會(huì)計(jì)學(xué)財(cái)務(wù)分冊(cè)chapter2

1、Recording Business Transactions,Chapter 2,1,Learning Objectives,2,3,Learning Objectives,Explain accounts, journals, and ledgers as they relate to recording transactions and describe common accounts,4,1,The Accounting Process,5,Record transactions in the journal,Copy (post) to the ledger,Prepare the

2、trial balance,The Account,Basic summary device Detailed record of all changes that have occurred in a particular asset, liability, or owners equity Covers a specific period of time Grouped in three broad categories Assets Liabilities Owners Equity,6,The Journal and The Ledger,Journal Chronological r

3、ecord of transactions Organized by date Ledger The book holding all the accounts and their balances Organized by account,7,Trial Balance,Listing of all accounts and their balances,8,The Accounting Equation,9,ASSETS,LIABILITIES,EQUITY,Economic Resources,Claims to Economic Resources,Assets,Economic re

4、sources that will benefit the business in the future: Cash Accounts receivable Notes receivable Prepaid expenses Land Building Equipment, Furniture, Fixtures,10,Liabilities,A debt (something owed): Accounts payable Notes payable Accrued liabilities,11,Owners Equity,Owners claim to the assets: Capita

5、l Drawing Revenues Expenses,12,Ledger,Asset, Liability, and Owners Equity Accounts,13,Chart of Accounts,List of all accounts used by a company,14,Define debits, credits, and normal account balances and use double-entry accounting and T-accounts,15,2,Double Entry System,Record dual effects of each tr

6、ansaction Each transaction has a: Receiving side Giving side Examples: Company purchases supplies (receiving) with cash (giving) Company issues stock (giving) and receives cash (receiving),16,T-Account,17,Tool for analyzing and determining the balance in a given account,Dr Debit,Cr Credit,Increases

7、and Decreases in Accounts,Whether an account is increased by debit or a credit is determined by the account type Asset, liability, or equity Debits are not good or bad Neither are credits,18,Rules of Debit and Credit,19,The account category governs the increase side or decrease side Increases are re

8、corded on one side Decreases are recorded on the opposite side Rules of debits and credits,Illustrate Debits and Credits,The first transaction involves receiving $30,000 cash and issuing Capital The second transaction is a $20,000 purchase of land for cash,20,S2-1: USING ACCOUNTING VOCABULARY,Match

9、the accounting terms on the left with the corresponding definitions on the right. _Posting _ Receivable _ Debit _ Journal _ Expense _ Net Income _ Normal Balance _ Ledger _ Payable _ Equity,21,Using up assets in the course of operating a business Book of accounts An asset Record of transactions Left

10、 side of an account Side of an account where increases are recorded Copying data from the journal to the ledger Always a liability Revenues Expenses = Assets Liabilities =,G C E D A I F B H J,S2-2: Explaining accounts and the rules of debit and credit,Margaret Alves is tutoring Timothy Johnson, who

11、is taking introductory accounting. Margaret explains to Timothy that debits are used to record increases in accounts and credits record decreases. Timothy is confused and seeks your advice. When are debits increases? When are debits decreases? 2. When are credits increases? When are credits decrease

12、s?,22,Debits are increases in the Assets, Drawing, and Expenses.,Debits are decreases in the Liabilities, Owners Equity, and Revenues.,Credits are decreases in the Assets, Drawings, and Expenses.,Credits are increases in the Liabilities, Owners Equity, and Revenues.,List the steps of the transaction

13、 recording process,23,3,Steps in the Transaction Recording Process,24,Use the rules of debit and credit,Illustrating a Journal Entry,Journalize the first transaction of Smart Touchthe receipt of $30,000 cash and issuance of Capital. The accounts affected are Cash and Capital. Cash is an asset. Capit

14、al is equity. Both accounts increase by $30,000. Assets increase with debits. Equity increases with credits.,25,Illustrating a Journal Entry (continued),Four parts: Date of transaction Title of account debited with dollar amount Title of account credited with dollar amount Brief explanation of trans

15、action,26,General Journal,27,Transaction date,Accounts affected,Dollar amounts of debits and credits,Explanation of transaction,S2-5: JOURNALIZING TRANSACTIONS,Ned Brown opened a medical practice in San Diego, California. 1. Record the preceding transactions in the journal of Ned Brown, M.D., P.C. I

16、nclude an explanation.,28,Jan. 1: The business received $29,000 cash and issued common stock. Cash received indicates cash increases. Cash is an Asset, Assets increase with debits Issued Capital, indicates equity is increasing Increase equity with credits,29,Jan1Cash 29,000,Brown, capital 29,000 Own

17、er investment.,S2-5 : Journalizing transactions,Jan. 2: Purchased medical supplies on account, $14,000. Medical Supplies, an asset, is increasing. Assets increase with debits On account, increases accounts payable, a liability Increase liabilities with credits,30,Jan2 Medical supplies 14,000,Account

18、s payable 14,000 Purchased supplies on account.,S2-5: Journalizing transactions,Jan. 2: Paid monthly office rent of $2,600. Paid rent, an expense, expense is increasing Expenses increase with debits Paid cash, cash is an asset. Increase assets with debits,31,Jan2Rent Expense 2,600,Cash 2,600 Paid of

19、fice rent.,S2-5 : Journalizing transactions,Jan. 3: Recorded $8,000 revenue for service rendered to patients on account. On account indicates Accounts receivable increase. Accounts receivable is an Asset, Assets increase with debits Rendered services, services are revenues, indicates revenues are in

20、creasing Increase revenues with credits,32,Jan3Accounts receivable 8,000,Service revenue 8,000 Performed service on account.,S2-5 : Journalizing transactions,Posting from the Journal to the Ledger,Copying amounts from the journal to the ledger,33,Expanding Debit/Credit Rules to include Revenues and

21、Expenses,34,Complete Rules of Debit and Credit,35,Normal Balance of an Account,36,Flow of Accounting Data from the Journal to the Ledger,37,Source Documents,Origin of accounting transactions Examples: Bank deposit tickets Invoices Checks Stock certificates,38,Journalize and post sample transactions

22、to the ledger,39,4,40,30,000,30,000,Practice Journalizing: Transaction 1,Practice Journalizing and Posting: Transaction 2,41,Land,30,000,30,000,20,000,20,000,10,000,Practice Journalizing and Posting: Transaction 3,42,Office supplies,30,000,20,000,30,000,20,000,10,000,500,500,Practice Journalizing an

23、d Posting :Transaction 4,43,30,000,20,000,30,000,20,000,5,500,5,500,The Ledger Accounts After Posting,44,S2-10: Preparing a trial balance,Oakland Floor Coverings reported the following summarized data at December 31, 2012. Accounts appear in no particular order.,45,S2-10 :Preparing a trial balance,4

24、6,$ 12,000 45,000 $ 2,000 18,000 22,000 34,000 19,000 $76,000 $76,000,S2-6: Journalizing transactions,Texas Sales Consultants completed the following transactions during the latter part of January:,47,S2-6: Journalizing transactions,Jan 22: Performed service for customers on account, $8,000 “On acco

25、unt” indicates Accounts receivable Accounts receivable is an asset account Increase an asset with a debit,48,Jan 22 Accounts receivable 8,000,S2-6: Journalizing transactions,Jan. 30: Cash is received Increase cash, an asset Assets are increased by debits The payment is “on account” Decrease Accounts

26、 receivable with a credit,49,Jan 30 Cash7,000,S2-6: Journalizing transactions,Jan. 31: A utility bill is an expense Expenses are increased by debits The bill will be paid latercreating an account payable Liabilities are increased by credits,50,Jan 31Utilities expense 180,Accounts payable 180,S2-6: J

27、ournalizing transactions,Jan. 31: Salaries to employees are an expense Expenses are increased by debits The salary was paid in cash Cash, an asset, decreases, Assets are decreased by credits,51,Jan 31 Salaries expense 2,000,S2-6: Journalizing transactions,January 31: Advertising is another expense C

28、ash is paid,52,Jan31Advertising expense 700,Cash 700 Paid advertising.,Prepare the trial balance from the T-accounts,53,5,Trial Balance,Summary of the ledger Lists all accounts with their balances Accuracy check Debits should equal credits NOT a balance sheet,54,Trial Balance,55,Detecting Trial Bala

29、nce Errors,Search for missing account Divide the difference between total debits and total credits by two Is there a debit/credit balance for this amount posted in the wrong column? Divide out-of-balance amount by nine SlideAdding or dropping a zero ($100 instead of $1,000) TranspositionReversing tw

30、o digits ($2,100 instead of $1,200),56,Details of the Journal,57,Four-Column Account,58,Chapter 2 Summary,Think of the account, journal, ledger (T-account), and chart as matching tools. Businesses are just matching the business transaction to the account description that best captures the specific e

31、vent that occurred. The accounting equation must always balance after each transaction is recorded. To achieve this balance, we record transactions using a double entry accounting system. In that system, debits are on the left and credits are on the right. Debits always equal credits.,59,Chapter 2 Summary,A transaction occurs and is recorded on a source document. Then, we ide