2-1 2 The Recording Process Learning Objectives 1 2 Indicate


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Good Morning can you assist me with the Discussion for my Accounting class? 150-200 words I attached the chapter reading just in case you need it ********************************** The Importance of Accounting in Today’s Environment The increasing complexity of the current business and regulatory environment has created an increased demand for accountants who can analyze business transactions and interpret their effects on the financial statements. In addition, a basic ability to analyze the effects of transactions is necessary to be successful in all fields of business as well as in other disciplines, such as law, healthcare, etc. To better understand the importance of accounting in today’s environment, search the Internet for job opportunities. Use the following link below http://www.monster.com/geo/siteselection.aspx 1. Find an advertisement for an accounting job. http://jobview.monster.com/Public-Accountant-GL-Job-New-York-City-NY-US-164744472.aspx?mescoid=1300101001001&jobPosition=2 2. Find an advertisement for a non-accounting job that requires accounting skills or basic knowledge. http://jobview.monster.com/Administrative-Accounting-Agent-Job-Newark-NJ-US-164251908.aspx?mescoid=4300700001001&jobPosition=2 3. Describe how accounting is used in each position, the accounting background needed and the overall job duties. 4. Which one would you apply for and why? ch2ppt.pdf 2-1 2 The Recording Process Learning Objectives 1 2 Indicate how a journal is used in the recording process. 3 Explain how a ledger and posting help in the recording process. 4 2-2 Describe how accounts, debits, and credits are used to record business transactions. Prepare a trial balance. LEARNING OBJECTIVE 1 Describe how accounts, debits, and credits are used to record business transactions. The Account Debit = “Left” 2-3 Record of increases and decreases in a specific asset, liability, owners’ equity, revenue, or expense item. An account can be illustrated in a Taccount form. Credit = “Right” Account Name Debit / Dr. Credit / Cr. LO 1 The Account DEBIT AND CREDIT PROCEDURES Double-entry system Each transaction must affect two or more accounts to keep the basic accounting equation in balance. Recording done by debiting at least one account and crediting at least one other account. 2-4 DEBITS must equal CREDITS. LO 1 Debits and Credits If the sum of Debit entries are greater than the sum of Credit entries, the account will have a debit balance. Account Name Debit / Dr. Credit / Cr. Transaction #1 $10,000 $3,000 Transaction #3 8,000 Balance 2-5 Transaction #2 $15,000 LO 1 Debits and Credits If the sum of Credit entries are greater than the sum of Debit entries, the account will have a credit balance. Account Name Debit / Dr. Balance 2-6 $10,000 $3,000 Transaction #2 8,000 Transaction #1 Credit / Cr. Transaction #3 $1,000 LO 1 Debits and Credits Assets – Debits should exceed credits. Liabilities – Credits should exceed debits. Debit / Dr. Assets Normal balance is on the increase side. Credit / Cr. Normal Balance Chapter 3-23 Liabilities Debit / Dr. Credit / Cr. Normal Balance Chapter 3-24 2-7 LO 1 Debits and Credits Owner’s investments and revenues increase owner’s equity (credit). Owner’s Equity Owner’s drawings and expenses decrease owner’s equity (debit). Credit / Cr. Debit / Dr. Normal Balance Chapter 3-25 Owner’s Capital Owner’s Drawing Chapter 3-25 2-8 Credit / Cr. Debit / Dr. Normal Balance Debit / Dr. Normal Balance Credit / Cr. Helpful Hint Because revenues increase owner’s equity, a revenue account has the same debit/credit rules as the Owner’s Capital account. Expenses have the opposite effect. Chapter 3-23 LO 1 Debits and Credits The purpose of earning revenues is to benefit the owner(s). The effect of debits and credits on revenue accounts is the same as their effect on Owner’s Capital. Debit / Dr. Revenue Expenses have the opposite effect: expenses decrease owner’s equity. Credit / Cr. Normal Balance Cha

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