P2-2A Pg.

84
GENERAL JOURNAL GENERAL
2016 page 1 2016
Date Account Titles PR Debit Credit Cash
Date Item PR Debit

2016
Accounts Receivable
Date Item PR Debit

2016
Dental Supplies
Date Item PR Debit

2016
Accounts Payable
Date Item PR Debit

Tips and Tricks

Assets
+ - Always Debit Drawing
Always Debit Expenses
A Drawing
D
DEBIT +
AE
D Expenses
E
+

Liabilities
- + Assets: Things a company own such a
Cash, Supplies, Equipment, Accoun
 Capital Inventory, Prepaid Insurance, Build
+ Liabilities: Debts of the company (wh
L Accounts Payable, Notes Payable,
C Revenue Unearned Revenue
R + Owner's Equity: Difference between

+ Capital:
Minimum of 2 moves: at least one debit and one credit - Drawing:
$Debits = $Credits
First time use of an account, the account must increase + Revnue:
Cannot have a negative balance at any time in an account
Books are always done from the company's eyes - Expenses:
"PAID" - always credit cash
Shopping cart accounts always go UP:
Dr. Cr.
+ Assets Assets -
- Liabilities Liabilities +
+ Expenses
+ Drawing
Capital +
Revenue +
 Lanzafame
GENERAL LEDGER Valley Dentistry
2016 Trial Balance
Acct # 101 Unearned Service RevenueAcct # 209 April 30, 2016
Credit Balance Date Item PR Debit Credit Balance Account Titles Acct. # Debit
Cash 101
Accounts Receivable 112
Dental Supplies 126
2016 Accounts Payable 201
E. Valley, Capital Acct # 301 Unearned Service Revenue 209
Date Item PR Debit Credit Balance E. Valley, Capital 301
Service Revenue 400
Salaries & Wages Expense 726
Rent Expense 729
Acct # 112 2016 $ -
Credit Balance Service Revenue Acct # 400
Date Item PR Debit Credit Balance

Step 1: enter transactions in General Journal

Acct # 126 2016 Step 2: after each GJ entry, post to General Leger
Credit Balance Salaries & Wages Expense Acct # 726 Step 3: after all transactions are complete,
Date Item PR Debit Credit Balance copy final answer from each GL account
into the Trial Balance, Debits must = Credits.

Acct # 201 2016

Credit Balance Rent Expense Acct # 729
Date Item PR Debit Credit Balance

Debit Drawing Always Credit Capital

Debit Expenses Always Credit Revenue

Shopping Cart accounts always go up!

Things a company own such as:

, Supplies, Equipment, Accounts Recievable,
 ntory, Prepaid Insurance, Buildings, Land, Vehicles
es: Debts of the company (when company owes!)
ounts Payable, Notes Payable, Mortgage Payable,
arned Revenue
s Equity: Difference between Assets and Liabilities
Net Worth of the company
Owner's personal Investment in business
Owner removes business assets from business for
personal use
When company performs a service or sells goods
regardless if cash is received or not
Costs to operate the business:
rent expense, telephone expense,
salary expense, insurance expense,
advertising expense, utilities expense,
depreciation expense, interest expense
 Lanzafame
y
Income Statement
6
Credit

$ - Statement of Retained Earnings

o General Leger

ch GL account
its must = Credits.
Balance Sheet
atement

tained Earnings

Sheet