UNDERSTANDING JOURNAL ENTRIES

Testing Make You Nervous? Test Prep Internet Library May Help

 


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 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.

 
   

Helpful Organize Information
Try to arrange data in an organized fashion.
Summarize data in balance sheet arranged T accounts.
Show formulas and mathematical steps. 

 
 

 

Recording Steps
Record the finances choosing one or more cash, receivable, payable, Record why the financing occurred when necessary assets purchased or revenue earned expenses incurred). Make sure debits equal credits