OVERVIEW
Due to the great number of transactions that occur daily in most businesses, accountants do not find it practical to present the cumulative effects of these transactions on the basic accounting equation in tabular form as we did in Exercise 2 in Chapter 1. Instead, they have developed a system by which the effects of transactions and events may conveniently be recorded, sorted, summarized, and stored until financial statements are desired. That system is the focus of this chapter.
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