Accounting chapter 3

The _______ part of the entry is always recorded first..

debit

Accounts with numbers in the 500's

expenses

This contains all of the ledger accounts.

general ledger

This has been devised to give a completed record of the transactions recorded in EACH account.

ledger account

Accounts with numbers in the 200's.

liabilities

The process of transferring information from the journal to the ledger accounts.

posting

Accounts with numbers in the 400's

revenue

The _______ part of the entry is always inserted below and indented.

credit

Journal

A book in which business transactions are recorded as they happen.

Accounts with numbers in the 100's.

Assets

Accounts with numbers in the 300's

O.E.

Prepare a trial balance

The THIRD step in the ACCOUNTING process.

determine what accounts are involved

The first step in JOURNALIZING

Record the transactions in the journal.

The first step in the ACCOUNTING process

Write the transaction as a debit to one account(s) and a credit to one account(s).

The fourth step in JOURNALIZING.

source documents

The information about transactions such as checks, receipts, letters, and memos.

Make sure the equation is in balance.

The last step in JOURNALIZING.

journalizing

The process of recording a business transaction in the journal.

determine the classification of the accounts

The second step in JOURNALIZING.

Post entries to the ledger.

The second step in the ACCOUNTING process

Determine if accounts are increased or decreased.

The third step in JOURNALIZING.

A list of ledger accounts that have balances.

Trial balance