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The Corporate Finance Institute Accounting
Example 4: Purchased land costing $50,000 and buildings costing $400,000. Paid
Acquiring land journal entry $100,000 in cash and signed a note payable for the balance.
DR Land: 50,000
DR Buildings: 400,000
CR Cash: 100,000
CR Note payable: 350,000
How to Track Journal Entries
A significant component of accounting involves financial reporting.
Financial reporting is the act of presenting a company’s financial
statements to management, investors, the government, and other
users to make better business decisions.
In order to determine the final monetary value of accounts that are
listed on financial statements in the company’s year end, multiple
journal entries are recorded and tracked in an account called a
T-Account, which is a visual representation of a general ledger account.
The appropriate debits and credits are listed under the appropriate
columns under these T-Accounts to determine the final value to be
reported.
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