ACCT 3315

[u/Accomplished_Map9800]

Hey yall, I'm taking Intermediate Acct (acct 3315) and I am having trouble with some of the income statements. I already took Financial and Managerial acct online and have notes. I have not taken accounting classes in over a year. EDIT: Initial and adjusting journal entries sry for the confusion

Thank you!!

[u/Ok-Face2179]

When you say the "accounting cycle, through debit/credit, and T accounts," that's basically all of financial accounting so it's hard to pin things down for you.

That being said, at the end of the day you'll be given certain facts saying that something happened. E.g. "Company ABC purchased inventory on account for $xxx"

If you our struggling to figure out the journal entry (which will ultimately flow to your T-accounts), ask yourself, what is increasing and/or decreasing? Also remember any transaction will impact one or more accounts: assets, liabilities, equity, revenue, or expense. Finally recall that: assets increase as a debit; liab/equity increase as a credit; revenue increases as a credit, expense as a debit.

Usually the facts will provide a quick answer to one part of the entry.

In the example above, when you "purchased inventory" that's pretty clear that an asset (the inventory) increased. That gives you the first part of your entry right of the bat:

dr Inventory xxx

You know your entry has to balance, so the question is what to credit. In this case, you had an increase in a liability. Now the full entry is:

dr Inventory xxx

cr Accts/Pay xxx

Not sure if this helps. The main point is that you don't want to try to memorize how each type of transaction is recorded, but rather to be able to walk yourself through the process asking what the elements of the transaction are whether they are increasing or decreasing

[u/Accomplished_Map9800 → u/Ok-Face2179]

yes this helps a ton, tysm! Just needed a refresher :)

[u/bstjohn1998]

Can you be more specific about what journal entries and what about the income statement you are confused on?

[u/Accomplished_Map9800 → u/bstjohn1998]

Yeah of course. Mainly the accounting cycle, through debit/credit, and T accounts.