The document explains the double-sided effect of accounting, emphasizing that every transaction requires a corresponding debit and credit in asset, liability, and equity accounts. It discusses the use of T accounts to represent transactions visually, helping to analyze and simplify record-keeping, as well as how increases and decreases in accounts affect owner's equity. The importance of maintaining balance in accounting records through these principles is underscored.

1. 1: Class remember there is a double sided effect of accounting.
Basically an account will have two sides, whatever happens
with one side must happen to the other. For every transaction on
the left, there must be one on the right. Increases in
organizational assets are debited to an organizations asset
account. Increases in liabilities and shareholder stakes are
credited to liability and shareholder stake accounts.
2: Hi Todd and Class,
Well noted Todd. For every transaction there must be at least
on account debited and one account credited. Increases in assets
are debited to asset accounts. Increases in liabilities and
owner's equity are credited to liability and owner's equity
accounts. One of the more difficult points to understand is the
application of these rules to the owner's equity components of
revenues, expenses and withdrawals. Revenues increase
owner's equity and expenses and withdrawals decreases owner's
equity. For every transaction there needs to be a reaction. So if
you debit one account you need to credit the other to have a
balance.
3: A T account are vertical and horizontal lines that connect in
the shape of a T to analyze account transactions that consist of
assets, liabilities and equity. These are called classification of
accounts.
The left side of the T reflect credits and the right side reflect
debits for each classification.
By creating individual T accounts for each transaction it makes
it easier to create true transaction record for the balance sheet .
Based on the information determined for each T account listed

2. it is easier to list each category (pivot tables), debit, credit and
balance.
4:According to our reading material chapter 3 section 1
objective 3.1, a T account consists of vertical line and a
horizontal line that resembles the letter T. These T accounts are
helpful when analyzing transactions. Many accounts use these
accounts to analyze their transactions. It is very helpful to see
that our chapter had an example of a T account:
Assets = Liabilities + Owner's equity
Using T accounts help us to simplify record keeping by
grouping certain transactions together. Debit purchases are to
the left of the T and credit purchases are to the right of the T.
The balance for each transaction is kept at the bottom of each
account.