Year 1 in Review

Ch. 1 Accounting Equation –A = L + OE T – Accounts –Assets –Liabilities –O.E.

Ch. 2 T – Accounts –Normal Balance (what is it?)

Ch. 3 Journals –General What columns HAVE to be filled in? Source Documents –What are they? –Why do we have them?

Ch. 4 General Ledger –What is it and what’s it for? Chart of Accounts –100, 200, 300, 400, 500 Where does the General Ledger get it’s balance from? What columns should be filled in?

Ch. 5 Cash Control –Checking Accounts Check Stubs –Bank Reconciliation Statements Serv. Charge –How do I record it in the journal?????? Outstanding Deposits / Checks –Dishonored checks –Petty Cash

Ch. 6 Worksheets –Why have them? Where do their balances come from? –Adjusting entries Where do these come from? –Income Statement –Balance Sheet –Net Income / Loss

Ch. 7 Financial Statements –Income Statement What’s on it? –Balance Sheet What’s on it?

Ch. 8 Recording Adjusting / Closing Entries –Where do you get them from? –Where do you record them? Post-Closing Trial Balance –Why do it?

Accounting Cycle for Service Bus. 2) Journalize 3) Post 4) Prepare Worksheet 5) Prepare Financial Statements 6) Journalize Adj. & Cl. Entries 7) Post Adj. & Cl. Entries 8) Prepare Post-Cl. Trial Balance 1)Analyze Transactions

Ch. 9 Purchases Journal –What types of transactions go into this journal? –How do you determine what types of transactions go into this journal? –Posting entries from the Purch. Journal Cash Payments Journal –Purchase Discounts (p.244) 2/10 net 30 or 2/10 n/30??????

Ch. 9 (cont.) Cash Payments Journal (cont.) –How do you know if you journalized everything correctly in the C.P. Journal???? –Replenishing Petty Cash (p.248) Cash Short & Over –Short = Debit –Over = Credit General Journal –What goes in this journal? –How can you tell w/o reading the transaction?

Ch. 9 (cont.) General Journal (cont.) –When YOU return merchandise, what 2 (or 3) accounts are affected and how?

Ch. 10 Sales Journal –What types or transactions go in this journal? –Source documents –Which account should be larger in this journal: Sales or Acct. Rec.?????? –How do you know if you’ve journalized everything correctly in this journal?

Ch. 10 (cont.) Cash Receipts Journal –Source documents –Which of these 2 columns should have the larger balance when recording a TS: Sales or Cash? –How do you know if you’ve recorded everything correctly in this journal? General Journal –When a CUSTOMER returns merchandise, what 2 (or 3) accounts are affected and how?

Ch. 11 Posting to special Ledgers –Special ledgers Accounts Payable Accounts Receivable –Post from EVERY Journal –Schedule of Accounts –What is special about accounts in the General Journal? –Are column totals posted? If so, which ones?

Ch. 12 Payroll Records –Time cards / sheets –Tax withholdings –Calculating Social Security & Medicare Tax –Payroll Records vs. Payroll Registers (p.353) –Writing checks 2 checks are written (payroll bank acct. & personal) Net pay vs. gross pay

Ch. 13 Recording Payroll –Where do we pull #s from when recording? Payroll Register or Payroll Records –Which Journal do we record to? –Semi-monthly payroll vs. employer payroll taxes (p. 371)

Ch. 14

Ch. 15 Financial Statements –Income Statement What types of accounts go on this statement? –Statement of Stockholders’ Equity What types of accounts go on this statement? –Balance Sheet What types of accounts go on this statement? –Why must these statements be created in this order?