Unit 2 The Basic Accounting Cycle
|
|
- Godfrey May
- 8 years ago
- Views:
Transcription
1 Unit 2 The Basic Accounting Cycle Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Business Transactions and the Accounting Equation Transactions That Affect Assets, Liabilities, and Owner s Capital Transactions That Affect Revenue, Expenses, and Withdrawals Recording Transactions in a General Journal Posting Journal Entries to General Ledger Accounts The Six-Column Work Sheet Financial Statements for a Sole Proprietorship Chapter 10 Completing the Accounting Cycle for a Sole Proprietorship Chapter 11 Cash Control and Banking Activities 0
2 Chapter 10 Completing the Accounting Cycle for a Sole Proprietorship What You ll Learn Explain why it is necessary to update accounts through closing entries. Explain the purpose of the Income Summary account. Explain the relationship between the Income Summary account and the capital account. Analyze and journalize the closing entries. Post the closing entries to the general ledger. Prepare a post-closing trial balance. Define the accounting terms introduced in this chapter. 1
3 Chapter 10, Section 1 What Do You Think? Why is it important to transfer the temporary account balances to the permanent owner s capital account? 2
4 SECTION 10.1 Main Idea Closing entries transfer the temporary account balances to the owner s capital account. You Will Learn the last two steps of the accounting cycle. the purpose of closing entries. the purpose of the Income Summary account. how to journalize the closing entries. 3
5 SECTION 10.1 Key Terms closing entries Income Summary account compound entry 4
6 SECTION 10.1 Completing the Accounting Cycle Closing entries are journal entries made at the end of an accounting period to zero the balances in the temporary accounts and transfer the net income or loss to the capital account. After closing entries are made, the trial balance can be prepared. 5
7 SECTION 10.1 Starting the Eighth Step in the Accounting Cycle: Journalizing the Closing Entries The events leading up to the closing process are: Net income or loss is calculated on the work sheet. The income statement is completed. The capital account ending balance is calculated on the statement of changes in owner s equity. The ending balance of the capital account appears on the balance sheet. The capital account balance in the general ledger does not equal the amount on the balance sheet. Closing entries must be journalized and posted. 6
8 SECTION
9 SECTION 10.1 The Income Summary Account The Income Summary account: serves as a simple income statement in the general ledger. is used to accumulate revenue and expenses for the period. equals the net income or loss for the period. It is a temporary account that: is used only at the end of the accounting period to summarize revenue and expense balances. does not have a normal balance. has a zero balance before and after the closing. does not appear on any financial statement. 8
10 SECTION 10.1 Closing Revenue to Income Summary To record closing entries in the general journal: Enter Closing Entries in the Description column. Enter the last day of the accounting period. Enter the name(s) and amount(s) of the account(s) to be debited. Enter Income Summary as the name of the account to be credited and the amount to be credited. 9
11 SECTION 10.1 Closing Expenses to Income Summary A journal entry with two or more debits or credits is a compound entry. 10
12 SECTION 10.1 Closing Expenses to Income Summary A journal entry with two or more debits or credits is a compound entry. 11
13 SECTION
14 SECTION
15 SECTION 10.1 Closing Income Summary to Capital This entry transfers the balance of the Income Summary account to the capital account. An example of this closing entry can be seen here: 14
16 SECTION 10.1 Closing Income Summary to Capital This entry transfers the balance of the Income Summary account to the capital account. An example of this closing entry can be seen here: 15
17 SECTION 10.1 Closing Income Summary to Capital This entry transfers the balance of the Income Summary account to the capital account. An example of this closing entry can be seen here: 16
18 SECTION 10.1 Closing Income Summary to Capital This entry transfers the balance of the Income Summary account to the capital account. An example of this closing entry can be seen here: 17
19 SECTION 10.1 Closing Withdrawals to Capital This entry transfers the balance of the withdrawals account to the capital account. An example of this closing entry is shown below: 18
20 SECTION 10.1 Closing Withdrawals to Capital This entry transfers the balance of the withdrawals account to the capital account. An example of this closing entry is shown below: 19
21 SECTION 10.1 Closing Withdrawals to Capital This entry transfers the balance of the withdrawals account to the capital account. An example of this closing entry is shown below: 20
22 SECTION 10.1 Closing Withdrawals to Capital This entry transfers the balance of the withdrawals account to the capital account. An example of this closing entry is shown below: 21
23 SECTION 10.1 Key Terms Review closing entries Journal entries made to close, or reduce to zero, the balances in the temporary accounts and to transfer the net income or net loss for the period to the capital account. Income Summary account The general ledger account used to summarize the revenue and expenses for the period. compound entry A journal entry with two or more debits or two more credits. 22
24 Chapter 10, Section 2 Posting Closing Entries and Preparing a Post-Closing Trial Balance What Do You Think? What do you think a post-closing trial balance is? 23
25 SECTION 10.2 Posting Closing Entries and Preparing a Post-Closing Trial Balance Main Idea After the closing entries are posted, a post-closing trial balance is prepared to verify that debits equal credits. You Will Learn how to post the closing entries to the general ledger. how to prepare a post-closing trial balance. 24
26 SECTION 10.2 Posting Closing Entries and Preparing a Post-Closing Trial Balance Key Term post-closing trial balance 25
27 SECTION 10.2 Posting Closing Entries and Preparing a Post-Closing Trial Balance Completing the Eighth Step in the Accounting Cycle: Posting the Closing Entries to the General Ledger The next step in the closing process is to post closing entries to general ledger accounts. 26
28 SECTION 10.2 Posting Closing Entries and Preparing a Post-Closing Trial Balance 27
29 SECTION 10.2 Posting Closing Entries and Preparing a Post-Closing Trial Balance The Ninth Step in the Accounting Cycle: Preparing a Post-Closing Trial Balance Preparing a post-closing trial balance is the final step in the accounting cycle. It is prepared after the closing entries are posted in order to verify total debits equal total credits. 28
30 SECTION 10.2 Posting Closing Entries and Preparing a Post-Closing Trial Balance The Ninth Step in the Accounting Cycle: Preparing a Post-Closing Trial Balance 29
31 SECTION 10.2 Posting Closing Entries and Preparing a Post-Closing Trial Balance Key Term post-closing trial balance A list of the permanent general ledger account balances; it is prepared to prove the ledger after the closing entries are posted. 30
32 CHAPTER 10 Chapter 10 Review Question 1 As a result of the first two closing entries, the Income Summary account had a debit of $2,250 and a credit of $4,125. (a) What does the debit of $2,250 represent? (b) What does the credit of $4,125 represent? List the process to use to complete the third closing entry to close the balance of the Income Summary account to Scott Jones, Capital. 31
33 CHAPTER 10 Chapter 10 Review Answer 1 Step 1: Calculate the balance of the Income Summary account. Credits are more than debits; therefore, $4,125 - $2,250 = $1,875 credit balance, which indicates a net income. (continued) 32
34 CHAPTER 10 Chapter 10 Review Answer 1 Step 2: Identify the accounts affected. The accounts Income Summary and Scott Jones, Capital are affected. (continued) 33
35 CHAPTER 10 Chapter 10 Review Answer 1 Step 3: Classify the accounts affected. Income Summary is a temporary owner s equity account; Scott Jones, Capital is the permanent owner s capital account. (continued) 34
36 CHAPTER 10 Chapter 10 Review Answer 1 Step 4: Are the accounts increased or decreased? The Income Summary account is decreased by its balance, $1,875, to zero. Scott Jones, Capital is increased by $1,875. (continued) 35
37 CHAPTER 10 Chapter 10 Review Answer 1 Step 5: Apply the debit/credit rule. To reduce the Income Summary account to zero, debit Income Summary $1,875. To increase the capital account, credit Scott Jones, Capital for $1,
38 CHAPTER 10 Chapter 10 Review Question 2 Why are all of the temporary accounts reset to zero at the end of the fiscal year? 37
39 CHAPTER 10 Chapter 10 Review Answer 2 All revenues increase owner s equity, and all expenses reduce owner s equity. These transactions are separated from capital so the business can analyze how a profit or loss was made during the year. At the end of the year, the accumulation of these revenues and expenses are transferred into the capital account. The temporary accounts are reset to zero, which allows the business to compare the revenue and expense data from one period to the next. 38
40 Resources Glencoe Accounting Online Learning Center English Glossary Spanish Glossary 39
Unit 2 The Basic Accounting Cycle
Unit 2 The Basic Accounting Cycle Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Business Transactions and the Accounting Equation Transactions That Affect Assets, Liabilities, and
More informationCOMPLETION OF THE ACCOUNTING CYCLE - Closing Entries -
COMPLETION OF THE ACCOUNTING CYCLE - Closing Entries - Worksheet Overview Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Titles Debit Credit Debit Credit Debit
More informationClosing Entries and the Postclosing Trial Balance
6-1 McGraw-Hill 2009 The McGraw-Hill Companies, Inc. All rights reserved. Chapter Closing Entries and the Postclosing Trial Balance 6 Section 1: Closing Entries Section Objectives 1. Journalize and post
More informationChapter 4. Completing the accounting cycle
1 Chapter 4 Completing the accounting cycle 2 Learning objectives 1. Prepare an accounting worksheet and describe its purpose 2. Prepare a classified balance sheet and explain the major headings 3. Explain
More informationAdvanced Accounting. Chapter 4: Financial Reporting for a Departmentalized Business
Advanced Accounting Chapter 4: Financial Reporting for a Departmentalized Business Financial statements are used to summarize financial info and then are used to evaluate the financial position and progress
More informationCompleting the Accounting Cycle
C H A P T E R 4 Completing the Accounting Cycle Financial Accounting 14e Warren Reeve Duchac human/istock/360/getty Images Flow of Accounting Information (slide 1 of 5) End-of-Period Spreadsheet (Work
More informationUnit 2 The Basic Accounting Cycle
Unit 2 The Basic Accounting Cycle Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Business Transactions and the Accounting Equation Transactions That Affect Assets, Liabilities, and
More informationMOUNTAIN VIEW SCHOOL DISTRICT
MOUNTAIN VIEW SCHOOL DISTRICT COMPUTERIZED ACCOUNTING I Curriculum Content Frameworks 0 Curriculum Content Frameworks COMPUTERIZED ACCOUNTING I Grade Levels: 0,, Course Code: 900 Prerequisite: Tech Prep
More informationThe Work Sheet and the Closing Process
C H A P T E R 4 The Work Sheet and the Closing Process A systematic approach is essential for efficient and accurate processing of large amounts of information. Whether work sheets are on paper or computerized,
More informationBaseline Assessment. Date Accounting 1
Name Baseline Assessment Date Accounting 1 Part 1: Instructions: Place a check mark under the column for each account to determine which Financial the accounts belongs on. Financial Information 1. Cash
More informationCHAPTER 4 COMPLETING THE ACCOUNTING CYCLE SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM S TAXONOMY. True-False Statements
CHAPTER 4 COMPLETING THE ACCOUNTING CYCLE SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM S TAXONOMY Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT True-False Statements 1. 1 K 9. 2 K 17. 4
More informationCENTURY 21 ACCOUNTING, 8e General Journal Chapter Objectives
CENTURY 21 ACCOUNTING, 8e General Journal Chapter Objectives Chapter 1 Starting A Proprietorship: Changes that Affect the Accounting Equation After studying Chapter 1, you will be able to: 1. Define accounting
More informationFinancial Accounting. (Exam)
Financial Accounting (Exam) Your AccountingCoach PRO membership includes lifetime access to all of our materials Take a quick tour by visiting wwwaccountingcoachcom/quicktour Table of Contents (click to
More informationSOLUTIONS. Learning Goal 16
Learning Goal 16: Prepare Closing Entries S1 Learning Goal 16 Multiple Choice 1. d 2. a 3. b 4. d Because drawing is closed directly into the capital account, not into income summary. 5. c 6. b This a
More informationHaddon Township High School Course Overview
Haddon Township High School Course Overview Subject Area: Business Education Course Name: Accounting I Summary: This course is designed to enable students to learn how to set up and maintain financial
More informationClosing the Books Section 7 Accounting 11
Closing the Books At the end of a fiscal year once all the transactions for the entity have been recorded, the revenue and expense accounts must be closed out to a zero balance. These accounts have been
More informationCentury 21 Accounting, 8e General Journal Chapter Outlines
Century 21 Accounting, 8e General Journal Chapter Outlines PART 1 Chapter 1 ACCOUNTING FOR A SERVICE BUSINESS ORGANIZED AS A PROPRIETORSHIP Starting A Proprietorship: Changes that Affect the Accounting
More informationObjective Evidence. Unit of Measurement. Accounting Period Cycle. Business Entity. Going Concern. Adequate Disclosure. Matching Expenses with Revenue
Accounting Concept: A source document is prepared for each transaction Objective Evidence Accounting Concept: Business transactions are stated in numbers that have common values; that is, using a common
More informationIn the event of a tie, the score on the last ten questions will be used as a tie-breaker.
NEW YORK STATE ASSOCIATION FUTURE BUSINESS LEADERS OF AMERICA SPRING DISTRICT MEETING ACCOUNTING II 2010 TEST DIRECTIONS 1. Complete the information requested on the answer sheet. PRINT your name on the
More informationReview of Accounting Principles
Appendix A Review of Accounting Principles Appendix A is a review of basic accounting principles and procedures. Standard accounting procedures are based on the double-entry system. This means that each
More informationACCOUNTING LIFEPAC 7 ADJUSTING & CLOSING ENTRIES
Unit 7 ACCOUNTING LIFEPAC 7 ADJUSTING & CLOSING ENTRIES CONTENTS I. ADJUSTING ENTRIES.............................. 3 The Purpose of the Worksheet....................... 3 The Need for Adjustments..........................
More informationChapter 2. Analyzing transactions
1 Chapter 2 Analyzing transactions 2 Learning objectives 1. Explain the steps in the accounting cycle and each step s supporting documentation 2. Explain the purpose of source documents 3. Describe an
More informationCOMPUTERIZED ACCOUNTING I Curriculum Content Frameworks
COMPUTERIZED ACCOUNTING I Curriculum Content Frameworks Please note: All assessment questions will be taken from the knowledge portion of these frameworks. Prepared by Loretta Burgess, Greenbrier High
More informationModule 3: Adjusting the accounts, preparing the statements, and completing the accounting cycle
Page 1 of 27 Module 3: Adjusting the accounts, preparing the statements, and completing the accounting cycle Overview In Module 2 you studied the fundamental steps in recording accounting information by
More informationAccounting II Second Semester Final
Name: Class: Date: Accounting II Second Semester Final Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. Profit is the difference between:
More informationIn the event of a tie, the score on the last ten questions will be used as a tie-breaker.
NEW YORK STATE ASSOCIATION FUTURE BUSINESS LEADERS OF AMERICA SPRING DISTRICT MEETING ACCOUNTING I 2010 TEST DIRECTIONS 1. Complete the information requested on the answer sheet. PRINT your name on the
More informationAccounting I Lesson Plan
Accounting I Lesson Plan Name: Terry Wilhelmi Day/Date: Topic: Work Sheet for a Service Business Unit: Chapter 8 I. Objective(s): By the end of today s lesson, the student will be able to: define accounting
More informationThe General Journal and the General Ledger
4-1 McGraw-Hill 2009 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 4 The General Journal and the General Ledger Section 1: The General Journal Section Objectives 1. Record transactions in
More informationSupplement to CHAPTER 3 CLOSING ENTRIES AND THE WORK SHEET
Supplement to CHAPTER 3 CLOSING ENTRIES AND THE WORK SHEET Answers to Review Questions 1. No, the work sheet cannot be used as a substitute for the financial statements. It is a tool used in preparing
More informationHow To Calculate A Trial Balance For A Company
THE BASIC MODEL The accounting information system is designed to collect and organize data into information that is useful for stakeholders. The Accounting Equation The basic accounting equation is what
More informationFBLA: ACCOUNTING I. Competency: Journalizing
Competency: Journalizing 1. Prepare a multi-column journal for recording data. 2. Record transactions such as accounts receivables and accounts payables in appropriate journals. 3. Journalize or record
More informationAccounting Skills Assessment Practice Exam Page 1 of 10
NAU ACCOUNTING SKILLS ASSESSMENT PRACTICE EXAM & KEY 1. A company received cash and issued common stock. What was the effect on the accounting equation? Assets Liabilities Stockholders Equity A. + NE +
More informationPreparing Financial Statements
Carroll_CH03_023-040.qxd 8/10/06 4:37 PM Page 23 CHAPTER 3 Preparing Financial Statements OBJECTIVES F After reading this chapter, the student should be able to: 1. Describe the general process by which
More informationYAVAPAI COLLEGE/PRESCOTT UNIFIED SCHOOL DISTRICT District Instructional Guide (DIG) Year-Long Semester Pacing Guide 2015/2016 School Year
YAVAPAI COLLEGE/PRESCOTT UNIFIED SCHOOL DISTRICT District Instructional Guide (DIG) Year-Long Semester Pacing Guide 2015/2016 School Year School: Prescott High dual enrolled with Yavapai College Grade
More informationBusiness Education. National Business Education Standards for Accounting. 1 Based on the standards set forth by the Missouri Show Me Standards
Business Education 1 Based on the standards set forth by the Missouri Show Me Standards 2 Based on the standards set forth by the National Business Education Standards for Accounting Missouri Show Me Standards
More informationAccounting I/DMACC ACC 111
Accounting I/DMACC ACC 111 Accounting is the study of the accounting cycle for both a sole proprietorship and a partnership. The learner is expected to complete an accounting packet covering the whole
More informationBookkeeping Tips & T Accounts Prepared by Accomp Services (www.accompservices.ca)
Bookkeeping Tips & T Accounts Prepared by Accomp Services (www.accompservices.ca) Further valuable accounting and bookkeeping website resources are listed at the end of this document. A business is one
More informationILLUSTRATION 3-1 DOUBLE-ENTRY ACCOUNTING SYSTEM
ILLUSTRATION 3-1 DOUBLE-ENTRY ACCOUNTING SYSTEM ASSETS Increase Decrease + DOUBLE-ENTRY ACCOUNTING REAL (PERMANENT) ACCOUNTS = LIABILITIES + Rules of Thumb + If the "normal balance" for an account is a
More informationHoover City Schools Secondary Curriculum Document Career Technical Education, 2009-2010
Links to Document Content: HCS Curriculum: Career Technology 9 Accounting Hoover City Schools Secondary Curriculum Document Career Technical Education, 009-00 Basic Course Information Instructional Sequence
More informationWelcome to the financial reports topic. 5-1-1
Welcome to the financial reports topic. 5-1-1 We will explore the effect of standard processes in SAP Business One on Financial Reports: such as the Balance Sheet, the Trial Balance, and the Profit and
More information'i*,; V' Your answer is correct! Match the Item on the left wlth the definition on the rtght.
Match the Item on the left wlth the definition on the rtght. V' Your answer is correct! ~ Income statement """' ~ Reports a business's revenues and expenses for a period of time. ~ Balance sheet 1rt1 ~
More informationChapter 13 Financial Statements and Closing Procedures
Chapter 13 - Financial Statements and Closing Procedures Chapter 13 Financial Statements and Closing Procedures TEACHING OBJECTIVES 13-1) Prepare a classified income statement from the worksheet. 13-2)
More informationChapter 6: Closing Entries and the Postclosing Trial Balance
Chapter 6: Closing Entries and the Postclosing Trial Chapter Opener: Thinking Critically Students should recognize that financial statements can be used to evaluate net profit or loss, return on investments,
More informationThe Accounting Cycle Completed
5 The Accounting Cycle Completed Adjusting, Closing, and Post-Closing Trial Balance THE BIG PICTURE You are planning your school schedule for next term. Your goal is to take a full course load and find
More informationSection 2: The Bookkeeping Process (Module 3)
Section 2: The Bookkeeping Process Dermott Crofton dcrofton@sd62.bc.ca 1 This Section of the Course Bookkeeping Process Double Entry Bookkeeping Rules of Debits and Credits The T-Account Representing transactions
More informationAccounting Self Study Guide for Staff of Micro Finance Institutions
Accounting Self Study Guide for Staff of Micro Finance Institutions LESSON 5 Summarizing Changes in Financial Position OBJECTIVES The purpose of this lesson is to show how to summarize the transactions
More informationChapter 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
More informationBean Counter's Accounting and Bookkeeping "Cheat Sheet"
Page 1 of 6 Bean Counter's ing and Bookkeeping "Cheat Sheet" Provided by: Bean Counter Source Documents ( Invoices, Checks, etc.) Journals -Transactions first recorded using Debits and s General Ledger
More informationChapter 4: Accounting Records
Chapter 4: Accounting Records Structure and terminology of Double Entry Bookkeeping The T account records the effect of transactions under one accounting aspect two opposite effects possible, e.g. inflows
More informationAccrual accounting ACCRUAL VERSUS CASH BASIS OF ACCOUNTING. ACCRUAL VERSUS CASH BASIS OF ACCOUNTING continued. Chapter 3
Chapter 3 Accrual accounting concepts PowerPoint presentation by Anne Abraham University of Wollongong 2009 John Wiley & Sons Australia, Ltd ACCRUAL VERSUS CASH BASIS OF ACCOUNTING Accrual-based accounting
More informationLesson 1. Business, Accounting, and You ASSIGNMENT 1: INTRODUCTION TO ACCOUNTING. Why Study Accounting?
Business, Accounting, and You Assignment 1 introduces three types of business and the entities used in creating these businesses. Generally Accepted Accounting Principles (GAAP) and International Financial
More informationBUSINESS BOOKS. Accounting SIXTH EDITION. Peter J. Eisen Assistant Principal Retired Accounting & Business Practice N.YC. Department of Education
BUSINESS BOOKS Accounting SIXTH EDITION Peter J. Eisen Assistant Principal Retired Accounting & Business Practice N.YC. Department of Education BARRON'S CONTENTS Preface ix 1 THE ACCOUNTING EQUATION I
More informationTRANSACTIONS ANALYSIS EXAMPLE. Maxwell Partners Medical Diagnostic Services report the following information for 2011, their first year of operations:
TRANSACTIONS ANALYSIS EXAMPLE Maxwell Partners Medical Diagnostic Services report the following information for 2011, their first year of operations: 1. Billings to clients for services provided: $350,000
More informationCHAPTER 2 REVIEW OF THE ACCOUNTING PROCESS. Lecture Outline
CHAPTER 2 REVIEW OF THE ACCOUNTING PROCESS Overview Chapter 1 explained that the primary means of conveying financial information to investors, creditors, and other external users is through financial
More informationT Accounts, Debits and Credits, Trial Balance, and Financial Statements
2 T Accounts, Debits and Credits, Trial Balance, and Financial Statements DEMONSTRATION PROBLEM maintains an office for the practice of veterinary medicine. The account balances as of September 1 are given
More informationAnalyzing Business Transactions Using T Accounts
pri639_ch03_053-088.qxd 9/7/3 4:54 PM Page 53 Analyzing Business Transactions Using T Accounts Chapter 3 When Alexander Graham Bell invented the telephone in 876, and gave birth to www.att.com the company
More informationDebits and Credits CHAPTER
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 those transactions on the firm s assets,
More informationAssignment 6: Adjusting Journal Entries and
Name: Due Date: December 12, 2011 Score: out of a possible 47 Course value: 7.5% Assignment 6: Adjusting Journal Entries and Worksheets A series of transactions are presented and their journal entries
More informationTHE ACCOUNTING INFORMATION SYSTEM
CHAPTER 3 THE ACCOUNTING INFORMATION SYSTEM OVERVIEW Accounting information must be accumulated and summarized before it can be communicated and analysed. In this chapter, we will discuss the steps involved
More informationJob Ready Assessment Blueprint. Accounting-Advanced. Test Code: 3900 / Version: 01
Job Ready Assessment Blueprint Accounting-Advanced Test Code: 3900 / Version: 01 Measuring What Matters Specific Competencies and Skills Tested in this Assessment: Journalizing Journalize an opening entry
More informationACCT1115. Review Package - Midterm SOLUTION Fall 2013
ACCT1115 Review Package - Midterm SOLUTION Fall 2013 Part I Multiple Choice 1) How should you record the purchase of an expensive automobile? a) Decrease cash, increase assets b) Decrease cash, increase
More informationPrinciples of Financial Accounting ACC-101-TE. TECEP Test Description
Principles of Financial Accounting ACC-101-TE TECEP Test Description This TECEP is an introduction to the field of financial accounting. It covers the accounting cycle, merchandising concerns, and financial
More informationThe Accounting Cycle Completed
5 The Accounting Cycle Completed T HE B IG P ICTURE Accountants have come a long way from the old stereotype of bean counter a pale figure with a green eyeshade who tends cloth-bound ledgers and journals
More informationAccounting Cycle. Matching Principle
CHAPTER 3 Accounting Cycle Analyze and record the transactions Post the transactions and prepare trial balance Adjust the accounts and prepare trial balance Prepare the financial statements Close the accounts
More informationAccrual Accounting Process
Accrual Accounting Process 15.501 Accounting Spring 2004 Professor S. Roychowdhury Sloan School of Management Massachusetts Institute of Technology Feb 17/18, 2004 1 An accountant s functions include Classifying
More informationMerchandising Businesses
Learning Objectives LO1 Distinguish among service, retail merchandising, and wholesale merchandising businesses. LO2 Identify differences between a sole proprietorship and a corporation. LO3 Explain the
More informationJOB READY ASSESSMENT BLUEPRINT ACCOUNTING-BASIC - PILOT. Test Code: 4100 Version: 01
JOB READY ASSESSMENT BLUEPRINT ACCOUNTING-BASIC - PILOT Test Code: 4100 Version: 01 Specific Competencies and Skills Tested in this Assessment: Journalizing Apply the accounting equation to journalize
More informationStudy Guide - Final Exam Accounting I
Study Guide - Final Exam Accounting I True/False Indicate whether the sentence or statement is true or false. 1. Entries in a sales journal affect account balances in both the accounts receivable ledger
More informationCHAPTER 3 The Accounting Information System
CHAPTER 3 The Accounting Information System 3-1 LECTURE OUTLINE Chapter 3 provides a review of accounting procedures throughout the accounting cycle. Depending on time constraints and students accounting
More informationCourse- Financial Management.
Course- Financial Management. PHAR 4233 Semester/Year: Spring 2013 Course dates2/2/2013-2/27/2013 Lecture Objective Template Lecture #1/2 Date/time: 10:00 AM 1/3/2013 Lecture/Name Topic: Introduction to
More informationCourse- Financial Management.
Course- Financial Management. PHAR 4233 Semester/Year: Spring 2015 Lecture Objective Template Lecture #1/2 Date/time: 10:00 AM 1/6-7/2015 Lecture/Name Topic: Introduction to Financial Management and Accounting
More informationBasic Accounting Principles
Basic Accounting Principles Basic Accounting Model The basic accounting model represents the relationship between assets (what the company owns), liabilities (what the company owes), and owner s equity
More informationCOURSE GUIDELINE--Accounting
COURSE GUIDELINE--Accounting Grade: 9- (Elective Course, offered one semester at a time) SUBJECT: Accounting TEACHER: Reimer STANDARD QTR. RESOURCES STRATEGIES ASSESSMENTS. Define accounting and explain
More informationPrerequisite: None or as established by individual college. 3.0 semester credit hours/4.5 quarter credit hours/45 contact hours
I. CATALOG DESCRIPTION ACCT-1200 Principles of Accounting I Prerequisite: None or as established by individual college This course is designed to provide introductory knowledge of accounting principles,
More informationAccounting Notes. Cash - includes money and any medium of exchange that a bank accepts at face value
Asset Accounts: Cash - includes money and any medium of exchange that a bank accepts at face value Accounts Receivable - a record of an oral or implied promise of future cash receipts in exchange for goods
More informationLearning Objectives: Quick answer key: Question # Multiple Choice True/False. 14.1 Describe the important of accounting and financial information.
0 Learning Objectives: 14.1 Describe the important of accounting and financial information. 14.2 Differentiate between managerial and financial accounting. 14.3 Identify the six steps of the accounting
More informationCHAPTER 3 ADJUSTING THE ACCOUNTS
CHAPTER 3 ADJUSTING THE ACCOUNTS TIME PERIOD ASSUMPTION The time period (or periodicity) assumption assumes that the economic life of a business can be divided into artificial time periods generally a
More informationINTRODUCTION TO ACCOUNTING ACNT 1303 Lecture Notes. Chapter 1 The Nature of Accounting
INTRODUCTION TO ACCOUNTING ACNT 1303 Lecture Notes GENERAL INFORMATION FOR COMPLETING THE CLASS The following is a summary of the twelve chapters that you will be completing this semester. Be sure that
More informationThe Double-Entry System EFFECTS OF TRANSACTIONS ON THE BALANCE SHEET. Initial Paid-in Capital. An Example Entity. Transaction 2.
The Double-Entry System EFFECTS OF TRANSACTIONS ON THE BALANCE SHEET 2001 Richard S. Barr Transaction: Any event that affects the entity's financial position and requires recording Every accounting transaction
More information1. If the assets owned by a business total $100,000 and liabilities total $70,000, stockholders' equity totals $30,000.
Rallis Page 1 Name: _ Date: 1. If the assets owned by a business total $100,000 and liabilities total $70,000, stockholders' equity totals $30,000. A) True B) False 2. If total liabilities decreased by
More informationLiquidation of a Partnership
Liquidation of a Partnership STUDY OBJECTIVE 5 Explain the effects of the entries to record the liquidation of a partnership. Liquidation of a business involves selling the assets of the firm, paying liabilities,
More informationEasyPC Training. Accounting Basics
EasyPC Training Accounting Basics Contents Accounting Basics... 3 The Accounting Equation... 3 Assets... 3 Liabilities... 3 Owner s Equity... 3 The Balance Sheet... 5 Double Entry Bookkeeping... 6 Ledger
More informationFinancial Statements for a Sole Proprietorship
CHAPTER 9 Financial Statements for a Sole Proprietorship BEFORE YOU READ 1. 2. 3. 4. 5. 6. 7. 8. 9. What You ll Learn Explain the purpose of the income statement. Prepare an income statement. Explain the
More informationSOUTHWESTERN MICHIGAN COLLEGE School of Business Dowagiac, Michigan COURSE SYLLABUS Winter Session, 2004
SOUTHWESTERN MICHIGAN COLLEGE School of Business Dowagiac, Michigan COURSE SYLLABUS Winter Session, 2004 COURSE TITLE: Principles of Accounting I COURSE NO.: ACCO 201 SECTION NO.: 1002 1003 CREDITS/CONTACTS:
More informationAssessment Schedule 2013 Accounting: Prepare financial information for an entity that operates accounting subsystems (91176)
NCEA Level 2 Accounting (91176) 2013 Page 1 of 7 Assessment Schedule 2013 Accounting: Prepare financial information for an entity that operates accounting subsystems (91176) Evidence Part A Question One
More information> DO IT! Chapter 3 Adjusting the Accounts. Timing Concepts. Adjusting Entries for Deferrals D-12. Solution
Chapter 3 Adjusting the Accounts Timing Concepts Review the glossary terms. Study carefully the revenue recognition principle, the expense recognition principle, and the time period assumption. Several
More informationLearning Targets: Quarter 1, Unit 1, Chapters 1 & 2 Quarter 2, Unit 2, Chapters 3 & 4 Quarter 3, Unit 3, Chapter 5 Unit 4, Chapter 6
School District of Waukesha Course Syllabus Curriculum Area: Business Education Course Title: Accounting I Prerequisites: None Course Length: Year Course #: 4004 Date Last Revised: June 2009 Stage 1: Desired
More informationLesson Plan 2.6 Closing the Fiscal Period
Lesson Plan 2.6 Closing the Fiscal Period Course Title Accounting I Lesson Purpose Journalize and post closing entries and check for accuracy. Behavioral Objectives Journalize and post adjusting entries.
More informationPRESCRIBED CODING SYSTEM
Revised 2/1/2004 SECTION H PRESCRIBED CODING SYSTEM All school districts shall utilize the prescribed coding system as detailed in Sections H, I, J, K, L and M of this manual. This coding system must be
More informationKeeping The Books With
Keeping The Books With Table of Contents Account Types The Accounting Equation Double Entry Bookkeeping Accounts Transactions Balance Sheet Income Statement The Accounting Cheat Sheet Summary 2 Account
More informationLesson 5.4 End-of-Fiscal Period Activities. Merchandising Business
Lesson Plan 5.4 End-of-Fiscal Period Activities for a Merchandising Business Course Title Accounting I Session Title End-of-Fiscal Period Activities for a Merchandising Business Lesson Purpose Demonstrate
More informationPLAR PLAR PLAR. Change. Learning. Change. Learning. Knowledge recognition. Learning. knowledge. skills. Knowledge. Learning. recognition.
PLAR Prior Learning Assessment and Recognition (PLAR) Accounting Principles 30S Version 1 August 2004 PLAR Skills Assessment Learning Knowledge recognition Change Skills Prior Change Assessment Prior skills
More informationCHAPTER 4 Accrual Accounting Concepts Study Objectives
CHAPTER 4 Accrual Accounting Concepts Study Objectives Explain the revenue recognition principle and the matching principle. Differentiate between the cash basis and the accrual basis of accounting. Explain
More informationModule 3: Adjusting the accounts, preparing the statements, and completing the accounting cycle
Course Schedule Course Modules Review and Practice Exam Preparation Resources Module 3: Adjusting the accounts, preparing the statements, and completing the accounting cycle Overview In Module 2 you studied
More informationWEEK. 1/19 Unit 1: The Accounting Environment/Benchmarks 10/28 Unit 5: Accounting for a Merchandising Enterprise
WEEK Semester 1 Marking Periods 1&2/5&6 WEEK Semester 2 Marking Periods 3&4/7&8 1/19 Unit 1: The Accounting Environment/Benchmarks 10/28 Unit 5: Accounting for a Merchandising Enterprise 2/20 11/29 3/21
More information