Chapter 2 Review of the Accounting Process Main Points 1. Accounting Equation (L01) 2. Transaction analysis (LO2) 3. Journal entries (LO3) 4. Adjusting entries (LO5, 6) 5. Posting (LO4) 6. Trial Balance (L06) 7. Preparing financial statements (L07) 8. Closing entries (L08) 2. Transaction analysis (L02) For each event below, determine whether it is or is not a transaction: 1. Nine West buys a cash register 2. Nine West order 10 pairs of shoes from Eight West; shoes will be shipped in two weeks 3. Nine West received the ordered shoes but does not pay for them 4. Nine West signs a contract with an attorney to provide legal services starting next month; no money changes hands 5. Nine West sells shoes to a customer