UNDERSTANDING JOURNAL ENTRIES 

1. Understand the Problem Direction
Do not be in a hurry to record Journal Entries. 
Read the directions carefully. Be sure to underline the important dates, amounts, and problem  requirements.
 

2. Understand Business Activity
Accounting transactions describe a business activity. To record this activity you must understand it thoroughly. State the given data and do the math calculations. If an earlier Journal Entry is involved, make it part of your analysis.

3. Organize Information
Try to arrange data in an organized fashion. Record  data in balance sheet arranged T accounts.
Show formulas and mathematical steps. 

4. Recording Steps
Record finance cash, receivable, payable.
 Record why financing occurred  assets purchased,  expenses incurred or revenue earned.
Make sure debits equal credits.

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