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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. Journal is the primary books of accounts and is the starting point of the accounting cycle of a business.
Rules of debit and credit:
“An increase in an asset account, an increase in an expense account, a decrease in liability account, and a decrease in a revenue account should be debited.
Similarly, an increase in liability account, an increase in a revenue account and a decrease in an asset account, a decrease in an expenses account should be credited”.
Note Payable: Note payable is an obligation of the business to pay to its creditors, in future for the benefits received that carry some interest.
To Journalize: The transactions for the company.
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Chapter 11 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
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