Journalizing, Posting, and preparing a trial balnace

When doing a financial report the general goals are pretty obvious. A financial report is a way to show the intake and the out take of a business such as the rent of a building which would be the debit. The credit would be an example of common stock. As I was working on Appendix C I had to stop and think about debit and credit and what they actually meant. Debit is a source of an outcome, which means that money is being removed. Credit is when there is income being added. The steps that I took in the recording process were to first start with number one which was stockholders invested $25,000 cash in exchange for common stock. When reading the problem I noticed that the stockholders invested 25000 cash in exchange for common stock, which to me it meant that there was no debit happening here, it was a credit for common stock. As I keep going through the numbers there were some spots that confused me such as hired secretary for 2000 a month and paid secretary 2000 a month. I decided that the hired a secretary for 2000 was for credit because a secretary is a needed service, but I also added it in the debit because the secretary is being paid which means money is leaving. After going over every number problem I realized the steps that I am taken have to really be considered because with each step the answer is in really reading each number and searching for specific words such as received, or purchased. I think the principle of accounting do support the steps I have taken, because reading and looking for specific signs can help make things easier to understand, which is a very good thing when doing anything financially.