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Chapter 2 I Know what double-entry accounting mens 2. Know what Debit & Credit means 3. Know the definition of normal balance. 4. Be able to determine an amount missing from a T-account 5. Know what the journal is and what it is used for 6. Know what the ledger is and what it is used for 7. Know the definition of posting 8. Know what the Trial Balance is and its primary purpose. 9. Correct sequence for the following: Journal: Ledger, Trial Balance, Financial Statements. 10. Be able to determine the effect of a particular journal entry on the accounting equation (example - bought a truck by taking out a loan; Assets increase liabilities increase) 11. (10 point write-out problem) - List of accounts - determine classification and normal balance 12. (10 point write-out problem) - Prepare journal entries for business transactions