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ACC101 Chapter 2 How To Record a Journal Entry

General Journal

J1

1 2 3 4 5 6 7 8 9 10 11

Date Oct. 5

Account Titles and Explanation Account Name to debit Account Name to credit Write an explanation of the transaction. (skip a space) Record next entry (transaction).

Ref.

Debit XXXX

Credit XXXX 1 2 3 4 5 6 7 8 9 10 11

Oct. 6

Always list debits first, then credits.

Thinking process for recording a journal entry (transaction). Ask yourself the following questions:
1. What is changing about the business? (at least 2 items) 2. Is the item that is changing an Asset? Liability? Owners equity?

Revenue? Expense? Drawing? 3. Will there be an increase or decrease to the item that is changing? (More or less?) 4. Is the change a debit or credit? 5. Proceed to the journal to record the transaction.