




版權(quán)說(shuō)明:本文檔由用戶(hù)提供并上傳,收益歸屬內(nèi)容提供方,若內(nèi)容存在侵權(quán),請(qǐng)進(jìn)行舉報(bào)或認(rèn)領(lǐng)
文檔簡(jiǎn)介
1、,The Recording Process,2,Learning Objectives,Describe how accounts, debits, and credits are used to record business transactions.,Indicate how a journal is used in the recording process.,Explain how a ledger and posting help in the recording process.,3,Prepare a trial balance.,2,1,4,Record of increa
2、ses and decreases in a specific asset, liability, owners equity, revenue, or expense item. Debit = “Left” Credit = “Right”,The Account,An account can be illustrated in a T-account form.,LEARNING OBJECTIVE,Describe how accounts, debits, and credits are used to record business transactions.,1,LO 1,Dou
3、ble-entry system Each transaction must affect two or more accounts to keep the basic accounting equation in balance. Recording done by debiting at least one account and crediting at least one other account. DEBITS must equal CREDITS.,DEBIT AND CREDIT PROCEDURES,The Account,LO 1,$10,000,Transaction #
4、2,$3,000,8,000,Balance,Transaction #1,Transaction #3,If the sum of Debit entries are greater than the sum of Credit entries, the account will have a debit balance.,$15,000,Debits and Credits,LO 1,If the sum of Credit entries are greater than the sum of Debit entries, the account will have a credit b
5、alance.,$10,000,Transaction #2,$3,000,8,000,Transaction #3,Balance,Transaction #1,$1,000,Debits and Credits,LO 1,Assets - Debits should exceed credits. Liabilities Credits should exceed debits. Normal balance is on the increase side.,Debits and Credits,LO 1,Owners investments and revenues increase o
6、wners equity (credit). Owners drawings and expenses decrease owners equity (debit).,Debits and Credits,Helpful Hint Because revenues increase owners equity, a revenue account has the same debit/credit rules as the Owners Capital account. Expenses have the opposite effect.,LO 1,Debits and Credits,The
7、 purpose of earning revenues is to benefit the owner(s). The effect of debits and credits on revenue accounts is the same as their effect on Owners Capital. Expenses have the opposite effect: expenses decrease owners equity.,LO 1,Normal Balance Credit,Normal Balance Debit,Debits/Credits Rules,LO 1,B
8、alance Sheet Income Statement,=,+,-,Asset,Liability,Equity,Revenue,Expense,Debit,Credit,Debits/Credits Rules,LO 1,Debits: increase both assets and liabilities. decrease both assets and liabilities. increase assets and decrease liabilities. decrease assets and increase liabilities.,Debits/Credits Rul
9、es,Question,LO 1,Accounts that normally have debit balances are: assets, expenses, and revenues. assets, expenses, and equity. assets, liabilities, and owners drawing. assets, owners drawing, and expenses.,Debits/Credits Rules,Question,LO 1,Illustration 2-11,Assets = Liabilities +,Basic Equation,Exp
10、anded Equation Debit/Credit Effects,Summary of Debit/Credit Rules,Relationship among the assets, liabilities and owners equity of a business:,The equation must be in balance after every transaction. Total Debits must equal total Credits.,Owners Equity,LO 1,1,Normal Account Balances,Kate Browne has j
11、ust 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 up a double-entry set of accounting records in which to record all of her business transactions. Identify the balance sheet accounts that Kate will likely need t
12、o record the transactions needed to open her business. Indicate whether the normal balance of each account is a debit or a credit.,Assets,Cash (debit) Supplies (debit) Equipment (debit),Liabilities,Notes payable (credit) Accounts payable (credit),Equity,Owners Capital (credit),DO IT!,LO 1,Business d
13、ocuments, such as a sales slip, a check, or a bill, provide evidence of the transaction.,Analyze each transaction,Enter transaction in a journal,Transfer journal information to ledger accounts,Steps in the Recording Process,LEARNING OBJECTIVE,Indicate how a journal is used in the recording process.,
14、2,Illustration 2-12,LO 2,Book of original entry. Transactions recorded in chronological order. Contributions to the recording process: Discloses the complete effects of a transaction. Provides a chronological record of transactions. Helps to prevent or locate errors because the debit and credit amou
15、nts can be easily compared.,The Journal,Steps in the Recording Process,LO 2,JOURNALIZING - Entering transaction data in the journal.,Illustration: On September 1, Ray Neal invested $15,000 cash in the business, and Softbyte purchased computer equipment for $7,000 cash.,Cash,Owners Capital,Sept. 1,15
16、,000,15,000,GENERAL JOURNAL,Equipment,Cash,7,000,7,000,Illustration 2-13,Steps in the Recording Process,LO 2,SIMPLE AND COMPOUND ENTRIES,Illustration: On July 1, Butler Company purchases a delivery truck costing $14,000. It pays $8,000 cash now and agrees to pay the remaining $6,000 on account.,Equi
17、pment,Cash,July 1,14,000,8,000,6,000,Accounts payable,Illustration 2-14 Compound journal entry,Steps in the Recording Process,GENERAL JOURNAL,LO 2,LO 2,DO IT!,Kate Browne engaged in the following activities in establishing her salon, Hair It Is: Opened a bank account in the name of Hair It Is and de
18、posited $20,000 of her own money in this account as her initial investment. Purchased equipment on account (to be paid in 30 days) for a total cost of $4,800. Interviewed three persons for the position of hair stylist. Prepare the entries to record the transactions.,2,Recording Business Activities,L
19、O 2,DO IT!,2,Recording Business Activities,Prepare the entries to record the transactions. Opened a bank account and deposited $20,000. Purchased equipment on account (to be paid in 30 days) for a total cost of $4,800. Interviewed three persons for the position of hair stylist.,Cash 20,000 Owners Ca
20、pital 20,000,Equipment 4,800 Accounts Payable 4,800,No entry,LO 2,General Ledger contains all the asset, liability, and owners equity accounts.,Illustration 2-15,The Ledger,LEARNING OBJECTIVE,Explain how a ledger and posting help in the recording process.,3,LO 3,LO 3,The Ledger,STANDARD FORM OF ACCO
21、UNT,Illustration 2-16 Three-column form of account,LO 3,POSTING Transferring journal entries to the ledger accounts.,Illustration 2-17 Posting a journal entry,Ledger,LO 3,Posting: normally occurs before journalizing. transfers ledger transaction data to the journal. is an optional step in the record
22、ing process. transfers journal entries to ledger accounts.,Posting,Question,LO 3,Chart of Accounts,Illustration 2-18,LO 3,Follow these steps: 1. Determine what type of account is involved. 2. Determine what items increased or decreased and by how much. 3. Translate the increases and decreases into d
23、ebits and credits.,Illustration 2-19,The Recording Process Illustrated,LO 3,LO 3,Illustration 2-20 Purchase of office equipment,Illustration 2-21 Receipt of cash for future service,LO 3,Illustration 2-22 Payment of monthly rent,LO 3,Illustration 2-23 Payment for insurance,LO 3,Illustration 2-24 Purc
24、hase of supplies on credit,LO 3,The Recording Process Illustrated,Illustration 2-25 Hiring of employees,LO 3,Illustration 2-26 Withdrawal of cash by owner,LO 3,Illustration 2-27 Payment of salaries,LO 3,Illustration 2-28 Receipt of cash for services performed,LO 3,Summary Journalizing and Posting,Il
25、lustration 2-29,LO 3,Illustration 2-29,LO 3,LO 3,Illustration 2-30,DO IT!,Kate Brown recorded the following transactions in a general journal during the month of March. Post these entries to the Cash account.,Mar. 4 Cash 2,280 Service Revenue 2,280 Mar. 15 Salaries and Wages Expense 400 Cash 400 Mar
26、. 19 Utilities Expense 92 Cash 92,3,Posting,LO 3,LEARNING OBJECTIVE,Prepare a trial balance.,4,Illustration 2-31,LO 4,Trial balance may balance even when: A transaction is not journalized. A correct journal entry is not posted. A journal entry is posted twice. Incorrect accounts are used in journali
27、zing or posting. Offsetting errors are made in recording the amount of a transaction.,Trial Balance,Limitations of a Trial Balance,LO 4,Dollar Signs Do not appear in journals or ledgers. Typically used only in the trial balance and the financial statements. Shown only for the first item in the colum
28、n and for the total of that column. Underlining A single line is placed under the column of figures to be added or subtracted. Totals are double-underlined.,Dollar Signs and Underlining,LO 4,A trial balance will not balance if: a correct journal entry is posted twice. the purchase of supplies on acc
29、ount is debited to Supplies and credited to Cash. a $100 cash drawing by the owner is debited to Owners Drawing for $1,000 and credited to Cash for $100. a $450 payment on account is debited to Accounts Payable for $45 and credited to Cash for $45.,Trial Balance,Question,LO 4,LO 4,DO IT!,4,Trial Bal
30、ance,LO 4,LO 4,DO IT!,4,Trial Balance,Key Points,Similarities Transaction analysis is the same under IFRS and GAAP. Both the IASB and the FASB go beyond the basic definitions provided in the textbook for the key elements of financial statements, that is assets, liabilities, equity, revenue, and expe
31、nses. The implications of the expanded definitions are discussed in more advanced accounting courses.,A Look at IFRS,LEARNING OBJECTIVE,Compare the procedures for the accounting process under GAAP and IFRS.,5,LO 5,Key Points,Similarities As shown in the textbook, dollar signs are typically used only
32、 in the trial balance and the financial statements. The same practice is followed under IFRS, using the currency of the country where the reporting company is headquartered. A trial balance under IFRS follows the same format as shown in the textbook.,A Look at IFRS,LO 5,Key Points,Differences IFRS r
33、elies less on historical cost and more on fair value than do FASB standards. Internal controls are a system of checks and balances designed to prevent and detect fraud and errors. While most public U.S. companies have these systems in place, many non-U.S. companies have never completely documented t
34、he controls nor had an independent auditors attest to their effectiveness.,A Look at IFRS,LO 5,The basic recording process shown in this textbook is followed by companies across the globe. It is unlikely to change in the future. The definitional structure of assets, liabilities, equity, revenues, an
35、d expenses may change over time as the IASB and FASB evaluate their overall conceptual framework for establishing accounting standards.,Looking to the Future,A Look at IFRS,LO 5,Which statement is correct regarding IFRS? IFRS reverses the rules of debits and credits, that is, debits are on the right
36、 and credits are on the left. IFRS uses the same process for recording transactions as GAAP. The chart of accounts under IFRS is different because revenues follow assets. None of the above statements are correct.,IFRS Self-Test Questions,A Look at IFRS,LO 5,A trial balance: is the same under IFRS and
溫馨提示
- 1. 本站所有資源如無(wú)特殊說(shuō)明,都需要本地電腦安裝OFFICE2007和PDF閱讀器。圖紙軟件為CAD,CAXA,PROE,UG,SolidWorks等.壓縮文件請(qǐng)下載最新的WinRAR軟件解壓。
- 2. 本站的文檔不包含任何第三方提供的附件圖紙等,如果需要附件,請(qǐng)聯(lián)系上傳者。文件的所有權(quán)益歸上傳用戶(hù)所有。
- 3. 本站RAR壓縮包中若帶圖紙,網(wǎng)頁(yè)內(nèi)容里面會(huì)有圖紙預(yù)覽,若沒(méi)有圖紙預(yù)覽就沒(méi)有圖紙。
- 4. 未經(jīng)權(quán)益所有人同意不得將文件中的內(nèi)容挪作商業(yè)或盈利用途。
- 5. 人人文庫(kù)網(wǎng)僅提供信息存儲(chǔ)空間,僅對(duì)用戶(hù)上傳內(nèi)容的表現(xiàn)方式做保護(hù)處理,對(duì)用戶(hù)上傳分享的文檔內(nèi)容本身不做任何修改或編輯,并不能對(duì)任何下載內(nèi)容負(fù)責(zé)。
- 6. 下載文件中如有侵權(quán)或不適當(dāng)內(nèi)容,請(qǐng)與我們聯(lián)系,我們立即糾正。
- 7. 本站不保證下載資源的準(zhǔn)確性、安全性和完整性, 同時(shí)也不承擔(dān)用戶(hù)因使用這些下載資源對(duì)自己和他人造成任何形式的傷害或損失。
最新文檔
- 小學(xué)生安全意識(shí)養(yǎng)成計(jì)劃
- 2025至2030中國(guó)自動(dòng)停用疫苗注射器行業(yè)產(chǎn)業(yè)運(yùn)行態(tài)勢(shì)及投資規(guī)劃深度研究報(bào)告
- 2025至2030中國(guó)脂肪肉瘤治療行業(yè)市場(chǎng)占有率及投資前景評(píng)估規(guī)劃報(bào)告
- 2025至2030中國(guó)胍法辛緩釋丸行業(yè)產(chǎn)業(yè)運(yùn)行態(tài)勢(shì)及投資規(guī)劃深度研究報(bào)告
- 2025至2030中國(guó)肱骨夾板行業(yè)產(chǎn)業(yè)運(yùn)行態(tài)勢(shì)及投資規(guī)劃深度研究報(bào)告
- 2025至2030中國(guó)聚對(duì)苯二甲酸丙二醇酯(PTT)行業(yè)市場(chǎng)發(fā)展現(xiàn)狀及發(fā)展前景報(bào)告
- 2025至2030中國(guó)耳鼻內(nèi)窺鏡行業(yè)產(chǎn)業(yè)運(yùn)行態(tài)勢(shì)及投資規(guī)劃深度研究報(bào)告
- 2025至2030中國(guó)組合蒸汽烤箱行業(yè)發(fā)展趨勢(shì)分析與未來(lái)投資戰(zhàn)略咨詢(xún)研究報(bào)告
- 2025至2030工業(yè)凸輪泵行業(yè)市場(chǎng)深度研究與戰(zhàn)略咨詢(xún)分析報(bào)告
- 石油化工行業(yè)市場(chǎng)變化及戰(zhàn)略調(diào)整研究
- 三年級(jí)下冊(cè)混合計(jì)算題100道及答案
- DB12T 998-2020 殯葬服務(wù)機(jī)構(gòu)消毒衛(wèi)生規(guī)范
- 廣東省廣州市五校2023-2024學(xué)年高一下學(xué)期期末聯(lián)考化學(xué)試卷
- 2024年天津高考數(shù)學(xué)真題試題(原卷版+含解析)
- 《大數(shù)據(jù)分析技術(shù)》課程標(biāo)準(zhǔn)
- 最簡(jiǎn)單封陽(yáng)臺(tái)安全免責(zé)協(xié)議書(shū)
- 2024年危險(xiǎn)化學(xué)品經(jīng)營(yíng)單位安全管理人員考試練習(xí)題(附答案)
- (正式版)JBT 3300-2024 平衡重式叉車(chē) 整機(jī)試驗(yàn)方法
- 《無(wú)人機(jī)航跡規(guī)劃》課程標(biāo)準(zhǔn)(高職)
- 養(yǎng)老院健康檔案模板
- 夏季高溫期間建筑施工安全注意事項(xiàng)
評(píng)論
0/150
提交評(píng)論