Acct cycle: journal entries Flashcards
Communicating of a business transaction into writing
-Recorded into the general ledger
-Posted into “T-accounts” on general ledger
Journal entires
Left side of a standard account
Debits
Right side of a standard account
Credits
Book of the original entry in which any business transaction is recorded in chronological order
General journal
Book of accounts in which data journal entries are posted and summarized
General ledger
Transaction of data from journal to ledger
Posting
A list of all the accounts titles and numbers assigned to them
-Cheat sheet for computer programing
-Categorizes accounts
-Number code
Charts of accounts
How do all of the accounts behave in the debit/ credit
-Asset increase in debit and decrease in credit
-Liabilities decrease in debit and increase in credit
-OE decrease in debit and increase in credit
-Revenues decrease in debit and increase in credit
-Expenses increase in debit and decrease in credit
-Dividends increase in debit and decrease in credit
What are the accounts that are opposites that balance in the t charts
-Assets and revenues
-Liabilities and expenses
-OE and dividends
What accounts are found on the balance sheet and what accounts are found on the income statement?
Balance sheet:
-Asset
-Liabilities
-OE
Income statement:
-Revenues
-Expenses
-Dividends
A work paper providing the equality of the debit and credit balance in the ledger
Trial balance
Trial balance taken after adjusted entries have been recorded
-Done at the end of the year
Adjusted trial balance
A work paper prepared after all temporary accounts have been closed
-Done at the end of the year
Post closing trial balance
What are some reasons to do a trial balance
-Check equality of debits and credits
-Locate errors in the journal, postings, and ledger accounts
-Know the ending balance of each account. All in one location
-Test mathematical accuracy of the recording stage on the accounting equation and expanding accounting equation
