Chapter 3

The Double-Entry Framework

Learning Objectives

  • LO1    Define the parts of a T account.
  • LO2    Foot and balance a T account.
  • LO3    Describe the effects of debits and credits on specific types of accounts.
  • LO4    Use T accounts to analyze transactions.
  • LO5    Prepare a trial balance and explain the purpose and link with the financial statements.

LO5

  1. The trial balance can be used as an aid in preparing the financial statements.
  2. Linkages Between the Trial Balance and Financial Statements (See Figure 3-23)
    1. In-Class Exercise: Complete Exercise E3-10A, E3-11A, E3-12A–USE EXCEL TO DO THIS–SHOW ME WHEN YOU ARE DONE
    2. In-Class Exercise: Complete Exercise  E3-10B, E3-11B, E3-12B–USE EXCEL TO DO THIS–SHOW ME WHEN YOU ARE DONE
    3. In-Class Exercise: Complete Problem P3-14A, P3-14B–USE EXCEL TO DO THIS–SHOW ME WHEN YOU ARE DONE
    4. In-Class Exercise: Complete Problem P3-15A, P3-15B–SHOW ME WHEN YOU ARE DONE