Recording Entries Using Journal Entries

Learning Objectives

Record entries using the journal entry approach.
Convert balance-sheet-equation entries to debits and credits in journal entries.

Click the Express Route video below on recording entries.
If you’re ready to start the exercises, click the Exercise link below. Go back to the video if you need more help.

Click here for the Express Route video [13 minutes]

Exercises

Ready to do exercises? Click for exercises for this module

Take-aways:

Key terms:

Journal-entry model- Record-keeping approach using debits and credits in journal entries and T-accounts. This approach dates to the fifteenth century, before there were negative numbers.
Debit- As an adjective in accounting, it refers to accounts that increase assets or decrease liabilities and owner’s equity (e.g., cash is a debit account). As a verb, it refers to increases in debit accounts or decreases in credit accounts (e.g., the entry debits the cash account). Debit also means the left side in the journal entry or T-account.
Credit- As an adjective in accounting, it refers to accounts that increase liabilities or owners’ equity or decreases assets (e.g., accounts payable is a debit account). As a verb, it refers to increases in credit accounts or decreases in debit accounts (e.g., the entry credits the cash account). Credit also means the right side in the journal entry or T-account.
T-account- Record-keeping device (shaped like a T) used to summarize account balances for a reporting period by posting the effects of debits and credits recorded in journal entries.