The General Journal and the General Ledger Instructor: Michael Booth
|
|
|
- Suzan Holt
- 5 years ago
- Views:
Transcription
1 Week 5, Chap 4 The General Journal and the General Ledger Instructor: Michael Booth
2 McGraw-Hill 2007 The McGraw-Hill Companies, Inc. All rights reserved. The General Journal and the General Ledger The General Journal Section Objectives 1. Record transactions in the general journal. 2. Prepare compound journal entries.
3 QUESTION: What is the accounting cycle? ANSWER: The accounting cycle is a series of steps performed during each accounting period to classify, record, and summarize data for a business and to produce needed financial information.
4 The Accounting Cycle Step 1 Analyze transactions Step 2 Journalize the data about transactions Step 3 Post the data about transactions Step 4 Prepare a worksheet Step 5 Prepare financial statements Step 9 Interpret the financial information Step 8 Prepare a postclosing trial balance Step 7 Record closing entries Step 6 Record adjusting entries
5 Journals
6 QUESTION: What is a journal? ANSWER: A journal is a record of original entry.
7 Journal A journal is a diary of business activities. There are different types of journals. Transactions are entered in the journal in chronological order.
8 QUESTION: What is chronological order? ANSWER: Chronological order is the order in which events occur.
9 The General Journal
10 Record transactions in the general journal.
11 QUESTION: What is a general journal? ANSWER: A general journal is a financial record for entering all types of business transactions.
12 QUESTION: What is journalizing? ANSWER: Journalizing is the process of recording transactions in a journal.
13 GENERAL JOURNAL PAGE 1 DATE DESCRIPTION POST. DEBIT CREDIT REF Nov. 6 Cash Carolyn Wells, Capital 100, , Enter the account to be debited. Enter the amount on the same line in the Debit column. Enter the account to be credited. Enter the amount on the same line in the Credit column.
14 GENERAL JOURNAL PAGE 1 DATE DESCRIPTION POST. DEBIT CREDIT REF Nov. 6 Cash 100, Carolyn Wells, Capital 100, Investment by owner, Memo 01 Then enter a complete but concise description of the transaction. Whenever possible, the journal entry should refer to the source of the information. Document numbers are part of the audit trail.
15 QUESTION: What is an audit trail? ANSWER: An audit trail is a chain of references that makes it possible to trace information, locate errors, and prevent fraud.
16 Recording Month s (November) Transactions in the General Journal
17 Recording a Business Transaction 1. Analyze the financial event. Identify the accounts affected. Classify the accounts affected. Determine the amount of increase or decrease for each account affected. 2. Apply the rules of debit and credit. a. Which account is debited? For what amount? b. Which account is credited? For what amount? 3. Make the entry in T-account form. 4. Record the complete entry in general journal form.
18 1. Analyze the financial event. Business Transaction On November 6 Carolyn Wells withdrew $100,000 from personal savings and deposited it in a new business checking account for Wells Consulting Services.
19 2. Apply the rules of debit and credit. Cash Investment by Owner Which account is debited? Which account is credited? For what amount? For what amount?
20 3. Make the entry in T-account form. Cash Investment by Owner 100,000 Cash Carolyn Wells, Capital 100,000
21 4. Record the complete entry in general journal form. Cash Investment by Owner GENERAL JOURNAL PAGE 1 DATE DESCRIPTION POST. DEBIT CREDIT REF Nov. 6 Cash 100, Carolyn Wells, Capital 100, Investment by owner Identify the accounts affected. Classify the accounts affected. Determine the amount of increase or decrease for each account affected.
22 1. Analyze the financial event. Business Transaction On November 7 Wells Consulting Services issued Check 1001 for $5,000 to purchase a computer and other equipment.
23 3. Make the entry in T-account form. Cash Purchase of Equipment Equipment Cash 5,000 5,000
24 4. Record the complete entry in general journal form. Cash Purchase of Equipment GENERAL JOURNAL PAGE 1 DATE DESCRIPTION POST. DEBIT CREDIT REF. Nov. 7 Equipment 5, Cash 5, Purchased equip., Check 1001
25 1. Analyze the financial event. Business Transaction On November 10, Wells Consulting Services purchased office equipment on account for $6,000.
26 3. Make the entry in T-account form. Credit Purchase of Equipment 6,000 Equipment Accounts Payable 6,000
27 4. Record the complete entry in general journal form. Credit Purchase of Equipment GENERAL JOURNAL PAGE 1 DATE DESCRIPTION POST. DEBIT CREDIT REF. Nov. 10 Equipment 6, Accounts Payable 6, Purchased equipment on account from Office Plus, Inv. 2223, due in 60 days All required information should be included in the explanation.
28 1. Analyze the financial event. 2. Apply the rules of debit and credit. Business Transaction On November 28, Wells Consulting Services purchased supplies for $1,500, Check Which account is debited? For what amount? Which account is credited? For what amount?
29 3. Make the entry in T-account form. Cash Purchase of Supplies Supplies Cash 1,500 1,500
30 4. Record the complete entry in general journal form. Cash Purchase of Supplies GENERAL JOURNAL PAGE 1 DATE DESCRIPTION POST. DEBIT CREDIT REF. Nov. 28 Supplies 1, Cash 1, Purchased supplies, Ck. 1002
31 1. Analyze the financial event. 2. Apply the rules of debit and credit. Business Transaction On November 30 Wells Consulting Services paid Office Plus $2,500 in partial payment of Invoice 2223, Check Which account is debited? For what amount? Which account is credited? For what amount?
32 3. Make the entry in T-account form. Payment to a Creditor Accounts Payable Cash 2,500 2,500
33 4. Record the complete entry in general journal form. Payment to a Creditor GENERAL JOURNAL PAGE 1 DATE DESCRIPTION POST. DEBIT CREDIT REF. Nov. 30 Accounts Payable 2, Cash 2, Paid on account, Office Plus, Invoice 2223, Check 1003
34 1. Analyze the financial event. 2. Apply the rules of debit and credit. Business Transaction On November 30, Wells Consulting Services wrote Check 1004 for $8,000 to prepay rent for December and January. Which account is debited? For what amount? Which account is credited? For what amount?
35 3. Make the entry in T-account form. Recording Prepaid Rent Prepaid Rent Cash 8,000 8,000 *Note: Both accounts affected are assets
36 4. Record the complete entry in general journal form. Recording Prepaid Rent GENERAL JOURNAL PAGE 1 DATE DESCRIPTION POST. DEBIT CREDIT REF. Nov. 30 Prepaid Rent 8, Cash 8, Paid Dec. and Jan. rent in advance; Check 1004
37 Recording Month s (December) Transactions in the General Journal
38 1. Analyze the financial event. 2. Apply the rules of debit and credit. Performed services for $36,000 in cash. December 31, Customer Invoice Which account is debited? For what amount? Which account is credited? For what amount?
39 3. Make the entry in T-account form. Performed services for $36,000 in cash. December 31, Customer Invoice ,000 Cash Fees Income 36,000
40 4. Record the complete entry in general journal form. Performed services for $36,000 in cash. December 31, Customer Invoice GENERAL JOURNAL PAGE 2 DATE DESCRIPTION POST. DEBIT CREDIT 2016 REF Dec. 10 Cash 36, Fees Income 36, Performed services for cash. Invoice Note: Change in page number
41 1. Analyze the financial event. 2. Apply the rules of debit and credit. Performed services for $11,000 on credit. December 31, Customer Invoice For what amount? Which account is debited? Which account is credited? For what amount?
42 3. Make the entry in T-account form. Performed services for $11,000 on credit. December 31, Customer Invoice Accounts Receivable 11,000 Fees Income 11,000 Record the revenue as earned even if you haven t received the cash.
43 4. Record the complete entry in general journal form. Performed services for $11,000 on credit. December 31, Customer Invoice GENERAL JOURNAL PAGE 2 DATE DESCRIPTION POST. DEBIT CREDIT REF. Dec. 31 Accounts Receivable 11, Fees Income 11, Performed services on credit. Invoice 3370
44 1. Analyze the financial event. 2. Apply the rules of debit and credit. Received $6,000 in cash from credit clients on their accounts, December 31, Which account is debited? For what amount? Which account is credited? For what amount?
45 4. Record the complete entry in general journal form. Received $6,000 in cash from credit clients on their accounts, December 31, GENERAL JOURNAL PAGE 2 DATE DESCRIPTION POST. DEBIT CREDIT REF. Dec. 31 Cash 6, Accounts Receivable 6, Received cash from credit clients on account
46 1. Analyze the financial event. 2. Apply the rules of debit and credit. Paid $8,000 for salaries, December 31, Checks Which account is debited? Which account is credited? For what amount? For what amount?
47 3. Make the entry in T-account form. Paid $8,000 for salaries, December 31, Check Salaries Expense 8,000 Cash 8,000
48 4. Record the complete entry in general journal form. Paid $8,000 for salaries, December 31, Checks GENERAL JOURNAL PAGE 2 DATE DESCRIPTION POST. DEBIT CREDIT REF. Dec. 31 Salaries Expense 8, Cash 8, Paid monthly salaries to employees, Check
49 1. Analyze the financial event. 2. Apply the rules of debit and credit. Paid $650 for a utility bill. Which account is debited? Which account is credited? For what amount? For what amount?
50 3. Make the entry in T-account form. Paid $650 for a utility bill, December 31, Check 1007 Utilities Expense 650 Cash 650
51 4. Record the complete entry in general journal form. Paid $650 for a utility bill, December 31, Check 1007 GENERAL JOURNAL PAGE 2 DATE DESCRIPTION POST. DEBIT CREDIT REF. Dec. 31 Utilities Expense Cash Paid monthly bill for utilities, Check 1007
52 1. Analyze the financial event. 2. Apply the rules of debit and credit. The owner withdrew $5,000 for personal expenses, December 31, 2016, Check Which account is debited? Which account is credited? For what amount? For what amount?
53 3. Make the entry in T-account form. The owner withdrew $5,000 for personal expenses, December 31, 2016, Check Carolyn Wells, Drawing 5,000 Cash 5,000
54 4. Record the complete entry in general journal form. The owner withdrew $5,000 for personal expenses, December 31, 2016, Check GENERAL JOURNAL PAGE 2 DATE DESCRIPTION POST. DEBIT CREDIT REF. Dec. 31 Carolyn Wells, Drawing 5, Cash 5, Owner withdrew cash for personal expenses, Check 1008
55 1. Analyze the financial event. 2. Apply the rules of debit and credit. Received $6,000 in cash from credit clients on their accounts, December 31, Which account is debited? For what amount? Which account is credited? For what amount?
56 3. Record the complete entry in general journal form. Received $6,000 in cash from credit clients on their accounts, December 31, GENERAL JOURNAL PAGE 2 DATE DESCRIPTION POST. DEBIT CREDIT REF. Dec. 31 Cash 6, Accounts Receivable 6, Received cash from credit clients on account
57 In Class Problem 4.1B
58 GENERAL JOURNAL PAGE DATE DESCRIPTION POST. DEBIT CREDIT REF.
59
60
61
62 McGraw-Hill 2007 The McGraw-Hill Companies, Inc. All rights reserved. The General Journal Objective Prepare compound journal entries.
63 Preparing Compound Entries
64 Business Transaction Let s go back to the November 7 transaction. Suppose that Well s Consulting Services purchased equipment for $5,000, issued a check for $2,500, and agreed to pay the balance in 30 days.
65 1. Analyze the financial event. 2. Apply the rules of debit and credit. November 7, 2016, Purchase Equipment $5,000 Partial Payment $2,500, Check 1001 Balance Due $5,000 in 30 days. Which account is debited? For what amount? Which account(s) is/are credited? For what amount?
66 3. Make the entry in T-account form. November 7, 2016, Purchase Equipment $5,000 Partial Payment $2,500, Check 1001 Balance Due $2,500 in 30 days. Equipment Cash Accounts Payable 5,000 2,500 2,500 Notice that this entry has one debit and two credits. This is a compound entry.
67 QUESTION: What is a compound entry? ANSWER: A compound entry is a journal entry that contains more than one debit or credit.
68 4. Record the complete entry in general journal form. November 7, 2016, Purchase Equipment $5,000 Partial Payment $2,500, Check 1001 Balance Due $2,500 in 30 days. GENERAL JOURNAL PAGE 1 DATE DESCRIPTION POST. DEBIT CREDIT REF. Nov. 7 Equipment 5, Cash 2, Accounts Payable 2, Bought equip. from The Information Technology Store, Inv. 11, issued Ck for $2,500, bal. due in 30 days 5, = 5, No matter how many accounts are affected by a transaction, total debits must equal total credits.
69 Exercise 4.4 (Compound Entry) GENERAL JOURNAL PAGE DATE DESCRIPTION POST. DEBIT CREDIT REF. ACCOUNT ACCOUNT NO. POST. BALANCE DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT
70 The General Ledger Objectives Post journal entries to general ledger accounts. Correct errors made in the journal or ledger.
71 Ledgers
72 QUESTION: What is a ledger? ANSWER: A ledger is the record of final entry. It is the last place that accounting transactions are recorded.
73 Ledgers The ledger contains a separate form for each account. The third step of the accounting cycle is posting to the ledger.
74 QUESTION: What is posting? ANSWER: Posting is the process of transferring data from a journal to a ledger.
75 The Accounting Cycle Step 1 Analyze transactions Step 2 Journalize the data about transactions Step 3 Post the data about transactions Step 4 Prepare a worksheet Step 5 Prepare financial statements Step 9 Interpret the financial information Step 8 Prepare a postclosing trial balance Step 7 Record closing entries Step 6 Record adjusting entries
76 The General Ledger
77 QUESTION: What is a general ledger? ANSWER: A general ledger is a permanent, classified record of all accounts used in a firm s operation.
78 The General Ledger Every business has a general ledger. The general ledger is the master reference file for the accounting system.
79 Ledger Account Forms
80 Ledger Account Forms On the ledger account form shown below, notice the: Account name and number Columns for date, description, and posting reference Columns for debit, credit, debit balance, and credit balance ACCOUNT CASH ACCOUNT NO. 101 POST. BALANCE DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT 2016 Nov. 6 J1 100, ,000.00
81 Posting to the General Ledger
82 Post journal entries to general ledger accounts.
83 Post to the general ledger in five steps. 1. On the ledger form, enter the date of the transaction. Enter a description of the entry, if necessary. Usually, routine entries do not require descriptions. 2. On the ledger form, enter the general journal page in the Posting Reference column. 3. On the ledger form, enter the debit amount in the Debit column or the credit amount in the Credit column.
84 Post to the general ledger in five steps. (cont.) 4. On the ledger form, compute the balance and enter it in the Debit Balance column or the Credit Balance column. 5. On the general journal, enter the ledger account number in the Posting Reference column.
85 Step 1: On the ledger form, enter the date of the transaction. Enter a description of the entry, if necessary. Usually, routine entries do not require descriptions. GENERAL JOURNAL PAGE 1 DATE DESCRIPTION POST. DEBIT CREDIT REF Nov. 7 Equipment 5, Cash 5, Purchased equipment Check 1001 ACCOUNT Equipment ACCOUNT NO. 141 POST. BALANCE DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT 2016 Nov. 7 J1 5, ,000.00
86 Step 2: On the ledger form, enter the general journal page in the Posting Reference column. The letter J refers to the general journal. GENERAL JOURNAL PAGE 1 DATE DESCRIPTION POST. DEBIT CREDIT REF Nov. 7 Equipment 5, Cash 5, Purchased equipment Check 1001 ACCOUNT Equipment ACCOUNT NO. 141 POST. BALANCE DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT 2016 Nov. 7 J1 5, ,000.00
87 Step 3: On the ledger form, enter the debit amount in the Debit column or the credit amount in the Credit column. GENERAL JOURNAL PAGE 1 DATE DESCRIPTION POST. DEBIT CREDIT REF Nov. 7 Equipment 5, Cash 5, Purchased equipment Check 1001 ACCOUNT Equipment ACCOUNT NO. 141 POST. BALANCE DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT 2016 Nov. 7 J1 5, ,000.00
88 Step 4: On the ledger form, compute the balance and enter it in the Debit Balance column or the Credit Balance column. GENERAL JOURNAL PAGE 1 DATE DESCRIPTION POST. DEBIT CREDIT REF Nov. 7 Equipment 5, Cash 5, Purchased equipment Check 1001 ACCOUNT Equipment ACCOUNT NO. 141 POST. BALANCE DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT 2016 Nov. 7 J1 5, ,000.00
89 Step 5: On the general journal, enter the ledger account number in the Posting Reference column. GENERAL JOURNAL PAGE 1 DATE DESCRIPTION POST. DEBIT CREDIT REF Nov. 7 Equipment 141 5, Cash 5, Purchased equipment Check 1001 ACCOUNT Equipment ACCOUNT NO. 141 POST. BALANCE DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT 2016 Nov. 7 J1 5, ,000.00
90 Review the Posting Process GENERAL JOURNAL PAGE 1 DATE DESCRIPTION POST. DEBIT CREDIT REF Nov. 7 Equipment 141 5, Cash 101 5, Purchased equipment Check 1001 ACCOUNT Cash ACCOUNT NO. 101 POST. BALANCE DATE DESCRIPTION REF. DEBIT CREDIT DEBIT CREDIT 2016 Nov. 6 J1 100, , Nov. 7 J1 5, ,000.00
91 In the general ledger accounts, the balance sheet accounts appear first and are followed by the income statement accounts. The order is: Assets Liabilities Owner s equity Revenue Expenses General Ledger Accounts This order of accounts speeds the preparation of the trial balance and the financial statements.
92 McGraw-Hill 2007 The McGraw-Hill Companies, Inc. All rights reserved. The General Ledger Objective Correct errors made in the journal or ledger.
93 Correcting Journal and Ledger Errors
94 Journal and Ledger Errors Sometimes errors are made when recording transactions in the journal. The method used to correct an error depends on whether or not the journal entry has been posted to the ledger.
95 Correcting Journal and Ledger Errors If an error is discovered before the entry is posted, neatly cross out the incorrect item and write the correct data above it. To ensure honesty and provide a clear audit trail, erasures are not made in the journal.
96 Before Posting On September 1 an automobile repair shop purchased some shop equipment for $9,000 in cash. By mistake the journal entry debited the Office Equipment account rather than the Shop Equipment account.
97 Before Posting GENERAL JOURNAL PAGE 1 DATE DESCRIPTION POST. DEBIT CREDIT REF Shop Equipment Sept. 1 Office Equipment 9, Cash 9, Purchased equipment Check 2141 The accountant would neatly cross out Office Equipment and write Shop Equipment above it. The correct account Shop Equipment would be posted to the ledger in the usual manner.
98 Correcting Journal and Ledger Errors If the error is discovered after posting, a correcting entry a journal entry made to correct the erroneous entry is journalized and posted. Do not erase or change the journal entry or the postings in the ledger accounts. Note that erasures are never permitted in the journal or ledger.
99 After Posting On September 1 an automobile repair shop debited Office Equipment rather than Shop Equipment for $9,000 by mistake. The debit was posted to the Office Equipment account in the general ledger. A correcting journal entry must be journalized and posted.
100 QUESTION: What is a correcting entry? ANSWER: A correcting entry is a journal entry made to correct an erroneous entry.
101 After Posting GENERAL JOURNAL PAGE 1 DATE DESCRIPTION POST. DEBIT CREDIT REF Sept. 1 Office Equipment 141 9, Cash 101 9, Purchased equipment Check 2141 This erroneous journal entry was posted to the general ledger.
102 After Posting GENERAL JOURNAL PAGE 1 DATE DESCRIPTION POST. DEBIT CREDIT REF Oct. 1 Shop Equipment 151 9, Office Equipment 141 9, To correct error made on Sept. 1 when a purchase of shop equipment was recorded as office equipment The correcting journal entry debits Shop Equipment and credits Office Equipment for $9,000. The entry transfers $9,000 out of the Office Equipment and into the Shop Equipment account.
103 In class Exercise 4.2B 1. Use the Chart of accounts given to establish the General Ledger Accounts should be in chart of account order by number and classification: Asset Liability Owner s Equity Revenue Expense Journalize the transactions given, post to the general ledger. Note: the starting page in the journal is page 1
104 SECTION Complete the following sentences: R E The ledger is called the record of final entry because it is the last place where accounting transactions are recorded. V I E W Posting is the process of transferring data from a journal to a ledger. The general ledger is the master reference file for the accounting system.
105 SECTION R E V I E W Complete the following sentences: The first three steps of the accounting cycle are to, analyze, journalize and post transactions. Posting references are an important part of the audit trail. A correcting entry is a journal entry made to correct an erroneous entry.
106 SECTION R E Complete the following sentences: A journal is a diary of business activities. V I E W The journal is sometimes called the record of original entry because it is where transactions are first entered in the accounting records. The general journal is a financial record for entering all types of business transactions.
107 SECTION R E V I E W Complete the following sentences: Journalizing is the process of recording transactions in the general journal. The audit trail is a chain of references that makes it possible to trace information, locate errors, and prevent fraud. A journal entry that contains more than one debit or credit is called compound a. entry
108 Assignments: See web: http//cabrillo.edu/~mbooth This will be updated weekly as required
The General Journal and the General Ledger Instructor: Michael Booth
Week 5, Chap 4 The General Journal and the General Ledger Instructor: Michael Booth McGraw-Hill 2007 The McGraw-Hill Companies, Inc. All rights reserved. The General Journal and the General Ledger The
Week 4/5, Chap 4. The General Journal and the General Ledger. Instructor: Michael Booth
Week 4/5, Chap 4 The General Journal and the General Ledger Instructor: Michael Booth Complete the trial balance 1. Enter the trial balance heading showing the company name, report title, and closing date
Week 5, Chap 4 Part 2
Slide 1 Week 5, Chap 4 Part 2 The General Journal and the General Ledger Instructor: Michael Booth Slide 2 The General Journal Objective Prepare compound journal entries. McGraw-Hill 2007 The McGraw-Hill
The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
1-1 2012 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 4 1 The Accounting Cycle Step 1 Analyze and transactions classify transactions Step 2 Journalize the transactions data about
Week 5, Chap 4 Part 1
Slide 1 Week 5, Chap 4 Part 1 The General Journal and the General Ledger Instructor: Michael Booth Slide 2 The General Journal and the General Ledger The General Journal Section Objectives 1. Record transactions
Acct 151A Week 7, Chap 6. Instructor: Michael Booth Cabrillo College
Acct 151A Week 7, Chap 6 Instructor: Michael Booth Cabrillo College McGraw-Hill 2007 The McGraw-Hill Companies, Inc. All rights reserved. Closing Entries and the Postclosing Trial Balance Closing Entries
The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
1-1 2012 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 3 1 Analyzing Business Transactions Using T Accounts Section 1: Transactions That Affect Assets, Liabilities, and Owner s
Debits and Credits CHAPTER
chapter-3.qxd 3//0 3:48 PM Page 45 3 CHAPTER Debits and Credits As you learned in the last chapter, accountants use the accounting equation to analyze a firm s transactions and determine the effects of
Chapter 2 Analyzing Transactions
1 Chapter 2 Analyzing Transactions Chapter 2 Analyzing Transactions From Chapter 1: The Accounting Equation Assets = Liabilities + Owner's Equity Assets = Liabilities + Capital Drawing + Revenues - Expenses
Chapter 2 Analyzing Transactions
1 Chapter 2 Analyzing Transactions Chapter 2 Analyzing Transactions From Chapter 1: The Accounting Equation Assets = Liabilities + Owner's Equity Assets = Liabilities + Capital Drawing + Revenues - Expenses
Account Form. Used to summarize in one place all the changes to a single account A separate form for each account. Sample of a blank account form
Learning Objectives LO1 Construct a chart of accounts for a service business organized as a proprietorship. LO2 Demonstrate correct principles for numbering accounts. LO3 Apply file maintenance principles
Chapter 9 Recording Adjusting and Closing Entries
Chapter 9 Recording Adjusting and Closing Entries Fiscal Period Length of time for which a business reports and summarizes financial information Concept: Accounting Period Cycle: reporting changes in financial
Chapter 20 Notes Uncollectible Accounts Expense
Chapter 20 Notes Uncollectible Accounts Expense Uncollectible Account- An account that has been defaulted on. Meaning that the person did not pay when it was due. Explanation of the Accounts Uncollectible
Introduction Cengage Learning. All Rights Reserved.
Introduction How would you obtain a balance for any account recorded in the journal? How do you keep track of cash received and spent? Name different ways you can pay with cash. What types of accounts
SOLUTIONS TO EXERCISES SET B
SOLUTIONS TO EXERCISES SET B EXERCISE 2-1B 1. False. An account is an accounting record of a specific asset, liability, or stockholders equity item. 2. True. 3. False. Each asset, liability, and stockholders
Chapter 4: Completing the Accounting Cycle
1 Chapter 4 Completing the Accounting cycle Chapter 4: Completing the Accounting Cycle Learning Objective 1 Describe the financial statements of a proprietorship and explain how they interrelate. Financial
Chapter 8. Recording Adjusting and Closing Entries
Chapter 8 Recording Adjusting and Closing Entries Adjusting Entries Adjusting Entries - journal entries recorded to update general ledger accounts at the end of a fiscal period (Supplies & Prepaid Insurance).
Posting from a General Journal to a General Ledger. Tuesday, October 26, :48:47 PM ET
Posting from a General Journal to a General Ledger Account Form Based on the T account (Debit and Credit sides). Transaction Date and Journal page number. Balance-Ruled Account Form A form that has columns
ACCT 151A WEEK 2, CHAP 2. Instructor: Michael Booth Cabrillo College
ACCT 151A WEEK 2, CHAP 2 Instructor: Michael Booth Cabrillo College ANALYZING BUSINESS TRANSACTIONS Property and Financial Objectives Interest 1. Record in equation form the financial effects of a business
> DO IT! Chapter 2 The Recording Process. Recording Business Activities D-7
Chapter 2 The Recording Process Normal Balances Kate Browne has just rented space in a shopping mall. In this space, she will open a hair salon to be called Hair It Is. A friend has advised Kate to set
Accounting Basics Introduction To Financial Accounting
Accounting Basics Introduction To Financial Accounting ILLUSTRATION 1-5 BASIC ACCOUNTING EQUATION The Basic Accounting Equation Assets = Liabilities + Owner s Equity ASSETS AS A BUILDING BLOCK Assets are
on the land. be treated as an expense of the business. company should credit an unearned revenues account for the amount charged to the customer.
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1) The first step in the accounting cycle is transaction analysis. 2) An account is a detailed record of increases and
The General Journal and the General Ledger
chapter College Accounting The General Journal and the General Ledger 11 th Edition 3 1 Learning Objectives After you have completed this chapter, you will be able to do the following: 3 2 The General
ACCOUNTING SEMESTER 1. Final Exam Review
ACCOUNTING SEMESTER 1 Final Exam Review 1 ACCOUNTING SEMESTER 1 30 T & F 70 MC Questions with pictures 5-Worksheet 6-Journals 3-Cash Payment Journal 2 CHAPTER 1 What is the accounting equation? Assets=Liabilities
The General Ledger. The 4 th step of the accounting cycle is to post to the ledger.
The General Ledger 4 Post to the ledger The 4 th step of the accounting cycle is to post to the ledger. The General Ledger is a book containing a separate page for each business account. The General Ledger
Chapter 4: Completing the Accounting Cycle. Learning Objective 2 Prepare financial statements from adjusted account balances.
1 Chapter 4 Completing the Accounting Cycle Chapter 4: Completing the Accounting Cycle Learning Objective 2 Prepare financial statements from adjusted account balances. From chapter 3 NetSolutions Adjusted
Chapter 2--Analyzing Transactions
Chapter 2--Analyzing Transactions Student: 1. Accounts are records of increases and decreases in individual financial statement items. 2. A chart of accounts is a listing of accounts that make up the journal.
LESSON 8-1. Recording Adjusting Entries. CENTURY 21 ACCOUNTING Thomson/South-Western
LESSON 8-1 Recording Adjusting Entries 2 TERM REVIEW page 205 Adjusting Entries journal entries recorded to update general ledger accounts at the end of a fiscal period Adjustments must be journalized
Learning Objective. LO1 Prepare an income statement for a merchandising business organized as a corporation.
Learning Objective LO1 Prepare an income statement for a merchandising business organized as a corporation. Lesson 16-1 Uses of Financial Statements LO1 A corporation prepares an income statement and a
Accounting. Chapter 6
Accounting Chapter 6 Aim: What are four source documents and when would they be used? Do Now: Take a Do Now slip. Answer: Why do people use journals? Have you ever kept a daily journal of the things that
Accounting for Business Transactions QUESTIONS
Financial and Managerial Accounting 7th Edition Wild Solutions Manual Full Download: http://testbanklive.com/download/financial-and-managerial-accounting-7th-edition-wild-solutions-manual/ Chapter 2 Accounting
ACCOUNTING I. 1. The cash account is used to summarize information about the amount of money the business has available.
ACCOUNTING I True/False Indicate whether the sentence or statement is true or false. 1. The cash account is used to summarize information about the amount of money the business has available. 2. The source
Weygandt, Kieso, Kimmel, Trenholm, Kinnear, Barlow, Atkins: Principles of Financial Accounting, Canadian Edition CHAPTER 4
CHAPTER 4 Completion of the Accounting Cycle ASSIGNMENT CLASSIFICATION TABLE Study Objectives 1. Prepare closing entries and a postclosing trial balance. 2. Explain the steps in the accounting cycle including
Analyzing and Recording Transactions QUESTIONS
Chapter 2 Analyzing and Recording Transactions QUESTIONS 1. a. Common asset accounts: cash, accounts receivable, notes receivable, prepaid expenses (rent, insurance, etc.), office supplies, store supplies,
CHAPTER4. The Recording Process. PreviewofCHAPTER4. Using a Worksheet. Steps in Preparing a Worksheet
CHAPTER4 The Recording Process 4-1 4-2 PreviewofCHAPTER4 Using a Worksheet Steps in Preparing a Worksheet Multiple-column form used in preparing financial statements. Not a permanent accounting record.
Chapter 2--Analyzing Transactions
Chapter 2--Analyzing Transactions Student: 1. Accounts are records of increases and decreases in individual financial statement items. 2. A chart of accounts is a listing of accounts that make up the journal.
Chapter 2--Analyzing Transactions
Chapter 2--Analyzing Transactions Student: 1. Accounts are records of increases and decreases in individual financial statement items. 2. A chart of accounts is a listing of accounts that make up the journal.
CHAPTER 2. The Recording Process. Brief 2, 3, 4, 5, 6, 7, 8, 9, 14 10, , 7 11, 12, 13, 14, 16
CHAPTER 2 The Recording Process ASSIGNMENT CLASSIFICATION TABLE Study Objectives Questions Brief Exercises Exercises A Problems B Problems 1. Explain what an account is and how it helps in the recording
After studying this chapter, you should be able to:
5 Accounting Systems 1 After studying this chapter, you should be able to: 1. Define an accounting system and describe its implementation. 2. Journalize and post transactions in a manual accounting system
ACC100 Introduction to Accounting
ACC100 Introduction to Accounting Week 4 Recording Transactions Chapter 3 - Recording Transactions Study Group Australia Pty Limited, SGA1286-F2/10/12 2 Learning Outcomes On completion of this week s study,
4/9/2012. Recording Transactions. Learning Objectives (LO) LO 1 Double-Entry System. LO 1 Double-Entry System. LO 1 Double-Entry System
4/9/212 Recording Transactions CHAPTER 3 Learning Objectives (LO) After studying this chapter, you should be able to 1. Use double-entry accounting 2. Describe the five steps in the recording process 3.
Accounting Basics, Part 1
Accounting Basics, Part 1 Accrual, Double-Entry Accounting, Debits & Credits, Chart of Accounts, Journals and, Ledger Part 1 What s Here Introduction Business Types Business Organization Professional Advice
Examination Booklet Version 1. Bookkeeping
Examination Booklet Version 1 Bookkeeping The Accounting Equation When you feel confident that you have mastered the material in The Accounting Equation, go to and submit your answers online EXAMINATION
Accounting I. Lesson Plan. Name: Terry Wilhelmi Day/Date: Topic: Journalizing Purchases and Cash Payments Unit: 3 Chapter 11
Accounting I Lesson Plan Name: Terry Wilhelmi Day/Date: Topic: Journalizing Purchases and Payments Unit: 3 Chapter 11 I. Objective(s): By the end of today s lesson, the student will be able to: define
Analyzing Transactions
C H A P T E R 2 Analyzing Transactions QUIZ AND TEST HINTS The following hints may be helpful to you in preparing for a quiz or a test over the material covered in Chapter 2. 1. Terminology is important
9 Payments, and Banking Procedures. Cash Receipts, Cash
9-1 McGraw-Hill 2007 The McGraw-Hill Companies, Inc. All rights reserved. Chapter Cash Receipts, Cash 9 Payments, and Banking Procedures Section 1: Cash Receipts Section Objectives 1. Record cash receipts
SOLUTIONS TO EXERCISES SET B
SOLUTIONS TO EXERCISES SET B EXERCISE 5-1B 1 False. Measuring net income for a merchandiser is conceptually the same as measuring net income for a service company. 2. True. 3. False. For a merchandiser,
ACCOUNTING CYCLE FOR A MERCHANDISING BUSINESS ORGANIZED AS A CORPORATION
ACCOUNTING CYCLE FOR A MERCHANDISING BUSINESS ORGANIZED AS A CORPORATION page 97. Source documents are checked, and transactions are analyzed.. Transactions are recorded in journals. 5. Journal entries
LESSON Posting to an Accounts Payable Ledger. CENTURY 21 ACCOUNTING Thomson/South-Western
LESSON - Posting to an Accounts Payable Ledger 2 Posting to an Accounts Payable Ledger There are two (2) major differences between the posting learned in this chapter (corporation) and the posting learned
Analyzing and Recording Transactions QUESTIONS
Chapter 2 Analyzing and Recording Transactions QUESTIONS 1. a. Common asset accounts: cash, accounts receivable, notes receivable, prepaid expenses (rent, insurance, etc.), office supplies, store supplies,
Chapter 2--Analyzing Transactions
Chapter 2--Analyzing Transactions Student: 1. Accounts are records of increases and decreases in individual financial statement items. 2. A chart of accounts is a listing of accounts that make up the journal.
Chapter 2: Measurement Concepts: Recording Business Transactions
Chapter 2: Measurement Concepts: Recording Business Transactions Student: 1. The valuation issue deals with how the components of a transaction should be categorized. 2. Business transactions are economic
Chapter 2 Review of the Accounting Process
Chapter 2 Review of the Accounting Process QUESTIONS FOR REVIEW OF KEY TOPICS Question 2 1 External events involve an exchange transaction between the company and a separate economic entity. For every
FUNDAMENTAL ACCOUNTING (01)
14 Pages Contestant Number Time Rank FUNDAMENTAL ACCOUNTING (01) Regional - 2007 Multiple Choice (30 @ 3 points each) Account Identification (15 @ 3 points each) Production Portion Problem 1: Financial
Accounting for. Sole Proprietorship. 1 Identify the differences in equity accounts between a corporation and a sole proprietorship.
appendix F Accounting for Sole Proprietorships study objectives After studying this appendix, you should be able to: 1 Identify the differences in equity accounts between a corporation and a sole proprietorship.
DEBITS AND CREDITS: ANALYZING AND RECORDING BUSINESS TRANSACTIONS
DEBITS AND CREDITS: ANALYZING AND RECORDING BUSINESS TRANSACTIONS 2-1 Chapter 2 Learning Objectives 1. Setting up and organizing a chart of accounts. 2. Recording transactions in T accounts according to
Learning Objectives. LO1 Prepare the heading of a work sheet. LO2 Prepare the trial balance section of a work sheet.
Learning Objectives LO1 Prepare the heading of a work sheet. LO2 Prepare the trial balance section of a work sheet. Lesson 6-1 Consistent Reporting The accounting concept Consistent Reporting is applied
Accounting 1A Class Notes Chapter 2 Analyzing Transactions. Chart of Accounts 1. Assets. Liabilities. 3. Owners Equity. Revenue. 5.
Chart of Accounts 1. Assets 2. Liabilities 3. Owners Equity 4. Revenue 5. Expense T- ACCOUNTS Title, Debit on the Left and Credit on the right Foot both sides (if more than one entry) Balance on the side
Financial Accounting, 6Ce (Harrison) Chapter 2 Recording Business Transactions. 2.1 Describe common types of accounts
Financial Accounting, 6Ce (Harrison) Chapter 2 Recording Business Transactions 2.1 Describe common types of accounts 1) Interest payable, income tax payable and salary payable are all examples of: A) accrued
Activity 1: Transactions
Activity 1: Transactions Prepare the general journal entries to record the following transactions for the business for the month of May 2016 (ignore GST): May 1 Owner deposited $50,000 of his own money
Business Background Management is responsible for preparing...
Business Background Management is responsible for preparing... Financial Statements High Quality = Relevance + Reliability... Are useful to investors and creditors. Business Background Revenues are recorded
FUNDAMENTAL ACCOUNTING (01)
13 Pages Contestant Number Time Rank FUNDAMENTAL ACCOUNTING (01) Regional 2009 Multiple Choice (30 @ 2 points each) Account Identification (39 @ 1 point each) Production Portion Problem 1: Journalizing
Chapter 3 Question Review 1
Chapter 3 Question Review 1 Chapter 3 Questions Multiple Choice 1. If services are rendered on account, then a. assets will decrease. b. liabilities will increase. c. stockholders equity will increase.
Learning Objectives. LO1 Journalize and post closing entries for a service business organized as a proprietorship.
Learning Objectives LO1 Journalize and post closing entries for a service business organized as a proprietorship. Lesson 8-1 Need for Permanent and Temporary Accounts Accounts used to accumulate information
Full file at
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 1) A journal entry is a record of an event that has a financial impact on the business that can be reliably measured. 1)
Name: Date: Period: Standard 2: Students will list and identify characteristics of the three basic accounting equation elements.
Name: Date: Period: Accounting I State Test Review Standard 2: Students will list and identify characteristics of the three basic accounting equation elements. (Chapter 1) 1. Write the accounting equation.
Chapter III The Language of Accounting
Daubert, Madeline J. (1995). Money Talk: Accounting Fundamentals for Special Librarians. Special Library Association. (pp.12-31) Chapter III The Language of Accounting In order to communicate effectively
On October 1, 2010, Cody Doerr established Banyan Realty, which completed the following transaction during the month:
Pr 2-2 A page 91 On October 1, 2010, Cody Doerr established Banyan Realty, which completed the following transaction during the month: A. Cody Doerr transferred cash from a personal bank account to an
Analyzing the Accounting Equation
Learning Objectives LO1 Show the relationship between the accounting equation and a T account. LO2 Identify the debit and credit side, the increase and decrease side, and the balance side of various accounts.
Analyzing Transactions
Question 1: What is the relationship between a transaction, a journal, a ledger, and a chart of accounts? A transaction is the record used to reflect the activity of a business. These transactions are
Chapter 2 Review of the Accounting Process
Intermediate Accounting 9th Edition Spiceland Solutions Manual Full Download: http://testbanklive.com/download/intermediate-accounting-9th-edition-spiceland-solutions-manual/ Chapter 2 Review of the Accounting
Fundamentals of Accounting Resources
Contents Figure 1 - The Profit and Loss statement example... 2 Figure 2 - Balance sheet example... 3 Figure 3 - Example of a Balance Sheet... 4 Figure 4 - Example of a Profit & Loss Sheet... 5 Figure 5-10
DE ANZA COLLEGE ACCOUNTING 1A EXTRA CREDIT ASSIGNMENT. (Manual Case, and Working Papers) Scott Osborne, CPA
DE ANZA COLLEGE ACCOUNTING 1A EXTRA CREDIT ASSIGNMENT (Manual Case, and Working Papers) by Scott Osborne, CPA 1 EXPLANATION OF EXTRA CREDIT ASSIGNMENT The extra credit assignment consists of a manual accounting
CHAPTER 2 ANALYZING TRANSACTIONS
CHAPTER 2 ANALYZING TRANSACTIONS EYE OPENERS 1. An account is a form designed to record changes in a particular asset, liability, owner s equity, revenue, or expense. A ledger is a group of related accounts.
MIDTERM EXAMINATION Fall 2009 MGT101- Financial Accounting (Session - 2)
MIDTERM EXAMINATION Fall 2009 MGT101- Financial Accounting (Session - 2) Question No: 1 ( Marks: 1 ) - Please choose one Particulars Rs. Opening written down value of machine 1,00,000 Cost of new machine
Fundamental Accounting Principles
Last revised: January 23, 2016. SOLUTIONS MANUAL to accompany Fundamental Accounting Principles 15 th Canadian Edition by Larson/Jensen/Dieckmann Revised for the 15 th Edition by: Praise Ma, Kwantlen Polytechnic
Chapter 3 The Adjusting Process
Instant download and all chapters Solution Manual Horngren s Financial Managerial Accounting 4th Edition Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura https://testbankdata.com/download/solution-manual-horngrens-financialmanagerial-accounting-4th-edition-tracie-l-nobles-brenda-l-mattison-ella-maematsumura/
FUNDAMENTAL ACCOUNTING (100) Secondary
Page 1 of 12 FUNDAMENTAL ACCOUNTING (100) Secondary REGIONAL 2015 Multiple Choice & Short Answer Section: Contestant Number: Time: Rank: Multiple Choice (25 @ 2 points each) Account Classification (10
CHAPTER 2 Solutions MEASUREMENT CONCEPTS: RECORDING BUSINESS TRANSACTIONS
CHAPTER 2 Solutions MEASUREMENT CONCEPTS: RECORDING BUSINESS TRANSACTIONS Discussion Questions DQ1. DQ2. DQ3. DQ4. DQ5. DQ6. DQ7. DQ8. All equipment needs normal repairs. These are considered an ongoing
Analyzing and Recording Transactions QUESTIONS
Chapter 2 Analyzing and Recording Transactions QUESTIONS 1. a. Common asset accounts: cash, accounts receivable, notes receivable, prepaid expenses (rent, insurance, etc.), office supplies, store supplies,
Unit 3 Accounting. Practice Exam Question Booklet. A non-profit organisation supporting students to achieve their best.
A non-profit organisation supporting students to achieve their best. Practice Exam Question Booklet Duration: 15 minutes reading time, 90 minutes writing time Structure of book: Number of questions Number
Financial Statements and Closing Entries for a Merchandising Business
Ch.10 Financial Statements and Closing Entries for a Merchandising Business o Prepare financial statements for a merchandising business o Journalize adjusting and closing entries for a merchandising business
a) Post-closing trial balance c) Income statement d) Statement of retained earnings
Note: The formatting of financial statements is important. They follow Generally Accepted Accounting Principles (GAAP), which creates a uniformity of financial statements for analyzing. This allows for
Chapter 3: Double-Entry Bookkeeping
Chapter 3: Double-Entry Bookkeeping Double-entry bookkeeping underpins accounting A way of systematically recording the financial transactions of a company so that each transaction is recorded twice. Basic
CHAPTER 2 Solutions ANALYZING AND RECORDING BUSINESS TRANSACTIONS
Principles of Financial Accounting 12th Edition Needles Solutions Manual Full Download: http://testbanklive.com/download/principles-of-financial-accounting-12th-edition-needles-solutions-manual/ CHAPTER
FUNDAMENTAL ACCOUNTING (100) Secondary
Page 1 of 12 FUNDAMENTAL ACCOUNTING (100) Secondary REGIONAL 2015 Multiple Choice & Short Answer Section: Contestant Number: Time: Rank: Multiple Choice (25 @ 2 points each) Account Classification (10
The Accounting Cycle: Accruals and Deferrals
The Accounting Cycle: Accruals and Deferrals Chapter 4 McGraw-Hill/Irwin Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Adjusting Entries Adjusting entries are needed whenever revenue
Chapter 2 Recording Business Transactions
Horngren's Accounting, The Financial Chapters 11th Edition Solutions Manual Miller-Nobles Solutions Manual, Answer key, Instructor's resource Manual, Try It Solutions, Working Papers Solutions are include.
Full file at Chapter 2: Analyzing Business Transactions
Chapter 2: Analyzing Business Transactions TRUE/FALSE 1. When a company receives a product previously ordered, a recordable transaction has occurred. T PTS: 1 OBJ: LO1 KEY: business transactions 2. When
CHAPTER 4 EXERCISES: SET B. E4-1B The trial balance columns of the worksheet for Lamar Company at June 30, 2017, are as follows.
CHAPTER 4 EXERCISES: SET B E4-1B The trial balance columns of the worksheet for Lamar Company at June 30, 2017, are as follows. Complete the worksheet. LAMAR COMPANY Worksheet for the Month Ended June
Chapter 4: Posting from a General Journal to a General Ledger
Chapter 4: Posting from a General Journal to a General Ledger Goals of Chapter 4: Define accounting terms related to posting form a general journal to a general ledger Identify accounting concepts and
Debit and Credit Rules Module 2 part I. T- Accounts Assets = Liabilities + OE. T- Accounts: Basic Patterns A = L + OE
Debit and Credit Rules Module 2 part I Introducing T accounts Examining Account Patterns: the Increase and Decreases What s the Mystery? Debits and Credits 9/5/2005 Dr. Kathy Wigal 1 T- Accounts Assets
SOLUTIONS Learning Goal 8
Learning Goal 8: Prepare Closing Entries S1 Learning Goal 8 Multiple Choice 1. d 2. a 3. b 4. d Because the dividends account is closed directly into the retained earnings account, not into income summary.
Processing Accounting Information
2 Processing Accounting Information PAst Chapter 1 described the environment of financial accounting. It also introduced the financial statements and basic analysis of them. PResent This chapter explains
MIDTERM EXAMINATION MGT101- Financial Accounting (Session - 5) Time: 60 min Marks: 50
MIDTERM EXAMINATION MGT101- Financial Accounting (Session - 5) Time: 60 min Marks: 50 Question No: 1 ( Marks: 1 ) - Please choose one An accounting system is used by a business to: Analyze transactions
RECORDING BUSINESS TRANSACTIONS
2 RECORDING BUSINESS TRANSACTIONS CONNECTING CHAPTER 2 LEARNING OBJECTIVE Define and use key accounting terms What are the key terms used when recording transactions? The Accounting Cycle, page 60 Chart
Adjustments, Financial Statements, and the Quality of Earnings
Adjustments, Financial Statements, and the Quality of Earnings Chapter 4 McGraw-Hill/Irwin 2009 The McGraw-Hill Companies, Inc. Understanding the Business Management is responsible for preparing... Financial
Review of a Company s Accounting System
CHAPTER 3 O BJECTIVES After reading this chapter, you will be able to: 1 Understand the components of an accounting system. 2 Know the major steps in the accounting cycle. 3 Prepare journal entries in
2/10/2009. The accounting ACCOUNTING TRANSACTIONS AND EVENTS. Analysing transactions. Chapter 2
Chapter 2 The accounting information system PowerPoint presentation by Anne Abraham University of Wollongong 2009 John Wiley & Sons Australia, Ltd ACCOUNTING TRANSACTIONS AND EVENTS Transactions are external
Accounting Principles
Accounting Principles Second Canadian Edition Weygandt Kieso Kimmel Trenholm Prepared by: Carole Bowman, Sheridan College CHAPTER 2 THE RECORDING PROCESS THE ACCOUNT An account is an individual accounting