Required information Learning Objective 02-A1: Analyze and record transactions and their impact on financial statements. Transactions are recorded in a journal, Each entry in a journal is posted to the accounts in the ledger. This provides information that is used to produce financial statements. Balance column accounts are widely used and include columns for debits, credits, and the account balance. We analyze transactions using concepts of double-entry accounting. This analysis is performed by determining a transaction's effects on accounts. Purchase Equipment for Cash 1. Identify 2. Analyze 1. Identify The company pays $5,000 cash for equipment. 2. Analyze 3. Record 4. Post 3. Record 4. Post Journal entry worksheet On December 31 , the company purchases equipment for $10,000 and pays for the purchase in cash. Note: Enter debits before credits