Chapter 10, Problem 10.9E

To determine

Journalizing: It is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Accounting rules for journal entries:

• To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.
• To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

Depreciation: Depreciation refers to a method of accounting under which the value of a fixed asset is written off during the life of that asset.

Accumulated Depreciation: Accumulated depreciation refers to the cumulative depreciation charged on the asset every year till date. It is a contra-asset account which is credited when depreciation is charged. It is shown as a deduction from the asset in the balance sheet.

To Prepare: Journal entries.