Day 18: Debit and Credit Rules

T-accounts

• left = debit
• right = credit
• left = right
• Debit = Credit

Rules of Debit and Credit

• Assets are on the left
• so increase on the debit side
• Liabilities are on the right
  so increase on the credit side
• Stockholders' Equity is on the right
  so increases with credits
• Common (Capital) Stock
• Retained Earnings
• Revenues
• Fees Earned
• Sales

Assignment:

• pg 84 Discussion #2
• pg 86 EX 2-1
• pg 87 EX 2-4