
Statement of
Journal: Journal is the method of recording monetary business transactions in chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system
Rules of Debit and Credit:
Following rules are followed for debiting and crediting different accounts while they occur in business transactions:
- Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.
- Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.
To Journalize: The interest at the effective rate. Also report the amount recorded by Company A, as on December 31, 2018, in the statement of cash flow if it uses indirect method.

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Chapter 21 Solutions
INTERMEDIATE ACCOUNTING(LL)-W/CONNECT
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