What we did on Wednesday: 1.Understand the Transaction 2.Identify the Accounts in the transaction (at least two accounts for each transaction) 3.For each.

Slides:

Advertisements

Similar presentations

Investing and Financing Decisions and the Balance Sheet

Advertisements

Chapter 4 Double-Entry An account is an individual accounting record of increases and decreases labeled as debits and credits. There are separate accounts.

Analyzing Transactions into Debit and Credit Parts

C2 - 1 Understanding Debits and Credits in Accounting.

T-account – represent the general ledger –Double-entry bookkeeping Debit – the left side of an account. Credit – the right side of an account. –Assets.

ACCT 2110 GENERAL LEDGER. ACCOUNTING EQUATION n Assets = Equities n Assets = Liabilities + Owner’s equity.

© PHI Learning, All rights reserved.1 Financial Accounting: A Managerial Perspective Third Edition Prepared by R. Narayanaswamy Indian Institute.

Accounting for a Service Business - Unit 1.6

An accounting device used to analyze transactions is a called a/an ____________ T ACCOUNT.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 22-1 Preparing a Work Sheet for a Corporation.

Economics /Management 4 Financial Accounting T-Accounts Using Debits & Credits Reader pages.

Investing and Financing Decisions and the Balance Sheet Chapter 2 McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.

Accounting Ch Analyzing Transactions Mr. Belolan.

BSAD 221 Introductory Financial Accounting Donna Gunn, CA.

Week 2.  Lots of transactions occur which affect different accounts.  The business needs to keep track of the different accounts it is accounting for.

BUS 2101 Decision Making Financial Information Financial Statement Analysis Financial Statements GAAP Income Statement Statement of Cash Flow Balance Sheet.

1 © Copyrright Doug Hillman 1997 The System of Accounting.

Investing and Financing Decisions and the Balance Sheet

Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Investing and Financing Decisions and the Balance Sheet Chapter 2.

Analyzing Transactions into Debit and Credit Parts.

Bellringer What does the word, “Debit” mean to you? What does the word, “Credit” mean to you? Write it down on a separate piece of paper. Draw an outline.

Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Investing and Financing Decisions and the Balance Sheet Chapter 2.

Accounting: What the Numbers Mean

Accounting Unit. MSBCS-BCSIII-5: The students will examine basics of accounting. a) Define credits and debits. b) Identify account types (assets, liabilities,

Recording Business Transactions Chapter 2 2-1Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

Chapter 3: Processing Accounting Information

Investing and Financing Decisions and the Balance Sheet Chapter 2 McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.

TRANSACTIONS THAT AFFECT ASSETS, LIABILITIES AND OWNER’S CAPITAL Chapter 4.

Principles of Financial Accounting Chapter 3 Accounting Equation Assets = Liabilities + SE Stockholder’s Equity is divided into: Paid in capital Retained.

Investing and Financing Decisions and the Balance Sheet Chapter 2 McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.

For Every Debit There Is A Credit OR Debits = Credits.

Property=Property Rights items ownedright to use item / legal right to item’s value.

Accounting Jeopardy Glencoe Accounting Chapters 2-3 By Carl Lyman © December 2001.

TRANSACTIONS THAT AFFECT REVENUE, EXPENSES AND WITHDRAWALS Chapter 5.

HFT 2401 Chapter 2 Accounting for Business Transactions.

Debit & Credit Left side & Right side Accounting equation. Accounts accumulate the results of transactions. Debit are always entered on the left side.

©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 2 Investing and Financing Decisions and the Balance Sheet.

Double entry Yang Qiongyu School of finance and trade.

Double entry bookkeeping

Posting to a General Ledger. Lesson 4-1 Check it out: Balance Sheet accounts on the left Assets, Liabilities & Owner’s Equity (A=L+OE) Income Statement.

Jeopardy Category 1 Category 2 Category 3 Category 4 Category 5 Q $100

Transactions that Affect Assets, Liabilities, and Owner’s Equity

LESSON 8-1 Recording Adjusting Entries

Recording Daily General Journal entries in a manual system

© McGraw-Hill Ryerson. All rights reserved.

Chapter 2: The Recording Process

Your homework was… ‘Exercises’ 1,2,3 on page 82/83.

Chapter 4.2 Debit/Credit Theory.

Recording Business Transactions

Debit Credit Review Questions

Appendix A: Comprehensive Review Problem

Debit & Credit Left side & Right side.

عمادة التعلم الإلكتروني والتعليم عن بعد

Financial Accounting, IFRS Edition

Accounting process.

Every “T” Account has: An Increase Side, and A Decrease Side

ASSETS SECTION OF A BALANCE SHEET

Chapter 4 Introduction to the Ledger Accounts

Analyzing Transactions

Lesson 1-1 Using Accounting Principles and Records

ENGINEERING ECONOMICS

Chapter One Vocabulary.

Chapter 3 Analyzing Transactions into Debit and Credit Parts

Analyzing Transactions into Debit & Credit Parts

Analyzing Transactions

© 2014 Cengage Learning. All Rights Reserved.

Analyzing Transactions

Lesson 1-1 Using Accounting Principles and Records

Analyzing Transactions

Presentation transcript:

What we did on Wednesday: 1.Understand the Transaction 2.Identify the Accounts in the transaction (at least two accounts for each transaction) 3.For each account, identify the TYPE of account (ASSET, LIABILITY, STOCKHOLDERSs EQUITY, REVENUE, EXPENSE) 4.For each account, determine if it is increasing or decreasing. 5.Is the Accounting Equation still in balance?

Apply the DEBIT/CREDIT Rules Use all the information from steps 1-5. Need to know these Rules! Debit means LEFT (nothing more) Credit means RIGHT (nothing more) – Rs

The left side of the T-account is always the debit side. The right side of the T-account is always the credit side. Account Name Left Right DebitCredit

A = L + SE ASSETS Debit for Increase Credit for Decrease EQUITIES Debit for Decrease Credit for Increase LIABILITIES Debit for Decrease Credit for Increase Remember that Stockholders Equity includes Contributed Capital and Retained Earnings.

Journal entries T-accounts

A journal entry might look like this: Reference: Letter, number, or date. Reference: Account Titles: Debited accounts on top. Debited accounts on top. Credited accounts on bottom AND indented to the right. Credited accounts on bottom AND indented to the right. Account Titles: Debited accounts on top. Debited accounts on top. Credited accounts on bottom AND indented to the right. Credited accounts on bottom AND indented to the right. Amounts: Debited amounts on left. Debited amounts on left. Credited amounts on right. Credited amounts on right.Amounts: Debited amounts on left. Debited amounts on left. Credited amounts on right. Credited amounts on right.

(a)

Work the Handout in Groups.

Financial Leverage Ratio Average Total Assets Average Stockholders Equity = (Beginning Balance + Ending Balance) ÷ 2 The 2006 financial leverage ratio for Papa Johns was: ($351,000 + $380,000) ÷ 2 ($161,000 + $148,000) ÷ 2 =2.37 The ratio tells us how well management is using debt to increase assets the company employs to earn income.

BEAT Purdue