Concept explainers
(1)
Debit and credit rules:
- Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in
stockholders’ equity accounts. - Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.
To journalize: The transactions of JH for the month of April 2017
(2)
To open: The four-column accounts with March 31 balance
(3)
Posting transactions: The process of transferring the journalized transactions into the accounts of the ledger is known as posting the transactions.
To post: The entries into four-column accounts, and determine the balance for each account for JH for the month of April
(4)
To prepare: Trial balance of JH as on April 30, 2017
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Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
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