[ntxawm_2008]

I am not understanding which items to put under credits and which goes under debits.
i.e. cash, accounts receivable, accts payable, rental revenue, supplies expense, etc.

I do not understand which items go under which statement. i.e. adjustments, income statement,etc.

:(

[pready]

Assets and Expenses have a normal Debit Balance. Assets are on the Balance Sheet.
Expenses are on the Income Statement.

Liabilities, Owner's Equity, and revenues have a normal Credit balance. Liabilities and Owner's Equity are on the Balance Sheet. Revenues are on the Income Statement.

Adjusting entries are shown on a worksheet and jounalized in the General Journal. They do not appear on the Financial Statements because they are a transaction.

[ROLCAM]

DEBITS = ALL ASSETS + ALL EXPENSES
CREDITS = ALL LIABILITIES + ALL INCOMES

FORMULA = A + E = L + I

Please remember this for ever.
You will never go wrong again.

[pready]

Adjustments affect one Balance sheet account and one Income Statement account.

Example for Supplies used during the period.
Debit Supplies Expense - Income Statement Account
Credit Supplies - Balance Sheet Account