UsingT-AccountstoRecordTransactions-Extension.docVIP

Using T-Accounts to Record Transactions- Extension of Chapter 2 The book illustrates two approaches to recording transactions in the accounts: a computer spreadsheet and journal entries. Some instructors prefer that their students use T-accounts instead. This reading describes the use of T-accounts and illustrates their application using the transactions of Miller Corporation for January discussed in Chapter 2. DUAL EFFECTS OF TRANSACTIONS ON THE BALANCE SHEET EQUATION The balance sheet equation maintains the equality between total assets and total liabilities plus shareholders equity