identify and describe transactions and events entering the accounting process.
is a record of increases and decreases in a specific asset, liability, equity, revenue or expense item.
General Ledger / Ledger
is a record containing all accounts used by a company.
refers to a liability that is settled in the future when a company delivers its products or services.
When an owner invests in a company, the invested amount is recorded in an account titled Owner, Capital (where the owner's name is inserted in place of "owner")
The Owner, Withdrawals account is used to record asset distributions to the owner.
Chart of Accounts
is a list of all accounts a company uses and includes an identification number assigned to each account.
represents a ledger account and is a tool used to understand the effects of one or more transactions
L Side of T-Account
R Side of T-Account
The difference between total debits and total credits for an account , including any beginning balance, is the account balance
requires that each transaction affect, and be recorded in, at least two accounts.
gives a complete record of each transaction in one place.
is the process of recording transactions in a journal.
The process of transferring journal entry information to the ledger is called posting.
can be used to record any transaction and includes the following information about each transaction: (1) date of transaction (2) titles of affected accounts (3) dollar amount of each debit and credit (4) explanation of the transaction.
Posting Reference (PR) column
identification numbers of the individual ledger accounts
Balance column accounts
same as t-account, but includes transaction date and explanation columns.
is a list of accounts and their balances at a point in time.