called an account.
An account,in its simplest form
Has three parts
01
A title which is the name of the accounting equation element recorded in the account.
Analyzing Transcation
APPLE, INC.™
How do you organize all of messages? Campnies develop an organized method for processing,recording,and summarizing financial transcations.
accounts.
Describe and illustrate
journalizing transaction using the double-entry
accounting system.
Describe and illustrate the journalizing and
posting of transactions to
Liabilities

Liabilities are debts owed to outsiders(creditors).
①Include accounts payable,notes payable,and wages payable. ②Unearned revenues ——cash received before services are deilvered creates a liability to perform the services.
The excess of the debits of an asset account over its credits is the balance of the account.
Chart of Accounts
A group of accounts for a business entity is called a ledger. A list of the accounts in the ledger is called a chart of accounts.
When Apple sells an iPhone online or at The Apple Store,a customer has many options to pay for it. In order to analyze only the information related to Apple’s cash transcations,the company must record or summarize all these similar sales using a single category or “cash”account.
This chapter presents more practical and efficient recording methods that most companies use.
One
Two
Three
Four
Describe the characteristics of an account and a chart of
accounts.
Prepare an unadjusted trial
balance and explain how it can be used to discover errors.
Using Accounts to Record Transactions
As a result,accounting systems are designed to show the increases and decreases in each accounting equation element as a separate record.This record is
✓The balance sheet accounts are listed first,in order of assets,liabilities,and owner’s equity.
✓The income statement accounts are then listed in the order of revenues and expense.
Title
Left side Right side
debit
debit
➢ Increases in assets are recorded on the debit(left side)of the account.
➢ Decreases in assets are reported on the credit(right side)of the account.
02 03
A space for recording increases in the amount of element.
A space for recording decreases in the amount of element.
The T account
The account form the presented blowed is called a T account because it resembles the letter T.
Each of these major account groups
assets
Is describe next
Assets are resources owned by the business entity.
①Physical items: a cash and supplies, ②Intangibles that have value：patent rights ,coprights ,and trademarks. ③Other assets: prepaid expenses ,bulidings, equipments, and land.