@jasonrobbins
If you don't know journal entries you may be screwed when it comes to the SIMS because that's the part that utilized JEs most in my WTB & Beckers SIMS. But using JEs to help with MCQs is also good because it can help you when you don't remember what increases where. At least thats how i think.
For instance you can't remember if Accounts Payable has a Debit or Credit balance, so i would right down the journal entry to record a payable.
Dr Inventory
Cr AP
This entry increases AP so AP has a credit balance.
Knowing JEs also helps when you have to “plug” a number, like in a sale of an asset.
Ex:
Asset Original cost 10,000
Accum Depr. 9,000
Sold the asset for 3,000
How much is the Gain and is it a debit or a credit? Well just start doing the JE for this transaction.
DR Cash 3,000
DR Accum Depr 9,000
Cr Asset Cost 10,000
Gain = DR/CR? And how much
Gain = CR 2,000 (12,000 – 10,000)
Your debits and credits always have to equal so the debits total 12,000 (Cash + AD) and your credits equal 10,000. Your gain is a 2,000 Credit because the credit side is the uneven side.
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