Lecture Accounting principles (11E): Chapter 2 - Coby Harmon

After completing this chapter you should be able to: Explain what an account is and how it helps in the recording process, define debits and credits and explain their use in recording business transactions, identify the basic steps in the recording process,...and other contents.
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Lecture Accounting principles (11E): Chapter 2 - Coby HarmonPrepared byCoby HarmonUniversity of California, Santa BarbaraWestmont College2-12The Recording ProcessLearning ObjectivesAfter studying this chapter, you should be able to:[1] Explain what an account is and how it helps in the recording process.[2] Define debits and credits and explain their use in recording businesstransactions.[3] Identify the basic steps in the recording process.[4] Explain what a journal is and how it helps in the recording process.[5] Explain what a ledger is and how it helps in the recording process.[6] Explain what posting is and how it helps in the recording process.[7] Prepare a trial balance and explain its purposes.2-2Preview of Chapter 2Accounting PrinciplesEleventh EditionWeygandt Kimmel Kieso2-3The AccountRecord of increases and decreasesin a specific asset, liability, equity,revenue, or expense item.Debit = “Left”Credit = “Right”AccountAn account can beillustrated in a Taccount form.2-4Account NameDebit / Dr.Credit / Cr.LO 1 Explain what an account is and how it helps in the recording process.The AccountDebits and CreditsDouble-entry system►►Recording done by debiting at least one account andcrediting another.►2-5Each transaction must affect two or more accounts tokeep the basic accounting equation in balance.DEBITS must equal CREDITS.LO 2 Define debits and credits and explain their usein recording business transactions.