D102 Financial Accounting Final
OA Review Module 5
General Journal - -where each transaction is initially recorded, in debit-and-
credit language. It can be thought of as a chronological description of events.
- account - -The impact of all of these events is summarized by sorting each
debit and each credit, by the item affected, and copying all debits and
credits impacting an item into one place, called an
- General Ledger - -The collection of all of the accounts in a company's
accounting system is called the
- A chronological record of all transactions of a business - -What is a general
journal?
- When recording items in the journal - -When does an accountant perform
transaction analysis?
- Identify which accounts are involved.
For each account, determine if it is increased or decreased.
For each account, determine by how much it has changed. - -When
preparing a journal entry, a systematic method may be used in analyzing
every transaction. A journal entry involves a three-step process:
- 1. What accounts are involved? Cash, Capital Stock
2. Did the accounts increase or decrease? Cash + , Capital stock +
3. By how much did the account change?
Debit Cash $2,000
Credit Capital Stock $2,000 - -Individuals invest $2,000 cash in the business
to become shareholders
- 1. What accounts are involved? Cash, Notes Payable
2. Did the accounts increase or decrease? Cash +, NP +
3. By how much did the account change?
Debit Cash $2,000
Credit Notes Payable $2,000 - -Borrowed $2,000 cash from a bank.
- 1. What accounts are involved? Cash , Truck
2. Did the accounts increase or decrease? Cash -, Truck +
3. By how much did the account change?
OA Review Module 5
General Journal - -where each transaction is initially recorded, in debit-and-
credit language. It can be thought of as a chronological description of events.
- account - -The impact of all of these events is summarized by sorting each
debit and each credit, by the item affected, and copying all debits and
credits impacting an item into one place, called an
- General Ledger - -The collection of all of the accounts in a company's
accounting system is called the
- A chronological record of all transactions of a business - -What is a general
journal?
- When recording items in the journal - -When does an accountant perform
transaction analysis?
- Identify which accounts are involved.
For each account, determine if it is increased or decreased.
For each account, determine by how much it has changed. - -When
preparing a journal entry, a systematic method may be used in analyzing
every transaction. A journal entry involves a three-step process:
- 1. What accounts are involved? Cash, Capital Stock
2. Did the accounts increase or decrease? Cash + , Capital stock +
3. By how much did the account change?
Debit Cash $2,000
Credit Capital Stock $2,000 - -Individuals invest $2,000 cash in the business
to become shareholders
- 1. What accounts are involved? Cash, Notes Payable
2. Did the accounts increase or decrease? Cash +, NP +
3. By how much did the account change?
Debit Cash $2,000
Credit Notes Payable $2,000 - -Borrowed $2,000 cash from a bank.
- 1. What accounts are involved? Cash , Truck
2. Did the accounts increase or decrease? Cash -, Truck +
3. By how much did the account change?
