Project 1
1. Project 1
1.11. Page 4
Training Room 3: Analyzing Temporary Capital Accounts
Time to Work
When you are confident that you can analyze transactions, continue to your T-accounts assignment.
Do you remember the steps?
Step 1: Which accounts are affected? (refer to the account titles and place on T-accounts)
Step 2: What types of accounts are these?
Step 3: What does the T look like for this type of account? (refer to
Analyzing the Balance Sheet in Tips and Tricks in the Toolkit)
Step 4: Are these accounts increasing or decreasing?
Step 5: Are these accounts debits or credits?
Refer to the Analyzing Transactions chart to help you with this assessment assignment. The chart is also available in the Toolkit.
Complete the T-Accounts Assignment now.
Training Room 3 Summary
As we analyze daily transactions, it is important to remember that debits must always equal credits. This is called a double-entry accounting system and, therefore, provides a self-check so that you know if an error has been made.
It’s also important for you to know the balance sides of these accounts before you can analyze daily transactions. Remember that you can always refer to the Analyzing Transactions chart, available in the Toolkit. To help you think through your analysis, the Transaction Analysis Steps are also available in the Toolkit.
Continue to the next training room to see how to enter these transactions into a general journal.