ACCT 217 Lecture Notes - Lecture 6: Financial Statement, General Ledger, Trial Balance
26 Mar 2017
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Normal dr balance: up = dr down = cr. Normal cr balance: up = cr down = dr. The accounting cycle post transactions t accounts. The ship and anchor has the following transactions. Issued common shares to shareholders in exchange for ,000. Yes: for the business transactions, journalize them, and post all transactions to the g/l. The 4th step in the accounting cycle is the preparation of the trial balance. The trial balance lists all of the t-account ending balances as of a specific date (total debits = total credits!) You cannot have a balance in both the debit side and the credit side. The main point of the trial balance is to prove that the debits equal the credits after posting: a trial balance is also useful in the preparation of financial statements. A properly prepared trial balance will always have the sum of debits equal to the sum of the credits.
