After completing this chapter you should be able to: Explain what an account is and how it helps in the recording process, define debits and credits and explain their use in recording business transactions, identify the basic steps in the recording process,.and other contents. | Prepared by Coby Harmon University of California, Santa Barbara Westmont College 2-1 2 The Recording Process Learning Objectives After studying this chapter, you should be able to: [1] Explain what an account is and how it helps in the recording process. [2] Define debits and credits and explain their use in recording business transactions. [3] Identify the basic steps in the recording process. [4] Explain what a journal is and how it helps in the recording process. [5] Explain what a ledger is and how it helps in the recording process. [6] Explain what posting is and how it helps in the recording process. [7] Prepare a trial balance and explain its purposes. 2-2 Preview of Chapter 2 Accounting Principles Eleventh Edition Weygandt Kimmel Kieso 2-3 The Account Record of increases and decreases in a specific asset, liability, equity, revenue, or expense item. Debit = “Left” Credit = “Right” Account An account can be illustrated in a Taccount form. 2-4 Account Name Debit / Dr. Credit / Cr. LO 1 Explain what an account is and how it helps in the recording process. The Account Debits and Credits Double-entry system ► ► Recording done by debiting at least one account and crediting another. ► 2-5 Each transaction must affect two or more accounts to keep the basic accounting equation in balance. DEBITS must equal CREDITS. LO 2 Define debits and credits and explain their use in recording business .
