaction → Analyze business
…show more content…
General Journal
Ref.

(Analysis: + Cash; + Share Capital - Ordinary)
Date Account Title Debit Credit 200,000

J1

Oct. 1

Cash

(Issued shares for cash)

Share Capital - Ordinary

200,000

Chapter 2-8

Journalizing
Oct. 2 Hires an administrative assistant.

(Analysis: A business-related transaction)
General Journal
Ref.

Date Oct. 2

Account Title No entry

Debit

Credit

Chapter 2-9

Journalizing
Oct. 3

Purchases office furniture for ¥ 19,000 on account.

(Analysis: + Office furniture; + Accounts payable)
General Journal
Ref.

Oct. 3

Date

Office furniture

Account Title

Debit

(Purchased furniture on account)

Accounts payable

19,000

Credit 19,000

Chapter 2-10

Journalizing
Oct. 6

Sells a house and lot for N. Fennig; bills N. Fennig ¥32,000 for realty services provided.

(Analysis: + Accounts receivable; + Service revenue)
General Journal
Ref.

Oct. 6

Date

Accounts receivable

Account Title

(Provided services on account)

Service revenue

32,000

Debit

Credit 32,000

Chapter 2-11

Journalizing
Oct. 27

Pays ¥8,500 on balance related to transaction of Oct. 3. (Analysis: - Cash; - Accounts payable)
General Journal
Ref.

Oct. 27

Date

Accounts payable (Paid on account) Cash

Account Title

Debit

8,500

Credit 8,500

Chapter 2-12

Journalizing
Oct. 30

Pays the administrative assistant ¥25,000 salary

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