Describe the purpose and structure of a journal entry.
Identify the purpose of a journal.
. Define “trial balance” and indicate the source of its monetary balances.
. Prepare journal entries to record the effect of acquiring inventory, paying salary, borrowing money, and selling merchandise.
. Define “accrual accounting” and list its two components.
. Explain the purpose of the revenue realization principle.
Explain the purpose of the matching principle.