财务会计(英文版·原书第5版)ch02

1、Chapter 2-1Chapter 2-2Financial Accounting, Sixth EditionChapter 2-3Chapter 2-4Chapter 2-5Account NameDebit / Dr. Credit / Cr. Record of increases and decreases in a specific asset, liability, equity, revenue, or expense item.Title = Account nameDebit = “Left”Credit = “Right”Chapter 2-6Account NameD

2、ebit / Dr. Credit / Cr. If Debits are Credits, the account will have a debit balance.$10,000Transaction #2$3,0008,000Transaction #3BalanceTransaction #1Chapter 2-7Account NameDebit / Dr. Credit / Cr. If Credits are Debits, the account will have a credit balance.$10,000Transaction #2$3,000BalanceTran

3、saction #18,000Transaction #3Chapter 2-8accounting systemEach transaction must affect two or more accounts to keep the basic accounting equation in balance.Recording done by debiting at least one account and crediting another.DEBITS CREDITS.Chapter 2-9Chapter 3-23AssetsAssetsDebit / Dr. Credit / Cr.

4、 Normal BalanceNormal BalanceChapter 3-27Debit / Dr. Credit / Cr. Normal BalanceNormal BalanceExpenseExpenseChapter 3-24LiabilitiesLiabilitiesDebit / Dr. Credit / Cr. Normal BalanceNormal BalanceChapter 3-26Debit / Dr. Credit / Cr. Normal BalanceNormal BalanceRevenueRevenueNormal Balance CreditNorma

5、l Balance DebitChapter 2-10=+=-AssetLiabilityEquityRevenueExpenseDebitCreditChapter 2-11Debits:a.increase both assets and liabilities.b.decrease both assets and liabilities.c.increase assets and decrease liabilities.d.decrease assets and increase liabilities.Chapter 2-12Discussion QuestionQ4. Maria

6、Alvarez, a beginning accounting student, believes debit balances are favorable and credit balances are unfavorable. Is Maria correct? Discuss.See notes page for discussionChapter 2-13Assets - Debits should exceed credits.Liabilities Credits should exceed debits. The normal balance is on the increase

7、 side.Chapter 3-23AssetsAssetsDebit / Dr. Credit / Cr. Normal BalanceNormal BalanceChapter 3-24LiabilitiesLiabilitiesDebit / Dr. Credit / Cr. Normal BalanceNormal BalanceChapter 2-14Owners investments and revenues increase stockholders equity (credit). Dividends and expenses decrease stockholders eq

8、uity (debit).Chapter 2-15The purpose of earning revenues is to benefit the stockholders.The effect of debits and credits on revenue accounts is the same as their effect on stockholders equity.Expenses have the opposite effect: expenses decrease stockholders equity.Chapter 3-27Debit / Dr. Credit / Cr

9、. Normal BalanceNormal BalanceExpenseExpenseChapter 3-26Debit / Dr. Credit / Cr. Normal BalanceNormal BalanceRevenueRevenueChapter 2-16Accounts that normally have debit balances are:a.assets, expenses, and revenues.b.assets, expenses, and equity.c.assets, liabilities, and dividends.d.assets, dividen

10、ds, and expenses.Chapter 2-17Illustration 2-11Chapter 2-18Illustration 2-12AssetsLiabilities=Stockholders EquityBasic EquationExpanded Basic Equation+Chapter 2-19Business documents, such as a sales slip, a check, a bill, or a cash register tape, provide evidence of the transaction.Illustration 2-13A

11、nalyze each transactionEnter transaction in a journalTransfer journal information to ledger accountsChapter 2-20Book of original entry.Transactions recorded in chronological order.Contributions to the recording process:1.Discloses the complete effects of a transaction.2.Provides a chronological reco

12、rd of transactions.3.Helps to prevent or locate errors because the debit and credit amounts can be easily compared.Chapter 2-21Journalizing - Entering transaction data in the journal.E2-4 (Facts) Presented below is information related to Hanshew Real Estate Agency.Pete Hanshew begins business as a r

13、eal estate agent with a cash investment of $15,000.Oct. 1Purchases office furniture for $1,900, on account.3Sells a house and lot for B. Kidman; bills B. Kidman $3,200 for realty services provided.6Pays $700 on balance related to transaction of Oct. 3. 27Pays the administrative assistant $2,500 sala

14、ry for Oct.30E2-5 Instructions - Journalize the transactions for E2-4.Chapter 2-22General JournalE2-4 (Facts) Presented below is information related to Hanshew Real Estate Agency.Pete Hanshew begins business as a real estate agent with a cash investment of $15,000.Oct. 1Chapter 2-23Account TitleRef.

15、DebitCreditOct.3Office furniture1,900 Accounts payable1,900 (Purchase furniture)DateGeneral JournalE2-4 (Facts) Presented below is information related to Hanshew Real Estate Agency.Purchases office furniture for $1,900, on account.Oct. 3Chapter 2-24Account TitleRef.DebitCreditOct.6Accounts receivabl

16、e3,200 Service revenue3,200 (Realty services provided)DateGeneral JournalE2-4 (Facts) Presented below is information related to Hanshew Real Estate Agency.Sells a house and lot for B. Kidman; bills B. Kidman $3,200 for realty services provided.Oct. 6Chapter 2-25Account TitleRef.DebitCreditOct. 27Acc

17、ounts payable700 Cash700 (Payment on account)DateGeneral JournalE2-4 (Facts) Presented below is information related to Hanshew Real Estate Agency.Pays $700 on balance related to transaction of Oct. 3.Oct. 27Chapter 2-26Account TitleRef.DebitCreditOct. 30Salary expense2,500 Cash2,500 (Payment for sal

18、aries)DateGeneral JournalE2-4 (Facts) Presented below is information related to Hanshew Real Estate Agency.Pays the administrative assistant $2,500 salary for Oct.Oct. 30Chapter 2-27Simple Entry Two accounts, one debit and one credit.Compound Entry Three or more accounts.Example On June 15, H. Burns

19、, purchased equipment for $15,000 by paying cash of $10,000 and the balance on account (to be paid within 30 days). Account TitleRef.DebitCreditJune 15Equipment15,000 Cash10,000 Accounts payable5,000 (Purchased equipment)DateGeneral JournalChapter 2-28Ledger contains the entire group of accounts mai

20、ntained by a company. A general ledger contains all the asset, liability, stockholders equity, revenue, and expense accounts.Chart of AccountsChapter 2-29Accounts arranged in sequence in which they are presented in the financial statements.Chapter 2-30T-account form used in accounting textbooks.In p

21、ractice, the account forms used in ledgers aremuch more structured.ExplanationRef.DebitCreditOct.115,000 15,000 27700 14,300 302,500 11,800 CashDateNo. 101BalanceChapter 2-31 the process of transferring amounts from the journal to the ledger accounts. CashAcct. No. 101DateExplanationRef.DebitCreditB

22、alanceGeneral LedgerGeneral JournalOct. 1Owners investmentJ115,00015,000101J1Chapter 2-32Posting:a.normally occurs before journalizing.b.transfers ledger transaction data to the journal.c.is an optional step in the recording process.d.transfers journal entries to ledger accounts.Chapter 2-33Follow t

23、hese steps:1. Determine what type of account is involved.2. Determine what items increased or decreased and by how much.3. Translate the increases and decreases into debits and credits.Illustration 2-20Chapter 2-34A list of accounts and their balances at a given time.Purpose is to prove that debits

24、equal credits.Chapter 2-35The trial balance may balance even when 1.a transaction is not journalized, 2.a correct journal entry is not posted, 3.a journal entry is posted twice, 4.incorrect accounts are used in journalizing or posting, or 5.offsetting errors are made in recording the amount of a tra

25、nsaction.Limitations of a Trial BalanceChapter 2-36A trial balance will not balance if:a.a correct journal entry is posted twice.b.the purchase of supplies on account is debited to Supplies and credited to Cash.c.a $100 cash dividends is debited to the Dividends account for $1,000 and credited to Ca

26、sh for $100. d.a $450 payment on account is debited to Accounts Payable for $45 and credited to Cash for $45.Chapter 2-37Q2-19. Jim Benes is confused about how accounting information flows through the accounting system. He believes the flow of information is as follows.a.Debits and credits posted to

27、 the ledger.b.Business transaction occurs. c.Information entered in the journal.d.Financial statements are prepared.e.Trial balance is prepared.Is Jim correct? If not, indicate to Jim the proper flow of the information.See notes page for discussionChapter 2-38A rsum is your opportunity to create a p

28、ositivefirst impression. It is important that it be impressive and accurate.Consider the following:Chief financial officer of Veritas Software lied about having an M.B.A. from Stanford University.Former president of the U.S. Olympic Committee, lied about having a Ph.D. from Arizona State University.

29、 She resigned.Chapter 2-39Consider the following:The University of Notre Dame discovered that its football coach, George OLeary, lied about his education and football history. He resigned.Edmondson, the president and CEO of Radio Shack, claimed he had earned a bachelors of science degree, when he ha

30、d not.What should the company have done when it learned of the falsehoods on Mr. Edmondsons rsum? Should Radio Shack have fired him?Chapter 2-40“When investigating the backgrounds of job candidates, how important or unimportant is the discovery of inaccuracies in the job candidates rsum on your decision to extend a job offer?”Chapter 2-41Using Radio Shack as an example, what should the company have done when it learned of the falsehoods on Mr. Edmondsons rsum? Should Radio Shack have fired