Post a total of 3 substantive responses over 2 separate daysfor full participation. Thisincludes your initialpostand 2 repliesto other students.

Due Thursday

This week we will focus on steps 1 Analyzing business transactions, Step 2 Journalizing the transactions and Step 3 Posting Entries to general ledger accounts. We will start by learning about debits and credits.

As the bookkeeper of a new start-up company, you are responsible for keeping the chart of accounts up to date. At the end of each year, you analyze the accounts to verify that each account should be active for accumulation of costs, revenues, and expenses.

T accounts help us to visualize increases and decreases for an account.The left side of any account is always called the debit side and the right side of any account is always called the credit.We must determine the type of account before associating plus or minus.Review the T accounts presented in Chapter 2 Exhibit 2.6.

1.What do you think of when you hear the word debit? What do you think of when you hear the word credit?

2.What does our textbook say about debits and credits?

3.How would you describe the left and right side of each type of Balance Sheet Account and Income Statement Account?

4.Our eBook describes how to calculate an account balance. Can you describe this process for the Cash account in your own word? How is this process different for a Liability or Owner's Equity Account?

5.What does the term 'normal balance' mean?