UNDERSTANDING JOURNAL ENTRIES
Understand the Direction
Do not be in a hurry to record Journal Entries.
Read the directions carefully.
Be sure to underline the important dates, amounts, and problem requirements.
Understand the Business Activity
Accounting transactions describe a business activity.
To record this activity you
must understand it thoroughly.
State the given data and do the math calculations.
If an earlier Journal Entry is involved,
make it part of your analysis.
Record the finances
one or more cash,
Record why the financing occurred when necessary assets purchased or
Make sure debits equal
Try to arrange data
in an organized fashion.
Summarize data in balance
sheet arranged T accounts.
Show formulas and mathematical steps.
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Test Review Notes
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