The General Journal and the General Ledger
|
|
|
- Matilda Booth
- 10 years ago
- Views:
Transcription
1 4-1
2 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 the general journal. 2. Prepare compound journal entries.
3 4-3 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
4 4-4 Objective 1 Record transactions in the general journal Journal A journal is a diary of business activities. There are different types of journals. Transactions are entered in the journal in chronological order.
5 GENERAL JOURNAL PAGE Nov. 6 Cash Jason Taylor, Capital 90, , 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. 4-5
6 GENERAL JOURNAL PAGE Nov. 6 Cash 90, Jason Taylor, Capital 90, 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. 4-6
7 4-7 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.
8 4-8 GENERAL JOURNAL PAGE Cash Investment by Owner On November 6 Jason Taylor withdrew $90,000 from personal savings and deposited it in a new business checking account for JT s Consulting Services. Nov. 6 Cash 90, Jason Taylor, Capital 90, (Investment by owner)
9 4-9 Cash Purchase of Equipment On November 7 JT s Consulting Services issued Check 1001 for $10,000 to purchase a computer and other equipment. GENERAL JOURNAL PAGE 1 Nov. 7 Equipment 10, Cash 10, (Purchased equip., Check 1001)
10 Credit Purchase of Equipment On November 10, JT s Consulting Services purchased office equipment on account for $12,000. GENERAL JOURNAL PAGE 1 Nov. 10 Equipment 12, Accounts Payable 12, Purchased equipment on account from Office Plus, Inv. 2223, due in 60 days 4-10
11 4-11 Cash Purchase of Supplies On November 28, JT s Consulting Services purchased supplies for $3,000, Check GENERAL JOURNAL PAGE 1 Nov. 28 Supplies 3, Cash 3, (Purchased supplies, Ck. 1002)
12 4-12 Payment to a Creditor On November 30 JT s Consulting Services paid Office Plus $5,000 in partial payment of Invoice 2223, Check GENERAL JOURNAL PAGE 1 Nov. 30 Accounts Payable 5, Cash 5, Paid on account, Office Plus, Invoice 2223, Check 1003
13 4-13 Recording Prepaid Rent On November 30, JT s Consulting Services wrote Check 1004 for $7,000 to prepay rent for December and January. GENERAL JOURNAL PAGE 1 Nov. 30 Prepaid Rent 7, Cash 7, Paid Dec. and Jan. rent in advance; Check 1004
14 Services performed for cash. JT s Consulting performed services for $26,000 in cash. GENERAL JOURNAL PAGE Dec. 31 Cash 26, Fees Income 26, Performed services for cash 4-14
15 4-15 Performed services on account. JT s Consulting performed services on account for $9,000. GENERAL JOURNAL PAGE 2 Dec. 31 Accounts Receivable 9, Fees Income 9, Performed services on credit
16 4-16 Received Cash From Credit Clients Received $4,000 in cash from a credit client on account. GENERAL JOURNAL PAGE 2 Dec. 31 Cash 4, Accounts Receivable 4, Received cash from credit clients on account
17 4-17 Paid Salaries Paid $7,000 for salaries. GENERAL JOURNAL PAGE 2 Dec. 31 Salaries Expense 7, Cash 7, Paid monthly salaries to employees, Check
18 4-18 Paid Utility Bill JT s consulting paid $500 in cash for a utility bill. GENERAL JOURNAL PAGE 2 Dec. 31 Utilities Expense Cash Paid monthly bill for utilities, Check 1007
19 4-19 Owner s Withdrawal The owner, Jason Taylor, withdrew $4,000 from the company. GENERAL JOURNAL PAGE 2 Dec. 31 Jason Taylor, Drawing 4, Cash 4, Owner withdrew cash for personal expenses, Check 1008
20 McGraw-Hill 2009 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 4 The General Journal and the General Ledger Section 2: The General Ledger Section Objectives 3. Post journal entries to general ledger accounts. 4. Correct errors made in the journal or ledger.
21 4-21 Ledgers The ledger contains a separate form for each account. The third step of the accounting cycle is posting to the ledger.
22 4-22 QUESTION: What is posting? ANSWER: Posting is the process of transferring data from a journal to a ledger.
23 4-23 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
24 4-24 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 DEBIT CREDIT DEBIT CREDIT 2010 Nov. 6 J1 90, ,000.00
25 4-25 Objective 3 Post journal entries to general ledger accounts Five Steps for Posting 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. 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.
26 4-26 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 Nov. 7 Equipment 10, Cash 10, Purchased equipment Check 1001 ACCOUNT Equipment ACCOUNT NO. 141 POST. BALANCE DATE DESCRIPTION DEBIT CREDIT DEBIT CREDIT 2010 Nov. 7 J1 10, ,000.00
27 4-27 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 Nov. 7 Equipment 10, Cash 10, Purchased equipment Check 1001 ACCOUNT Equipment ACCOUNT NO. 141 POST. BALANCE DATE DESCRIPTION DEBIT CREDIT DEBIT CREDIT 2010 Nov. 7 J1 10, ,000.00
28 4-28 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 Nov. 7 Equipment 10, Cash 10, Purchased equipment Check 1001 ACCOUNT Equipment ACCOUNT NO. 141 POST. BALANCE DATE DESCRIPTION DEBIT CREDIT DEBIT CREDIT 2010 Nov. 7 J1 10, ,000.00
29 4-29 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 Nov. 7 Equipment 10, Cash 10, Purchased equipment Check 1001 ACCOUNT Equipment ACCOUNT NO. 141 POST. BALANCE DATE DESCRIPTION DEBIT CREDIT DEBIT CREDIT 2010 Nov. 7 J1 10, ,000.00
30 4-30 Step 5: On the general journal, enter the ledger account number in the Posting Reference column. GENERAL JOURNAL PAGE Nov. 7 Equipment , Cash 10, Purchased equipment Check 1001 ACCOUNT Equipment ACCOUNT NO. 141 POST. BALANCE DATE DESCRIPTION DEBIT CREDIT DEBIT CREDIT 2010 Nov. 7 J1 10, ,000.00
31 General Ledger Accounts 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 This order of accounts speeds the preparation of the trial balance and the financial statements. 4-31
32 Objective 4 Correct errors made in the journal or ledger 4-32 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.
33 4-33 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.
34 4-34 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.
35 4-35 Before Posting GENERAL JOURNAL PAGE 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.
36 4-36 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.
37 4-37 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.
38 After Posting GENERAL JOURNAL PAGE Sept. 1 Office Equipment 141 9, Cash 101 9, Purchased equipment Check 2141 This erroneous journal entry was posted to the general ledger. 4-38
39 After Posting GENERAL JOURNAL PAGE 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. 4-39
40 4-40 Thank You for using College Accounting, 12 th Edition Price Haddock Farina
Closing 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
Chapter 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
Vol. 1, Chapter 3 - Accounting Adjustments
Vol. 1, Chapter 3 - Accounting Adjustments Problem 1 1. ($20,000 2,000) 48 = $375 per month 2. Jan. 31 Depreciation Expense $375 Accumulated Depreciation Van $375 To record depreciation expense for January
Debits 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,
Assignment 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
CHAPTER 2 ACCOUNTING FOR TRANSACTIONS
CHAPTER 2 ACCOUNTING FOR TRANSACTIONS Key Terms and Concepts to Know Double entry accounting: Debits and Credits Total debits must always equal total credits Accounting Books: Accounts General Journal
Chapter 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,
COMPLETION 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
ACCT1115. 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
Accounting 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
Self-test Comprehensive Problems II 综 合 自 测 题 II
Self-test Comprehensive Problems II 综 合 自 测 题 II Part One (30%) 1. Give the Chinese/English of the following terms: (5%) subsidiary ledger 统 制 账 户 purchase requisition 现 金 溢 缺 petty cash fund 永 续 盘 存 制
CHAPTER 4. Adjusting the accounts and preparing financial statements CONTENTS
CHAPTER 4 Adjusting the accounts and preparing financial statements CONTENTS Demonstration problem 4.1 Adjusting entries and corrections 4.2 Adjusting centries and effect on financial statements 4.3 Adjusting
b. Do not recognize revenue until steel is shipped. c. Do not recognize revenue until next year after the games are played.
CHAPTER FOUR SE4-2 Revenue recognition a. Recognize revenue from car sales for 12,000. Notes receivable $12,000 Sales revenue $12,000 b. Do not recognize revenue until steel is shipped. c. Do not recognize
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
T 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
Chapter 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
SOLUTIONS. 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
How To Account For Revenue Under Accrual Accounting
BAT 4M: Chapter 3 ANSWERS TO QUESTIONS 01. (a) Under the time period assumption, an accountant is required to determine the relevance of each business transaction to specific accounting periods, and its
TRANSACTIONS 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
Accounting 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:
SOLUTIONS. Learning Goal 5
Learning Goal 5: Prepare Adjusting Entries for s S1 Learning Goal 5 Multiple Choice 1. b To record the supplies used up. 2. d To record the amount of revenue earned as time passes. 3. d 4. d Debit an expense,
Module 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
CHAPTER 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
Assessment 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
7 Accounting for Sales and Accounts Receivable
7-1 McGraw-Hill 2009 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 7 Accounting for Sales and Accounts Receivable Section 1: Merchandise Sales Section Objectives 1. Record credit sales in
Section 2: The Bookkeeping Process (Module 3)
Section 2: The Bookkeeping Process Dermott Crofton [email protected] 1 This Section of the Course Bookkeeping Process Double Entry Bookkeeping Rules of Debits and Credits The T-Account Representing transactions
CHAPTER 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
Fundamentals of Financial Accounting
Fundamentals of Financial Accounting CHAPTER I Accounting in action. What is accounting? Accounting is the recording of financial transactions plus storing, sorting, retrieving, summarizing, and presenting
Module 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
Chapter 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
Objective 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
Classifying assets, liabilities, and owner s equity
Drill 1-D1 Classifying assets, liabilities, and owner s equity Classify each item listed below as an asset, liability, or owner s equity by placing a check mark in the Asset, Liability, or Owner s Equity
Accruals, Deferrals,
12-1 McGraw-Hill 2007 The McGraw-Hill Companies, Inc. All rights reserved. Chapter Accruals, Deferrals, 12 and the Worksheet Section 1: Calculating and Recording Adjustments Section Objectives 1. Determine
Accounting 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
Cash Receipts, Cash Payments, and Banking Procedures
9-1 McGraw-Hill 2009 The McGraw-Hill Companies, Inc. All rights reserved. Cash Receipts, Cash Payments, and Banking Procedures Section 1: Cash Receipts Section Objectives 1. Record cash receipts in a cash
How 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
CHAPTER 3. BE3-2 Advertising. Dec. 31 Advertising Supplies Expense 7200 Advertising Supplies 7200 to adjust. BE3-3 Bere Co.
CHAPTER 3 BE3-2 Advertising Advertising Supplies Supplies Expense 8700 7200 7200 1500 7200 Dec. Advertising Supplies Expense 7200 Advertising Supplies 7200 BE3-3 Bere Co. Prepaid Insurance Insurance Expense
In 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
Statement of Cash Flows
PREPARING THE STATEMENT OF CASH FLOWS: THE INDIRECT METHOD OF REPORTING CASH FLOWS FROM OPERATING ACTIVITIES The work sheet method described in the text book is not the recommended approach. We will provide
Chapter 5 Accounting for Merchandising Operations
Chapter 5 Accounting for Merchandising Operations Purchase Transactions Purchaser records goods at cost. When goods are returned, purchaser reduces Inventory. On September 5, De La Hoya Company buys merchandise
In 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
The 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,
Baseline 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
Accounting 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
$101,114 $40,915 = 2.47
SOLUTION (concluded) 4. Working Capital = $101,114 $40,915 = $60,199 Current Ratio = $101,114 $40,915 = 2.47 DISCUSSION QUESTIONS Suggested Responses 1. Current assets are listed in the order of their
CHAPTER 2 THE RECORDING PROCESS SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM S TAXONOMY. True-False Statements. Multiple Choice Questions
CHAPTER 2 THE RECORDING PROCESS sg st 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. 3 K 25.
The worksheet for Hancock Company shows the following in the financial statement
Chapter 4 Do it! Susan Elbe is preparing a worksheet. Explain to Susan how she should extend the following adjusted trial balance accounts to the financial statement columns of the worksheet. Cash Accumulated
Chapter 4. Completing the accounting cycle. Appendix 4A: Reversing entries
1 Chapter 4 Completing the accounting cycle Appendix 4A: Reversing entries 2 Learning objective 1. Prepare reversing entries and describe their purpose 3 Reversing entries Reversing entries are optional
Completing 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
Basic 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
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
Gold Run Snowmobile. Adjusting Entries and Closing Entries For The Quarter Ended December 31. Final Project Evaluation. 5 th Edition.
Gold Run Snowmobile 5 th Edition Adjusting Entries and Closing Entries For The Quarter Ended December 31 and the Final Project Evaluation Page 1 ADJUSTING ENTRIES FOR THE QUARTER Using a copy of the December
JOB 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
CHAPTER 12 ACCRUALS, DEFERRALS, AND THE WORKSHEET
CHAPTER 12 ACCRUALS, DEFERRALS, AND THE WORKSHEET Chapter Opener: Thinking Critically Students may assess that an unexpected decline in sales would mean surplus inventory which would have to be reduced
The 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
Debit Cash. Journalizing Transactions. Problem 2-2b. Created 2009 By Michael Worthington Elizabeth City State University
Journalizing Transactions Created 2009 By Michael Worthington Elizabeth City State University Lela Peterson transferred cash from a personal bank account to the account used for the business Entity states
PLAR 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
Review 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
Accounting Norms and Principles January 7, 2003
1 Accounting Norms and Principles January 7, 2003 The purpose of an accounting system is to provide credit union management with complete and accurate financial information that can be used to operate
ILLUSTRATION 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
RECORDING OF TRANSACTIONS (JOURNAL ENTRIES, LEDGER AND TRIAL BALANCE)
Source Document : RECORDING OF TRANSACTIONS (JOURNAL ENTRIES, LEDGER AND TRIAL BALANCE) A document which provides evidence of the transactions is called the Source Document such as Cash memo, Invoice etc.
Adjusting and Closing Entries
Adjusting and Closing Entries Adjusting and Closing entries tend to be difficult to grasp at first. A reason for this might be due to the type of transactions requiring adjustment, which tend to be unfamiliar.
ACC 211/212: Double Entry Logs
ACC 211/212: Double Entry Logs Journal Entries: o Credits are always indented (account name and value). o The sum of debits will always equal the sum of credits. o The month name is required only for the
Information System. CHAPTER The Accounting. eeded: A Reliable Information System LEARNING OBJECTIVES
8658d_c03.qxd 11/4/02 11:11 AM Page 61 mac62 mac62:1st Shift: 3 CHAPTER The Accounting Information System eeded: A Reliable Information System N Maintaining a set of accounting records is not optional.
Accounting 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
Analyzing 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
Supplement 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
Financial Statement Consolidation
Financial Statement Consolidation We will consolidate the previously completed worksheets in this financial plan. In order to complete this section of the plan, you must have already completed all of the
Century 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
Accg100 Accounting 1A. Lecture Notes
Accg100 Accounting 1A Lecture Notes Semester 2, 2012 1 Table of Contents Lecture Notes Page Week 1: Introduction to Accounting, Ethics, 3 Business Entities, Financial Statements Week 2: Accounting for
Accumulated Depreciation Equipment
Chapter 4 Completing the Accounting Cycle > DO IT! Worksheet Balance sheet: Extend assets to debit column. Extend liabilities to credit column. Extend contra assets to credit column. Extend drawings account
ACCOUNTING 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..........................
THE 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
Accrual 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
Preparing 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
Job 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
ACCT 652 Accounting. Review of last week. Should you always take discounts? 5/17/15. ACCT652 Week 4 1
ACCT 652 Accounting Week 4 Special Journals, Cash, and Internal Controls Some slides Times Mirror Higher Education Division, Inc. Used by permission Michael D. Kinsman, Ph.D. Review of last week Some highlights
How To Adjust For The Year End
ACCOUNTING 30S WORKSHEET ON ADJUSTING ENTRIES Put on your thinking caps and sharpen your pencils boys and girls it's time to practice with adjusting entries! 1. Give in general journal form the year-end
She Wears A Bullet-Proof Vest:
She Wears A Bullet-Proof Vest: Detailed Solving Steps for the 2014 Regional Accounting Exam s Work Sheet Problems Prepared by: LaVerne Funderburk, CPA UIL Accounting State Contest Director 2014 UIL Capital
Accounting 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
Advanced District Concepts: More Fun With the Worksheet! 2014 Student Activity Conference
ACCOUNTING Advanced District Concepts: More Fun With the Worksheet! 2014 Student Activity Conference UIL Accounting 2014 SAC Advanced District Concepts: Worksheet -2- Suggested Solving Strategy and Detailed
PART 1. BASIC CONCEPTS AND ACCOUNTING MODEL
CHAPTER 1 PART 1. BASIC CONCEPTS AND ACCOUNTING MODEL OBJECTIVES The objectives of this part are: To introduce a definition of accounting, the need for accounting information, and the various accounting
Chapter 3. Adjusting the accounts. Appendix 3A: An alternative method of recording deferrals
1 Chapter 3 Adjusting the accounts Appendix 3A: An alternative method of recording deferrals 2 Learning objectives 1. Prepare adjusting entries for prepaid expenses originally recorded in an expense account
CENTURY 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
Time Period Assumption
ILLUSTRATION 3-1 GUIDELINES TO REPORT REVENUE AND EXPENSES Time Period Assumption Economic life of business can be divided into artificial time periods Revenue Recognition Principle Revenue recognized
Accounting for a Merchandising Business
Chapter 11 Accounting for a Merchandising Business ANSWERS TO SECTION 11.1 REVIEW QUESTIONS (text p. 428) The Merchandising Business 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 1. 2. 3. 4. 14. 15. Copyright
Periodicity Assumption... Time Period Assumption... Chapter 4 Accrual Accounting Concepts
Financial Accounting: Tools for Business Decision Making, 4th Ed. CHAPTER 4 Kimmel, Weygandt, Kieso Chapter 4 Accrual Accounting Concepts KEY THINGS WE LL DO: Refresh and expand Ch.3 concepts. Differentiate
Adjusting the Accounts
HOSP 1210 (Financial Acct) Learning Centre Adjusting the Accounts Anytime we prepare financial statements or reach the end of an accounting period, there are account adjustments that need to be made to
COURSE 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
The Measurement of the Business Income. 1 by recording revenues when earned and expenses when incurred. 2 by adjusting accounts
Recap from Week 3 The Measurement of the Business Income The primary objective of accounting is measuring the net income of the businesses according to the generally accepted accounting principles. Net
Chapter 4: Transactions to General Ledger Chapter Review Solutions
Introductory Accounting - Accounting to Trial Balance Chapter 4: Transactions to General Ledger Chapter Review Solutions 2. Invoice: A bill charging a customer for goods supplied or service provided on
PRINCIPLES OF ACCOUNTS CHAPTER 5: JOURNALS
Page 1 Name: Index No.: Class: Sec 3 Recapitulation: A source document is a specially designed form, which provides details of a business transaction. It contains information like the date, the nature,
Victorian Certificate of Education 2008 ACCOUNTING. Written examination 2. Thursday 6 November 2008
Victorian Certificate of Education 2008 ACCOUNTING Written examination 2 Thursday 6 November 2008 Reading time: 11.45 am to 12.00 noon (15 minutes) Writing time: 12.00 noon to 1.30 pm (1 hour 30 minutes)
CHAPTER 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
Accrual 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
EXERCISES. Does not normally require adjustment. Normally requires adjustment (AE).
EXERCISES Ex. 3 1 1. Prepaid expense 2. Accrued revenue 3. Unearned revenue 4. Accrued expense 5. Unearned revenue 6. Prepaid expense 7. Accrued expense 8. Accrued expense Ex. 3 2 Account Accounts Receivable...