Every “T” Account has: An Increase Side, and A Decrease Side But, Some Accounts Increase on the Debit Side And, Some Accounts Increase on the Credit Side

Remember ASSETS + Increase on Debit Side Decrease on Credit Side Dr. ASSET ACCOUNTS Increase on Debit Side Decrease on Credit Side Dr. Cr. + ASSETS

IN EVERY TRANSACTION DEBITS MUST EQUAL CREDITS RULE #2 IN EVERY TRANSACTION DEBITS MUST EQUAL CREDITS

DEBITS = CREDITS OFFICE SUPPLIES CASH DR. CR. DR. CR. + + $800 $800

Remember Liability + Decrease on Debit Side Increase on Credit Side LIABILITY ACCOUNTS Decrease on Debit Side Increase on Credit Side Dr. Cr. + Liability

DEBITS = CREDITS + + EQUIPMENT ACCOUNTS PAYABLE DR. CR. DR. CR. $3000

Remember + Dr. Cr. Decrease on Increase on Debit Side Credit Side CAPITAL ACCOUNT Decrease on Debit Side Increase on Credit Side Dr. Cr. + JUST LIKE LIABILITY ACCOUNTS

DEBITS = CREDITS + + CASH M. ADAMS, CAPITAL DR. CR. DR. CR. $25,000

You have to Remember + Dr. Cr. JUST LIKE ASSET ACCOUNTS DRAWING ACCOUNT Increase on the Debit Side Decrease on the Credit Side Dr. Cr. + JUST LIKE ASSET ACCOUNTS

DEBITS = CREDITS + + M. ADAMS, DRAWING CASH DR. CR. DR. CR. $1,500

You have to Remember + Dr. Cr. Decrease on Increase on Debit Side REVENUE ACCOUNTS Decrease on Debit Side Increase on Credit Side Dr. Cr. + JUST LIKE LIABILITY & CAPITAL ACCOUNTS

You have to Remember + Dr. Cr. JUST LIKE ASSET ACCOUNTS EXPENSE ACCOUNTS Increase on the Debit Side Decrease on the Credit Side Dr. Cr. + JUST LIKE ASSET ACCOUNTS

DEBITS = CREDITS WAGES EXPENSE CASH DR. CR. DR. CR. + + $750 $750

BALANCING “T” ACCOUNTS STEP #1 FOOT DEBIT & CREDIT SIDES CASH 2,000 500 570 430 1 1,200 300 200 5050 80 650 150 1 FOOTING 3,500 To “Foot” means to Total FOOTING 3,130

BALANCING A “T” ACCOUNT STEP #2: Find balance by finding the difference between the debit and credit totals. $3,500 debit footing – $3,130 credit footing $ 370 balance

BALANCING “T” ACCOUNTS Balance is written on side with larger total CASH 2,000 500 570 430 1 1,200 300 200 5050 80 650 150 1 3,500 BALANCE 370 3,130

TRIAL BALANCE LIST OF ALL ACCOUNTS INCLUDING THEIR BALANCES TOTALING DEBITS AND CREDITS PROVING DEBITS EQUAL CREDITS USED AS AN AID IN PREPARING FINANCIAL STATEMENTS

Jessica Jane’s Campus Delivery Trial Balance June 30, 20-- Account Title Debit Balance Credit Balance HEADING should include: Name of the Company Title of Document “Trial Balance” Date of the Trial Balance

Jessica Jane’s Campus Delivery Trial Balance June 30, 20-- Account Title Debit Balance Credit Balance Cash 370 00 Accounts Receivable 650 00 Supplies 80 00 Prepaid Insurance 200 00 Delivery Equipment 3600 00 All Asset accounts listed first

Jessica Jane’s Campus Delivery Trial Balance June 30, 20-- Account Title Debit Balance Credit Balance Cash 370 00 Accounts Receivable 650 00 Supplies 80 00 Prepaid Insurance 200 00 Delivery Equipment 3600 00 Accounts Payable 1800 00 Liabilities are shown next

Jessica Jane’s Campus Delivery Trial Balance June 30, 20-- Account Title Debit Balance Credit Balance Cash 370 00 Accounts Receivable 650 00 Supplies 80 00 Prepaid Insurance 200 00 Delivery Equipment 3600 00 Accounts Payable 1800 00 Jessica Jane, Capital 2000 00 Jessica Jane, Drawing 150 00 Now the Owner’s Equity Accounts

Jessica Jane’s Campus Delivery Trial Balance June 30, 20-- Account Title Debit Balance Credit Balance Cash 370 00 Accounts Receivable 650 00 Supplies 80 00 Prepaid Insurance 200 00 Delivery Equipment 3600 00 Accounts Payable 1800 00 Jessica Jane, Capital 2000 00 Jessica Jane, Drawing 150 00 Delivery Fees 2150 00 Then the Revenue Account

Jessica Jane’s Campus Delivery Trial Balance June 30, 20-- Account Title Debit Balance Credit Balance Cash 370 00 Accounts Receivable 650 00 Supplies 80 00 Prepaid Insurance 200 00 Delivery Equipment 3600 00 Finally, the Expenses Accounts Payable 1800 00 Jessica Jane, Capital 2000 00 Jessica Jane, Drawing 150 00 Delivery Fees 2150 00 Wages Expense 650 00 Rent Expense 200 00 Telephone Expense 50 00

Jessica Jane’s Campus Delivery Trial Balance June 30, 20-- Account Title Debit Balance Credit Balance Cash 370 00 It Balances!!! Debits = Credits Accounts Receivable 650 00 Supplies 80 00 Prepaid Insurance 200 00 Delivery Equipment 3600 00 Accounts Payable 1800 00 Jessica Jane, Capital 2000 00 Jessica Jane, Drawing 150 00 Delivery Fees 2150 00 Wages Expense 650 00 Rent Expense 200 00 Telephone Expense 50 00 5950 00 5950 00