Professor HawsAccounting School House
Acquired Learning
Objective # Objective Description
Recording Accounting Transactions
Double Entry Accounting
Accounting Transaction Steps
Journalizing and Posting
Trial Balance Preparation

Class Session

Chapter 2 Sample Problem

Chapter 2 Web Conference

Homework Tidbits - See pages 73-80

Welcome to Week I - Accounting I

Please navigate around the class portal to get familiarized with what you will be using throughout the course.

Chapter 2 - Recording Business Transactions

Recording Accounting Transactions

Key Terms
Term Definition
the detailed record of the changes in a particular asset, liability, or owner's equity
the record holding all the accounts
the chronological record of transactions
trial balance
the list of all the accounts with their balances
chart of accounts
list of all the accounts and their account numbers in the general ledger.

Keys to Know
Accounting Equation - Assets = Liabilities + Owner's Equity
Accounts - Must know for journalizing business transactions Pages 63-65. The following is a Sample Chart of Accounts for you to update throughout the course and an example can be found on page 66 Exhibit 2-2.

Section II - Double-Entry Accounting

Key Terms
Term Definition
the left side of an account.
the right side of an account.

Keys to Know
T Account - Assets and Expense accounts increase on the left side - debit, decrease on the right side - credit.
T Account - Liabilities, Owner's Equity and Revenue accounts increase on the right side - credit, decrease on the left side - debit.
Accounting Equation must BALANCE!!!
Total Debits MUST EQUAL Total Credits!!!

Section III - Accounting Transaction Steps

Journalizing transactions in the following three steps:
  • 1. Specify each account affected and classify each account type (asset, liability or owner's equity)
  • 2. Determine whether each account is increased or decrease. Use the rules of debit and credit to debit or credit each account.
  • 3. Record the transaction in the journal including a brief explanation. The debit side of the entry is entered first and the credit side is last. See Step 3 - page 70. Total debits should always equal total credits!!!

Key Terms
Term Definition
transferring journal entries to the general ledger.
normal balance
the balance that appears on the side of an account-debit or credit-where we record increases

Keys to Know
Assets = Liabilities + Owner's Equity [Capital-Withdrawals-Dividends+Revenues-Expenses]
Review Exhibit 2-9 page 73 in your book.

Section IV - Journalizing and Posting

Keys to Know
Analyze each transaction and note the description after the journal entries on pages 73-79 in your book because this will help you when doing the assignments.
Now notice the posting to t-account after the journal entry on page pages 73-79 in your book. Draw a line from the journal entry to the t-account. Remember debit is on the left and credit is on the right.
Once all posting has been completed from the journal to the t-accounts is to balance each t-account. See Exhibit 2-10 on page 79 in your book.

Section V - Trail Balance Preparation

Keys to Know
The last step is to prepare the Trial Balance. See page 80 in your book. Notice from the t-accounts on page 79 only the balance from each account is transferred to the trial balance. If the account has an ending balance of a debit it goes on the debit side and if the account has a credit it goes on the credit side.
Correcting errors. 1. Search the trial balance for a missing account, 2. Divide the difference between total debits and total credits by 2, Divide the out-of balance amount by 9.
Journalizing Details as follows:
  • 1. Date of the transaction occurred goes in the date column.
  • 2. The accounts debited goes first in the accounts and explanation column, then the accounts credited go next after the debit and a brief explanation after the credit.
  • 3. The account number from the general ledger will be put in the Post Ref column once the transaction is posted.
  • 4. Record the amount for the debit account in the debit column.
  • 5. Record the amount for the credit account in the credit column.
General Ledger Details as follows:
  • 1. Date of the transaction occurred goes in the date column.
  • 2. A brief note goes in the item column.
  • 3. The journal with page number from the journal will be put in the Jrnl Ref.
  • 4. Record the amount for the debit account from the journal in the debit column.
  • 4. Record the amount for the credit account from the journal in the credit column.


Keys to Know
This is accounting today because the computer takes away the journalizing by data entry. Analysis is knowing the reason behind the numbers and what they mean to make informed decisions.