Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Double Entry

104,928 views

Published on

Financial Accounting Notes- Double Entry

Published in: Business
  • DOWNLOAD THE BOOK INTO AVAILABLE FORMAT (New Update) ......................................................................................................................... ......................................................................................................................... Download Full PDF EBOOK here { https://soo.gd/irt2 } ......................................................................................................................... Download Full EPUB Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download Full doc Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download PDF EBOOK here { https://soo.gd/irt2 } ......................................................................................................................... Download EPUB Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download doc Ebook here { https://soo.gd/irt2 } ......................................................................................................................... ......................................................................................................................... ................................................................................................................................... eBook is an electronic version of a traditional print book THE can be read by using a personal computer or by using an eBook reader. (An eBook reader can be a software application for use on a computer such as Microsoft's free Reader application, or a book-sized computer THE is used solely as a reading device such as Nuvomedia's Rocket eBook.) Users can purchase an eBook on diskette or CD, but the most popular method of getting an eBook is to purchase a downloadable file of the eBook (or other reading material) from a Web site (such as Barnes and Noble) to be read from the user's computer or reading device. Generally, an eBook can be downloaded in five minutes or less ......................................................................................................................... .............. Browse by Genre Available eBOOK .............................................................................................................................. Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, CookBOOK, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult, Crime, EBOOK, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, ......................................................................................................................... ......................................................................................................................... .....BEST SELLER FOR EBOOK RECOMMEND............................................................. ......................................................................................................................... Blowout: Corrupted Democracy, Rogue State Russia, and the Richest, Most Destructive Industry on Earth,-- The Ride of a Lifetime: Lessons Learned from 15 Years as CEO of the Walt Disney Company,-- Call Sign Chaos: Learning to Lead,-- StrengthsFinder 2.0,-- Stillness Is the Key,-- She Said: Breaking the Sexual Harassment Story THE Helped Ignite a Movement,-- Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones,-- Everything Is Figureoutable,-- What It Takes: Lessons in the Pursuit of Excellence,-- Rich Dad Poor Dad: What the Rich Teach Their Kids About Money THE the Poor and Middle Class Do Not!,-- The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness,-- Shut Up and Listen!: Hard Business Truths THE Will Help You Succeed, ......................................................................................................................... .........................................................................................................................
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD THE BOOK INTO AVAILABLE FORMAT (New Update) ......................................................................................................................... ......................................................................................................................... Download Full PDF EBOOK here { https://soo.gd/irt2 } ......................................................................................................................... Download Full EPUB Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download Full doc Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download PDF EBOOK here { https://soo.gd/irt2 } ......................................................................................................................... Download EPUB Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download doc Ebook here { https://soo.gd/irt2 } ......................................................................................................................... ......................................................................................................................... ................................................................................................................................... eBook is an electronic version of a traditional print book THE can be read by using a personal computer or by using an eBook reader. (An eBook reader can be a software application for use on a computer such as Microsoft's free Reader application, or a book-sized computer THE is used solely as a reading device such as Nuvomedia's Rocket eBook.) Users can purchase an eBook on diskette or CD, but the most popular method of getting an eBook is to purchase a downloadable file of the eBook (or other reading material) from a Web site (such as Barnes and Noble) to be read from the user's computer or reading device. Generally, an eBook can be downloaded in five minutes or less ......................................................................................................................... .............. Browse by Genre Available eBOOK .............................................................................................................................. Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, CookBOOK, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult, Crime, EBOOK, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, ......................................................................................................................... ......................................................................................................................... .....BEST SELLER FOR EBOOK RECOMMEND............................................................. ......................................................................................................................... Blowout: Corrupted Democracy, Rogue State Russia, and the Richest, Most Destructive Industry on Earth,-- The Ride of a Lifetime: Lessons Learned from 15 Years as CEO of the Walt Disney Company,-- Call Sign Chaos: Learning to Lead,-- StrengthsFinder 2.0,-- Stillness Is the Key,-- She Said: Breaking the Sexual Harassment Story THE Helped Ignite a Movement,-- Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones,-- Everything Is Figureoutable,-- What It Takes: Lessons in the Pursuit of Excellence,-- Rich Dad Poor Dad: What the Rich Teach Their Kids About Money THE the Poor and Middle Class Do Not!,-- The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness,-- Shut Up and Listen!: Hard Business Truths THE Will Help You Succeed, ......................................................................................................................... .........................................................................................................................
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Get Now to Read eBook === http://freeadygiuagdia.ygto.com/0091608708-at-the-double-story-of-cricket-s-pacemaker.html
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD THIS BOOKS INTO AVAILABLE FORMAT (2019 Update) ......................................................................................................................... ......................................................................................................................... Download Full PDF EBOOK here { https://soo.gd/irt2 } ......................................................................................................................... Download Full EPUB Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download Full doc Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download PDF EBOOK here { https://soo.gd/irt2 } ......................................................................................................................... Download EPUB Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download doc Ebook here { https://soo.gd/irt2 } ......................................................................................................................... ......................................................................................................................... ................................................................................................................................... eBook is an electronic version of a traditional print book THIS can be read by using a personal computer or by using an eBook reader. (An eBook reader can be a software application for use on a computer such as Microsoft's free Reader application, or a book-sized computer THIS is used solely as a reading device such as Nuvomedia's Rocket eBook.) Users can purchase an eBook on diskette or CD, but the most popular method of getting an eBook is to purchase a downloadable file of the eBook (or other reading material) from a Web site (such as Barnes and Noble) to be read from the user's computer or reading device. Generally, an eBook can be downloaded in five minutes or less ......................................................................................................................... .............. Browse by Genre Available eBooks .............................................................................................................................. Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, ......................................................................................................................... ......................................................................................................................... .....BEST SELLER FOR EBOOK RECOMMEND............................................................. ......................................................................................................................... Blowout: Corrupted Democracy, Rogue State Russia, and the Richest, Most Destructive Industry on Earth,-- The Ride of a Lifetime: Lessons Learned from 15 Years as CEO of the Walt Disney Company,-- Call Sign Chaos: Learning to Lead,-- StrengthsFinder 2.0,-- Stillness Is the Key,-- She Said: Breaking the Sexual Harassment Story THIS Helped Ignite a Movement,-- Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones,-- Everything Is Figureoutable,-- What It Takes: Lessons in the Pursuit of Excellence,-- Rich Dad Poor Dad: What the Rich Teach Their Kids About Money THIS the Poor and Middle Class Do Not!,-- The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness,-- Shut Up and Listen!: Hard Business Truths THIS Will Help You Succeed, ......................................................................................................................... .........................................................................................................................
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD THIS BOOKS INTO AVAILABLE FORMAT (2019 Update) ......................................................................................................................... ......................................................................................................................... Download Full PDF EBOOK here { https://soo.gd/irt2 } ......................................................................................................................... Download Full EPUB Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download Full doc Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download PDF EBOOK here { https://soo.gd/irt2 } ......................................................................................................................... Download EPUB Ebook here { https://soo.gd/irt2 } ......................................................................................................................... Download doc Ebook here { https://soo.gd/irt2 } ......................................................................................................................... ......................................................................................................................... ................................................................................................................................... eBook is an electronic version of a traditional print book THIS can be read by using a personal computer or by using an eBook reader. (An eBook reader can be a software application for use on a computer such as Microsoft's free Reader application, or a book-sized computer THIS is used solely as a reading device such as Nuvomedia's Rocket eBook.) Users can purchase an eBook on diskette or CD, but the most popular method of getting an eBook is to purchase a downloadable file of the eBook (or other reading material) from a Web site (such as Barnes and Noble) to be read from the user's computer or reading device. Generally, an eBook can be downloaded in five minutes or less ......................................................................................................................... .............. Browse by Genre Available eBooks .............................................................................................................................. Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, ......................................................................................................................... ......................................................................................................................... .....BEST SELLER FOR EBOOK RECOMMEND............................................................. ......................................................................................................................... Blowout: Corrupted Democracy, Rogue State Russia, and the Richest, Most Destructive Industry on Earth,-- The Ride of a Lifetime: Lessons Learned from 15 Years as CEO of the Walt Disney Company,-- Call Sign Chaos: Learning to Lead,-- StrengthsFinder 2.0,-- Stillness Is the Key,-- She Said: Breaking the Sexual Harassment Story THIS Helped Ignite a Movement,-- Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones,-- Everything Is Figureoutable,-- What It Takes: Lessons in the Pursuit of Excellence,-- Rich Dad Poor Dad: What the Rich Teach Their Kids About Money THIS the Poor and Middle Class Do Not!,-- The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness,-- Shut Up and Listen!: Hard Business Truths THIS Will Help You Succeed, ......................................................................................................................... .........................................................................................................................
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Double Entry

  1. 1. 4- LO 1 Explain the fundamental concepts associated with double-entry accounting systems.
  2. 2. Debit/Credit Terminology 4- T-account Account Title Debit Debit Credit Credit
  3. 3. 4- LO 2 Describe business events using debit/credit terminology.
  4. 4. Debits and Credits 4- Asset accounts increase on the left or debit side and decrease on the right or credit side. Liability accounts increase on the right or credit side and decrease on the left or debit side. Equity accounts increase on the right or credit side and decrease on the left or debit side. In every transaction, the total dollar value of all debits equals the total dollar value of all credits. Debit = Left Credit = Right
  5. 5. 4- LO 3 Record transactions in T-accounts.
  6. 6. Double-Entry Accounting 4- Let’s see how debits and credits work by looking at transactions for Collins Consultants.
  7. 7. 4- Event 1: Collins Consultants was established on January 1, 2008, when it acquired $15,000 cash from Collins. <ul><li>Increase assets (cash). </li></ul><ul><li>Increase equity (common stock). </li></ul>Asset Source Transaction
  8. 8. 4- Event 2: On February 1, Collins Consultants issued a 12%, $10,000 note payable to the National Bank to borrow cash. <ul><li>Increase assets (cash). </li></ul><ul><li>Increase liabilities (notes payable). </li></ul>Asset Source Transaction
  9. 9. 4- Event 3: On February 17, Collins Consultants purchased $850 of office supplies on account from Morris Supply Company. <ul><li>Increase assets (supplies). </li></ul><ul><li>Increase liabilities (accounts payable). </li></ul>Asset Source Transaction
  10. 10. 4- Event 4: On February 28, Collins Consultants signed a contract to evaluate the internal control system used by Kendall Food Stores. Kendall paid Collins $5,000 in advance for these future services. <ul><li>Increase assets (cash). </li></ul><ul><li>Increase liabilities (unearned revenue). </li></ul>Asset Source Transaction
  11. 11. 4- Event 5: On March 1, Collins Consultants received $18,000 from signing a contract to provide professional advice to Harwood Corporation over a one-year period. <ul><li>Increase assets (cash). </li></ul><ul><li>Increase liabilities (unearned revenue). </li></ul>Asset Source Transaction
  12. 12. 4- Event 6: On April 10, Collins Consultants provided $2,000 of services to Rex Company on account. <ul><li>Increase assets (accounts receivable). </li></ul><ul><li>Increase equity (consulting revenue). </li></ul>Asset Source Transaction
  13. 13. 4- Event 7: On April 29, Collins Consultants performed services and received $8,400 cash. <ul><li>Increase assets (cash). </li></ul><ul><li>Increase equity (consulting revenue). </li></ul>Asset Source Transaction
  14. 14. 4- Event 8: On May 1, Collins Consultants loaned Reston Company $6,000. Reston issued a 9% note to Collins. <ul><li>Increase assets (notes receivable). </li></ul><ul><li>Decrease assets (cash). </li></ul>Asset Exchange Transaction
  15. 15. 4- Event 9: On June 30, Collins purchased office equipment for $42,000 cash. <ul><li>Increase assets (office equipment). </li></ul><ul><li>Decrease assets (cash). </li></ul>Asset Exchange Transaction
  16. 16. 4- Event 10: On July 31, Collins paid $3,600 cash in advance for a one year lease to rent office space for a one-year period beginning August 1. <ul><li>Increase assets (prepaid rent). </li></ul><ul><li>Decrease assets (cash). </li></ul>Asset Exchange Transaction
  17. 17. 4- Event 11: On August 8, Collins Consultants collected $1,200 from Rex Company as partial payment of the accounts receivable (see Event 6). <ul><li>Increase assets (cash). </li></ul><ul><li>Decrease assets (accounts receivable). </li></ul>Asset Exchange Transaction
  18. 18. 4- Event 12: On September 4, Collins Consultants paid employees who worked for the company $2,400 in salaries. <ul><li>Decrease assets (cash). </li></ul><ul><li>Decrease equity (salaries expense). </li></ul>Asset Use Transaction
  19. 19. 4- Event 13: On September 20, Collins Consultants paid a $1,500 cash dividend to its owner. <ul><li>Decrease assets (cash). </li></ul><ul><li>Decrease equity (dividends). </li></ul>Asset Use Transaction
  20. 20. 4- Event 14: On October 10, Collins Consultants paid Morris Supply Company the $850 owed from purchasing office supplies on account (see Event 3). <ul><li>Decrease assets (cash). </li></ul><ul><li>Decrease liabilities (accounts payable). </li></ul>Asset Use Transaction
  21. 21. 4- Event 15: On November 15, Collins completed its consulting evaluation of the internal control system used by Kendall Food Stores (see Event 4). <ul><li>Decrease liabilities (unearned revenue). </li></ul><ul><li>Increase equity (consulting revenue). </li></ul>Claims Exchange Transaction
  22. 22. 4- Event 16: On December 18, Collins Consultants received a $900 bill from Creative Ads for advertisements which had appeared in regional magazines. Collins plans to pay the bill later. <ul><li>Increase liabilities (accounts payable). </li></ul><ul><li>Decrease equity (advertising expense). </li></ul>Claims Exchange Transaction
  23. 23. 4- LO 4 Identify the events that need adjusting entries and record them.
  24. 24. 4- Adjustment 1: Collins Consultants recognized accrued interest on the $6,000 note receivable from Reston (see Event 8). <ul><li>Increase assets (interest receivable). </li></ul><ul><li>Increase equity (interest revenue). </li></ul>Asset Source Transaction
  25. 25. 4- Adjustment 2: Collins Consultants recognized accrued interest expense on the $10,000 note payable it issued to National Bank (see Event 2). <ul><li>Increase liabilities (interest payable). </li></ul><ul><li>Decrease equity (interest expense). </li></ul>Claims Exchange Transaction
  26. 26. 4- Adjustment 3: Collins Consultants recognized $800 of accrued but unpaid salaries. <ul><li>Increase liabilities (salaries payable). </li></ul><ul><li>Decrease equity (salaries expense). </li></ul>Claims Exchange Transaction
  27. 27. 4- Adjustment 4: Collins Consultants recognized $4,000 of depreciation on the office equipment it had purchased on June 30 (see Event 9). <ul><li>Decrease assets (accumulated depreciation). </li></ul><ul><li>Decrease equity (depreciation expense). </li></ul>Asset Use Transaction
  28. 28. 4- Adjustment 5: Collins Consultants recognized rent expense for the portion of prepaid rent used up since entering the lease agreement on July 31 (see Event 10). <ul><li>Decrease assets (prepaid rent). </li></ul><ul><li>Decrease equity (rent expense). </li></ul>Asset Use Transaction
  29. 29. 4- Adjustment 6: A physical count at the end of the year indicates that $125 worth of the supplies purchased on February 17 are still on hand (see Event 3). <ul><li>Decrease assets (supplies). </li></ul><ul><li>Decrease equity (supplies expense). </li></ul>Asset Use Transaction
  30. 30. 4- Adjustment 7: Collins Consultants adjusted its accounting records to reflect revenue earned to date on the contract to provide services to Harwood Corporation for a one-year period beginning March 1 (see Event 5). <ul><li>Decrease liabilities (unearned revenue). </li></ul><ul><li>Increase equity (consulting revenue). </li></ul>Claims Exchange Transaction
  31. 31. 4-
  32. 32. 4-
  33. 33. 4- LO 7 Record transactions using the general journal format.
  34. 34. The General Journal 4- Accountants initially record data from source documents into a journal . Special Journals General Journals
  35. 35. 4-
  36. 36. 4-
  37. 37. 4-
  38. 38. 4-
  39. 39. 4-
  40. 40. 4- LO 5 State the need for and record closing entries.
  41. 41. The Closing Process 4- Let’s look at the closing entries for Collins Consultants. Establishes zero balances in all revenue, expense, and dividend accounts.
  42. 42. 4-
  43. 43. 4- LO 6 Prepare and interpret a trial balance.
  44. 44. 4-
  45. 45. 4- LO 8 Describe the components of an annual report, including the management, discussion, and analysis section and the footnotes to financial statements.
  46. 46. Components of the Annual Report 4- Notes Management’s Discussion & Analysis Audit Opinion
  47. 47. 4- LO 9 Describe the role of the Securities and Exchange Commission in financial reporting.
  48. 48. The Securities and Exchange Commission 4- Government Agency Public Companies SEC Rules
  49. 49. End of Topic 4-

×