Financial Accounting محاسبة ماليةJohn J. Wild Si

Financial Accounting
‫ية‬ ‫مال‬ ‫بة‬ ‫س‬ ‫محا‬
John J. Wild
Sixth Edition
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-
Hill Companies, Inc. All rights reserved.
Chapter 01
Introducing Accounting in
Business
‫ة‬ ‫تجاري‬ ‫ال‬ ‫عمال‬ ‫األ‬ ‫ي‬ ‫ف‬ ‫بة‬ ‫س‬ ‫محا‬ ‫ال‬ ‫م‬ ‫قدي‬ ‫ت‬
Conceptual Chapter Objectives
‫ي‬‫يم‬ ‫فاه‬ ‫م‬ ‫ال‬ ‫صل‬ ‫ف‬ ‫ال‬ ‫أهداف‬
C1: Explain the purpose and importance of
accounting.
C2: Identify users and uses of accounting.
C3: Explain why ethics are crucial to

accounting.
C4: Explain generally accepted accounting principles and
define and apply
several accounting principles.
C5: Appendix 1B – Identify and describe the
three major activities of organizations.
. ‫حرشا‬ ‫ضرغلا‬ ‫ةيمهأو‬ ‫ةبساحملا‬
.‫ديدحت‬ ‫نيمدختسملا‬ ‫مادختساو‬ ‫بة‬ ‫س‬ ‫محا‬ ‫ال‬ ‫ات‬
.‫حرشا‬ ‫ببس‬ ‫ةيمهأ‬ ‫قلاخلأا‬ ‫ةبساحملل‬
‫مبادش‬ ‫ما‬ ‫العديد‬ ‫وتابيب‬ ‫وتحديد‬ ‫ما‬ ‫م‬‫وما‬ ‫المقبالة‬ ‫المحاسبة‬ ‫مبادش‬ ‫ئدح‬
. ‫ةبساحملا‬
‫نظمات‬ ‫لم‬ ‫ل‬ ‫ثة‬ ‫ثال‬ ‫ال‬ ‫ية‬ ‫س‬ ‫ي‬ ‫دئ‬ ‫ال‬ ‫شاة‬ ‫ن‬ ‫األ‬ ‫صف‬ ‫وو‬ ‫د‬ ‫حدي‬ ‫ت‬- ‫لحب‬ ‫م‬ ‫ال‬1 ‫ب‬
1-*
Analytical Chapter Objectives
‫ي‬‫ل‬ ‫ي‬ ‫ل‬ ‫تح‬ ‫ال‬ ‫صل‬ ‫ف‬ ‫ال‬ ‫أهداف‬
A1: Define and interpret the accounting
equation and each of its components.
A2: Compute and interpret return on assets.
A3: Appendix 1A – Explain the relation
between return and risk.
.‫ديدحت‬ ‫ريسفتو‬ ‫ةلداعملا‬ ‫ةيبساحملا‬ ‫لكو‬ ‫نوكم‬ ‫نم‬ ‫هتانوكم‬
.‫اسح‬ ‫صال‬ ‫األ‬ ‫ى‬‫ل‬ ‫و‬ ‫د‬ ‫عائ‬ ‫ال‬ ‫يد‬ ‫س‬ ‫ف‬ ‫وت‬ ‫ب‬
.‫حرشا‬ ‫ةقلاعلا‬ ‫نيب‬ ‫دشاعلا‬ ‫رطاخملاو‬

1-*
Procedural Chapter Objectives
‫ي‬ ‫جدائ‬ ‫اإل‬ ‫صل‬ ‫ف‬ ‫ال‬ ‫أهداف‬
P1: Analyze business transactions using the
accounting equation.
P2: Identify and prepare basic financial statements
and explain how they interrelate.
.‫ليلحت‬ ‫تلاماعملا‬ ‫ةيراجتلا‬ ‫مادختساب‬ ‫ةلداعملا‬ ‫ةيبساحملا‬
.‫ديدحت‬ ‫دادعإو‬ ‫تانايبلا‬ ‫ةيلاملا‬ ‫ةيساسلأا‬ ‫حرشو‬ ‫ةيفيك‬ ‫اهطبارت‬
1-*
Identifies‫ي‬‫ددح‬
Records‫ليجست‬
Communicates ‫لصاوتي‬
Relevant ‫همشلام‬
Reliable ‫ثوم‬ ‫وق‬

Comparable ‫هباشم‬
Importance of Accounting
‫بة‬ ‫س‬ ‫محا‬ ‫ال‬ ‫ية‬ ‫أهم‬
Accounting
is a
system that
‫ذي‬ ‫ال‬ ‫نظام‬ ‫ال‬
information
that is
about an
organization’s
business activities.
.‫لوح‬ ‫ةطشنأ‬ ‫لامعأ‬ ‫ةمظنملا‬
C1
1-*
Œ Identifying
Business
Activities
Œ‫ديدحت‬ ‫ةطشنلأا‬ ‫ةيراجتلا‬

❷Recording
Business
Activities ❷
‫شاة‬ ‫ن‬ ‫األ‬ ‫يل‬ ‫سج‬ ‫ت‬
‫ة‬ ‫تجاري‬ ‫ال‬
❸Communicating
Business Activities ❸
‫شاة‬ ‫ن‬ ‫األ‬ ‫صل‬ ‫تاا‬ ‫ال‬
‫ة‬ ‫تجاري‬ ‫ال‬
Accounting Activities
‫ية‬ ‫ب‬ ‫س‬ ‫محا‬ ‫ال‬ ‫شاة‬ ‫ن‬ ‫األ‬
C 1
1-*
Users of Accounting Information
‫ية‬ ‫ب‬ ‫س‬ ‫محا‬ ‫ال‬ ‫لامات‬ ‫ع‬ ‫م‬ ‫ال‬ ‫ي‬‫تخدم‬ ‫س‬ ‫م‬
External Users
‫يا‬ ‫ي‬ ‫خارج‬ ‫يا‬ ‫تخدم‬ ‫س‬ ‫م‬
•Lenders‫رقملا‬‫نيض‬
•Shareholders
•Governments
•Consumer Groups

•External Auditors
•Customers
Internal Users
‫يا‬ ‫ي‬ ‫ل‬ ‫داخ‬ ‫ال‬ ‫يا‬ ‫تخدم‬ ‫س‬ ‫م‬ ‫ال‬
•Managers
•Officers
•Internal Auditors
•Sales Staff
•Budget Officers
•Controllers
C 2
1-*
Users of Accounting Information
‫ية‬ ‫ب‬ ‫س‬ ‫محا‬ ‫ال‬ ‫لامات‬ ‫ع‬ ‫م‬ ‫ال‬ ‫ي‬‫تخدم‬ ‫س‬ ‫م‬
External Users
Financial accounting provides
external users (shareholders, lenders,
etc.) with financial statements.

‫يا‬ ‫ي‬ ‫خارج‬ ‫ال‬ ‫يا‬ ‫تخدم‬ ‫س‬ ‫لم‬ ‫ل‬ ‫ية‬ ‫مال‬ ‫ال‬ ‫بة‬ ‫س‬ ‫محا‬ ‫ال‬ ‫د‬ ‫اف‬ ‫ت‬
)‫ك‬ ‫ذل‬ ‫ى‬ ‫إل‬ ‫ا‬‫وم‬ ، ‫يا‬ ‫ض‬ ‫قد‬ ‫م‬ ‫ال‬ ، ‫يا‬ ‫ساهم‬ ‫م‬ ‫ال‬ ( ‫م‬ ‫قاائ‬ ‫ال‬
.‫ةيلاملا‬
Internal Users
Managerial accounting provides
information needs for internal decision
makers (officers, managers, etc.).
‫مح‬ ‫ال‬ ‫د‬ ‫اف‬ ‫ت‬ ‫ناع‬ ‫ص‬ ‫ل‬ ‫لامات‬ ‫ع‬ ‫م‬ ‫ال‬ ‫ياجات‬ ‫ت‬ ‫اح‬ ‫ة‬ ‫داري‬ ‫اإل‬ ‫بة‬ ‫س‬ ‫ا‬
).‫طابضلا‬ ، ‫نيريدملا‬ ، ‫نييلخادلارارقلا(خلإ‬
C 2
1-*
Opportunities in Accounting
‫بة‬ ‫س‬ ‫محا‬ ‫ال‬ ‫ي‬ ‫ف‬ ‫فدص‬ ‫ال‬
Financial ‫روملأا‬
‫ية‬ ‫مال‬ ‫ال‬
•Preparation
•Analysis
•Auditing
•Regulatory
•Consulting
•Planning
•Criminal
investigation

Managerial‫يرادإ‬
•General accounting
•Cost accounting
•Budgeting
•Internal auditing
•Consulting
•Controller
•Treasurer
•Strategy
Taxation ‫ليصحت‬
‫ب‬ ‫ضدائ‬ ‫ال‬
•Preparation
•Planning
•Regulatory
•Investigations
•Consulting
•Enforcement
•Legal services
•Estate plans
Accounting-
related ‫ةبساحم‬ ‫اذ‬ ‫ةلصلا‬
•Lenders
•Consultants
•Analysts
•Traders
•Directors
•Underwriters
•Planners
•Appraisers
•FBI investigators

•Market researchers
•Systems designers
•Merger services
•Business valuation
•Forensic accountant
•Litigation support
•Entrepreneurs
C 2
1-*
Accounting Jobs by Area
‫قة‬ ‫نا‬ ‫م‬ ‫ال‬ ‫سب‬ ‫ح‬ ‫بة‬ ‫س‬ ‫محا‬ ‫ال‬ ‫ف‬ ‫ائ‬ ‫وظ‬
C2
1-*
Beliefs that
distinguish right
from wrong
‫يز‬ ‫م‬ ‫ت‬ ‫ي‬‫ت‬ ‫ال‬ ‫قدات‬ ‫ت‬ ‫ع‬ ‫م‬ ‫ال‬
‫خ‬ ‫ال‬ ‫ا‬‫و‬ ‫صااب‬ ‫طأال‬
Accepted
standards of
good and bad
behavior

‫لاك‬ ‫س‬ ‫ل‬ ‫ل‬ ‫ة‬ ‫بال‬ ‫ق‬ ‫م‬ ‫ال‬ ‫يد‬ ‫عاي‬ ‫م‬ ‫ال‬
‫ئ‬‫ي‬ ‫س‬ ‫وال‬ ‫يد‬ ‫ج‬ ‫ال‬
Ethics
‫ب‬ ‫ال‬‫أخ‬
Ethics—A Key Concept
‫ي‬‫س‬ ‫ي‬ ‫رئ‬ ‫فهام‬ ‫م‬- ‫ب‬ ‫خال‬ ‫األ‬
C 3
1-*
Œ Identify ethical
concerns ‫ديدحت‬ ‫فواخملا‬
‫ية‬ ‫ق‬ ‫خال‬ ‫األ‬
❷Analyze options ❷
‫يل‬ ‫ل‬ ‫ح‬ ‫ت‬ ‫يارات‬ ‫خ‬ ‫❸ال‬Make ethical decision
‫يا‬ ‫ق‬ ‫ال‬‫أخ‬ ‫دار‬ ‫ق‬ ‫خاذ‬ ‫ت‬
Use personal ethics to
recognize an ethical
concern.
‫ية‬ ‫ص‬ ‫شخ‬ ‫ال‬ ‫ب‬ ‫خال‬ ‫األ‬ ‫تخدم‬ ‫س‬ ‫ا‬
‫ي‬‫ق‬ ‫خال‬ ‫األ‬ ‫تمام‬ ‫ه‬ ‫اال‬ ‫ى‬‫ل‬ ‫و‬ ‫عدف‬ ‫ت‬ ‫ل‬ ‫ل‬
Consider all good

and bad
consequences.
‫يدة‬ ‫ج‬ ‫ال‬ ‫ج‬ ‫تائ‬ ‫ن‬ ‫ال‬ ‫ع‬‫ي‬ ‫جم‬ ‫ي‬ ‫ف‬ ‫نظد‬ ‫ال‬
.‫ةشيسلاو‬
Choose best option
after weighing all
consequences.
‫ل‬ ‫ك‬ ‫وزن‬ ‫عد‬ ‫ب‬ ‫يار‬ ‫خ‬ ‫ضل‬ ‫أف‬ ‫يار‬ ‫ت‬ ‫اخ‬
.‫بقاوعلا‬
Guidelines for Ethical Decisions
‫ية‬ ‫ق‬ ‫خال‬ ‫األ‬ ‫قدارات‬ ‫ل‬ ‫ل‬ ‫ية‬ ‫يه‬ ‫تاج‬ ‫ال‬ ‫بادش‬ ‫م‬ ‫ال‬
C3
1-*
Financial accounting practice is governed by concepts and
rules known as generally accepted accounting principles
)GAAP(. ‫عضخت‬ ‫تاسرامم‬ ‫ةبساحملا‬ ‫ةيلاملا‬ ‫ميهافملل‬ ‫دعاوقلاو‬
‫بادش‬ ‫م‬ ‫سم‬ ‫ا‬ ‫ب‬ ‫ة‬ ‫عدوف‬ ‫م‬ ‫ال‬
)GAAP(‫ما‬ ‫م‬‫وما‬ ‫المقبالة‬ ‫المحاسبة‬
Generally Accepted Accounting Principles
‫وماما‬ ‫ة‬ ‫بال‬ ‫ق‬ ‫م‬ ‫ال‬ ‫بة‬ ‫س‬ ‫محا‬ ‫ال‬ ‫بادش‬ ‫م‬
Relevant Information

‫لة‬ ‫ص‬ ‫ذات‬ ‫لامات‬ ‫ع‬ ‫م‬
Affects the decision of its
users. .‫رثؤي‬ ‫ىلع‬ ‫رارق‬ ‫اهيمدختسم‬
Reliable Information
‫ة‬ ‫اق‬ ‫ماث‬ ‫لامات‬ ‫ع‬ ‫م‬
Is trusted by users.
.‫قوثوم‬ ‫هب‬ ‫نم‬ ‫لبق‬ ‫نيمدختسملا‬
C 4
Comparable
Information
‫ة‬ ‫قارن‬ ‫لم‬ ‫ل‬ ‫لة‬ ‫اب‬ ‫ق‬ ‫لامات‬ ‫ع‬ ‫م‬
Used in comparisons across
years & companies.
‫ناات‬ ‫س‬ ‫ال‬ ‫بد‬ ‫و‬ ‫ات‬ ‫قارن‬ ‫م‬ ‫ال‬ ‫ي‬ ‫ف‬ ‫تخدمة‬ ‫س‬ ‫م‬ ‫ال‬
.‫تاكرشلاو‬ 1-*
In the United States, the Securities and Exchange Commission,
a
government agency, has the legal authority to establish
reporting
requirements and set GAAP for companies that issue stock to
the public

، ‫صة‬ ‫بار‬ ‫وال‬ ‫ية‬ ‫مال‬ ‫ال‬ ‫اراق‬ ‫األ‬ ‫ئة‬ ‫ي‬ ‫ه‬ ‫ع‬‫ت‬ ‫تم‬ ‫ت‬ ، ‫تحدة‬ ‫م‬ ‫ال‬ ‫يات‬ ‫اال‬ ‫ال‬ ‫ي‬ ‫ف‬
‫ية‬ ‫ان‬ ‫قان‬ ‫ال‬ ‫لاة‬ ‫س‬ ‫ال‬ ‫ب‬ ، ‫ية‬ ‫كام‬ ‫ح‬ ‫ة‬ ‫ال‬ ‫وك‬ ‫وهي‬
‫بة‬ ‫س‬ ‫محا‬ ‫ال‬ ‫بادش‬ ‫م‬ ‫يا‬ ‫ي‬ ‫ع‬ ‫وت‬ ‫د‬ ‫قاري‬ ‫ت‬ ‫ال‬ ‫داد‬ ‫إو‬ ‫بات‬ ‫ل‬ ‫تا‬ ‫م‬ ‫د‬ ‫تحدي‬ ‫ل‬
‫سهم‬ ‫األ‬ ‫صدر‬ ‫ت‬ ‫ي‬‫ت‬ ‫ال‬ ‫ات‬ ‫شدك‬ ‫ل‬ ‫ل‬ ‫وماما‬ ‫ة‬ ‫بال‬ ‫ق‬ ‫م‬ ‫ال‬
.‫روهمجلل‬
Setting Accounting Principles
‫بة‬ ‫س‬ ‫محا‬ ‫ال‬ ‫بادش‬ ‫م‬ ‫ع‬ ‫ض‬ ‫و‬
The Financial Accounting Standards
Board is the private group that sets both
broad and specific principles.
‫ي‬‫ت‬ ‫ال‬ ‫صة‬ ‫خا‬ ‫ال‬ ‫مجماوة‬ ‫ال‬ ‫ها‬ ‫ية‬ ‫مال‬ ‫ال‬ ‫بة‬ ‫س‬ ‫محا‬ ‫ال‬ ‫يد‬ ‫عاي‬ ‫م‬ ‫لس‬ ‫مج‬
.‫عضت‬ ‫شدابم‬ ‫ةعساو‬ ‫ةددحمو‬
C4
The International Accounting Standards Board (IASB) issues
inter-
national standards that identify preferred accounting practices
in other countries. More than 100 countries now require or
permit
companies to prepare financial reports following IFRS.
)IASB( ‫ردصي‬ ‫ية‬ ‫دول‬ ‫ال‬ ‫بة‬ ‫س‬ ‫محا‬ ‫ال‬ ‫يد‬ ‫عاي‬ ‫م‬ ‫لس‬ ‫مج‬
‫لة‬ ‫ض‬ ‫ف‬ ‫م‬ ‫ال‬ ‫ية‬ ‫ب‬ ‫س‬ ‫محا‬ ‫ال‬ ‫سات‬ ‫ممار‬ ‫ال‬ ‫حدد‬ ‫ت‬ ‫ي‬‫ت‬ ‫ال‬ ‫ية‬ ‫ن‬ ‫اط‬ ‫ال‬ ‫يد‬ ‫عاي‬ ‫م‬ ‫ال‬
‫دى‬ ‫أخ‬ ‫لدان‬ ‫ب‬ ‫ي‬ ‫ف‬ . ‫ما‬ ‫ثد‬ ‫أك‬001 ‫ا‬ ‫اآل‬ ‫سمح‬ ‫ت‬ ‫أو‬ ‫لب‬ ‫تا‬ ‫ت‬ ‫ة‬ ‫دول‬
.‫تاكرشلا‬ ‫دادعلإ‬ ‫ريراقتلا‬ ‫ةيلاملا‬ ‫ةيلاتلا‬ ‫ريياعملا‬ ‫ةيلودلا‬
‫ية‬ ‫مال‬ ‫ال‬ ‫د‬ ‫قاري‬ ‫ت‬ ‫ال‬ ‫عداد‬ ‫إل‬

1-*
Principles and Assumptions of Accounting
‫بة‬ ‫س‬ ‫محا‬ ‫ال‬ ‫ضات‬ ‫تدا‬ ‫واف‬ ‫بادش‬ ‫م‬
C 4
Measurement principle (also called
cost principle) means that
accounting information is based on
actual cost.
Going-concern assumption means
that accounting information
reflects a presumption the
business will continue operating.
Monetary unit assumption means
we can express transactions in
money.
Revenue recognition principle
provides guidance on when a
company must recognize revenue.
Business entity assumption means
that a business is accounted for
separately from its owner or other
business entities.
Matching principle (expense
recognition) prescribes that a
company must record its expenses
incurred to generate the revenue.

Full disclosure principle requires a
company to report the details
behind financial statements that
would impact users’ decisions.
1-*
Time period assumption presumes
that the life of a company can be
divided into time periods, such as
months and years.
Business Entity Forms
‫يا‬ ‫ك‬ ‫ماذج‬ ‫عملن‬ ‫ال‬ ‫ن‬
Sole
Proprietorship
‫ة‬ ‫ددي‬ ‫ف‬ ‫ية‬ ‫ك‬ ‫ل‬ ‫م‬
Partnership
‫ة‬ ‫ئداك‬
Corporation
‫سة‬ ‫س‬ ‫مؤ‬
C 4
1-*
Sarbanes-Oxley Act
In response to a number of publicized accounting scandals

(Enron, WorldCom, Tyco, ImClone), Congress passed the
Sarbanes-Oxley Act (also called SOX) in 2002 to help curb
financial abuses at companies that issue their stock to the
public. The act requires that public companies apply both
accounting oversight and stringent internal controls. The
desired results include more transparency, accountability, and
truthfulness in reporting transactions.
(‫المنشارة‬ ‫المحاسبة‬ ‫فضائح‬ ‫ما‬ ‫لعدد‬ ‫م‬‫ة‬‫استجاب‬ Enron ‫و‬WorldCom ‫و‬Tyco
‫و‬
ImClone( ، ‫قانان‬ ‫الكانندس‬ ‫أقد‬ Sarbanes-Oxley ) ُ‫ولي‬ ‫الب‬‫ه‬‫ي‬
‫ضا‬‫م‬‫ي‬‫أ‬SOX( ‫يف‬ ‫ماع‬
‫م‬ ‫ال‬ ‫ساءات‬ ‫اإل‬ ‫بح‬ ‫ك‬ ‫ي‬ ‫ف‬ ‫دة‬‫ساو‬ ‫لم‬ ‫ل‬ . ‫لب‬ ‫تا‬ ‫ي‬ ‫ي‬‫ت‬ ‫ال‬ ‫ات‬ ‫شدك‬ ‫ل‬ ‫ل‬ ‫ية‬ ‫ال‬
2 002 ‫لجمهار‬ ‫ل‬ ‫سهمها‬ ‫أ‬ ‫صدر‬ ‫ت‬
‫ة‬ ‫اب‬ ‫دق‬ ‫ال‬ ‫يب‬ ‫ب‬ ‫تا‬ ‫ب‬ ‫عامة‬ ‫ال‬ ‫ات‬ ‫شدك‬ ‫ال‬ ‫يام‬ ‫ق‬ ‫ان‬ ‫قان‬ ‫ال‬ . ‫شمل‬ ‫وت‬
‫صارمة‬ ‫ال‬ ‫ية‬ ‫ل‬ ‫داخ‬ ‫ال‬ ‫ط‬ ‫ضااب‬ ‫وال‬ ‫ية‬ ‫ب‬ ‫س‬ ‫محا‬ ‫ال‬
.‫جشاتنلا‬ ‫ةوجرملا‬ ‫ديزملا‬ ‫نم‬ ‫ةيفافشلا‬ ‫ةلءاسملاو‬ ‫قدصلاو‬ ‫يف‬
‫ت‬ ‫عامال‬ ‫م‬ ‫ال‬ ‫ا‬‫و‬ ‫غ‬ ‫بال‬ ‫اإل‬
1-*
C 4
Assets
Liabilities
+ Equity
Accounting Equation
‫بة‬ ‫س‬ ‫محا‬ ‫ال‬ ‫ة‬ ‫عادل‬ ‫م‬

Liabilities
‫ات‬ ‫لاب‬ ‫ما‬ ‫ال‬
Equity
‫ية‬ ‫مال‬ ‫ال‬ ‫يمة‬ ‫ق‬ ‫ال‬
Assets
+ = ‫لوصلأا‬
A1
1-*
Land
‫ي‬‫ض‬ ‫ارا‬
Equipment
‫عدات‬ ‫م‬
Buildings
‫ات‬ ‫ناي‬ ‫ب‬ ‫ال‬
Cash
‫قدا‬ ‫ن‬
Vehicles
‫بات‬ ‫مدك‬
Store
Supplies
‫م‬ ‫لااز‬ ‫ال‬ ‫مخازن‬
Notes
Receivable

‫بض‬ ‫ق‬ ‫اوراق‬
Accounts
Receivable
Resources ‫تاباسح‬ ‫نينيدملا‬
owned or
controlled by a
company
‫ياد‬ ‫س‬ ‫ت‬ ‫أو‬ ‫كها‬ ‫ل‬ ‫م‬ ‫ت‬ ‫ي‬‫ت‬ ‫ال‬ ‫ماارد‬ ‫ال‬
‫ة‬ ‫ئدك‬ ‫يها‬ ‫ل‬ ‫و‬
Assets ‫لوصلأا‬ A1
1-*
Taxes
Payable
‫ب‬ ‫ضدائ‬ ‫ال‬
‫قة‬ ‫تح‬ ‫س‬ ‫م‬ ‫ال‬
Wages
Payable
‫ست‬ ‫م‬ ‫ال‬ ‫جار‬ ‫قةاأل‬ ‫ح‬
Notes
Payable
‫ع‬ ‫دف‬ ‫ال‬ ‫أوراق‬
Accounts

Payable
‫ع‬ ‫لدف‬ ‫ل‬ ‫لة‬ ‫اب‬ ‫ق‬ ‫ات‬ ‫ساب‬ ‫ح‬
Creditors’
claims on assets
‫ى‬‫ل‬ ‫و‬ ‫يا‬ ‫ن‬ ‫دائ‬ ‫ال‬ ‫بات‬ ‫ماال‬
‫صال‬ ‫األ‬
Liabilities ‫تامازتلا‬
A1
1-*
Owner’s
claim on
Assets
‫ك‬ ‫مال‬ ‫ال‬
‫ى‬‫ل‬ ‫و‬ ‫بة‬ ‫ماال‬ ‫ال‬
‫صال‬ ‫األ‬
Dividends
‫اح‬ ‫أرب‬
Contributed
Capital
‫مال‬ ‫ال‬ ‫رأس‬ ‫ساهم‬
Retained
Earnings
‫تجزة‬ ‫مح‬ ‫ال‬ ‫اح‬ ‫دب‬ ‫األ‬

Equity ‫ةميقلا‬ ‫ةيلاملا‬
A1
1-*
Liabilities Equity Assets = +
Expanded Accounting Equation
‫عة‬ ‫س‬ ‫ما‬ ‫ال‬ ‫ية‬ ‫ب‬ ‫س‬ ‫محا‬ ‫ال‬ ‫ة‬ ‫عادل‬ ‫م‬ ‫ال‬
Revenues Expenses
Contributed
Capital
Dividends
_
+
_
Retained
Earnings‫را‬‫حاب‬ ‫هزجتحم‬
A1
1-*
Transaction Analysis

Business activities can be described in terms of transactions
and events. External transactions are exchanges of value
between two entities, which yield changes in the accounting
equation. Internal transactions are exchanges within any entity;
they can also affect the accounting equation. Events refer to
happenings that affect an entity’s accounting equation and can
be reliably measured. Transaction analysis is defined as the
process used to analyze transactions and events.
‫شاة‬ ‫ن‬ ‫األ‬ ‫صف‬ ‫و‬ ‫كا‬ ‫م‬ ‫ي‬ . ‫يمة‬ ‫ق‬ ‫ال‬ ‫بادل‬ ‫ت‬ ‫هي‬ ‫ية‬ ‫خارج‬ ‫ال‬ ‫ت‬ ‫عامال‬ ‫م‬ ‫ال‬
‫حداث‬ ‫واأل‬ ‫ت‬ ‫عامال‬ ‫م‬ ‫ال‬ ‫يث‬ ‫ح‬ ‫ما‬ ‫ة‬ ‫تجاري‬ ‫ال‬
‫إل‬ ‫ؤدي‬ ‫ي‬ ‫مما‬ ، ‫يا‬ ‫يان‬ ‫ك‬ ‫يا‬ ‫ب‬ . ‫ت‬ ‫بادال‬ ‫ت‬ ‫ال‬ ‫هي‬ ‫ية‬ ‫ل‬ ‫داخ‬ ‫ال‬ ‫ت‬ ‫عامال‬ ‫م‬ ‫ال‬ ‫ى‬
‫ية‬ ‫ب‬ ‫س‬ ‫محا‬ ‫ال‬ ‫ة‬ ‫عادل‬ ‫م‬ ‫ال‬ ‫ي‬ ‫ف‬ ‫يدات‬ ‫ي‬ ‫ن‬ ‫ت‬
‫ى‬‫ل‬ ‫و‬ ‫ضا‬ ‫أي‬ ‫د‬ ‫ؤث‬ ‫ت‬ ‫أن‬ ‫كا‬ ‫م‬ ‫ي‬ . ‫ي‬‫ت‬ ‫ال‬ ‫حداث‬ ‫األ‬ ‫ى‬ ‫إل‬ ‫حداث‬ ‫األ‬ ‫يد‬ ‫ش‬ ‫ت‬
‫يان‬ ‫ك‬ ‫أي‬ ‫ل‬ ‫داخ‬ .‫ية‬ ‫ب‬ ‫س‬ ‫محا‬ ‫ال‬ ‫ة‬ ‫عادل‬ ‫م‬ ‫ال‬
‫قياسها‬ ‫ويمكا‬ ‫للمنشأة‬ ‫المحاسبية‬ ‫المعادلة‬ ‫ولى‬ ‫تؤثد‬ . ُ‫بأن‬ ‫المعامالت‬ ‫تحليل‬ ‫دف‬‫س‬‫ع‬‫ه‬‫ي‬
‫اق‬ ‫ماث‬ ‫كل‬ ‫ش‬ ‫ب‬
‫حداث‬ ‫واأل‬ ‫ت‬ ‫عامال‬ ‫م‬ ‫ال‬ ‫يل‬ ‫ل‬ ‫تح‬ ‫ل‬ ‫تخدمة‬ ‫س‬ ‫م‬ ‫ال‬ ‫ية‬ ‫ل‬ ‫عم‬ ‫ال‬
1-*
P1
‫ت‬ ‫عامال‬ ‫م‬ ‫ال‬ ‫يل‬ ‫ل‬ ‫ح‬ ‫ت‬
J. Scott invests $20,000 cash to start the business in
return for stock. ‫رلاود‬ ‫ادقن‬ ‫ءدبل‬ ‫لمعلا‬ ‫يف‬ 20،000‫توكس‬
ُ‫ي‬ ‫ج‬ . ‫ثمد‬ ‫ت‬ ‫س‬ ‫ي‬
‫سهم‬ ‫األ‬ ‫ل‬ ‫قاب‬ ‫م‬

P1
1-*
‫ت‬ ‫عامال‬ ‫م‬ ‫ال‬ ‫يل‬ ‫ل‬ ‫ح‬ ‫ت‬
Purchased supplies paying $1,000 cash.
. ‫دا‬‫م‬‫ق‬‫ن‬ ‫دوالد‬1000‫مزاوللا‬ ‫ةارتشملا‬ ‫يتلا‬ ‫عفدت‬
P1
1-*
‫ت‬ ‫عامال‬ ‫م‬ ‫ال‬ ‫يل‬ ‫ل‬ ‫ح‬ ‫ت‬
Purchased equipment for $15,000 cash.
.‫رلاود‬ ‫ادقن‬ 15000‫ءارش‬ ‫تادعملا‬ ‫لباقم‬
P1
1-*
‫ع‬‫م‬ ‫ال‬ ‫يل‬ ‫ل‬ ‫ح‬ ‫تت‬ ‫امال‬
Purchased Supplies of $200 and Equipment of $1,000
on account.
.‫رلاود‬ ‫ىلع‬ ‫باسحلا‬ 1،000‫رلاود‬ ‫تادعمو‬ ‫ةميقب‬ 200‫مت‬ ‫ءارش‬ ‫مزاول‬
‫يمة‬ ‫ق‬ ‫ب‬

P1
1-*
‫ت‬ ‫عامال‬ ‫م‬ ‫ال‬ ‫يل‬ ‫ل‬ ‫ح‬ ‫ت‬
Borrowed $4,000 from 1st American Bank.
.‫رلاود‬ ‫نم‬ ‫كنبلا‬ ‫ا‬ ‫ضت‬ ‫تد‬ ‫اق‬0004 ‫ال‬ ‫األ‬ ‫ي‬‫ك‬ ‫مدي‬ ‫أل‬
P1
1-*
The balances so far appear below. Note that the Balance Sheet
Equation is still in balance.
.‫ظحلا‬ ‫نأ‬ ‫ةلداعم‬ ‫ةينازيملا‬ ‫ةيمومعلا‬ ‫لا‬ ‫لازت‬ ‫يف‬ ‫ةلاح‬ ‫نزاوت‬.
‫اه‬ ‫أدن‬ ‫ظهد‬ ‫ت‬ ‫ا‬ ‫اآل‬ ‫ى‬‫ت‬ ‫ح‬ ‫صدة‬ ‫د‬ ‫األ‬
P1
1-*
Now, let’s look at transactions involving
revenue, expenses, and dividends.

‫ى‬‫ل‬ ‫و‬ ‫نااي‬ ‫ت‬ ‫ي‬‫ت‬ ‫ال‬ ‫ت‬ ‫عامال‬ ‫م‬ ‫ال‬ ‫ي‬ ‫ف‬ ‫نظد‬ ‫ن‬ ‫ا‬ ‫ان‬ ‫دو‬ ، ‫ا‬ ‫اآل‬
‫سهم‬ ‫األ‬ ‫اح‬ ‫وأرب‬ ‫ات‬ ‫صدوف‬ ‫م‬ ‫وال‬ ‫يدادات‬ ‫اإل‬
P1
1-*
Provided consulting services receiving $3,000
cash.
.‫رلاود‬ ‫ادقن‬ 3000‫تمدق‬ ‫تامدخ‬ ‫ةيراشتسا‬ ‫ىقلتت‬
P1
1-*
Remember that expenses decrease equity.
‫سهم‬ ‫األ‬ ‫لل‬ ‫ق‬ ‫ت‬ ‫قات‬ ‫ف‬ ‫ن‬ ‫ال‬ ‫أن‬ ‫د‬ ‫ذك‬ ‫ت‬
Paid salaries of $800 to employees.
.‫رلاود‬ ‫نيفظوملل‬ 800‫بتاور‬ ‫ةعوفدم‬
P1
1-*

Remember that dividends decrease equity.
.‫ركذت‬ ‫نأ‬ ‫حابرأ‬ ‫مهسلأا‬ ‫للقت‬ ‫مهسلأا‬
Dividends of $500 are paid to shareholders.
.‫رلاود‬ ‫نيمهاسملل‬ 500‫متي‬ ‫عفد‬ ‫حابرأ‬ ‫مهسلأا‬ ‫ةغلابلا‬
P1
1-*
Financial Statements
‫م‬ ‫قاائ‬ ‫يةال‬ ‫مال‬ ‫ال‬
Let’s prepare the Financial Statements reflecting the
transactions we have recorded. ‫دعنل‬ ‫تانايبلا‬ ‫ةيلاملا‬ ‫يتلا‬
‫كس‬ ‫ع‬ ‫ت‬
. ‫تلاماعملا‬ ‫يتلا‬ ‫اهانلجس‬
1. Income Statement
2. Statement of Retained Earnings
3. Balance Sheet
4. Statement of Cash Flows
5. ‫مشاوق‬ ‫لخدلا‬

6. ‫نايب‬ ‫حابرلأا‬ ‫ةزجتحملا‬
7. ‫ةقرو‬ ‫نزاوتلا‬
8. ‫نايب‬ ‫تاقفدتلا‬ ‫ةيدقنلا‬
P2
1-*
Net income is the
difference between
Revenues and
Expenses.
‫يا‬ ‫ب‬ ‫فدق‬ ‫ال‬ ‫ها‬ ‫ل‬‫دخ‬ ‫ال‬ ‫ي‬ ‫صاف‬
.‫تاداريلإا‬ ‫تافورصملاو‬
The income statement describes a company’s
revenues and expenses along with the resulting net
income or loss over a period of time due to earnings
activities. ‫فصي‬ ‫نايب‬ ‫لخدلا‬ ‫تاداريإ‬ ‫ةكرشلا‬ ‫اهتاقفنو‬ ‫ةفاضلإاب‬
‫أو‬ ‫ل‬‫دخ‬ ‫ال‬ ‫ي‬ ‫صاف‬ ‫ى‬ ‫إل‬
.‫ةراسخلا‬ ‫ةجتانلا‬ ‫ىلع‬ ‫رادم‬ ‫ةرتف‬ ‫ةينمز‬ ‫ببسب‬ ‫نأ‬ ‫اح‬ ‫دب‬ ‫األ‬ ‫ئاة‬
Income Statement
‫ل‬‫دخ‬ ‫ال‬ ‫م‬ ‫اائ‬ ‫ق‬
P2
1-*

The net income of $2,200
increases Retained
Earnings by $2,200.
‫غ‬ ‫بال‬ ‫ال‬ ‫ل‬‫دخ‬ ‫ال‬ ‫ي‬ ‫صاف‬ ‫د‬ ‫زي‬ ‫ي‬002،2 ‫اح‬ ‫دب‬ ‫األ‬ ‫ما‬ ‫د‬ ‫دوال‬
.‫رلاود‬ 2،200‫ةزجتحملا‬ ‫رادقمب‬
Statement of Retained Earnings
‫اح‬ ‫دب‬ ‫األ‬ ‫يان‬ ‫ب‬ ‫تجزة‬ ‫مح‬ ‫ال‬
P2
1-*
The Balance Sheet describes a
company’s financial position at a
point in time. ‫فصت‬ ‫ةينازيملا‬ ‫ةيمومعلا‬
.‫عضولا‬ ‫يلاملا‬ ‫ةكرشلل‬ ‫يف‬ ‫تقو‬ ‫ام‬
Balance Sheet ‫ةقرو‬ ‫نزاوتلا‬
P2
1-*
Statement of Cash Flows
‫ة‬ ‫قدي‬ ‫ن‬ ‫ال‬ ‫قات‬ ‫تدف‬ ‫ال‬ ‫يان‬ ‫ب‬
P2
1-*

ROA is a profitability
measure.
ROA ‫وه‬ ‫سايقم‬ ‫ةيحبرلا‬.
Return on Assets (ROA)
‫صال‬ ‫األ‬ ‫ى‬‫ل‬ ‫و‬ ‫د‬ ‫عائ‬ ‫ال‬
Net income ‫يفاص‬ ‫لخدلا‬
Average total assets
‫سط‬ ‫تا‬ ‫صالم‬ ‫األ‬ ‫ي‬ ‫مال‬‫إج‬
Return on
assets
‫صال‬ ‫األ‬ ‫ى‬‫ل‬ ‫و‬ ‫د‬ ‫عائ‬ ‫ال‬
=
A2
1-*
End of Chapter 01
1-*

John J. Wild
Sixth Edition
Chapter 02
Analyzing and Recording
Transactions
‫م‬ ‫ال‬ ‫يل‬ ‫سج‬ ‫وت‬ ‫يل‬ ‫ل‬ ‫ح‬ ‫تت‬ ‫وامال‬
Conceptual Learning Objectives
‫ي‬‫يم‬ ‫فاه‬ ‫م‬ ‫ال‬ ‫لم‬ ‫ع‬ ‫ت‬ ‫ال‬ ‫أهداف‬
C1: Explain the steps in processing
transactions.
C2: Describe an account and its use in
recording transactions.
C3: Describe a ledger and a chart of accounts.
C4: Define debits and credits and explain
double-entry accounting.
.‫حرشا‬ ‫تاوطخلا‬ ‫يف‬ ‫ةجلاعم‬ ‫تلاماعملا‬ -1
. ‫فصو‬ ‫باسح‬ ‫همادختساو‬ ‫يف‬ ‫ليجست‬ ‫تلاماعملا‬ -2
.‫فصو‬ ‫رتفد‬ ‫ذاتسلأا‬ ‫ططخمو‬ ‫تاباسحلا‬ -3
.‫ديدحت‬ ‫نويدلا‬ ‫تانامتشلااو‬ ‫حرشو‬ ‫ةبساحملا‬ ‫تاذ‬ ‫ديقلا‬ ‫جودزملا‬ -4

2-*
Analytical Learning Objectives
‫ية‬ ‫ل‬ ‫ي‬ ‫ل‬ ‫تح‬ ‫ال‬ ‫لم‬ ‫ع‬ ‫ت‬ ‫ال‬ ‫أهداف‬
A1: Analyze the impact of transactions
on accounts and financial statements.
A2: Compute the debt ratio and describe
its use in analyzing financial
condition.
. ‫ليلحت‬ ‫ريثأت‬ ‫عملا‬ ‫ية‬ ‫مال‬ ‫ال‬ ‫ات‬ ‫يان‬ ‫ب‬ ‫وال‬ ‫ات‬ ‫ساب‬ ‫ح‬ ‫ال‬ ‫ى‬‫ل‬ ‫و‬ ‫ت‬ ‫امال‬-1
‫يل‬ ‫ل‬ ‫ح‬ ‫ت‬ ‫ي‬ ‫ف‬ ‫تخدامها‬ ‫س‬ ‫ا‬ ‫صف‬ ‫وو‬ ‫ان‬ ‫دي‬ ‫ال‬ ‫بة‬ ‫س‬ ‫ن‬ ‫ساب‬ ‫ح‬-2
.‫عضولا‬ ‫يلاملا‬
2-*
Procedural Learning Objectives
‫ي‬ ‫جدائ‬ ‫اإل‬ ‫لم‬ ‫ع‬ ‫ت‬ ‫ال‬ ‫أهداف‬
P1: Record transactions in a journal and
post entries to a ledger.
P2: Prepare and explain the use of a trial
balance.
P3: Prepare financial statements from
business transactions.

‫تد‬ ‫دف‬ ‫ى‬ ‫إل‬ ‫ت‬ ‫اال‬ ‫إدخ‬ ‫شد‬ ‫ون‬ ‫ية‬ ‫ام‬ ‫ي‬ ‫تد‬ ‫دف‬ ‫ي‬ ‫ف‬ ‫ت‬ ‫عامال‬ ‫م‬ ‫ال‬ ‫يل‬ ‫سج‬ ‫ت‬-1
. ‫ذاتسلأا‬
. ‫مق‬ ‫دادعإب‬ ‫حرشو‬ ‫مادختسا‬ ‫نازيم‬ ‫ةعجارملا‬ -2
.‫دادعإ‬ ‫تانايبلا‬ ‫ةيلاملا‬ ‫نم‬ ‫تلاماعملا‬ ‫ة‬ ‫تجاري‬ ‫ال‬-3
2-*
External Transactions
occur between the
organization and an
outside party.
Internal Transactions
occur within the
organization.
Analyzing and Recording Process
‫ية‬ ‫ل‬ ‫عم‬ ‫ال‬ ‫يل‬ ‫سج‬ ‫وت‬ ‫يل‬ ‫ل‬ ‫ح‬ ‫ت‬
Exchanges of economic consideration between two parties.
.‫لدابت‬ ‫تارابتعلاا‬ ‫ةيداصتقلاا‬ ‫نيب‬ ‫نيفرطلا‬
C 1

2-*
Analyze each transaction and
event from source documents
‫صدر‬ ‫م‬ ‫ال‬ ‫ب‬ ‫ائ‬ ‫وث‬ ‫ما‬ ‫دث‬ ‫وح‬ ‫لة‬ ‫عام‬ ‫م‬ ‫ل‬ ‫ك‬ ‫يل‬ ‫ل‬ ‫ح‬ ‫ت‬
Analyzing and Recording Process
‫ية‬ ‫ل‬ ‫عم‬ ‫ال‬ ‫يل‬ ‫سج‬ ‫وت‬ ‫يل‬ ‫ل‬ ‫ح‬ ‫ت‬
Record relevant transactions
and events in a journal
‫ي‬ ‫ف‬ ‫لة‬ ‫ص‬ ‫ال‬ ‫ذات‬ ‫حداث‬ ‫واأل‬ ‫ت‬ ‫عامال‬ ‫م‬ ‫ال‬ ‫يل‬ ‫سج‬ ‫ت‬
‫لة‬ ‫مج‬
Post journal
information to
ledger accounts
‫ية‬ ‫يام‬ ‫ال‬ ‫تد‬ ‫دف‬ ‫لامات‬ ‫ع‬ ‫م‬ ‫شد‬ ‫ن‬
‫تاذ‬ ‫س‬ ‫األ‬ ‫تد‬ ‫دف‬ ‫ات‬ ‫ساب‬ ‫ح‬ ‫ى‬ ‫إل‬
Prepare and analyze
the trial balance
‫مدا‬ ‫ال‬ ‫يزان‬ ‫م‬ ‫يل‬ ‫ل‬ ‫ح‬ ‫وت‬ ‫داد‬ ‫عةإو‬ ‫ج‬
C 1
2-*

Sales Tickets
‫د‬ ‫تذاك‬ ‫ال‬ ‫عات‬ ‫ي‬ ‫ب‬ ‫م‬
Bank
Statements
‫ية‬ ‫صدف‬ ‫م‬ ‫ال‬ ‫ات‬ ‫يان‬ ‫ب‬ ‫ال‬
Purchase
Orders
‫شداء‬ ‫ال‬ ‫بات‬ ‫ل‬ ‫ط‬
Checks
‫كات‬ ‫ي‬ ‫ئ‬
Source Documents
‫صدر‬ ‫م‬ ‫ال‬ ‫ب‬ ‫ائ‬ ‫وث‬
Bills from Suppliers
‫ا‬ ‫ماردي‬ ‫ال‬ ‫ما‬ ‫يد‬ ‫اات‬ ‫ف‬
Employee
Earnings

Records
‫اح‬ ‫أرب‬ ‫ت‬ ‫سجال‬
‫يا‬ ‫ف‬ ‫ماظ‬ ‫ال‬
C 1
2-*
An account is a
record of increases
and decreases in a
specific asset,
liability, equity,
revenue, or expense
item.
‫ادات‬ ‫زي‬ ‫ال‬ ‫سجل‬ ‫ها‬ ‫ساب‬ ‫ح‬ ‫ال‬
‫ما‬ ‫يا‬ ‫ع‬ ‫م‬ ‫ند‬ ‫ب‬ ‫ي‬ ‫ف‬ ‫صان‬ ‫ق‬ ‫ن‬ ‫وال‬
‫قاق‬ ‫ح‬ ‫أو‬ ‫تزامات‬ ‫ل‬ ‫اال‬ ‫أو‬ ‫صال‬ ‫األ‬
‫ية‬ ‫ك‬ ‫ل‬ ‫م‬ ‫ال‬ ‫أو‬ ‫يدادات‬ ‫اإل‬ ‫أو‬
.‫تافورصملا‬
The Account and its Analysis
ُ‫ل‬ ‫ي‬ ‫ل‬ ‫ح‬ ‫وت‬ ‫ساب‬ ‫ح‬ ‫ال‬
The general ledger is
a record containing
all accounts used by

the company.
‫سجل‬ ‫ها‬ ‫عام‬ ‫ال‬ ‫تاذ‬ ‫س‬ ‫األ‬ ‫تد‬ ‫دف‬
‫ات‬ ‫ساب‬ ‫ح‬ ‫ال‬ ‫ع‬‫ي‬ ‫جم‬ ‫ى‬‫ل‬ ‫و‬ ‫تاي‬ ‫ح‬ ‫ي‬
.‫يتلا‬ ‫اهمدختست‬ ‫ةكرشلا‬
C 2
2-*
Assets
Accounts
Assets
Account
s
Asset
Accounts
= ‫تاباسح‬ ‫لوصلأا‬
The Account and Its Analysis
ُ‫ل‬ ‫ي‬ ‫ل‬ ‫ح‬ ‫وت‬ ‫ساب‬ ‫ح‬ ‫ال‬
+
Liability
Accounts
Liability

Accounts
Liability
Accounts
‫ية‬ ‫سؤول‬ ‫م‬ ‫ال‬ ‫ات‬ ‫ساب‬ ‫ح‬ ‫ال‬
Equity
Accounts
Equity
Accounts
Equity
Accounts
‫سهم‬ ‫األ‬ ‫ات‬ ‫ساب‬ ‫ح‬
C2
2-*
Land
‫ض‬ ‫أر‬
Equipment
‫عدات‬ ‫م‬
Buildings
‫ات‬ ‫ناي‬ ‫ب‬ ‫ال‬
Cash
‫ة‬ ‫يال‬ ‫س‬ ‫ال‬
‫ة‬ ‫قدي‬ ‫ن‬ ‫ال‬
Notes

Receivable
‫حظات‬ ‫مال‬
‫قة‬ ‫تح‬ ‫س‬ ‫م‬ ‫ال‬
Supplies
‫م‬ ‫لااز‬ ‫ال‬
Prepaid
Accounts
‫ات‬ ‫ساب‬ ‫ح‬ ‫ال‬
‫قا‬ ‫ب‬ ‫س‬ ‫م‬ ‫اوة‬ ‫مدف‬ ‫ال‬
Accounts
Receivable
‫ا‬ ‫ات‬ ‫ساب‬ ‫ح‬ ‫ل‬
‫قة‬ ‫تح‬ ‫س‬ ‫م‬ ‫ال‬
Asset
Accounts
Asset Accounts
‫صال‬ ‫األ‬ ‫ات‬ ‫ساب‬ ‫ح‬
C 3
2-*
Accrued

Liabilities
‫مة‬ ‫تداك‬ ‫م‬ ‫يات‬ ‫سؤول‬ ‫م‬
Unearned
Revenue
‫كة‬ ‫ل‬ ‫ت‬ ‫مم‬ ‫يد‬ ‫غ‬ ‫اح‬ ‫أرب‬
Notes
Payable
‫ع‬ ‫دف‬ ‫ال‬ ‫أوراق‬
Accounts
Payable
Liability
Accounts
Liability Accounts
‫ية‬ ‫سؤول‬ ‫م‬ ‫ال‬ ‫ات‬ ‫ساب‬ ‫ح‬
C 3
2-*
Equity
Accounts
Revenues
‫ت‬ ‫دادا‬ ‫إي‬
Common
Stock

‫ة‬ ‫عادي‬ ‫ال‬ ‫سهم‬ ‫األ‬
‫باوة‬ ‫م‬ ‫ال‬
Dividends
Expenses
‫قات‬ ‫ف‬ ‫ن‬
Equity Accounts
‫سهم‬ ‫األ‬ ‫ات‬ ‫ساب‬ ‫ح‬
C 3
Retained
Earnings
‫تجزة‬ ‫مح‬ ‫ال‬
2-*
Liabilities
‫ات‬ ‫لاب‬ ‫ما‬ ‫ال‬
Equity
‫ية‬ ‫مال‬ ‫ال‬ ‫يمة‬ ‫ق‬ ‫ال‬
Assets
+ = ‫لوصلأا‬

The Account and Its Analysis
ُ‫ل‬ ‫ي‬ ‫ل‬ ‫ح‬ ‫وت‬ ‫ساب‬ ‫ح‬ ‫ال‬
Common
Stock
‫ة‬ ‫عادي‬ ‫ال‬ ‫سهم‬ ‫األ‬
‫باوة‬ ‫م‬ ‫ال‬
Dividends
Revenues
Expenses
‫قات‬ ‫ف‬ ‫ن‬
+ + – –
C 3
2-*
Ledger and Chart of Accounts
‫ات‬ ‫ساب‬ ‫ح‬ ‫ال‬ ‫خاط‬ ‫وم‬ ‫تاذ‬ ‫س‬ ‫األ‬ ‫تد‬ ‫دف‬
The ledger is a collection of all accounts for
an information system. A company’s size and
diversity of operations affect the number
of accounts needed.
.‫رتفد‬ ‫ذاتسلأا‬ ‫وه‬ ‫ةعومجم‬ ‫نم‬ ‫عيمج‬ ‫تاباسحلا‬ ‫ماظنل‬ ‫لامات‬ ‫ع‬ ‫م‬ ‫ال‬
.‫رثؤي‬ ‫مجح‬ ‫ةكرشلا‬ ‫عونتو‬ ‫اهتايلمع‬ ‫ىلع‬ ‫ددع‬ ‫تاباسحلا‬ ‫ةبولطملا‬
The chart of accounts is a list of all accounts and

includes an identifying number for each account
. .‫ططخم‬ ‫تاباسحلا‬ ‫ةرابع‬ ‫نع‬ ‫ةمشاق‬ ‫عيمجب‬ ‫تاباسحلا‬ ‫نمضتيو‬ ‫مقر‬
‫ساب‬ ‫ح‬ ‫كل‬ ‫ل‬ ‫ف‬ ‫عدي‬ ‫ت‬
C 3
2-*
A T-account represents a ledger account and
is a tool used to understand the effects of one
or more transactions.
‫فهم‬ ‫ل‬ ‫تخدم‬ ‫س‬ ‫ت‬ ‫أداة‬ ‫وها‬ ‫تاذ‬ ‫س‬ ‫األ‬ ‫تد‬ ‫دف‬ ‫ساب‬ ‫ح‬ ‫ت‬ ‫ساب‬ ‫ح‬ ‫ثل‬ ‫م‬ ‫ي‬
‫يدات‬ ‫أث‬ ‫ت‬
.‫ةلماعم‬ ‫وأ‬ ‫رثكأ‬
Debits and Credits
‫ات‬ ‫تمان‬ ‫ئ‬ ‫واال‬ ‫ان‬ ‫دي‬ ‫ال‬
C4
2-*
Double-Entry Accounting
‫ج‬ ‫مزدو‬ ‫ال‬ ‫يد‬ ‫ق‬ ‫ال‬ ‫بة‬ ‫س‬ ‫محا‬
Debit Credit Debit Credit Debit Credit
ASSETS

+ -
LIABILITIES
- +
EQUITIES
- +
C4
2-*
Revenues Expenses
Common
Stock
Dividends
_
+
_
Debit Credit
Stock
- +
Debit Credit
Dividends

+ -
Debit Credit
Expenses
+ -
Debit Credit
Revenues
- +
Equity
C 4
2-*
An account balance is the difference between the
increases and decreases in an account.
.‫ديصر‬ ‫باسحلا‬ ‫وه‬ ‫قرفلا‬ ‫نيب‬ ‫تادايزلا‬ ‫ناصقنلاو‬ ‫يف‬ ‫باسحلا‬
Notice the T-Account ‫ظحلا‬ ‫باسح‬ ‫ت‬

C4
2-*
Journalizing and
Posting Transactions
‫ت‬ ‫عامال‬ ‫م‬ ‫ال‬ ‫شد‬ ‫ون‬ ‫ية‬ ‫يام‬ ‫ال‬ ‫ومل‬
Step 1: Analyze transactions
and source documents.
‫خااة‬ ‫ال‬1 : ‫ب‬ ‫ائ‬ ‫اث‬ ‫وال‬ ‫ت‬ ‫عامال‬ ‫م‬ ‫ال‬ ‫يل‬ ‫ل‬ ‫ح‬ ‫ت‬
‫صدر‬ ‫م‬ ‫ال‬
Step 2: Apply double-entry
accounting
‫خااة‬ ‫ال‬2 :‫مزدوج‬ ‫ال‬ ‫يد‬ ‫ق‬ ‫ال‬ ‫بة‬ ‫س‬ ‫محا‬ ‫يب‬ ‫ب‬ ‫ا‬ ‫ت‬
Step 4: Post entry to ledger
‫خااة‬ ‫ال‬4 :‫تاذ‬ ‫س‬ ‫األ‬ ‫تد‬ ‫دف‬ ‫ى‬ ‫إل‬ ‫ال‬‫دخ‬ ‫ال‬ ‫شد‬ ‫ن‬
Step 3: Record journal entry
‫خااة‬ ‫ال‬3 :‫لة‬ ‫مج‬ ‫ال‬ ‫دخ‬ ‫سجل‬

P1
2-*
❸
Dollar amount of debits
and credits
Journalizing Transactions
‫ية‬ ‫يام‬ ‫ال‬ ‫ت‬ ‫عامال‬ ‫م‬ ‫ال‬ ‫ومل‬
ŒTransaction
Date
❹
Transaction
explanation
❷
Titles of Affected
Accounts
P1
2-*
T-accounts are useful illustrations, but balance
column accounts are used in practice.
‫ح‬ ‫كا‬ ‫ل‬ ، ‫يدة‬ ‫ف‬ ‫م‬ ‫ية‬ ‫يح‬ ‫ض‬ ‫ا‬ ‫ت‬ ‫سام‬ ‫ر‬ ‫هي‬ ‫ت‬ ‫ات‬ ‫ساب‬ ‫ح‬ ‫يد‬ ‫ص‬ ‫د‬ ‫ال‬ ‫وماد‬ ‫ات‬ ‫ساب‬
‫ي‬ ‫ف‬ ‫تخدم‬ ‫س‬ ‫ت‬
.‫ةسرامملا‬
Balance Column Account
‫يد‬ ‫ص‬ ‫د‬ ‫ال‬ ‫وماد‬ ‫ساب‬ ‫ح‬

P1
2-*
1 Identify the debit account in ledger.
.‫ديدحت‬ ‫باسح‬ ‫نيدملا‬ ‫يف‬ ‫رتفد‬ ‫ذاتسلأا‬
Posting Journal Entries
‫ية‬ ‫يام‬ ‫ال‬ ‫تد‬ ‫دف‬ ‫ت‬ ‫اال‬ ‫إدخ‬ ‫شد‬ ‫ن‬
P1
2-*
2 Enter the date. . ‫لخدأ‬ ‫خيراتلا‬
P1
2-*
3 Enter the amount and description.
.‫لخدأ‬ ‫غلبملا‬ ‫فصولاو‬
P1
2-*

4 Enter the journal reference. . ‫لخدأ‬ ‫عجرم‬ ‫ةلجملا‬
P1
2-*
5 Compute the balance. . ‫باسح‬ ‫نزاوتلا‬
P1
2-*
Enter the ledger reference. . ‫لخدأ‬ ‫عجرم‬ ‫رتفد‬ ‫ذاتسلأا‬ 6
P1
2-*
Analyzing Transactions
‫ت‬ ‫عامال‬ ‫م‬ ‫ال‬ ‫يل‬ ‫ل‬ ‫ح‬ ‫ت‬
Analysis:
Double entry:
101 301
Posting:

A1
2-*
Analysis:
Double entry:
126 101
Posting:
A1
2-*
Double entry:
167 101
Posting:
A1
Analysis:
2-*

Analysis:
Double entry:
126 201
Posting:
A1
2-*
Analysis:
Double entry:
403 101
Posting:
A1
2-*
After processing its remaining
transactions for December,
Fast-forward's trial balance is
prepared.

، ‫بد‬ ‫سم‬ ‫دي‬ ‫شهد‬ ‫ل‬ ‫ية‬ ‫ق‬ ‫ب‬ ‫ت‬ ‫م‬ ‫ال‬ ‫ت‬ ‫عامال‬ ‫م‬ ‫ال‬ ‫جة‬ ‫عال‬ ‫م‬ ‫عد‬ ‫ب‬
.‫مت‬ ‫دادعإ‬ ‫نازيم‬ ‫ةعجارملا‬ ‫عيرسلا‬ ‫ماملأل‬
Debits Credits
Cash 4,350
$
Accounts receivable -
Supplies 9,720
Prepaid Insurance 2,400
Equipment 26,000
Accounts payable 6,200 $
Unearned consulting revenue 3,000
Common stock 30,000
Dividends 200
Consulting revenue 5,800
Rental revenue 300
Salaries expense 1,400
Rent expense 1,000
Utilities expense 230

Total 45,300 $ 45,300
$
FastForward
December 31, 2011
The trial balance lists all
account balances in the
general ledger. If the books
are in balance, the total
debits will equal the total
credits.
‫صدة‬ ‫أر‬ ‫ع‬ ‫ي‬ ‫جم‬ ‫عة‬ ‫مداج‬ ‫ال‬ ‫يزان‬ ‫م‬ ‫سدد‬ ‫ي‬
‫عام‬ ‫ال‬ ‫تاذ‬ ‫س‬ ‫األ‬ ‫تد‬ ‫دف‬ ‫ي‬ ‫ف‬ ‫ات‬ ‫ساب‬ ‫ح‬ ‫ال‬ . ‫إذا‬
‫إن‬ ‫ف‬ ، ‫اازن‬ ‫ت‬ ‫ة‬ ‫حال‬ ‫ي‬ ‫ف‬ ‫تب‬ ‫ك‬ ‫ال‬ ‫ت‬ ‫ان‬ ‫ك‬
‫مجماع‬ ‫ساوي‬ ‫ي‬ ‫ا‬ ‫دي‬ ‫ال‬ ‫ي‬ ‫مال‬‫إج‬
.‫ةدصرلأا‬
P2
2-*
Trial Balance
‫عة‬ ‫مداج‬ ‫ال‬ ‫يزان‬ ‫م‬
Trial Balance

Six Steps for Searching for and
Correcting Errors
‫خااء‬ ‫األ‬ ‫يح‬ ‫صح‬ ‫وت‬ ‫ا‬‫و‬ ‫بحث‬ ‫ل‬ ‫ل‬ ‫ااات‬‫خ‬ ‫ست‬
If the trial balance does not balance, the error(s) must be
found and corrected.
.‫)هحيحصتو‬ ‫يف(ءاطخلأا‬ ‫ةلاح‬ ‫مدع‬ ‫نزاوت‬ ‫ديصرلا‬ ‫يبيرجتلا‬ ،
‫خاأ‬ ‫ال‬ ‫ى‬‫ل‬ ‫و‬ ‫ثار‬ ‫ع‬ ‫ال‬ ‫جب‬ ‫ي‬
❶
Verify that the trial balance
columns are correctly added.
‫كل‬ ‫ش‬ ‫ب‬ ‫ي‬‫ب‬ ‫تجدي‬ ‫ال‬ ‫يد‬ ‫ص‬ ‫د‬ ‫ال‬ ‫مدة‬‫أو‬ ‫ة‬ ‫ضاف‬ ‫إ‬ ‫ما‬ ‫قب‬ ‫ح‬ ‫ت‬
.‫حيحص‬
❷
Verify that account balances are
correctly entered from the ledger.
‫ما‬ ‫يح‬ ‫صح‬ ‫كل‬ ‫ش‬ ‫ب‬ ‫ات‬ ‫ساب‬ ‫ح‬ ‫ال‬ ‫صدة‬ ‫أر‬ ‫ال‬ ‫إدخ‬ ‫ما‬ ‫قب‬ ‫ح‬ ‫ت‬
.‫رتفد‬ ‫ذاتسلأا‬
❸
See whether a debit (or credit) balance
is mistakenly listed as a credit (or debit).
‫المديا‬ ‫الدصيد‬ ‫كان‬ ‫إذا‬ ‫ما‬ ‫الدصيد)معدفة‬ ‫أو‬ ( ‫جا‬ ‫م‬‫ر‬‫مد‬
).‫وأ‬ ‫قيرطب(نيدم‬ ‫أطخلا‬ ‫ديصرك‬
❹
Recompute each account
balance in the
ledger

.‫باسح‬ ‫لك‬ ‫ديصر‬ ‫باسحلا‬ ‫يف‬ ‫اتسلأارتفد‬ ‫ذ‬
❺
Verify that each journal entry is
properly posted.
.‫ققحت‬ ‫نم‬ ‫رشن‬ ‫لك‬ ‫لاخدإ‬ ‫رتفد‬ ‫ةيموي‬
❻
Verify that each original journal
entry has equal debits and credits.
ُ ‫دي‬ ‫ل‬ ‫ي‬‫ل‬ ‫ص‬ ‫األ‬ ‫ية‬ ‫يام‬ ‫ال‬ ‫تد‬ ‫دف‬ ‫ال‬ ‫إدخ‬ ‫ل‬ ‫ك‬ ‫أن‬ ‫ما‬ ‫قب‬ ‫ح‬ ‫ت‬
.‫نويد‬ ‫تانامتشاو‬ ‫ةيواستم‬
P2
2-*
Using a Trial Balance to Prepare Financial
Statements
‫ية‬ ‫مال‬ ‫ال‬ ‫ات‬ ‫يان‬ ‫ب‬ ‫ال‬ ‫عداد‬ ‫إل‬ ‫عة‬ ‫مداج‬ ‫ال‬ ‫يزان‬ ‫م‬ ‫تخدام‬ ‫س‬ ‫ا‬
Statement of Cash
Flows
Income Statement
Beginning
Balance Sheet

‫ية‬ ‫يزان‬ ‫م‬ ‫ال‬ ‫ة‬ ‫داي‬ ‫ب‬
‫ية‬ ‫عمام‬ ‫ال‬
Ending Balance
Sheet
‫ية‬ ‫يزان‬ ‫م‬ ‫ال‬ ‫هاء‬ ‫إن‬
‫ية‬ ‫عمام‬ ‫ال‬
Period of Time
Point in
Time
Point in
Time
P3
2-*
Income Statement
‫ل‬‫دخ‬ ‫ال‬ ‫م‬ ‫اائ‬ ‫ق‬
P3
2-*
‫تجزة‬ ‫مح‬ ‫ال‬ ‫اح‬ ‫دب‬ ‫األ‬ ‫يان‬ ‫ب‬

P3
2-*
Balance Sheet
‫ن‬ ‫تااز‬ ‫ال‬ ‫ة‬ ‫ورق‬
P3
2-*
□ Describes the relationship between the amounts
of the company’s liabilities and assets.
□ .‫فصي‬ ‫ةقلاعلا‬ ‫نيب‬ ‫غلابم‬ ‫تابولطم‬ ‫ةكرشلا‬ ‫اهلوصأو‬
□
□ Helps to assess the risk that a company will fail
to pay its debts.
□ .‫دعاسي‬ ‫ىلع‬ ‫مييقت‬ ‫رطاخم‬ ‫شف‬ ‫ها‬ ‫ان‬ ‫دي‬ ‫سداد‬ ‫ي‬ ‫ف‬ ‫ة‬ ‫شدك‬ ‫ال‬ ‫ل‬
Debt Ratio
‫ا‬ ‫دي‬ ‫ال‬ ‫بة‬ ‫س‬ ‫ن‬
A2
2-*

End of Chapter 02
2-*
John J. Wild
Sixth Edition
Chapter 03
Adjusting Accounts and
Preparing Financial Statements
‫ية‬ ‫مال‬ ‫ال‬ ‫م‬ ‫قاائ‬ ‫ال‬ ‫داد‬ ‫وإو‬ ‫ات‬ ‫ساب‬ ‫ح‬ ‫ال‬ ‫بط‬ ‫ض‬
Conceptual Chapter Objectives
‫ي‬‫يم‬ ‫فاه‬ ‫م‬ ‫ال‬ ‫صل‬ ‫ف‬ ‫ال‬ ‫أهداف‬
C1: Explain the importance of periodic
reporting and the time period
assumption.
C2: Explain accrual accounting and how
it improves financial statements.
C3: Identify steps in the accounting cycle.

C4: Explain and prepare a classified
balance sheet.
.‫حرشا‬ ‫ةيمهأ‬ ‫ريراقتلا‬ ‫ةيرودلا‬ ‫ضارتفاو‬ ‫ةرتفلا‬ ‫ةينمزلا‬ -1
. ‫حرش‬ ‫ةبساحم‬ ‫قاقحتسلاا‬ ‫ية‬ ‫مال‬ ‫ال‬ ‫ات‬ ‫يان‬ ‫ب‬ ‫ال‬ ‫سا‬ ‫ح‬ ‫ي‬ ‫يف‬ ‫وك‬-2
. ‫ديدحت‬ ‫تاوطخلا‬ ‫يف‬ ‫ةرودلا‬ ‫ةيبساحملا‬ -3
.‫حرش‬ ‫دادعإو‬ ‫ةينازيم‬ ‫ةيمومع‬ ‫ةيرس‬ -4
3-*
Analytical Chapter Objectives
‫ي‬‫ل‬ ‫ي‬ ‫ل‬ ‫تح‬ ‫ال‬ ‫صل‬ ‫ف‬ ‫ال‬ ‫أهداف‬
A1: Explain how accounting adjustments
link to financial statements.
A2: Compute profit margin and describe
its use in analyzing company
performance.
A3: Compute the current ratio and
describe what it reveals about a
company’s financial condition.
.‫حرشا‬ ‫فيك‬ ‫طبترت‬ ‫تلايدعتلا‬ ‫ةيبساحملا‬ ‫تانايبلاب‬ ‫ةيلاملا‬
.‫باسح‬ ‫شماه‬ ‫برلا‬ ‫ة‬ ‫شدك‬ ‫ال‬ ‫أداء‬ ‫يل‬ ‫ل‬ ‫ح‬ ‫ت‬ ‫ي‬ ‫ف‬ ُ‫تخدام‬ ‫س‬ ‫ا‬ ‫صف‬ ‫وو‬ ‫ح‬
.‫باسح‬ ‫ةبسنلا‬ ‫ةيلاحلا‬ ‫فصوو‬ ‫ام‬ ‫فشكت‬ ‫نع‬ ‫عضولا‬ ‫يلاملا‬
‫ة‬ ‫شدك‬ ‫ل‬ ‫ل‬
3-*

Procedural Chapter Objectives
P1: Prepare and explain adjusting
entries.
P2: Explain and prepare an adjusted trial
balance.
P3: Prepare financial statements from an
adjusted trial balance.
P4: Describe and prepare closing entries.
P5: Explain and prepare a post-closing
trial balance.
3-*
Procedural Chapter Objectives (Continued)
)‫فادهأ(عبات‬ ‫لصفلا‬ ‫يشارجلإا‬
P6: Appendix 3A – Explain the
alternatives in accounting for
prepaids (see text for details).
P7: Appendix 3B – Prepare a work sheet
and explain its usefulness (see text for details).
P8: Appendix 3C – Prepare reversing entries and explain their
purpose (see text for details).
)‫رظنا‬ ‫صنلا‬ ‫لوصحلل‬ ‫ىلع‬ ‫(ليصافتلا‬
‫ا‬‫و‬ ‫بة‬ ‫س‬ ‫محا‬ ‫ال‬ ‫ي‬ ‫ف‬ ‫ل‬ ‫بدائ‬ ‫ال‬ ‫ئدح‬ ‫ا‬ ‫يل‬ ‫تذي‬ ‫ال‬
).‫رظنا‬ ‫صنلا‬ ‫لوصحلل‬ ‫ىلع‬ ‫قحلملا(ليصافتلا‬ ‫دادعإ‬ ‫ةقرو‬ ‫لمع‬
‫ها‬ ‫دت‬ ‫ائ‬ ‫ف‬ ‫ئدح‬ ‫و‬

).‫رظنا‬ ‫صنلا‬ ‫لوصحلل‬ ‫ىلع‬ ‫ييذتلا(ليصافتلا‬‫ل‬ ‫مق‬ ‫دادعإب‬ ‫لخادم‬
‫و‬ ‫ية‬ ‫س‬ ‫ك‬ ‫و‬ ‫نها‬ ‫م‬ ‫ندض‬ ‫ال‬ ‫ئدح‬ ‫ا‬
3-*
1 2 3 4 5 6 7 8 9 10 11 12
1 2 3 4
Annually ‫ايونس‬
1 2
Monthly ‫ايرهش‬
Quarterly
‫ي‬‫ع‬ ‫رب‬
Semiannually
‫ناى‬ ‫س‬ ‫صف‬ ‫ن‬
The Accounting Period
‫بة‬ ‫س‬ ‫محا‬ ‫ال‬ ‫تدة‬ ‫ف‬ ‫ال‬

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
C 1
3-*
Accounting
Accrual Basis vs. Cash Basis
‫قدي‬ ‫ن‬ ‫ال‬ ‫ساس‬ ‫األ‬ ‫ل‬ ‫قاب‬ ‫م‬ ‫قاق‬ ‫تح‬ ‫س‬ ‫اال‬ ‫ساس‬ ‫أ‬
Accrual Basis
‫قاق‬ ‫تح‬ ‫س‬ ‫اال‬ ‫ساس‬ ‫أ‬
Revenues are recognized
when earned and expenses
are recognized when
incurred.
‫بت‬ ‫ث‬ ‫وت‬ ‫ها‬ ‫ساب‬ ‫ت‬ ‫اك‬ ‫ند‬ ‫و‬ ‫يدادات‬ ‫اإل‬ ‫قب‬ ‫تح‬ ‫ت‬
.‫ا‬ ‫بدها‬ ‫ك‬ ‫ت‬ ‫ند‬ ‫و‬ ‫ات‬ ‫صدوف‬ ‫م‬ ‫ل‬
Cash Basis
‫قدي‬ ‫ن‬ ‫ال‬ ‫ساس‬ ‫األ‬
Revenues are
recognized when
cash is received and
expenses recorded
when cash is paid.
Not GAAP
‫بة‬ ‫س‬ ‫محا‬ ‫ال‬ ‫بادش‬ ‫م‬ ‫يس‬ ‫ل‬
‫وماما‬ ‫ة‬ ‫بال‬ ‫ق‬ ‫م‬ ‫ال‬

C 1
3-*
‫مب‬ ‫قاق‬ ‫تح‬ ‫س‬ ‫اال‬ ‫ساس‬ ‫قديأ‬ ‫ن‬ ‫ال‬ ‫ساس‬ ‫األ‬ ‫ل‬ ‫اب‬
On the cash basis the entire
$2,400 would be recognized as
insurance expense in 2011. No
insurance expense from this
policy would be recognized in
2012 or 2013, periods covered by
the policy.
2،400‫ىلع‬ ‫ساسأ‬ ‫يدقن‬ ، ‫متيس‬ ‫فارتعلاا‬ ‫غ‬‫ل‬ ‫ب‬ ‫م‬ ‫ب‬
. 2011‫رلاود‬ ‫لماكلاب‬ ‫تافورصمك‬ ‫نيمأت‬ ‫يف‬ ‫ماع‬
‫هذه‬ ‫ما‬ ‫يا‬ ‫أم‬ ‫ت‬ ‫ف‬ ‫صاري‬ ‫م‬ ‫أي‬ ‫ب‬ ‫تداف‬ ‫ع‬ ‫اال‬ ‫تم‬ ‫ي‬ ‫ا‬ ‫ول‬
، ‫يها‬ 2013‫وأ‬ 2012‫لا‬ ‫اب‬ ‫ل‬ ‫ي‬ ‫ص‬ ‫ة‬ ‫يف‬ ‫ماع‬
.‫تارتفلا‬ ‫يتلا‬ ‫اهيطغت‬ ‫ةسايسلا‬
C 1
3-*
‫قدي‬ ‫ن‬ ‫ال‬ ‫ساس‬ ‫األ‬ ‫ل‬ ‫قاب‬ ‫م‬ ‫قاق‬ ‫تح‬ ‫س‬ ‫اال‬ ‫ساس‬ ‫أ‬
On the accrual basis $100 of

insurance expense is recognized in
2011, $1,200 in 2012, and $1,100 in
2013. The expense is matched with
the periods benefited by the
insurance coverage.
‫غ‬‫ل‬ ‫ب‬ ‫م‬ ‫ب‬ ‫تداف‬ ‫ع‬ ‫اال‬ ‫تم‬ ‫ي‬ ، ‫قاق‬ ‫تح‬ ‫س‬ ‫اال‬ ‫ساس‬ ‫أ‬ ‫ى‬‫ل‬ ‫و‬
0 01 ‫وام‬ ‫ي‬ ‫ف‬ ‫يا‬ ‫تأم‬ ‫ال‬ ‫ف‬ ‫صاري‬ ‫م‬ ‫ما‬ ‫د‬ ‫دوال‬
، ‫و‬ 2012‫رلاود‬ ‫يف‬ ‫ماع‬ 1200، ‫و‬ 2011
0 011 ‫وام‬ ‫ي‬ ‫ف‬ ‫د‬ ‫دوال‬3102 . ‫قة‬ ‫مااب‬ ‫تم‬ ‫وي‬
‫ية‬ ‫نا‬ ‫ت‬ ‫ال‬ ‫ما‬ ‫يدة‬ ‫ف‬ ‫ت‬ ‫س‬ ‫م‬ ‫ال‬ ‫تدات‬ ‫ف‬ ‫ال‬ ‫ع‬ ‫م‬ ‫قات‬ ‫ف‬ ‫ن‬ ‫ال‬
.‫ةينيمأتلا‬
C 2
3-*
Adjustments
An adjusting entry is recorded to bring an asset or liability
account
balance to its proper amount.
.‫متي‬ ‫ليجست‬ ‫لاخدإ‬ ‫ةيوست‬ ‫راضحلإ‬ ‫ديصر‬ ‫باسح‬ ‫لصأ‬ ‫وأ‬ ‫مازتلا‬
‫سب‬ ‫نا‬ ‫م‬ ‫ال‬ ‫غ‬ ‫ل‬ ‫ب‬ ‫م‬ ‫ال‬ ‫ى‬ ‫إل‬
Adjusting Accounts
‫ات‬ ‫ساب‬ ‫ح‬ ‫ال‬ ‫بط‬ ‫ض‬
Paid (or received) cash before expense (or

revenue) recognized
)‫وأ‬ ‫عوفدم(تاداريلإا‬ ‫لبق‬ ‫فارتعلاا‬ ‫تاقفنلاب‬ ) ‫وأ‬ ‫دقن(ملتسم‬
Paid (or received) cash after expense (or
revenue) recognized
‫اوة‬ ‫دف‬‫لمة)م‬ ‫ت‬ ‫س‬ ‫م‬ ‫أو‬ ( ‫ساب‬ ‫ح‬ ‫عد‬ ‫ب‬ ‫ة‬ ‫قدي‬ ‫ن‬ ‫يدادات)ال‬ ‫اإل‬ ‫أو‬ (‫ها‬ ‫ب‬ ‫تدف‬ ‫ع‬ ‫م‬ ‫ال‬
Prepaid (Deferred)
expenses*
‫قة‬ ‫ب‬ ‫س‬ ‫م‬ ‫ات‬ ‫صدوف‬ ‫م‬
)‫عفدلا(ةلجؤم‬
Unearned
(Deferred)
revenues
‫لة‬ ‫مؤج‬ ‫ال‬ ‫يد‬ ‫غ‬ ‫يدادات‬ ‫اإل‬
)‫لجؤملا‬ )‫ة‬
Accrued
expenses
‫قة‬ ‫تح‬ ‫س‬ ‫م‬ ‫ال‬ ‫ات‬ ‫صدوف‬ ‫م‬ ‫ال‬
Accrued
revenues

‫قة‬ ‫تح‬ ‫س‬ ‫م‬ ‫دادات‬ ‫إي‬
Framework for Adjustments ‫راطا‬ ‫تلايدعتلا‬
*including depreciation ‫امب‬ ‫يف‬ ‫كلذ‬ ‫كلاهتسلاا‬
C2,
P1
3-*
Here is the check
for my first
6 months’ insurance.
‫يك‬ ‫ش‬ ‫ال‬ ‫نا‬ ‫ه‬
‫ال‬ ‫األ‬ ‫لدي‬ ‫ب‬ ‫ل‬
.‫رهشأ‬ 6‫نيمأت‬ ‫ةدمل‬
Prepaid (Deferred) Expenses
)‫فيراصم(ةلجؤم‬ ‫ةعوفدم‬ ‫امدقم‬
Resources paid for
prior to receiving the
actual benefits.
‫ي‬‫ق‬ ‫ل‬ ‫ت‬ ‫بل‬ ‫ق‬ ‫اوة‬ ‫مدف‬ ‫ال‬ ‫ماارد‬ ‫ال‬
.‫دشاوفلا‬ ‫ةيلعفلا‬

Asset ‫لوصلأا‬ Expense ‫فورصم‬
Unadjusted
Balance
‫يد‬ ‫غ‬ ‫يد‬ ‫ص‬ ‫د‬ ‫ال‬
‫عدل‬ ‫م‬ ‫ال‬
Credit
Adjustment
‫تمان‬ ‫ئ‬ ‫اال‬ ‫ة‬ ‫ساي‬ ‫ت‬
Debit
Adjustment
‫صم‬ ‫خ‬ ‫ال‬ ‫ل‬ ‫عدي‬ ‫ت‬
P1
3-*
Supplies ‫مزاوللا‬
During 2011, Scott Company purchased $15,500 of supplies.
Scott
recorded the expenditures as Supplies. On December 31, a count
of the
supplies indicated $2,655 on hand.

What adjustment is required?
، ‫شا‬ ‫دت‬ ‫ت‬ ‫ةكدش‬ 2011‫لاخ‬ ‫ل‬ ‫ماع‬ Scott 15،500 ‫يف‬ . ‫لجس‬ ‫اكس‬ ‫ت‬
‫لزمات‬ ‫ت‬ ‫س‬ ‫م‬ ‫ال‬ ‫ما‬ ‫د‬ ‫دوال‬ .‫لزمات‬ ‫ت‬ ‫س‬ ‫م‬ ‫ك‬ ‫قات‬ ‫ف‬ ‫ن‬ ‫ال‬
.‫رلاود‬ ‫يف‬ ‫لوانتم‬ ‫ديلا‬ 2655‫ربمسيد‬ ، ‫راشأ‬ ‫ددع‬ ‫تادادملإا‬ ‫لإ‬ 13 ‫ى‬
‫لاب؟‬ ‫ما‬ ‫ال‬ ‫ل‬ ‫عدي‬ ‫ت‬ ‫ال‬ ‫ما‬
126 652
P1
3-*
Straight-Line
Depreciation
Expense
=
Asset Cost - Salvage Value
Useful Life
Depreciation ‫كلاهتسلاا‬
Depreciation is the process of allocating the costs
of plant assets over their expected useful lives.
‫مدى‬ ‫ى‬‫ل‬ ‫و‬ ‫ع‬‫ن‬ ‫ص‬ ‫م‬ ‫ال‬ ‫صال‬ ‫أ‬ ‫يف‬ ‫كال‬ ‫ت‬ ‫يص‬ ‫ص‬ ‫خ‬ ‫ت‬ ‫ية‬ ‫ل‬ ‫وم‬ ‫ها‬ ‫ك‬ ‫تهال‬ ‫س‬ ‫اال‬
‫ومدها‬
.‫يجاتنلإا‬ ‫عقوتملا‬
P1

3-*
On January 1, 2011, Barton, Inc. purchased equipment for
$62,000 cash. The equipment has an estimated useful life of 5
years and Barton expects to sell the equipment at the end of its
life for $2,000 cash.
Let’s record depreciation expense for the year ended
December
31, 2011.
، ‫ئدكة‬ ‫ائتدت‬2011 ‫ينايد‬1‫في‬ Barton ، Inc. ‫دا‬‫م‬‫ق‬‫ن‬ ‫دوالد‬ . ‫الجهاز‬ ‫ومد‬
62000‫تادعم‬ ‫لباقم‬
. ‫دا‬‫م‬‫ق‬‫ن‬ ‫دوالد‬2000‫تاونس‬ ‫عقوتيو‬ ‫نوتراب‬ ‫عيب‬ ‫تادعملا‬ ‫يف‬ ‫ةياهن‬
‫ـ‬ ‫ب‬ ‫قدر‬ ‫ي‬ ‫قدر‬ ‫م‬ ‫ال‬5 ‫ل‬ ‫قاب‬ ‫م‬ ‫ومدها‬
.2011‫ربمسيد‬ 31‫انعد‬ ‫لجسن‬ ‫تافورصم‬ ‫كلاهتسلاا‬ ‫ةنسلل‬
‫ي‬ ‫ف‬ ‫ية‬ ‫ته‬ ‫ن‬ ‫م‬ ‫ال‬
2011
Depreciation
Expense
=
$62,000 - $2,000
5
= $12,000
P1

3-*
On January 1, 2011, Barton, Inc. purchased equipment for
$62,000 cash. The equipment has an estimated useful life of 5
years and Barton expects to sell the equipment at the end of its
life for $2,000 cash.
Let’s record depreciation expense for the year ended
December
31, 2011.
، ‫ئدكة‬ ‫ائتدت‬2011 ‫ينايد‬1‫في‬ Barton ، Inc. ‫دا‬‫م‬‫ق‬‫ن‬ ‫دوالد‬ . ‫الجهاز‬ ‫ومد‬
62000‫تادعم‬ ‫لباقم‬
. ‫دا‬‫م‬‫ق‬‫ن‬ ‫دوالد‬2000‫تاونس‬ ‫عقوتيو‬ ‫نوتراب‬ ‫عيب‬ ‫تادعملا‬ ‫يف‬ ‫ةياهن‬
‫ـ‬ ‫ب‬ ‫قدر‬ ‫ي‬ ‫قدر‬ ‫م‬ ‫ال‬5 ‫ل‬ ‫قاب‬ ‫م‬ ‫ومدها‬
.2011‫بمسيد‬ ‫نة‬ ‫س‬ ‫ل‬ ‫ل‬ ‫ك‬ ‫تهال‬ ‫س‬ ‫اال‬ ‫ات‬ ‫صدوف‬ ‫م‬ ‫سجل‬ ‫ن‬ ‫نا‬ ‫دو‬13 ‫ر‬
‫ي‬ ‫ف‬ ‫ية‬ ‫ته‬ ‫ن‬ ‫م‬ ‫ال‬
Accumulated depreciation is
a contra asset account. .‫كلاهتسلاا‬ ‫مكارتملا‬ ‫وه‬ ‫باسح‬ ‫لوصلأا‬
P1
3-*
Equipment is shown
net of accumulated
depreciation. This

amount is referred to
as the asset’s book
value.
‫صم‬ ‫خ‬ ‫عد‬ ‫ب‬ ‫عدات‬ ‫م‬ ‫ال‬ ‫دض‬‫و‬ ‫تم‬ ‫ي‬
‫م‬ ‫تداك‬ ‫م‬ ‫ال‬ ‫ك‬ ‫تهال‬ ‫س‬ ‫اال‬ . ‫هذا‬ ‫ى‬ ‫إل‬ ‫شار‬ ‫ي‬
.‫غلبملا‬ ‫ةميقلاب‬ ‫ةيرتفدلا‬ ‫لصلأل‬
$
P1
3-*
Unearned (Deferred) Revenues
)‫تاداريلإا(ةلجؤملا‬ ‫ريغ‬ ‫ةلجؤملا‬
Revenue
Buy your season tickets for
all home basketball games NOW!
‫ل‬ ‫ك‬ ‫ب‬ ‫خاص‬ ‫ال‬ ‫سم‬ ‫ما‬ ‫ال‬ ‫د‬ ‫ذاك‬ ‫ت‬ ‫ئداء‬
!‫عيمج‬ ‫تايرابم‬ ‫ةرك‬ ‫ةلسلا‬ ‫ةيلزنملا‬ ‫نلآا‬
“Go Big Blue”
Cash received in
advance of providing
products or services.
‫م‬ ‫قدي‬ ‫ت‬ ‫بل‬ ‫ق‬ ‫لمة‬ ‫ت‬ ‫س‬ ‫م‬ ‫ال‬ ‫ة‬ ‫قدي‬ ‫ن‬ ‫ال‬
.‫تاجتنملا‬ ‫وأ‬ ‫تامدخلا‬

Liability
Unadjusted
Balance
Credit
Adjustment
Debit
Adjustment
P1
3-*
On October 1, 2011, Ox University sold 1,000 season
tickets to its 20 home basketball games for $100 each. Ox
University makes the following entry:
‫س‬ ‫أوك‬ ‫عة‬ ‫جام‬ ‫ت‬‫او‬ ‫ب‬ ،0001 ‫ى‬ ‫إل‬ ‫ية‬ ‫سم‬ ‫ما‬ ‫دة‬ ‫ذك‬ ‫ت‬02 ‫لة‬ ‫س‬ ‫دة‬ ‫ك‬ ‫باراة‬ ‫م‬
2011‫ربوتكأ‬ 1‫يف‬
:‫مدقت‬ ‫ةعماج‬ ‫روثلا‬ ‫لاخدلإا‬ ‫يلاتلا‬. ‫رلاود‬ ‫لكل‬ ‫اهنم‬ 100‫ةيلزنم‬
‫ل‬ ‫قاب‬ ‫م‬
P1
3-*

On December 31, Ox University has played 10 of its regular
home games, winning 2 and losing 8.
، ‫بد‬ ‫سم‬ ‫دي‬01 ‫ازت‬ ‫وف‬ ، ‫ة‬ ‫عادي‬ ‫ال‬ ‫ية‬ ‫نزل‬ ‫م‬ ‫ال‬ ‫ها‬ ‫عاب‬ ‫أل‬ ‫ا‬‫م‬2 ‫سدت‬ ‫وخ‬
‫ي‬ ‫ف‬13 ‫س‬ ‫أوك‬ ‫عة‬ ‫جام‬ ‫بت‬ ‫ع‬ ‫ل‬
8.
P1
3-*
We’re about one-half
done with this job and
want to be paid for
our work!
‫أن‬ ‫د‬ ‫دي‬ ‫ون‬ ‫عمل‬ ‫ال‬ ‫هذا‬ ‫صف‬ ‫ن‬ ‫نا‬ ‫ي‬ ‫ته‬ ‫ان‬ ‫قد‬ ‫ل‬
!‫أجد‬ ‫مقابل‬ ‫م‬‫ل‬‫وما‬ ‫نتقاضى‬
Costs incurred in a
period that are
both unpaid and
unrecorded.
‫تدة‬ ‫ف‬ ‫ي‬ ‫ف‬ ‫بدة‬ ‫ك‬ ‫ت‬ ‫م‬ ‫ال‬ ‫يف‬ ‫كال‬ ‫ت‬ ‫ال‬
.‫لاك‬ ‫ريغ‬ ‫ةددسملا‬ ‫ريغو‬ ‫ةلجسملا‬
Accrued Expenses ‫تافورصملا‬ ‫قحتسملا‬ ‫ة‬
Expense Liability
Credit

Adjustment
Debit
Adjustment
P1
3-*
12/1/11 12/31/11
Year-end
Last pay
date
12/25/11
Next pay
date
Record adjusting
journal entry.
Accrued Expenses
Barton, Inc. pays its employees every Friday. Year-end,
12/31/11, falls on a Thursday. As of 12/31/11, the
employees have earned salaries of $47,250 for Monday
through Thursday.
P1
3-*

Accrued Expenses
Barton, Inc. pays its employees every Friday. Year-end,
12/31/11, falls on a Thursday. As of 12/31/11, the
employees have earned salaries of $47,250 for Monday
through Thursday.
P1
3-*
Accrued Revenues
Smith & Jones, CPAs, had $31,200 of work
completed but not yet billed to clients. Let’s make
the adjusting entry necessary on December 31, 2011,
the end of the firm’s fiscal year.
P1
3-*
Links to Financial Statements
A1
3-*
FastForward – Trial Balance -
December 31, 2011
First, the
initial
unadjusted

amounts are
added to the
work sheet.
$
P2
3-*
Next,
FastForward’s
adjustments
are added.
FastForward – Recording Adjustments
Trial Balance - December 31, 2011
P2
3-*
Finally, the
totals are
determined.
FastForward – Computing the Adjusted
Trial Balance - December 31, 2011
P2
3-*

1. Prepare Income Statement
P3
3-*
2. Prepare Statement of Retained
Earnings
Note that net income from the Income Statement
carries to the Statement of Retained Earnings.
P3
3-*
3. Prepare Balance Sheet P3
3-*
The Closing Process:
Temporary and Permanent Accounts
Temporary (nominal) accounts accumulate data related to
one accounting period. They include all income statement
accounts, the dividends account, and the Income Summary
account. These accounts are “closed” at the end of the period
to get ready for the next accounting period.
Permanent (real) accounts report activities related to one or
more future accounting periods. They carry ending balances
to the next accounting period and are not “closed.”

C3
3-*
Recording Closing Entries
1. Close revenue accounts.
2. Close expense accounts.
3. Close income summary account.
4. Close dividends account.
P4
3-*
Income Summary
Salaries Expenses Consulting Revenues
$ 18,100 $ 25,000
Retained Earnings
$ 7,000
Examine the
accounts

presented.
P4
3-*
$ 25,000
Close revenues
with a debit to the
revenue account
and a credit to
Income Summary.
$ 18,100
Income Summary
$ 25,000
$ 25,000
P4
3-*
$ 25,000 $ 25,000
Close expense

accounts with a
credit to expenses
and a debit to
Income Summary.
$ 25,000
$ 18,100
Income Summary
$ 18,100
$ 18,100
P4
3-*
$ 18,100 $ 25,000
$ 18,100 $ 25,000 $ 25,000 $ 18,100
Determine the
balance in the
Income Summary
account.

Income Summary
$ 6,900
P4
3-*
$ 18,100 $ 25,000
$ 18,100 $ 18,100
$ 7,000
Close the Income
Summary to
Retained Earnings.
$ 6,900
Salaries Expenses
Income Summary Retained Earnings
$ 6,900
$ 6,900
P4

3-*
Dividends
$ 2,000 $ 7,000
6,900
Retained Earnings
The dividends account is closed to
Retained Earnings.
$ 2,000 $ 2,000
P4
3-*
Dividends
$ 2,000 $ 2,000 $ 2,000
Determine the
ending balance in
Retained Earnings.
$ 11,900

$ 7,000
6,900
Retained Earnings
The dividends account is closed to
Retained Earnings.
P4
3-*
Post-Closing Trial Balance
■ Trial balance prepared after the
closing entries have been posted.
■ The purpose is to ensure that all
nominal or temporary accounts have
been closed.
■ The only accounts on this trial balance
should be assets, liabilities, and equity
accounts.
P5
3-*
The Accounting Cycle
Start

1. Analyze
transactions
2. Journalize
3. Post
4. Prepare
unadjusted
trial balance
5. Adjust
6. Prepare
adjusted
trial balance
7. Prepare
statements
8. Close
9. Prepare
post-closing
trial balance
C3
10. Reverse
(optional)
3-*

Classified Balance Sheet
Current items are those expected to come due
(either collected or owed) within one year or the
company’s operating cycle, whichever is longer.
C 4
3-*
Plant Assets
Tangible assets that are both long lived and used to
produce or sell products or services. Examples
include equipment, machinery, buildings, and land that
are used to produce or sell products and services.
C 4
Intangible Assets
Long-term resources that benefit business operations.
They usually lack physical form and have uncertain
benefits. Examples include patents, trademarks,
copyrights, franchises, and goodwill.
3-*
Obligations due to be paid or settled within one
year or the operating cycle, whichever is longer.
C 4

Obligations not due within one year or the
operating cycle, whichever is longer.
Liabilities
3-*
Current Liabilities
Long-Term Liabilities
3-*
C 4
Profit Margin
The profit margin ratio measures the
company’s net income to net sales.
Profit
margin
Net income
Net sales
=
A2
3-*

Current Ratio
Current
ratio
Current assets
Current liabilities
=
This ratio is an important measure of a company’s
ability to pay its short-term obligations.
A3
3-*
End of Chapter 03
3-*
John J. Wild
Sixth Edition
Chapter 04

Reporting and Analyzing
Merchandising Operations
‫يل‬ ‫ل‬ ‫تح‬ ‫وال‬ ‫غ‬ ‫بال‬ ‫اإل‬
‫ج‬ ‫تدوي‬ ‫ال‬ ‫يات‬ ‫ل‬ ‫وم‬
Conceptual Learning Objectives
‫ي‬‫يم‬ ‫فاه‬ ‫م‬ ‫ال‬ ‫لم‬ ‫ع‬ ‫ت‬ ‫ال‬ ‫أهداف‬
C1: Describe merchandising activities and
identify income components for a
merchandising company.
C2: Identify and explain the inventory asset and cost flows of a
merchandising company.
.‫فصو‬ ‫ةطشنلأا‬ ‫ةيراجتلا‬ ‫ديدحتو‬ ‫تانوكم‬ ‫لخدلا‬ ‫ةكرشل‬ ‫ةيراجت‬
.‫ديدحت‬ ‫حرشو‬ ‫لصأ‬ ‫نوزخملا‬ ‫تاقفدتو‬ ‫فيلاكتلا‬ ‫ةكرشل‬ ‫ةيراجت‬
Analytical Learning Objectives
‫ه‬‫يةأ‬ ‫ل‬ ‫ي‬ ‫ل‬ ‫تح‬ ‫ال‬ ‫لم‬ ‫ع‬ ‫ت‬ ‫ال‬ ‫داف‬
A1: Compute the acid-test ratio and
explain its use to assess liquidity.
A2: Compute the gross margin ratio and
explain its use to assess profitability
.‫باسح‬ ‫ةبسن‬ ‫رابتخا‬ ‫ضمحلا‬ ‫حرشو‬ ‫همادختسا‬ ‫مييقتل‬ ‫ةلويسلا‬
ُ ‫ال‬ ‫بة‬ ‫س‬ ‫ن‬ ‫ساب‬ ‫ح‬ ‫ية‬ ‫ح‬ ‫دب‬ ‫ال‬ ‫يم‬ ‫ي‬ ‫ق‬ ‫ت‬ ‫ل‬ ُ‫تخدام‬ ‫س‬ ‫ا‬ ‫ئدح‬ ‫و‬ ‫ي‬ ‫جمال‬ ‫اإل‬ ‫امش‬

4-3
Procedural Learning Objectives
‫ي‬ ‫جدائ‬ ‫اإل‬ ‫لم‬ ‫ع‬ ‫ت‬ ‫ال‬ ‫أهداف‬
P1: Analyze and record transactions for merchandise purchases
using a
perpetual system.
P2: Analyze and record transactions for merchandise sal es using
a
perpetual system.
P3: Prepare adjustments and close accounts for a
merchandising
company.
P4: Define and prepare multiple-step and single-step income
statements.
P5: Appendix 4A – Record and compare merchandising
transactions
using both periodic and perpetual inventory systems (see text
for
details).
.‫ليلحت‬ ‫ليجستو‬ ‫تلاماعملا‬ ‫ءارشل‬ ‫عشاضبلا‬ ‫مادختساب‬ ‫ماظن‬ ‫مشاد‬ -
1
.‫ليلحت‬ ‫ليجستو‬ ‫تلاماعملا‬ ‫تاعيبمل‬ ‫عشاضبلا‬ ‫مادختساب‬ ‫ماظن‬
‫م‬ ‫دائ‬-2
.‫دادعإ‬ ‫تلايدعتلا‬ ‫قلاغإو‬ ‫تاباسحلا‬ ‫ةكرشل‬ ‫ةيراجت‬ -3

.‫ديدحت‬ ‫دادعإو‬ ‫تانايب‬ ‫لخدلا‬ ‫ددعتم‬ ‫تاوطخلا‬ ‫ةوطخو‬ ‫ةدحاو‬ -4
‫ة‬ ‫تجاري‬ ‫ال‬ ‫ت‬ ‫عامال‬ ‫م‬ ‫ال‬ ‫ة‬ ‫قارن‬ ‫وم‬ ‫يل‬ ‫سج‬ ‫)ت‬ ‫صال‬ ‫لح‬ ‫ل‬ ‫نص‬ ‫ال‬ ‫ظد‬ ‫ان‬
‫مة‬ ‫دائ‬ ‫وال‬ ‫ة‬ ‫دوري‬ ‫ال‬ ‫جدد‬ ‫ال‬ ‫ظمة‬ ‫أن‬ ‫ما‬ ‫ل‬ ‫ك‬ ‫تخدام‬ ‫س‬ ‫ا‬ ‫ب‬-5
).‫ىلع‬ ‫ليصافتلا‬
4-4
Merchandising Activities
‫ة‬ ‫تجاري‬ ‫ال‬ ‫شاة‬ ‫ن‬ ‫األ‬
Service organizations sell time to earn
revenue.
‫ع‬ ‫ي‬ ‫ب‬ ‫ت‬ ‫سب‬ ‫ك‬ ‫ل‬ ‫ت‬ ‫اق‬ ‫ال‬ ‫ية‬ ‫خدم‬ ‫ال‬ ‫نظمات‬ ‫م‬ ‫ال‬ ‫يدادات‬ ‫اإل‬
Examples: Accounting firms, law firms,
and plumbing services
‫لة‬ ‫ث‬ ‫أم‬ :‫ة‬ ‫باك‬ ‫س‬ ‫ال‬ ‫دمات‬ ‫وخ‬ ‫محاماة‬ ‫ال‬ ‫ات‬ ‫ئدك‬ ‫و‬ ‫بة‬ ‫س‬ ‫محا‬ ‫ال‬ ‫ات‬ ‫ئدك‬
Revenues
Expenses
‫قات‬ ‫ف‬ ‫ن‬
Minus
‫ص‬ ‫اق‬ ‫ن‬

Net
income
‫ل‬‫دخ‬ ‫ال‬ ‫ي‬ ‫صاف‬
Equals
‫ي‬‫ساو‬ ‫ي‬
C 1
4-5
Manufacturer
‫ع‬ ‫صان‬ ‫ال‬
Wholesaler
‫لة‬ ‫جم‬ ‫د‬‫اج‬ ‫ت‬
Retailer
‫ة‬ ‫تجزئ‬ ‫ال‬ ‫د‬‫تاج‬ ‫م‬
Customer
‫ان‬ ‫زب‬
Merchandising Companies
‫ة‬ ‫تجاري‬ ‫ال‬ ‫ات‬ ‫شدك‬ ‫ال‬
Merchandising Activities
‫ة‬ ‫تجاري‬ ‫ال‬ ‫شاة‬ ‫ن‬ ‫األ‬
C 1
4-6

Reporting Income for a Merchandiser
‫د‬‫تاج‬ ‫ل‬ ‫ل‬ ‫ل‬‫دخ‬ ‫ال‬ ‫ا‬‫و‬ ‫غ‬ ‫بال‬ ‫اإل‬
Merchandising companies sell products to earn revenue.
Examples: sporting goods, clothing, and auto parts stores
.‫تاكرشلا‬ ‫ةيراجتلا‬ ‫عيبت‬ ‫تاجتنملا‬ ‫بسكل‬ ‫تاداريلإا‬
‫ا‬ ‫ع‬‫ل‬ ‫س‬ ‫ال‬ ‫د‬‫تاج‬ ‫م‬ ‫لة‬ ‫ث‬ ‫أم‬ :‫يارات‬ ‫س‬ ‫ال‬ ‫يار‬ ‫غ‬ ‫ع‬‫ا‬ ‫وق‬ ‫بس‬ ‫مال‬ ‫وال‬ ‫ية‬ ‫ض‬ ‫ا‬ ‫دي‬ ‫ل‬
Cost of
goods sold
‫باوة‬ ‫م‬ ‫ال‬ ‫ضاوة‬ ‫ب‬ ‫ال‬ ‫فة‬ ‫ل‬ ‫ك‬ ‫ت‬
Gross
profit
‫ح‬ ‫دب‬ ‫ال‬ ‫ي‬ ‫مال‬‫اج‬
Expenses
‫قات‬ ‫ف‬ ‫ن‬
Net
income
‫ل‬‫دخ‬ ‫ال‬ ‫ي‬ ‫صاف‬
Net
sales

‫عات‬ ‫ي‬ ‫ب‬ ‫م‬ ‫ال‬ ‫ي‬ ‫صاف‬
Minus
Equals
Minus Equals
Merchandising Company
Income Statement
For Year Ended December 31, 2011
Net sales 150,000$
Cost of goods sold 80,000
Gross profit 70,000$
Operating expenses 46,500
Net income 23,500$
C1
4-7
Operating Cycle for a Merchandiser
‫غ‬‫ش‬ ‫ت‬ ‫ال‬ ‫ددورة‬‫تاج‬ ‫ل‬ ‫ل‬ ‫ل‬ ‫ي‬
Begins with the purchase of merchandise and ends with the
collection
of cash from the sale of merchandise.

.‫أدبي‬ ‫ءارشب‬ ‫عشاضبلا‬ ‫يهتنيو‬ ‫عمجب‬ ‫دوقنلا‬ ‫نم‬ ‫عيب‬ ‫عشاضبلا‬
Purchases‫ملا‬‫تايرتش‬
Merchandise
inventory
‫ع‬ ‫ضائ‬ ‫ب‬ ‫ال‬ ‫دد‬‫ج‬
Credit sales
‫تمان‬ ‫ئ‬ ‫اال‬ ‫عات‬ ‫ي‬ ‫ب‬ ‫م‬
Accounts
receivable
‫قة‬ ‫تح‬ ‫س‬ ‫م‬ ‫ال‬ ‫ات‬ ‫ساب‬ ‫ح‬ ‫ال‬
Cash
collection
‫قاد‬ ‫ن‬ ‫ال‬ ‫م‬ ‫تال‬ ‫س‬ ‫ا‬
Purchases
‫ات‬ ‫تدي‬ ‫ش‬ ‫م‬ ‫ال‬

Merchandise
inventory
‫ع‬ ‫ضائ‬ ‫ب‬ ‫ال‬ ‫دد‬‫ج‬
Cash
sales
‫ع‬‫ي‬ ‫ب‬ ‫ال‬
‫قدا‬ ‫ن‬
Cash Sale Credit Sale
C 2
4-8
Inventory Systems
‫جدد‬ ‫ال‬ ‫ظم‬ ‫ن‬
+
+
Beginning
inventory
‫ن‬‫مخزو‬ ‫ال‬ ‫ة‬ ‫داي‬ ‫ب‬
Net
purchases
‫ات‬ ‫تدي‬ ‫ش‬ ‫م‬ ‫ال‬ ‫ي‬ ‫صاف‬

Merchandise
available for sale
‫ع‬‫ي‬ ‫ب‬ ‫ل‬ ‫ل‬ ‫تاحة‬ ‫م‬ ‫ال‬ ‫ع‬ ‫ضائ‬ ‫ب‬ ‫ال‬
Ending inventory
‫ن‬‫مخزو‬ ‫ال‬ ‫هاء‬ ‫إن‬
Cost of goods
sold
‫باوة‬ ‫م‬ ‫ال‬ ‫ضاوة‬ ‫ب‬ ‫ال‬ ‫فة‬ ‫ل‬ ‫ك‬ ‫ت‬
=
C 3
4-9
Merchandise Purchases
‫ع‬ ‫ضائ‬ ‫ب‬ ‫ال‬ ‫ات‬ ‫تدي‬ ‫ش‬ ‫م‬
On June 20, Jason, Inc. purchased $14,000 of Merchandise
Inventory paying cash.
‫ائتدت‬ ، ‫يانيا‬20‫في‬ Jason ، Inc. 14000 ‫المدفاوة‬ ‫البضائع‬ ‫جدد‬ ‫ما‬ ‫دوالد‬
‫دا‬‫م‬‫ق‬‫ن‬.
Dr. Cr.
Jun. 20 Merchandise Inventory 14,000

Cash 14,000
Purchase merchandise for cash
P1
4-10
Trade Discounts
‫ة‬ ‫تجاري‬ ‫ال‬ ‫صامات‬ ‫خ‬ ‫ال‬
Used by manufacturers and wholesalers to offer better
prices for greater quantities purchased.
‫ج‬ ‫وت‬ ‫عة‬ ‫ن‬ ‫ص‬ ‫م‬ ‫ال‬ ‫ات‬ ‫شدك‬ ‫ال‬ ‫بل‬ ‫ق‬ ‫ما‬ ‫تخدم‬ ‫س‬ ‫ت‬ ‫عار‬ ‫س‬ ‫أ‬ ‫م‬ ‫قدي‬ ‫ت‬ ‫ل‬ ‫لة‬ ‫جم‬ ‫ال‬ ‫ار‬
‫م‬ ‫ت‬ ‫بد‬ ‫أك‬ ‫يات‬ ‫كم‬ ‫ل‬ ‫ضل‬ ‫أف‬
.‫اهؤارش‬
Example
Matrix, Inc. offers a 30% trade
discount on orders of 1,000
units or more of their popular
product Racer. Each
Racer has a list price of $5.25.
‫ثال‬ ‫م‬
Matrix‫تقدم‬ ، Inc. 30‫بنس‬ ‫ل‬‫م‬‫ا‬‫تداو‬ ٪‫ة‬ ‫ب‬
1000‫مصخ‬ ‫ىلع‬ ‫رماوأ‬ ‫نم‬
‫تها‬ ‫ي‬ ‫ب‬ ‫ع‬ ‫ئ‬ ‫ما‬ ‫ثد‬ ‫أك‬ ‫أو‬ ‫دات‬ ‫وح‬
‫ب‬ ‫ساب‬ ‫ت‬ ‫م‬ ‫ال‬ ‫تج‬ ‫ن‬ ‫م‬ ‫ال‬ .‫ل‬ ‫ك‬
.‫رلاود‬ 5.25‫قباستملا‬ ‫هيدل‬ ‫ةمشاق‬ ‫راعسلأا‬ ‫نم‬

Quantity sold 1,000
Price per unit 5.25$
Total 5,250
Less 30% discount (1,575)
Invoice price 3,675$
P1
4-11
Main Source, Inc. Invoice
614 Tech Avenue Date Number
Nashville, TN 37651 5/4/12 358-BI
S
o
l
d
T
o
Name: Barbee, Inc.

Attn: Tom Bell
Address: One Willow Plaza
Cookeville, Tennessee
38501
P.O. 167 Sales: 25 Terms 2/10,n/30 Ship: FedEx Prepaid
Item Description Quanity Price Amount
AC417 250 Backup System 500 54.00$ 27,000$
Sub Total 27,000
We appreciate your business! Ship Chg. -
Tax -
Total 27,000$
Invoice
‫د‬‫اج‬ ‫ت‬
‫ارة‬ ‫فات‬ ‫ال‬ ‫خ‬ ‫اري‬ ‫ت‬
‫تدي‬ ‫ش‬ ‫م‬ ‫ال‬
‫لب‬ ‫ا‬ ‫ال‬ ‫م‬ ‫رق‬

‫تمان‬ ‫ئ‬ ‫اال‬ ‫ئدوط‬
‫شحا‬ ‫ال‬ ‫ئدوط‬
‫ع‬ ‫ضائ‬ ‫ب‬ ‫ال‬
‫ة‬‫ار‬ ‫فات‬ ‫ال‬ ‫يمة‬ ‫ق‬
P1
4-12
Vendor’s Invoice for Purchase of Merchandise
‫ع‬ ‫ضائ‬ ‫ب‬ ‫ال‬ ‫شداء‬ ‫ل‬ ‫ع‬ ‫بائ‬ ‫ال‬ ‫ارة‬ ‫ات‬ ‫ف‬
Purchase Discounts
‫صامات‬ ‫خ‬ ‫ال‬ ‫ئداء‬
A deduction from the invoice price granted to induce early
payment of the amount due.
.‫مصخ‬ ‫نم‬ ‫رعس‬ ‫ةروتافلا‬ ‫ونمملا‬ ‫غ‬‫ل‬ ‫ب‬ ‫لم‬ ‫ل‬ ‫كد‬ ‫ب‬ ‫م‬ ‫ال‬ ‫ع‬ ‫دف‬ ‫ال‬ ‫ى‬‫ل‬ ‫و‬ ‫لحث‬ ‫ل‬ ‫ح‬
‫تحب‬ ‫س‬ ‫م‬ ‫ال‬
Terms

‫ط‬‫ئدو‬
Time
‫ا‬‫زم‬
Due
‫بب‬ ‫س‬ ‫ب‬
Discount Period
‫صم‬ ‫خ‬ ‫ال‬ ‫تدة‬ ‫ف‬
Due: Invoice price
minus
discount
‫بب‬ ‫س‬ ‫ب‬ :‫ص‬ ‫اق‬ ‫ن‬ ‫ارة‬ ‫فات‬ ‫ال‬ ‫عد‬ ‫س‬
‫صم‬ ‫خ‬
Credit Period
‫تمان‬ ‫ئ‬ ‫اال‬ ‫تدة‬ ‫ف‬
Due: Full Invoice Price
‫ف‬ ‫ال‬ ‫عد‬ ‫س‬ ‫بب‬ ‫س‬ ‫ب‬ :‫كامل‬ ‫ال‬ ‫ارة‬ ‫ات‬
Date of
Invoice
‫ة‬‫ار‬ ‫فات‬ ‫ال‬ ‫خ‬ ‫اري‬ ‫ت‬
P1

4-13
2/10,n/30
Purchase Discounts
Discount
Percent
‫صم‬ ‫خ‬ ‫ال‬ ‫بة‬ ‫س‬ ‫ن‬
Number of
Days
Discount Is
Available
‫صم‬ ‫خ‬ ‫ال‬ ‫ام‬ ‫أي‬ ‫دد‬‫و‬
‫تاح‬ ‫م‬
Otherwise, Net
(or All) Is Due
in 30 Days
‫كان‬ ‫ي‬ ، ‫ك‬ ‫ذل‬ ‫ف‬ ‫خال‬
) ‫وأ‬ ‫يفاص(لكلا‬
‫ما‬ ‫م‬‫يا‬30‫خالل‬ ‫ا‬‫م‬‫ق‬‫مستح‬
Credit
Period

‫تمان‬ ‫ئ‬ ‫اال‬ ‫تدة‬ ‫ف‬
P1
4-14
Purchase Discounts
On May 7, Jason, Inc. purchased $27,000 of merchandise
inventory on account, credit terms are 2/10, n/30.
‫مخزون‬ ‫ما‬ ‫د‬ ‫دوال‬ ، 000،72 .cnI ، nosaJ ‫ي‬ ‫ف‬7 ‫تدت‬ ‫ئ‬ ‫ا‬ ، ‫ا‬ ‫ماي‬
‫ساب‬ ‫ح‬ ‫ال‬ ‫ى‬‫ل‬ ‫و‬ ‫ع‬ ‫ضائ‬ ‫ب‬ ‫ال‬
، 2/10‫ا‬ ‫ئ‬ ‫ار‬‫ط‬ ‫لاا‬ ‫ئ‬ ‫ت‬ ‫نام‬ ُ‫ي‬ n / 30.
Dr. Cr.
Merchandise Inventory 27,000
Accounts Payable 27,000
Purchase merchandise on account
P1
4-15
Purchase Discounts
On May 15, Jason, Inc. paid the amount due on the
purchase of May 7.

‫تحب‬ ‫س‬ ‫م‬ ‫ال‬ ‫غ‬ ‫ل‬ ‫ب‬ ‫م‬ ‫ال‬7 ‫ا‬ ‫ماي‬ .cnI ، nosaJ ‫ي‬ ‫ف‬51 ‫ة‬ ‫ئدك‬ ‫عت‬ ‫دف‬ ، ‫ا‬ ‫ماي‬
.‫ئداء‬ ‫ند‬ ‫و‬
Dr. Cr.
May 15 Accounts Payable 27,000
Cash 26,460
Merchandise Inventory* 540
Paid accounts payable in full
*$27,000 × 2% = $540 discount
P1
4-16
Purchase Discounts
After we post these entries, the accounts
involved look like this:
:‫دعب‬ ‫رشن‬ ‫هذه‬ ‫تلااخدلإا‬ ، ‫ودبت‬ ‫تاباسحلا‬ ‫ةينعملا‬ ‫امك‬ ‫يلي‬
Merchandise Inventory
‫ع‬ ‫ضائ‬ ‫ب‬ ‫ال‬ ‫دد‬‫ج‬
Accounts Payable
5/7 27,000 5/7 27,000 5/15 540 5/15 27,000

Bal. 26,460 Bal. 0
P1
4-17
When Discount Is Not Taken
‫صم‬ ‫خ‬ ‫ال‬ ‫ذ‬ ‫أخ‬ ‫تم‬ ‫ي‬ ‫ال‬ ‫ندما‬ ‫و‬
If we fail to take a 2/10, n/30 discount, is
it really expensive?
، 2/10‫اذإ‬ ‫شف‬ ‫ل‬ ‫ان‬ ‫يف‬ ‫لا‬ ‫صح‬ ‫لا‬ ‫ع‬‫ل‬ ‫ى‬ ‫صخ‬ ‫م‬ n / 30 ، ‫لهف‬ ‫اذه‬
‫ا؟‬‫م‬‫ق‬‫ح‬ ‫مكلف‬
365 days ÷ 20 days × 2% = 36.5% annual rate
Days
in a
Year
‫نة‬ ‫س‬ ‫ال‬ ‫ي‬ ‫ف‬ ‫ام‬ ‫أي‬
Number
of additional
days before
Payment
‫ية‬ ‫ضاف‬ ‫اإل‬ ‫يام‬ ‫األ‬ ‫دد‬‫و‬
‫د‬‫سدا‬ ‫ال‬ ‫بل‬ ‫ق‬

Percent
paid to
keep
Money
‫ة‬ ‫ئاي‬ ‫م‬ ‫ال‬ ‫بة‬ ‫س‬ ‫ن‬ ‫ال‬
‫اوة‬ ‫مدف‬ ‫ال‬
‫مال‬ ‫ال‬ ‫ى‬‫ل‬ ‫و‬ ‫فاظ‬ ‫لح‬ ‫ل‬
P1
4-18
Purchase Returns and Allowances
‫ئداء‬ ‫ت‬ ‫بدال‬ ‫وال‬ ‫د‬ ‫عاائ‬ ‫ال‬
Purchase returns . . .
refer to merchandise a buyer acquires but then
returns to the seller.
.‫عوجرلا‬ ‫ىلإ‬ ‫عشاضبلا‬ ‫يتلا‬ ‫اهبستكي‬ ‫يرتشملا‬ ‫نكلو‬ ‫دعب‬ ‫كلذ‬
‫شداء‬ ‫ال‬ ‫د‬ ‫اائ‬‫و‬ :‫ع‬ ‫بائ‬ ‫ال‬ ‫ى‬ ‫إل‬ ‫عاد‬ ‫ي‬
Purchase allowance . . .
is a reduction in the cost of defective or
unacceptable merchandise that a buyer
acquires.
‫ي‬‫ت‬ ‫ال‬ ‫ة‬ ‫بال‬ ‫ق‬ ‫م‬ ‫ال‬ ‫يد‬ ‫غ‬ ‫أو‬ ‫بة‬ ‫ي‬ ‫ع‬ ‫م‬ ‫ال‬ ‫ع‬ ‫ضائ‬ ‫ب‬ ‫ال‬ ‫فة‬ ‫ل‬ ‫ك‬ ‫ت‬ ‫ي‬ ‫ف‬ ‫فاض‬ ‫خ‬ ‫ان‬ ‫ها‬
‫شداء‬ ‫ال‬ ‫دل‬ ‫ب‬:‫تدي‬ ‫ش‬ ‫م‬ ‫ال‬ ‫بها‬ ‫س‬ ‫ت‬ ‫ك‬ ‫ي‬

P1
4-19
‫ت‬ ‫بدال‬ ‫وال‬ ‫د‬ ‫عاائ‬ ‫ال‬ ‫ئداء‬
On May 9, Matrix, Inc. purchased $20,000 of
merchandise inventory on account, credit terms
are 2/10, n/30.
‫مخزون‬ ‫ما‬ ‫د‬ ‫دوال‬ 000.02 .cnI ، xirtaM ‫ي‬ ‫ف‬9 ‫تدت‬ ‫ئ‬ ‫ا‬ ، ‫ا‬ ‫ماي‬
‫ع‬ ‫ضائ‬ ‫ب‬ ‫ال‬
، 2/10‫ع‬ ‫ل‬ ‫ى‬ ‫لا‬ ‫سح‬ ‫با‬ ، ‫ئا‬ ‫ار‬‫ط‬ ‫لاا‬ ‫ئ‬ ‫ت‬ ‫نام‬ ُ‫ي‬ n / 30.
May 9 Merchandise Inventory 20,000
Accounts Payable 20,000
Purchase merchandise on account
P1
4-20
‫ت‬ ‫بدال‬ ‫وال‬ ‫د‬ ‫عاائ‬ ‫ال‬ ‫ئداء‬
On May 10, Matrix, Inc. returned $500 of
defective merchandise to the supplier.
‫أع‬ ، ‫ا‬ ‫ماي‬ ‫ع‬ ‫ضائ‬ ‫ب‬ ‫ال‬ ‫ما‬ ‫د‬ ‫دوال‬ 005 cnI ، xirtaM ‫ي‬ ‫ف‬01 ‫ة‬ ‫ئدك‬ ‫ادت‬
.‫مارد‬ ‫ال‬ ‫ى‬ ‫إل‬ ‫بة‬ ‫ي‬ ‫ع‬ ‫م‬ ‫ال‬

Dr. Cr.
May 10 Accounts Payable 500
Merchandise Inventory 500
Returned defective merchandise
P1
4-21
‫ئدا‬ ‫ت‬ ‫بدال‬ ‫وال‬ ‫د‬ ‫عاائ‬ ‫ال‬ ‫ء‬
On May 18, Matrix, Inc. paid the amount owed for
the purchase of May 9.
‫تحب‬ ‫س‬ ‫م‬ ‫ال‬ ‫غ‬ ‫ل‬ ‫ب‬ ‫م‬ ‫ال‬9 ‫ا‬ ‫ماي‬ .cnI ، xirtaM ‫ي‬ ‫ف‬81 ‫ة‬ ‫ئدك‬ ‫عت‬ ‫دف‬ ، ‫ا‬ ‫ماي‬
.‫شداء‬ ‫ل‬
Purchase 20,000$
Returns (500)
Amount Due 19,500
Discount (390)
Cash Paid 19,110$
Dr. Cr.

May 18 Accounts Payable 19,500
Cash 19,110
Paid account in full
P1
4-22
Transportation Costs
‫يل‬ ‫ص‬ ‫تا‬ ‫ال‬ ‫سام‬ ‫ر‬
FOB shipping point
(buyer pays)
‫اب‬ ‫ف‬ ‫شحا‬ ‫ال‬ ‫قاة‬ ‫ن‬
)‫يرتشملا‬ ‫(عفدي‬
FOB destination
(seller pays)
‫اجهة‬ ‫ال‬ ‫اب‬ ‫ف‬
)‫عشابلا‬ ‫(عفدي‬
Merchandise
‫ع‬ ‫ضائ‬ ‫ب‬
Seller‫رجات‬
Buyer‫رتشم‬

Terms
Ownership transfers
to buyer when goods
are passed to
Transportation
costs paid by
FOB shipping point Carrier Buyer
FOB destination Buyer Seller
P1
4-23
Transportation Costs
‫يل‬ ‫ص‬ ‫تا‬ ‫ال‬ ‫سام‬ ‫ر‬
On May 12, Jason, Inc. purchased $8,000 of merchandise
inventory
for cash and also paid $100 transportation costs.
، ‫شا‬ ‫دت‬ ‫ت‬ ‫ةكدش‬ ( ‫أ)ويام‬ ‫راي‬ 12‫ف‬ ‫ي‬ Jason ، Inc. ‫اود‬ ‫مخزون‬ ‫ما‬ ‫لد‬
‫ودفعت‬ ‫دا‬‫م‬‫ق‬‫ن‬ ‫البضائع‬8000‫ام‬ ‫هتميق‬
. ‫النقل‬ ‫تكاليف‬ ‫ما‬ ‫دوالد‬100‫ضا‬‫م‬‫ي‬‫أ‬
D Dr. Cr.

May 12 Merchandise Inventory 8,100
Cash 8,100
Paid for merchandise and transportation
P1
4-24
Quick Ch
On July 6, 2011, Seller Co. sold $7,500 of merchandise to
Buyer, Co. on account; terms
of 2/10,n/30. The shipping terms were FOB shipping point. The
shipping cost was $100.
Which of the following will be part of Buyer’s July 6 journal
entry?
a. Credit Sales $7,500
b. Credit Purchase Discounts $150
c. Debit Merchandise Inventory $7,600
d. Debit Accounts Payable $7,450
، ‫واب‬ ‫لا‬ ‫اب‬ ‫ئ‬ ‫و‬ 2011‫اي‬ ‫ل‬ ‫وي‬ 6‫ف‬‫ي‬ Seller 7،500 ‫رلاود‬ ‫نم‬ ‫لا‬ ‫ب‬ ‫ض‬ ‫ئا‬ ‫و‬
. ‫يث‬ ‫ح‬ ‫؛‬ ‫ساب‬ ‫ح‬ ‫ال‬ ‫ى‬‫ل‬ ‫و‬01/2 ‫ن‬ ، /03 .oC ، reyuB‫ى‬ ‫إل‬
‫م‬ ‫أي‬ ‫دوالد‬ . ‫المشتدي‬ ‫يامية‬ ‫دفتد‬ ‫إدخال‬ ‫ما‬ ‫ءا‬ ‫م‬‫ز‬‫ج‬ ‫سيكان‬ ‫يلي‬ ‫ما‬100‫تناك‬
‫اب‬ ‫ف‬ ‫شحا‬ ‫ال‬ ‫قاة‬ ‫ن‬ ‫شحا‬ ‫ال‬ ‫ئدوط‬ ‫ت‬ ‫ان‬ ‫ك‬ . ‫شحا‬ ‫ال‬ ‫فة‬ ‫ل‬ ‫ك‬ ‫ت‬
‫خ‬ ‫تاري‬ ‫ب‬6 ‫يا؟‬ ‫ال‬ ‫ي‬
‫أ‬ . ‫تمان‬ ‫ئ‬ ‫اال‬ ‫عات‬ ‫ي‬ ‫ب‬ ‫م‬005،7 ‫د‬ ‫دوال‬
‫ب‬ . ‫صامات‬ ‫خ‬ ‫تمان‬ ‫ئ‬ ‫اال‬ ‫ئداء‬ 051 ‫د‬ ‫دوال‬
‫ج‬ . ‫ا‬ ‫مدي‬ ‫ال‬ ‫ع‬ ‫ضائ‬ ‫ب‬ ‫ال‬ ‫خزون‬ ‫م‬006،7 ‫د‬ ‫دوال‬
$ 7،450‫تاباسح‬ ‫نيدملا‬ ‫د‬ . ‫نة‬ ‫دائ‬ ‫ال‬

FOB shipping point indicates the buyer ultimately pays the
freight.
This is recorded with
a debit to Merchandise Inventory.
‫ي‬ ‫ف‬ ‫ع‬ ‫دف‬ ‫ي‬ ‫تدي‬ ‫ش‬ ‫م‬ ‫ال‬ ‫ى‬ ‫إل‬ ‫يد‬ ‫ش‬ ‫ي‬ . ‫ى‬ ‫إل‬ ‫صم‬ ‫خ‬ ‫ب‬ ‫ك‬ ‫ذل‬ ‫يل‬ ‫سج‬ ‫ت‬ ‫تم‬ ‫ي‬
‫شحا‬ ‫ال‬ ‫قاة‬ ‫ن‬BO ‫شحا‬ ‫ال‬ ‫مااف‬ ‫ال‬ ‫ة‬ ‫هاي‬ ‫ن‬
.‫نوزخم‬ ‫عشاضبلا‬
P1
4-25
Cost of Merchandise Purchased
‫ة‬‫تدا‬ ‫ش‬ ‫م‬ ‫ال‬ ‫ع‬ ‫ضائ‬ ‫ب‬ ‫ال‬ ‫فة‬ ‫ل‬ ‫ك‬ ‫ت‬
Invoice cost of merchandise purchases 692,500$
Less:
Purchase discounts (10,388)
Purchase returns and allowances (4,275)
Add:
Cost of transportation-in 4,895
Total cost of merchandise purchases 682,732$
MATRIX, INC.

Itemized Cost of Merchandise Purchases
For Year Ended May 31, 2011
P1
4-26
Accounting for Merchandise Sales
‫ع‬ ‫ضائ‬ ‫ب‬ ‫ال‬ ‫عات‬ ‫ي‬ ‫ب‬ ‫م‬ ‫ا‬‫و‬ ‫بة‬ ‫س‬ ‫محا‬ ‫ال‬
MATRIX, INC.
Computation of Gross Profit
For Year Ended May 31, 2011
Sales 2,451,000$
Less:
Sales discounts 29,412$
Sales returns and allowances 18,500 47,912
Net sales 2,403,088$
Cost of goods sold (1,928,600)
Sales discounts and returns and allowances are contra revenue
accounts.
.‫تاموصخ‬ ‫تاعيبملا‬ ‫دشاوعلاو‬ ‫تلادبلاو‬ ‫يه‬ ‫تاباسح‬ ‫تاداريإ‬ ‫لباقم‬
P2

4-27
Sales of Merchandise
‫ع‬ ‫ضائ‬ ‫ب‬ ‫ال‬ ‫عات‬ ‫ي‬ ‫ب‬ ‫م‬
On March 18, Diamond Store sold $25,000 of merchandise
on
account. The merchandise was carried in inventory at a cost of
$18,000.
‫ساب‬ ‫ح‬ ‫ال‬ ‫ى‬‫ل‬ ‫و‬ ‫د‬ ‫دوال‬ . ‫م‬ ‫ت‬ erotS dnomaiD ‫ي‬ ‫ف‬81 ‫تجد‬ ‫م‬ ‫اع‬ ‫ب‬ ، ‫مارس‬
25،000‫عشاضب‬ ‫ةميقب‬
.‫رلاود‬ 18000‫ذيفنت‬ ‫عشاضبلا‬ ‫يف‬ ‫نوزخملا‬ ‫ةفلكتب‬
Dr. Cr.
Mar. 18 Accounts Receivable 25,000
Sales 25,000
Sales of merchandise on credit
Cost of Goods Sold 18,000
To record cost of sales
P2
4-28
Sales Discounts ‫ضيفخت‬ ‫تاعيبملا‬

On June 8, Barton Co. sold merchandise costing $3,500 for
$6,000 on account. Credit terms were 2/10, n/30. Let’s prepare
the journal entries.
‫د‬ ‫دوال‬0006 ‫ساب‬ ‫ح‬ ‫ال‬ ‫ى‬‫ل‬ ‫و‬ ‫د‬ ‫دوال‬ notraB ‫ي‬ ‫ف‬8 ‫ة‬ ‫ئدك‬ ‫ت‬‫او‬ ‫ب‬ ، ‫يا‬ ‫ان‬ ‫ي‬
. ‫يمة‬ ‫ق‬ ‫ب‬ ‫ع‬ ‫ضائ‬ ‫ب‬0053 ‫ل‬ ‫قاب‬ ‫م‬
.‫انعد‬ ‫دعن‬ ‫تلااقم‬ ‫ةلجملا‬. 30/ ، ‫ن‬ 2/10‫تناكو‬ ‫طورش‬ ‫نامتشلاا‬
Dr. Cr.
Jun. 8 Accounts Receivable 6,000
Sales 6,000
P2
4-29
Sales Discounts ‫ضيفخت‬ ‫تاعيبملا‬
On June 17, Barton Co. received a check for $5,880 in full
payment of the June 8 sale.
‫ئدكة‬ ‫تلقت‬ ، ‫يانيا‬17‫في‬ Barton Co. ‫البيع‬ ‫وملية‬ ‫وا‬ ‫كاملة‬ ‫كدفعة‬ ‫دا‬‫م‬‫ل‬‫دوا‬
5،880‫بقيمة‬ ‫كا‬‫م‬‫ي‬‫ئ‬

‫ي‬ ‫ف‬ ‫مت‬ ‫ت‬ ‫ي‬‫ت‬ ‫ال‬8 ‫يا‬ ‫ان‬ ‫ي‬
Jun 17 Cash 5,880
Sales Discounts 120
Accounts Receivable 6,000
Received payment less discount
P2
4-30
Sales Returns and Allowances
‫ت‬ ‫بدال‬ ‫وال‬ ‫عات‬ ‫ي‬ ‫ب‬ ‫م‬ ‫ال‬ ‫د‬ ‫اائ‬‫و‬
On June 12, Barton Co. sold merchandise costing $4,000
for $7,500 on account. The credit terms were 2/10, n/30.
‫ل‬ ‫قاب‬ ‫م‬ ‫د‬ ‫دوال‬0057 ‫ى‬‫ل‬ ‫و‬ ‫د‬ ‫دوال‬ notraB ‫ي‬ ‫ف‬21 ‫ة‬ ‫ئدك‬ ‫ت‬‫او‬ ‫ب‬ ، ‫يا‬ ‫ان‬ ‫ي‬
4000‫عشاضب‬ ‫ةميقب‬
.30/ ، ‫ن‬ 2/10‫تناكو‬ ‫طورش‬ ‫نامتشلاا‬ . ‫باسحلا‬
Dr. Cr.
Jun. 12 Accounts Receivable 7,500
Sales 7,500

P2
4-31
‫ت‬ ‫بدال‬ ‫وال‬ ‫عات‬ ‫ي‬ ‫ب‬ ‫م‬ ‫ال‬ ‫د‬ ‫اائ‬‫و‬
On June 14, merchandise with a sales price of $800 and a
cost of $470
was returned to Barton. The return is related to the June 12 sale.
‫م‬ ‫ت‬ ، ‫يا‬ ‫ان‬ ‫ي‬008 ‫فة‬ ‫ل‬ ‫ك‬ ‫ت‬ ‫وب‬ ‫د‬ ‫دوال‬074 ‫ان‬ ‫ارت‬ ‫ب‬ ‫ى‬ ‫إل‬ ‫د‬ ‫دوال‬ . ‫د‬ ‫عائ‬ ‫ال‬
‫ي‬ ‫ف‬41 ‫ها‬ ‫عات‬ ‫ي‬ ‫ب‬ ‫م‬ ‫عد‬ ‫س‬ ‫غ‬ ‫ل‬ ‫ب‬ ‫ي‬ ‫ي‬‫ت‬ ‫ال‬ ‫ع‬ ‫ضائ‬ ‫ب‬ ‫ال‬ ‫اع‬ ‫إرج‬
.‫وينوي‬ 12‫طبترم‬ ‫عيبب‬
Dr. Cr.
Jun. 14 Sales Returns and Allowances 800
Accounts Receivable 800
Customer returned merchandise
Cost of Goods Sold 470
Returned goods placed in inventory
P2

4-32
‫ش‬‫اا‬‫تو‬ ‫بدال‬ ‫وال‬ ‫عات‬ ‫ي‬ ‫ب‬ ‫م‬ ‫ال‬ ‫د‬
On June 20, Barton received the amount owed to it from the
sale
of June 12.
.‫وينوي‬ 12‫وينوي‬ ، ‫ىقلت‬ ‫نوتراب‬ ‫غلبملا‬ ‫قحتسملا‬ ‫اهل‬ ‫نم‬ ‫عيب‬
20‫يف‬
Sale 7,500$
Return (800)
Amount due 6,700$
Discount (134)
Cash received 6,566$
Dr. Cr.
Jun. 20 Cash 6,566
Sales Discount 134
Accounts Receivable 6,700
Received payment less discount
P2

4-33
BARTON COMPANY
Adjusted Trial Balance
December 31, 2011
Cash 7,700$
Accounts receivable 11,200
Merchandise inventory 14,300
Supplies 1,300
Equipment 41,200
Accum. depr.- Equip. 7,000$
Accounts payable 16,400
Salaries payable 1,000
Common Stock 42,400
Retained Earnings
Dividends 4,000
Sales 323,800
Sales discounts 4,300
Sales returns 2,000

Admin. salaries expense 18,200
Sales salaries expense 29,600
Insurance expense 1,200
Rent expense 8,100
Supplies expense 1,000
Advertising expense 13,300
390,600$ 390,600$
P3
4-34
Next, let’s complete the
accounting cycle by preparing
the closing entries for Barton
Company.
‫ما‬ ‫ية‬ ‫ب‬ ‫س‬ ‫محا‬ ‫ال‬ ‫دورة‬ ‫ال‬ ‫كمل‬ ‫ن‬ ‫ل‬ ، ‫ك‬ ‫ذل‬ ‫عد‬ ‫ب‬
‫ية‬ ‫تام‬ ‫خ‬ ‫ال‬ ‫ت‬ ‫دخاال‬ ‫اإل‬ ‫داد‬ ‫إو‬ ‫ل‬ ‫خال‬
.Barton‫رشل‬‫ةك‬
Completing the Accounting Cycle
‫بة‬ ‫س‬ ‫محا‬ ‫ال‬ ‫دورة‬ ‫كمال‬ ‫ت‬ ‫س‬ ‫ا‬

Step 1: Close Credit Balances in Temporary
Accounts to Income Summary
:‫ل‬‫دخ‬ ‫ال‬ ‫لخص‬ ‫م‬ ‫ى‬ ‫إل‬ ‫تة‬ ‫مؤق‬ ‫ال‬ ‫ات‬ ‫ساب‬ ‫ح‬ ‫ال‬ ‫ي‬ ‫ف‬ ‫تمان‬ ‫ئ‬ ‫اال‬ ‫صدة‬ ‫أر‬ ‫ب‬ ‫ال‬‫إغ‬
1‫ةوطخلا‬
323,800
Income Summary
Dr. Cr.
Dec. 31 Sales 323,800
Income Summary 323,800
To close credit balances
in temporary accounts
BARTON COMPANY
Adjusted Trial Balance (partial)
December 31, 2011
Salaries payable 1,000
Common Stock 42,400
Dividends 4,000
Sales 323,800
Sales discounts 4,300

Sales returns 2,000
Admin. salaries expense 18,200
Sales salaries expense 29,600
Rent expense 8,100
Supplies expense 1,000
Advertising expense 13,300
P3
4-35
Step 2: Close Debit Balances in Temporary
Accounts to Income Summary
‫ى‬ ‫إل‬ ‫تة‬ ‫مؤق‬ ‫ال‬ ‫ات‬ ‫ساب‬ ‫ح‬ ‫ال‬ ‫ي‬ ‫ف‬ ‫ا‬ ‫مدي‬ ‫ال‬ ‫صدة‬ ‫أر‬ ‫ب‬ ‫ال‬‫إغ‬ :‫ل‬‫دخ‬ ‫ال‬ ‫لخص‬ ‫م‬
2‫ةوطخلا‬
310,900 323,800
12,900
Income Summary
Dr. Cr.

Dec. 31 Incom e Sum m ary 310,900
Sales Discounts 4,300
Sales Returns 2,000
Adm . Salaries Expense 18,200
Sales Salaries Expense 29,600
Insurance Expense 1,200
Rent Expense 8,100
Supplies Expense 1,000
Advertising Expense 13,300
To cl ose debi t bal ances i n temporary accounts
P3
4-36
Step 3: Close Income Summary to Retained
Earnings
‫خااة‬ ‫ال‬3 : ‫اح‬ ‫دب‬ ‫ألل‬ ‫ل‬‫دخ‬ ‫ال‬ ‫لخص‬ ‫م‬ ‫ب‬ ‫ال‬ ‫تجزةإغ‬ ‫مح‬ ‫ال‬
310,900 323,800
12,900
-0-

Income S ummary
Dr. Cr.
Dec. 31 Income Summary 12,900
Retained Earnings 12,900
To close Income Summary account
P3
4-37
Step 4: Close Dividends to
Retained Earnings
‫خااة‬ ‫ال‬4 :‫اح‬ ‫دب‬ ‫األ‬ ‫ى‬‫ل‬ ‫و‬ ‫ة‬‫مازو‬ ‫ال‬ ‫اح‬ ‫دب‬ ‫األ‬ ‫ب‬ ‫ال‬‫إغ‬
Dr. Cr.
Dec. 31 Retained Earnings 4,000
Dividends 4,000
To close the dividends account
P3
4-38
Multiple-Step Income Statement
‫خااات‬ ‫ال‬ ‫عدد‬ ‫ت‬ ‫م‬ ‫ل‬‫دخ‬ ‫ال‬ ‫يان‬ ‫ب‬

BARTON COMPANY
Income Statement
For Year Ended December 31, 2011
Sales 323,800$
Less: Sales discounts 4,300$
Sales returns 2,000 6,300
Net sales 317,500$
Operating expenses:
Selling expenses:
Salaries expense 29,600$
Advertising expense 13,300 42,900$
General and administrative expenses:
Adm. salaries expense 18,200$
Rent expense 8,100
Supplies expense 1,000 28,500

Financial Accounting محاسبة ماليةJohn J. Wild Si

Financial Accounting محاسبة ماليةJohn J. Wild Si

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Financial Accounting محاسبة ماليةJohn J. Wild Si