T-Acounts are the 30,000 ft. view of your accounts. They help you quickly glance at an account and see what is going on inside of it.
Debits and Credits
Debits and Credits are the words of accounting. You must understand debits and credits if you want to be able to pass this class.
Determining Normal Balances For Assets & Liabilities
A "normal" balance just means what side of the account the increases go on. Here we're going to determine normal for Assets and Liabilities.
Determining Normal Balance for Shareholder's Equity
Shareholder's Equity has a normal balance, just like every other account. It's pretty simple to determine, not unlike Assets and Liabilities.
Normal Balance Shortcut: Double Entry
I told you that understanding normal balances is super important, so we're not done yet. This shortcut has to do with Double Entry Accounting. Excited? You probably should be.
Normal Balance Shortcut: DEAD Mnemonic
You'll be DEAD if you forget this. Forgive my cheesiness.
The Journal, Ledger, Trial Balance
The Journal, Ledger, and Trial Balance are how we keep track of what is going on day-to-day in our business.
|Click Here to View All Chapter 3 Problems at Once||View|
|2||Journal Entry - Inventory||Easy|
|3||Journal Entry - Sales||Easy|
|4||Land Purchased With Cash||Easy|
|5||T/F: Liabilities and Equity||Easy|
|6||T/F: T-Account Logic||Easy|
|8||The Effect of Journal Entries||Moderate|
|9||What Should Be Journaled||Moderate|