What Is This Debit (Dr

WHAT IS THIS DEBIT (DR.) AND CREDIT (CR.) STUFF ANYWAY?

Debits and credits are essential to accounting. To help you understand the impact a debit and credit has on the most common accounts, you are going to create “flashcards” for each account listed below:

¨ Cash

¨ Office Supplies

¨ Prepaid Expenses

¨ Equipment

¨ Accounts Receivable

¨ Accounts Payable

¨ Buildings

¨ Land

¨ Notes Receivable

¨ Notes Payable

¨ Unearned Revenue

¨ Accrued Liabilities

¨ Capital

¨ Withdrawal

¨ Revenues

¨ Expenses

To keep this simple, you are going to create these flashcards as if you are the owner of this business. The business is a movie theater. If you want to have a movie theater like Hoyts on Front Street in Binghamton that has stadium seating, awesome; if you want to have a movie theater that is a drive in, wonderful; if you want to have a movie theater like the Endicott Cinema Saver, fantastic. That decision is up to you. You do need to include the following on your flashcards (please note: these flashcards can be whatever size you want to make them):

Item / Points
Include pictures that would show what the account represents (i.e. cash for cash, checks for cash) / /16
Account classification (A, L, OE) / /8
Impact a dr. or cr. has on the account / /8
Accounts normal balance side / /8
Sample transaction when the account would increase (include a realistic transaction of the movie theater business) / /16
Completed a flashcard for each account / /32
Creativity / /32
TOTAL / /120

These requirements must be obvious on each flashcard. I will not give you the benefit of the doubt if these are not obvious nor will you receive partial credit. You will not have class time to work on this!!!

You must staple this or paperclip this handout to your assignment. This is due on Monday, October 27!