Below are the 2 most recent journal entries recorded in jordanking691's InsaneJournal:

Thursday, November 17th, 2011
11:49 pm	Basic Accounting Concepts - An intro For newbies The definition of accounting would be the study of how businesses track their income and expenses. Accounting practices are necessary in business for just two major reasons: - To view if a small business is getting a profit and ways in which much profit is now being made. - To recover financial information for filing taxes. In an effort to understand accounting systems, understanding of some elementary accounting concepts is essential. The accounting process is composed of three parts, including the journal, general ledger, and subsidiary ledgers. Each one of these parts provide valuable information to your entrepreneur. Accounting Classes Journal - Every individual transaction entry is entered and recorded in the journal. You'll find often several unique types of journals in a business. Every sort of journal records a different type of transaction. By way of example, a transaction could be classified like a sale, purchase, cash receipt, or cash disbursement. After these transactions are entered and arranged while in the journal, they are employed in the general ledger. General Ledger - After being transferred on the journals on the general ledger, the financial results are organized into three main categories: Assets, Liabilities, and Capital. The account balance might be calculated as well as a financial report is obtained. Accounting Seminars Subsidiary Ledger - The subsidiary ledger provides more specific information which isn't able to be provided while in the General Ledger, including the name and demographics of each one customer along with the customer's balance. This information is obviously of importance to billing purposes. Familiarity with debits and credits may be the basis of understanding accounting systems. Because ever see transaction affects a minimum of two accounts, each transaction is recorded employing a double-entry system of debits and credits. Debits are entered within the left side of the balance sheet. Credits are entered within the right side. Costs and Expenses are recorded as debits. Salary is recorded as credits. Assets are recorded as debits. Liabilities are recorded as credit. Debits and credits must be equal for all those entries. This is referred to as the Accounting Equation: Assets = Liabilities + Owner's Equity Assets are things valuable which the company owns. Liabilities are the company owes. Owner's equity (or capital) may be the value of a business and includes any debt owed to entrepreneurs. For instance, say I'm getting a car for $10,000. If I borrow $5500 and still have saved $4500, my assets are worth $10,000, my liabilities are $5500, and my equity is $4500. As we plug these numbers in the General Accounting Equation, we formulate $10,000 = $5500 + $4500. Note how the equation is balanced. (Comment on this)
11:47 pm	Basic Accounting Concepts - An intro For newbies The phrase accounting would be the study of methods businesses track their income and expenses. Accounting practices are important in a business for a few major reasons: - To find out whether or not a profitable business is generating a profit and how much profit is it being made. - To accumulate financial information for filing tax returns. To be able to understand accounting systems, comprehension of basic accounting concepts is critical. The accounting process is composed of three parts, which feature the journal, general ledger, and subsidiary ledgers. All these parts provide valuable information to your company leader. Accounting Classes Journal - Each one transaction entry is entered and recorded in a very journal. You'll find often several different different types of journals in business. Every type of journal records a different type of transaction. For example, a transaction could be classified for a sale, purchase, cash receipt, or cash disbursement. After these transactions are entered and organized inside the journal, they may be utilized in the final ledger. General Ledger - After being transferred with the journals for the general ledger, the financial details are organized into three main categories: Assets, Liabilities, and Capital. The balance is calculated and also a financial report is obtained. Accounting Seminar Subsidiary Ledger - The subsidiary ledger provides more specific information which is not capable of being provided within the General Ledger, for example the name and demographics of each one customer as well as the customer's balance. This post is obviously important for billing purposes. Understanding of debits and credits is the first step toward understanding accounting systems. Because ever see transaction affects at the least two accounts, each transaction is recorded with a double-entry system of debits and credits. Debits are entered for the left side on the balance sheet. Credits are entered within the right side. Costs and Expenses are recorded as debits. Income is recorded as credits. Assets are recorded as debits. Liabilities are recorded as credit. Debits and credits must be equal for those entries. The following is called the final Accounting Equation: Assets = Liabilities + Owner's Equity Assets are things valueable how the company owns. Liabilities are precisely what the company owes. Owner's equity (or capital) is the net worth on the business and includes any debt owed to business owners. As an example, say We are the purchase of a car for $10,000. Basically borrow $5500 and get saved $4500, my assets count $10,000, my liabilities are $5500, and my equity is $4500. As we plug these numbers in the General Accounting Equation, we think of $10,000 = $5500 + $4500. Note how the equation is balanced. (Comment on this)