First Understand the Direction
Do not be in a hurry to record
Read the directions carefully.
Be sure to underline the important dates,
amounts, and problem requirements.
Second Understand Business Activity
Accounting transactions describe a
To record this activity you must understand it
State the given data and do the math calculations.
If an earlier Journal Entry is involved,
make it part of your analysis.
Then Organize Information
Try to arrange data in an
Record data in balance sheet arranged T accounts.
Show formulas and
finance cash, receivable, payable.
Record why financing occurred assets
purchased, expenses incurred or revenue earned.
Make sure debits