Concept Introduction:
Accounting equation is the fundamental concept and representation of the double entry system of accounting. It shows how the capital invested by the owner is converted into assets and liabilities.
The accounting equation is
ASSETS + LIABILITIES = CAPITAL
In double entry system of accounting, journalizing is the recording of the given accounting transactions by giving effects to debits and credits.
Ledger accounts: Ledger accounts are the refinement of journal entries by presenting them in an understandable form. They help in finding out the balance of an account at a given point of time.
T-account - The T-account is a representation of debits and credits of a general ledger account. Debits are depicted on the left side of the "T" and credits are depicted on the right side.
To analyze:
The transactions using the accounting equation, general journal

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Chapter 2 Solutions
FUNDAMENTAL ACCT.PRIN.-CONNECT ACCESS
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- Bobby Corp. had the following transactions during 2019: -Sales of $8820 on account. -Collected $3920 for services to be performed in 2020. -Paid $3680 cash in salaries for 2019. -Purchased airline tickets for $490 in December for a trip to take place in 2020. What is Bobby's 2019 net income using accrual accounting?arrow_forwardTotal manufacturing costarrow_forwardGeneral accounting questionarrow_forward
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