• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Accounting as an information system
 

Accounting as an information system

on

  • 1,327 views

 

Statistics

Views

Total Views
1,327
Views on SlideShare
1,327
Embed Views
0

Actions

Likes
0
Downloads
53
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Accounting as an information system Accounting as an information system Presentation Transcript

    • INCOME SUMMARY
    • CHAPTER 1: ACCOUNTING AS AN INFORMATION SYSTEM
      • 1/ Accounting Equation
      • 2/ Financial Statements
    • 1/ Accounting Equation
      • Assets = Equities
      • Assets= Liabilities + Owner’s Equity
    • 2. Financial Statement
      • 1/ The Income Statement
      • 2/ The Statement of Owner’s Equity
      • 3/ The Balance Sheet
      • 4/ The Statement of Cash Flow
    •  
    •  
    •  
    •  
    • (continued)
    • (concluded)
    • CHAPTER 2: THE DOUBLE-ENTRY S Y S T E M
      • 1.The T Account
      • 2. Procedure Of Rec. Transaction
      • 3. The Journal, General Journal
      • 4. Trial Balance
    • Assets Equity 1. The T Account
    • 1. The T Account (cont.)
      • THE T ACC. ILLUSTRATED :
      • Cash Account:
      • O. Balance: $ 1,200
      • Jan, 05: Received $ 300
      • Jan, 07: Received $70
      • Jan, 10: Paid $700
      • Jan, 28: Received $130
      700 Jan.10 300 Jan.05 70 Jan.07 130 Jan.28 700 500 1,000 Bal. 1,200 Bal. C A S H
    • 2. Procedure Of Rec. Transaction
      • - Analyze the transactions
      • - Journalizing
      • - Posting to the ledger
      • - Prepare Unadjusted trial balance
    • 3. – The Journal, General Journal
      • 3.1 THE GENERAL JOURNAL
      2,000 AC. Payable by on credit Purchase O.S 2,000 Office Supplies 6 2007 May … Credit Debit Post Ref. Description Date Page 1 General Journal
    • 3.2 The General Ledger Balance Cr. Item Ac. No. … Accounts Payable … … Dr. … 2,000 … 1,000 1,300 J2 7 … … … … … 2,300 J1 6 2007 May … … … … . … … Cr. Dr. Post Ref. Date General Ledger
    • Office supplies 2007 May 2,000 J1 √ 1 2 3 4 6 6 3,500 5 3.3 – Relationship between Journal and Ledger 2,000 AC. Payable on credit Purchase O.S by 2,000 Office supplies 6 2007 May … Credit Debit Post Ref. Description Date Page 1 General Journal Balance Cr. Item Ac. No. … … 1,500 Dr. … … … … … … … … … … … . … … Cr. Dr. Post Ref. Date General Ledger
    • Cash $ 2,000 4. Trial Balance 100 Telephone Expense ……………… ……………… ………………………… .. $ 2,500 Accounts Payable 1,400 AXY, Withdrawals 3,200 Fees Earned 10,000 AXY, Capital TRIAL BALANCE – May 31, 2007 Balance Cr. Item Ac. No. … Cash 2,000 1,500 Dr. … … … … … 31 … . May … … … . … . 2007 Cr. Dr. Post Ref. Date General Ledger
    • CHAPTER 3: BUSINESS INCOME – ADJUSTING ENTRIES
      • 1 / The Adjustment Process
      • 2/ The Adjusted Trial Balance
    • 1/ The Adjustment Process
      • Deferrals
      • 1.1 - Apportioning Recorded Expenses
      • 1.2 - Apportioning Recorded Revenues
      • Accruals
      • 1.3 – Unrecorded Revenues
      • 1.4 – Unrecorded Expenses
    • 1.1 – Apportioning Recorded Expenses
      • * PREPAID EXPENSES
      • Debit Insurance Expense
      • Credit Prepaid Insurance
      • * SUPPLIES EXPENSES
      • ** Stock-taking
      • Debit Supplies Expense
      • Credit Supplies
      • * DEPRECIATION EXPENSES
      • ** Straight Method
      • Debit Depreciation Expense
      • Credit Accu. Depre., Equip.
    • 1.2 – Apportioning Recorded Revenues
      • * UNEARNED FEES
      • Debit Unearned Fees
      • Credit Fees Earned
    • 1.3 – Unrecorded Revenues
      • * UNRECORDED FEES
      • Debit Fees Receivable
      • Credit Fees Earned
    • 1.4 – Unrecorded Expenses
      • * UNRECORDED EXPENSES
      • Debit Office Wages Expense
      • Credit Wages Payable
    • 2. – The Adjusted Trial Balance
      • Posting of the adjusting entries to Ledger
      • Preparing Trial Balance (Adjusted Trial Bal)
      • Preparing Income Statement from Revenue Ac and Expense Ac
      • Preparing Balance Sheet from Adj Trial Bal & Income Statement
    • Relationship of Adj Trial Balance to Income Statement … $ 9,000 John, Capital 900 Wages Expense 100 Utility Expense … 400 Rent Expense $18,810 $18,810 1,600 Art Fees Earned 3,000 Ad Fees Earned … . $1,200 Cash ADJUSTED TRIAL BALANCE 1,600 Art Fees Earned $4,600 Total Revenues Expenses $100 Utility Expense 900 Wages Expense 400 Rent Expense $1,400 Total Expenses $3,200 NET INCOME $3,000 Ad Fees Earned Revenues INCOME STATEMENT
    • Relationship of Ad Trial Balance to Balance Sheet $70 Acc. Depr, Off E 4,200 Office Equip. … $18,810 $18,810 … . $1,200 Cash ADJUSTED TRIAL BALANCE ASSETS $1,200 Cash . . . $4,200 Of. Equip 4,130 70 Less Accumulated Depreciation $14,500 Total Assets LIABILITIES … $3,900 Total Liabilities OWNER’S EQUITY $14,500 Total Lia. & OE 10,600 John, Capital, Jan 31, 07 BALANCE SHEET $600 … $10,600 John, Capital, Jan 31, 07 ___ John, Capital, Jan 1, 07 STATEMENT OF OE
    • CHAPTER 4: COMPLETING THE ACOUNTING CYCLE
      • 1/ Prepare a WORK SHEET & FINANCIAL STATEMENTS
      • 2/ Record CLOSING ENTRIES
      • 3/ Prepare REVERSING ENTRIES
    • 1/ Prepare a WORK SHEET & FINANCIAL STATEMENTS
      • Work Sheet
    • FINANCIAL STATEMENTS Revenues Expenses Work sheet Income statement Withdrawals Capital WORK SHEET + Net Income ➮ STATEMENT OF OWNER’S EQUITY INCOME STATEMENT Liabilities Assets WORK SHEET + Capital ➮ BALANCE SHEET STATEMENT OF OWNER’S EQUITY
    • Record CLOSING ENTRIES Dr. Revenues Cr. Income summary Dr. Income summary Cr. Expenses Dr. Net income Cr. Capital Dr. Capital Cr. Withdrawals
    • Prepare REVERSING ENTRIES
      • (1) Accrued expenses
      • ** Adjusting Entry
      • Jan 31 Wages Expense $180.
      • Wages Payable $180.
      • ** Reversing Entry
      • Feb. 1 Wages Payable $180.
      • Wages Expense $180.
      • Feb.9 Wages Expense $600.
      • Cash $600.
      Feb 9 Wages payable $180 Wages expense $420 Cash $600
      • (2) Accrued revenues
      • ** Adjusting Entry
      • Jan 31 Fees Receivable $200.
      • Advertising Fees Earned $200.
      • ** Reversing Entry
      • Feb. 1 Advertising Fees Earned $200.
      • Fees Receivable $200.
      • Feb.10 Accounts Receivable $300.
      • Advertising Fees Earned $300.
      Feb.10 Accounts Receivable $300 Advertising Fees Earned $100 Fees Receivable $200
    • CHAPTER 5: ACCOUNTING for MERCHANDISING OPERATIONS
      • 1/ Returns and allowances & Discounts
      • 2/ Transportation Term
      • 3/ Record Purchases of merchandising
      • (GROSS & NET METHOD)
      • 4/ Record CLOSING ENTRIES
    • 1/ Returns and allowances & Discounts
      • Sales:
      • Sales return and allowances
      • Dr. Sales return and allowances
      • Cr. Accounts receivable or Cash
      • Sales discounts
      • Jan 20 Dr. Accounts receivable $300
      • Cr. Sales $300
      • (terms 2/10, n/30)
      • Jan 29 Dr. Cash $294
      • Dr. Sales discounts $6
      • Cr. Accounts receivable $300
      • Purchases:
      • Purchases returns and allowances
      • Dr. Accounts payable
      • Cr. Purchases returns and allowances
      • Purchases discounts
      • Feb 2
      • Dr. Purchases $1,300
      • Cr. Accounts payable $1,300
      • (terms 2/10, n/30)
      • Feb 10
      • Dr. Accounts receivable $1,300
      • Cr. Purchases discounts $26
      • Cr. Cash $1,274
    • 2 / Transportation Term
    • 3/ Record Purchases of merchandising (Gross Method) - AC Payable
      • Cash
      Purchase (Gross Price) Purchase mer. for resale - AC Payable
      • Cash
      Freight In Incur transportation on mer.
      • Purchases
      • Discounts
      • Cash
      AC Payable Pay for mer. purchased on credit - AC Payable Purchase (Gross Price)
      • Cash
      Return mer. or obtain a reduction Credit Debit Transaction
    • 4/ Record Purchases of merchandising (Net Method) Cash
      • AC Payable
      Pay for mer. purchased on credit - Purchases Discounts Lost Purchase (Net Price)
      • Cash
      Return mer. or obtain a reduction - AC Payable - AC Payable
      • Cash
      Purchase (Net Price) Purchase mer. for resale - AC Payable
      • Cash
      Freight In Incur transport. on mer. Credit Debit Transaction
    • 4/ Record CLOSING ENTRIES Income Summary Expenses Merchandise Inventory (Begin) Sales Return & Allowances Sales Discounts Purchases Freight In Merchandise Inventory (End) Sales Purchases Return&Allowances Purchases Discounts Income Summary
    • 5/ Calculate COST OF GOODS SOLD GOODS Available for Sale Beginning Merchandise Inventory NET PURCHASES COST OF GOODS SOLD ** Cost of Goods Sold: Ending Merchandise Inventory
    • 6/ Income Statement Total Operating Expenses Operating Expenses Selling Expenses General & Administrative Expenses Net Income Gross Margin from Sales Cost of Goods Sold Cost of Goods Sold Net Sales Revenues from Sales INCOME STATEMENT For the Year Ended …..
    •  
    • CHAPTER 6: ACCOUNTING SYSTEMS SPECIAL-PURPOSE JOURNALS
      • Special-Purpose Journal
      Save times Compare
    • 2.1/ Relations between transactions and special-purpose journals CP C ash P ayments Journal Disbursements of cash CR C ash R eceipts Journal Receipts of cash P P urchases J Purchases on credit S S ales Journal Sales of mer on credit Abbre S-P Journal Transaction
    • 2.2 / Sales Journal
      • - Only one line to record each transaction
      • No explanation
      4,950./ . . . . . . . . . . . . . . . . . 335./ 724 Peter Clark 8 500./ 722 Michael Powers 5 750./ 721 Peter Clark 1 July Dr AC Receivable Cr Sales PostRef. Invoice Number AC Debited Date SALES JOURNAL
    • 4,950./ . . . . . . . . . . . . . . . . . 335./ 724 Peter Clark 8 500./ 722 Michael Powers 5 750./ 721 Peter Clark 1 Jul Dr AC Receivable Cr Sales PostRef. Invoice Number AC Debited Date SALES JOURNAL Page 1 4,950. 4,950 S1 31 Jul Cr Dr Balance Cr Dr Post. Ref. Date AC Receivable …… 4,950. 4,950 S1 31 Jul Cr Dr Balance Cr Dr Post. Ref. Date ……… . Sales
    • End of the month Daily 4,950./ . . . . . . . . . . . . . . . . . 335./ 724 Peter Clark 8 500./ 722 Michael Powers 5 750./ 721 Peter Clark 1 Jul Dr AC Receivable Cr Sales PostRef. Invoice Number AC Debited Date SALES JOURNAL Page 1 500. 500. S1 05 Jul Cr Dr Balance Cr Dr Post. Ref. Date Michael Powers …… 750. 750. S1 01 1,085. 335. S1 08 Jul Cr Dr Balance Cr Dr Post. Ref. Date Peter Clark …… 4,950. 4,950 S1 31 Jul Cr Dr Balance Cr Dr Post. Ref. Date AC Receivable ……
    • 500 750 C ash R eceipts Journal Page 1 2,600 1,250 10 3,840 1,400 1,400 sales 13 750 750 Peter Clark 16 500 10 490 Georgetta Jones 8 1,200 1,200 sales 1 Jul Other accounts Sales Accounts Receivable Other Accounts Sales discounts Cash Credits Debits Post. Ref. Account Debited/ Credited Date 500 CR1 08 Jul Cr Dr Balance Cr Dr Post. Ref. Date Georgetta Jones …… 100 CR1 16 Jul … .. 850 … .. … .. … . … … . Cr Dr Balance Cr Dr Post. Ref. Date Peter Clark …… 3,840 3,840 CR1 31 Jul Cr Dr Balance Cr Dr Post. Ref. Date Cash …… 850 S1 31 Jul 400 1,250 CR1 31 Cr Dr Balance Cr Dr Post.Ref. Date ……… . AC Receivable
    • THANKS EVERYONE