财务会计学英文课件：ch2 Recording Business Transactions

1、Chapter 2Recording Business TransactionsTransactions Events that have a financial impact on the business and can be measured reliably Selling products Paying expenses Have two sides: Giving Receiving Accounting records both sides of transactions2Copyright 2014 Pearson EducationThe Account Account is

2、 a record of all the changes in a particular asset, liability and shareholders equity element Basic summary device of accounting3Assets LiabilitiesShareholders EquityCopyright 2014 Pearson EducationAssetsCashAccounts & Notes ReceivableInventoryPrepaid ExpensesLandBuildingsEquipment, Furniture &a

3、mp; Fixtures4Copyright 2014 Pearson EducationLiabilitiesAccounts payableNotes payableAccrued liabilities5Copyright 2014 Pearson EducationShareholders EquityShare CapitalDividendsRetained EarningsRevenuesExpenses6Copyright 2014 Pearson EducationAnalyze transactionsCopyright 2014 Pearson Education7Shi

4、neBrite Car Wash, IncCopyright 2014 Pearson Education8ShineBrite Car Wash, IncCopyright 2014 Pearson Education9$57,000$57,000ShineBrite Car Wash, IncCopyright 2014 Pearson Education10Balance Sheet Data$57,000Statement of Cash Flows DataIncome Statement DataStatement of Changes in Equity DataUndersta

5、nd how accounting worksCopyright 2014 Pearson Education11Double-Entry Accounting Business transactions include two parts Giving Receiving Accounting based on a double-entry system Each transaction affects at least two accountsCopyright 2014 Pearson Education12T-AccountAccount TitleLeft sideRight sid

6、eDebitCreditCopyright 2014 Pearson Education13Rules of Debit and CreditAssetsLiabilitiesShareholders EquityDebitDebitDebitCreditCreditCreditCopyright 2014 Pearson Education14Additional Shareholders Equity Accounts: Revenues & ExpensesAssetsLiabilitiesShareholders EquityShare CapitalBeginning Ret

7、ained EarningsRevenuesExpensesDividends+Copyright 2014 Pearson Education15Rules of Debit and CreditAssetsLiabilitiesShareholders EquityDebitCreditCreditDebitShare CapitalRetained earningsDividendsExpensesRevenue-CreditCreditCreditCreditCreditDebitDebitDebitDebitDebit-Copyright 2014 Pearson Education

8、16Record transactions in the journalCopyright 2014 Pearson Education17The Journal Chronological record of transactions Three steps Specify each account affected by the transaction and classify by type Determine if each account is increased or decreased Use debit credit rules Record in journalCopyrig

9、ht 2014 Pearson Education18Journal EntryJOURNALDateAccounts and explanationDebitCreditMay 1Cash50,000 Share Capital50,000Issued ordinary sharesCopyright 2014 Pearson Education19The LedgerLedgerCashAccounts payableShare CapitalIndividual asset accountsIndividual liability accountsIndividual equity ac

10、countsCopyright 2014 Pearson Education20PostingJOURNALDateAccounts and explanationDebitCreditMay 1Cash50,000 Share Capital50,000Issued ordinary sharesCashShare Capital$50,000$50,000Copyright 2014 Pearson Education21Flow of Accounting DataTransaction occursTransaction analyzedTransaction journalizedA

11、mounts posted to the ledgerCopyright 2014 Pearson Education22Construct a trial balanceCopyright 2014 Pearson Education23Trial Balance Lists all accounts with their balances Assets listed first, then liabilities and shareholders equity Shows that debits equal credits Usually prepared at the end of th

12、e periodCopyright 2014 Pearson Education24Analyzing AccountsCashBeginning balanceEnding balanceCash receipts?Cash paymentsCopyright 2014 Pearson Education25Analyzing AccountsAccounts receivableBeginning balanceEnding balanceSales on account?Collections on accountCopyright 2014 Pearson Education26Ana

13、lyzing AccountsAccounts payable Beginning balanceEnding balancePayments on account?Purchases on accountCopyright 2014 Pearson Education27Correcting Accounting Errors Trace each account from journal to ledgerMissing account Reversing debits and credits doubles the errorDivide out-of-balance amount by

14、 2 If even, error may be a Slide or TranspositionDivide out-of-balance amount by 9Copyright 2014 Pearson Education28Chart of AccountsBalance Sheet AccountsAssetsLiabilitiesShareholders Equity101Cash201Accts. payable301Share capital111Accts. receivable231Notes payable311Dividends141Office supplies312

15、Retained earnings151Office furnitureIncome Statement Accounts191LandRevenuesExpenses401Service revenue501Rent expense502Salary expense503Utilities expenseCopyright 2014 Pearson Education29Normal Balances of AccountsAssetsDebitLiabilitiesCreditShareholders Equity overallCreditShare capitalCredit Retained earningsCredit DividendsDebit RevenuesCredit ExpensesDebitCopyright 2014 Pearson Education30Analyze transactions using only T-AccountsCopyright 2014 Pearson Education31Using T-Accounts Decisions often are made without a complete accounting system T-Accounts allow managers to analyze transac