Home

Recording Entries Using JEs

Recording Entries Using Journal Entries

Learning Objectives

  1. Record entries using the journal entry approach.
  2. 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.

Express Video:

 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.

 

 
 
 

 

Vote
403