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ACCOUNTS

ACCOUNTS. WHERE SIMILAR TRANSACTIONS ARE GROUPED. ASSETS. CASH MARKETABLE SECURITIES ACCOUNTS RECEIVABLE INVENTORY PREPAID EXPENSES (SUPPLIES) EQUIPMENT BUILDING LAND. EXPENSES. RENT EXPENSE SALARY EXPENSE COST OF GOODS SOLD EXPENSE ETC. EXPENSE. DEBITS AND CREDITS.

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ACCOUNTS

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  1. ACCOUNTS • WHERE SIMILAR TRANSACTIONS ARE GROUPED

  2. ASSETS • CASH • MARKETABLE SECURITIES • ACCOUNTS RECEIVABLE • INVENTORY • PREPAID EXPENSES (SUPPLIES) • EQUIPMENT • BUILDING • LAND

  3. EXPENSES • RENT EXPENSE • SALARY EXPENSE • COST OF GOODS SOLD EXPENSE • ETC. EXPENSE

  4. DEBITS AND CREDITS • FOR EVERY DEBIT THERE IS A CREDIT • Debits on Left • Credits on Right

  5. ASSETS AND EXPENSES • TO INCREASE AN ASSET OR EXPENSE IT IS DEBITED • TO DECREASE AN ASSET OR EXPENSE IT IS CREDITED

  6. LET’S MAKE SOME JOURNAL ENTRIES • BUY SOME INVENTORY FOR $500. THE INVENTORY IS INCREASED (DEBITED), THE CASH IS DECREASED (CREDITED) • DEBIT CREDIT • INVENTORY $500 • CASH $500

  7. RENT EXPENSE IS PAID DEBIT CREDIT RENT EXPENSE $300 CASH $300

  8. SUPPLIES ARE PURCHASED • DEBIT CREDIT • SUPPLIES $100 • CASH $100

  9. MAKE THE JOURNAL ENTRY • RENT EXPENSE OF $700 IS PAID IN CASH

  10. DEBIT CREDIT • RENT EXPENSE $700 • CASH $700

  11. MAKE THE JOURNAL ENTRY • INVENTORY IS PURCHASED FOR $900

  12. DEBIT CREDIT • INVENTORY $900 • CASH $900

  13. MEMORIZATION • MEMORIZE THE DIFFERENT TYPES OF ASSETS • MEMORIZE THE COMMON EXPENSES

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