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Similaire à Hhtfa8e ch02 stud devry Accounting 212 FINANCIAL ACCOUNTING (9)
Hhtfa8e ch02 stud devry Accounting 212 FINANCIAL ACCOUNTING
- 4. Transactions
• Events that have a financial impact on the
business
• Events that have two sides
• Accounting records both sides of transactions
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- 5. The Account
Assets Liabilities Stockholders’
Equity
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- 6. Assets
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- 7. Liabilities
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- 10. Exercise 2-16A
Assets Liabilities Type of
Accounts Accounts Notes Stockholders' Equity
Date Cash receivable Supplies Land = payable payable + Equity Transaction
6-Mar
9-Mar
12-Mar
15-Mar
15-31
- - - - - -
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- 11. Exercise 2-16A
Assets Liabilities Type of
Accounts Accounts Notes Stockholders' Equity
Date Cash receivable Supplies Land = payable payable + Equity Transaction
15-31
31-Mar
31-Mar
31-Mar
- - - - - - -
$80,600 $80,600
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- 13. Double-Entry Accounting
• Business transactions include two parts
• Accounting based on a double-entry system
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- 14. T-Account
Account Title
Left side Right side
Debit Credit
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- 15. Rules of Debit and Credit
Stockholders’
Assets Liabilities Equity
Debit Credit Debit Credit Debit Credit
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- 16. Additional Stockholders’ Equity
Accounts: Revenues & Expenses
Liabilities
Common stock
Assets +
Retained earnings
Stockholders’
Stockholders’ Dividends
Equity
Equity +
Revenues
Expenses
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- 17. Rules of Debit and Credit
Stockholders’ Equity
Assets Liabilities Common stock Retained earnings
Debit Credit Debit Credit Debit Credit Debit Credit
Revenue
Debit Credit
Dividends Expenses
Debit Credit Debit Credit
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- 19. The Journal
• Chronological record of transactions
• Three steps
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- 20. Journal Entry
JOURNAL
Date Accounts and explanation Debit Credit
May 1 Cash 50,000
Common stock 50,000
Issued common stock
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- 21. The Ledger
Individual
asset
accounts
Individual
equity
accounts
Individual
liability
accounts
21
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- 22. Posting
JOURNAL
Date Accounts and explanation Debit Credit
May 1 Cash 50,000
Common stock 50,000
Issued common stock
Cash Common stock
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- 23. Flow of Accounting Data
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- 24. Use a trial balance
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- 25. Trial Balance
• Lists all accounts with their balances
• Assets listed first, then liabilities and
stockholders’ equity
• Shows that debits equal credits
• Usually prepared at the end of the period
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- 26. Analyzing Accounts
Cash
Beginning balance
Cash receipts ?
Ending balance
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- 27. Analyzing Accounts
Accounts receivable
Beginning balance
Sales on account ?
Ending balance
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- 28. Analyzing Accounts
Accounts payable
Beginning balance
? Purchases on account
Ending balance
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- 30. Chart of Accounts
Balance Sheet Accounts
Assets Liabilities Stockholders’ Equity
101 Cash 201 Accts. payable 301 Common stock
111 Accts. receivable 231 Notes payable 311 Dividends
141 Office supplies 312 Retained earnings
151 Office furniture Income Statement Accounts
191 Land Revenues Expenses
401 Service revenue 501 Rent expense
502 Salary expense
503 Utilities expense
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- 31. Normal Balances of Accounts
Assets
Liabilities
Stockholders’ Equity overall
Common stock
Retained earnings
Dividends
Revenues
Expenses
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- 33. Using T-Accounts
• Decisions often are made without a complete
accounting system
• T-Accounts allow managers to analyze
transactions quickly
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- 34. Short Exercise 2-13
Cash Computer Equipment
$140,000 $100,000
Accounts Payable Common Stock
$100,000 $140,000
Debits = ? Credits = ?
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