DoubleEntry Accounting Debits Credits Normal Balances of Accounts

Double-Entry Accounting • Debits = Credits • Normal Balances of Accounts • Journalizing Transactions (Journal Entries)

The General Journal • • • journal entry To record journal entries in a general journal Date the transaction. Enter titles of accounts debited Enter titles of accounts credited. Enter a brief explanation

Posting Transactions (T-Accounts) • The process of transferring journal entry information to the ledger. • Exhibit (2 -4) • Exhibit (2 -5) • The balance column account

Trial Balance • A list of accounts and their balances at a point in time. • Balance sheet accounts • Income statement accounts • Exhibit (2 -6)

Preparing Financial Statements • • Income statement Statement of owner's equity Balance sheet Illustrative Example

ﺃﺴﺌﻠﺔ ﺍﻟﻤﺤﺎﺿﺮﺓ ﺍﻟﺮﺍﺑﻌﺔ • 1 - Crediting an expense account decreases it. • True – or • False

2 - Preparation of a trial balance is the first step in the analyzing and recording process. • True – or • False

3 - A transaction that decreases an asset account and increases in a liability account must also affect one or more other accounts. • True – or • False

4 - Journal gives a complete record of each transaction in one place, and shows the debits and credits for each transaction. • True – or • False

5 - Other names for the income statement are the earnings statement, statement of operations, or a profit and loss statement. • True – or • False