230 likes | 485 Views
Journal and Adjusting Entries. Rules To Remember. Accounts are not your checking or saving accounts They are storage devices for your financial transactions
E N D
Rules To Remember • Accounts are not your checking or saving accounts • They are storage devices for your financial transactions • When a Bank “Credits Your Account” for your deposits it is because your money is a Liability to them …. Our transactions are the opposite of the banking transactions
Rules To Remember • Assets have a Normal Balance of DEBIT • To increase an Asset, make a Debit Entry • To decrease an Asset, make a Credit Entry • Liabilities have a Normal Balance of Credit • To increase a Liability, make a Credit Entry • To decrease a Liability, make a Debit Entry
Rules To Remember • Equity has a Normal Balance of Credit • To increase an Equity, make a Credit Entry • To decrease an Equity, make a Debit Entry • Revenues have a Normal Balance of Credit • To increase a Revenue, make a Credit Entry • To decrease a Revenue, make a Debit Entry • Expenses have a Normal Balance of DEBIT • To increase an Expense, make a Debit Entry • To decrease an Expense, make a Credit Entry
Rolon Kern Invested $1,200 in cash and $100 in Office Supplies to start Company
Income Stmt & Balance Sheet as of 1-31-07 (After Adjustments)