
Accounting equation is,
Rules of Journal Entry: The rules for journal entry are defined by five accounting components,
- Assets: Increase in asset should be debit and decrease should be credit.
- Liabilities: Increase in liabilities should be credit and decrease should be debit.
- Equity: Increase in Equity should be credit and decrease should be debit.
- Expense: Increase in expense should be debit and decrease should be credit.
- Revenue: Increase in revenue should be credit and decrease should be debit.
Ledger: It refers to that financial book of accounting that classifies and summarizes all the data recorded in the journal.
1.
To analyze: The transactions using accounting equation.
2.
To prepare: Journal entries.
3.
To prepare: T-accounts to represent ledger accounts.

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Chapter 2 Solutions
Gen Combo Ll Financial Accounting Fundamentals; Connect Access Card
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