Review of Debit amp Credit Debit An entry recording an amount owed listed on the lefthand side or column of an account Credit The ability to obtain goods or services before payment based on the trust that payment will be made in the future unlimited credit ID: 472764
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4.2 Debit/ Credit TheorySlide2
Review of Debit & Credit
Debit
An entry recording an amount owed, listed on the left-hand side or column of an account.
Credit
The ability to obtain goods or services before payment, based on the trust that payment will be made in the future: "unlimited credit".Slide3
Write at top of handout
Assets
Liabilities
Owner’s Equity
=
+
+
+
+
Increase
-
-
-
Decrease
Debit (DR)
Credit (CR)
Debit
Credit
Debit
CreditSlide4
4.1 Accounts
Any item on the balance sheet that records changes from that item.
LEDGER
Group of accountsSlide5
Increases
Assets are increased on the debit side
Liabilities are increase on the credit side
Owner’s Equity is increase on the credit sideSlide6
Decreases
Assets
are decreased on the credit side
Liabilities
are decreased on the debit side
Owner’s Equity
is decrease on the debit sideSlide7
Accounts are increase on the side they appear in the fundament accounting equation
Assets = Liabilities + Owner’s EquitySlide8
Accounts are decreased on the opposite side to which they appear in the equationSlide9
Debit/ Credit Theory
https://www.youtube.com/watch?v=DfX_mbbBsYoSlide10
6.1 Journal EntrySlide11Slide12Slide13Slide14
Ex. 1 p. 102 (t), pg. 50 (w)Slide15
Ex. 1 pg. 102 (t) Flora
SiskaSlide16Slide17
Complete Ex. 2
Crooks Garage
p.103 (t), p. 51 (w)
1) Complete transaction analysis sheet in workbook (p. 51)
2) Use back side of journal paper to journalize each transaction