Accounting Transactions: Journal Entries and Balance Sheets Assignment – Module One

Summary

Accounting transactions are shown with journal entries and balance sheets. Students learn how to record and post transactions, and how to prepare a balance sheet.

Transactions for ORG Company

Daily balances for ORG Company are given. Students explain the nature of each transaction from July 1 to July 10. The transactions involve cash, accounts receivable, inventory, equipment, accounts payable, and owner’s equity.

Journal entries and T-accounts

Students post journal entries in the appropriate T-accounts. They show the resulting balance in each account. The transactions involve cash, common stock, supplies, accounts payable, building, note payable, accounts receivable, service revenue, salary expense, rent expense, advertising expense, prepaid expense, computer equipment, salaries expense, salaries payable, office supplies, and cost of goods sold.

Journal entries for Salisbury Company

Students prepare journal entries for transactions of the Salisbury Company. The transactions involve selling shares, purchasing equipment, paying rent and utilities, selling inventory, and depreciation.

Balance sheet equation

Students use the balance sheet equation to determine missing amounts. The balance sheet includes long-term debt, cash, accounts receivable, common stock, inventory, accounts payable, property, plant, and equipment, additional stockholders’ equity, other assets, and other liabilities.

Key terms

Journal entries

Records of financial transactions in a company's accounting system.

T-accounts

A visual representation of a general ledger account.

Balance sheet

A financial statement that shows a company's assets, liabilities, and equity.

Depreciation

The allocation of the cost of a tangible asset over its useful life.

Accounts receivable

Money owed to a company by customers for goods or services delivered.

Accounts payable

Money owed by a company to suppliers for goods or services received.

Questions this document helps with

• What are the steps to record a transaction in a journal?
• How do you post journal entries to T-accounts?
• What is the balance sheet equation and how is it used?

Summary written with AI from the document's text.