Which Form 8655 Debit 2024

Hello everyone, this is Larry, your instructor for financial accounting. I'm going to run through with you a very fast example applying debits and credits. Specifically, we want to show you a sequence of transactions to let you see how these transactions are recorded to the journal and posted to the ledger. Again, I'll be doing this very quickly, but you have the option of watching it on a video to stop, restart the video, and also go back and watch sections of it again. The other thing I'd like to ask before you go any further with this video is to make sure that in the financial accounting textbook, or your notes, or in the online materials that we provided, that you please review the standard rules for debiting and crediting. Those rules show when you debit a specific type of account and credit the specific type of account. Those rules are very important and if you're not familiar with them, you won't really understand the example that I'm about to show you very quickly. So let's take a look now at a new business that we've started up. I have a sequence of transactions here. Let's look at the first transaction on April 1st. Investors provided $10,000 in cash to start the new business, and the business issued common stock to the investors. So cash went up for the business by $10,000 and also common stock went up as equity was issued. Let's see what that looks like in our journal. The first journal entry shows that because cash is increased, we have debited cash for $10,000 and credited common stock for $10,000. Note the standard here that we use: we always list the debit before the credit, and we've indented the credit a little bit. Does everyone see how...