Chapter 1 claim to cash are received and
can be converted/ used
Net Worth ● Unit of measurement concept: all
Owner’s Name reported currency must be
Net worth statement reported in the same currency,
Current Date therefore business can’t record
- Assets costs in the terms of hours
- Alphabetical order ● Business entity concept: personal
- Checking account is and business records separate
considered cash ● Generally Accepted Accounting
- List assets Principles (GAAP):
- Add up total assets ● On account: items are bought
but paid for later
- Liabilities ● Receiving cash for a prior sale:
- List assets in alphabetical ● Chart of Accounts: list of
order accounts used by a business
- List total assets
- Net worth Chapter 2
- Subtract liabilities from T Balance
assets to find net worth Debit: left side
Credit: right side
Accounting equation: - If the transaction would be
Assets = Liabilities + Owner’s Equity added to an account title in the
Left side Right side accounting equation, it goes
- Same side, different signs under debit, if its subtracted it
- What is done on the right side goes under credit
must be done on the left: - Ex: cash from Walt &
different sides, same signs Brothers is debit under
- If prepaid insurance in paid in cash and credit under
cash, it must be added to accounts receivable
insurance assets tab and cash normal balance: side of an account
tab that increases
Terms - If debit is increasing, the normal
● Realization of Revenue: revenue balance is debit
is only recognized when cash/
, - If credit is increasing, the normal ○ Make sure to go back and
balance is credit add the account number
-Debit (normal balance): assets, as the post ref in the
drawing, expenses, cash, anything general journal
prepaid, salaries ● Account: title
-Credit (normal balance): liabilities, ● Account No. number assigned to
owner’s capital, sales/ revenue the account
● Sales receipt: given after
Chapter 3 ●
customer has paid
Invoice: asks for payment from
General Journals customer
- always start the page with the
abbreviated month and then the day
Chapter 5
Chapter 4 Checks
Endorsement: signature on the back of
General Ledgers a check transferring ownership
- the first digit tells you the general Blank endorsement: only the endorser’s
ledger division (expenses, accounts signature
payable, equity, etc.)
- last two digits tells the location of the Special endorsement:
account (counted by 10s in -pay to order of
alphabetical order)) -name check goes to
- counts by 5s when a new -endorser’s signature
account is created in between Restrictive endorsement:
existing accounts -for deposit only to
- if the first entry is debit then the -the account of
balance side should be debited (+/-) -name check goes to
each time a new entry is added -endorser’s signature
- if the first entry is credit then the
balance side will always be credit for Chapter 6
the rest of the account Worksheets
● Post Ref: will always be G and Headings:
then the page number of the Name of Company
journal for the ledger Work Sheet
For Month Ended month day, year
can be converted/ used
Net Worth ● Unit of measurement concept: all
Owner’s Name reported currency must be
Net worth statement reported in the same currency,
Current Date therefore business can’t record
- Assets costs in the terms of hours
- Alphabetical order ● Business entity concept: personal
- Checking account is and business records separate
considered cash ● Generally Accepted Accounting
- List assets Principles (GAAP):
- Add up total assets ● On account: items are bought
but paid for later
- Liabilities ● Receiving cash for a prior sale:
- List assets in alphabetical ● Chart of Accounts: list of
order accounts used by a business
- List total assets
- Net worth Chapter 2
- Subtract liabilities from T Balance
assets to find net worth Debit: left side
Credit: right side
Accounting equation: - If the transaction would be
Assets = Liabilities + Owner’s Equity added to an account title in the
Left side Right side accounting equation, it goes
- Same side, different signs under debit, if its subtracted it
- What is done on the right side goes under credit
must be done on the left: - Ex: cash from Walt &
different sides, same signs Brothers is debit under
- If prepaid insurance in paid in cash and credit under
cash, it must be added to accounts receivable
insurance assets tab and cash normal balance: side of an account
tab that increases
Terms - If debit is increasing, the normal
● Realization of Revenue: revenue balance is debit
is only recognized when cash/
, - If credit is increasing, the normal ○ Make sure to go back and
balance is credit add the account number
-Debit (normal balance): assets, as the post ref in the
drawing, expenses, cash, anything general journal
prepaid, salaries ● Account: title
-Credit (normal balance): liabilities, ● Account No. number assigned to
owner’s capital, sales/ revenue the account
● Sales receipt: given after
Chapter 3 ●
customer has paid
Invoice: asks for payment from
General Journals customer
- always start the page with the
abbreviated month and then the day
Chapter 5
Chapter 4 Checks
Endorsement: signature on the back of
General Ledgers a check transferring ownership
- the first digit tells you the general Blank endorsement: only the endorser’s
ledger division (expenses, accounts signature
payable, equity, etc.)
- last two digits tells the location of the Special endorsement:
account (counted by 10s in -pay to order of
alphabetical order)) -name check goes to
- counts by 5s when a new -endorser’s signature
account is created in between Restrictive endorsement:
existing accounts -for deposit only to
- if the first entry is debit then the -the account of
balance side should be debited (+/-) -name check goes to
each time a new entry is added -endorser’s signature
- if the first entry is credit then the
balance side will always be credit for Chapter 6
the rest of the account Worksheets
● Post Ref: will always be G and Headings:
then the page number of the Name of Company
journal for the ledger Work Sheet
For Month Ended month day, year
