Can Form 8655 Accounting 2024

Here is the revised and divided text into sentences: In this lesson, I'm going to talk more about the three-step process we use in accounting. We're going to talk about various accounting principles and practices. Are you ready to begin? As a quick refresher, in our last lesson, we talked about a three-step process to use in accounting. Step one is to analyze the transaction. Not all transactions give rise to a journal entry. For example, if you hire someone, there's no entry to consider. If a customer gives you an order, it's just an order, and nothing has happened yet, so there's nothing to record. Also considered in this step is whether you have transactions that are on account of income or capital. Step two assumes that you have a transaction to record. Here, you need to consider two things: the accounts and the amounts to debit and credit. Step three is to post the journal entry into the general ledger. This means adding or subtracting the debits and credits from the existing balance in the impacted accounts. To keep these lessons manageable, I'm going to chunk them down into three stages. In stage one, we will analyze the transactions and prepare the journal entry. In stage two, we will post the entry to arrive at a trial balance using a spreadsheet. In stage three, we'll prepare a set of financial statements, including the balance sheet, the statement of changes in equity, and the income statement. I'm going to use a mini case throughout this lesson and the lessons to follow so that you can see for yourself how this works. Let's keep the story short and sweet. Simple Simon decided to start his own business upon graduation on May 1st of this year. His business idea is to sell and install air conditioning units...