Chapter Three The Double-Entry Accounting System Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.

Slides:

Advertisements

Similar presentations

Analyzing and Recording Transactions Last Revised: 3/1/2011

Advertisements

Accounting for Transactions and the Financial Statements

Processing Accounting Information Chapter 2 Analyze business transactions.

Financial and Managerial Accounting Wild, Shaw, and Chiappetta Fifth Edition Wild, Shaw, and Chiappetta Fifth Edition McGraw-Hill/Irwin Copyright © 2013.

CAPTURING ECONOMIC EVENTS

Acct 310 Accounting Review Part I Rick Hayes, Ph.D., CPA California State University L.A.

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

Financial Accounting: Tools for Business Decision Making, 4th Ed.

Copyright © Cengage Learning. All rights reserved. Chapter 2 Analyzing Business Transactions.

1. 2 Chapter 3 THE ACCOUNTING INFORMATION SYSTEM.

Acct 2210 Chp 3 The Double-Entry Accounting System (including Debit & Credit Notation) McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies,

Accounting 211 – Chapter 2 The Recording Process

1 Financial Accounting: Tools for Business Decision Making, 2nd Ed. Kimmel, Weygandt, Kieso ELS.

Analyzing & Recording Business Transactions

© The McGraw-Hill Companies, Inc., 2008 McGraw-Hill/Irwin Chapter 2 Analyzing and Recording Business Transactions.

Glorian Portraits Studios, Incorporated Transaction Worksheet For May 2007.

Chapter 3-1 The Accounting Information System Information System Accounting, Third Edition.

Analyzing and Recording Transactions Pr. SAMLAL Zoubida.

© The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin Analyzing and Recording Transactions Chapter.

Chapter 2 Recording Business Transactions

Review of a Company’s Accounting System C hapter 3 COPYRIGHT © 2010 South-Western/Cengage Learning Intermediate Accounting 11th edition Nikolai Bazley.

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

© The McGraw-Hill Companies, Inc., 2008 McGraw-Hill/Irwin Chapter Three Accounting for Deferrals.

Spiceland | Thomas | Herrmann Financial Accounting Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without.

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

1 Financial Accounting: Tools for Business Decision Making, 4th Ed. Kimmel, Weygandt, Kieso CHAPTER 3 Prepared by Ellen L. Sweatt Georgia Perimeter College.

THE ACCOUNTS “3 types”  A company will have separate accounts for each item (ex: cash, salaries expense, accounts payable)  an individual accounting.

Adjusting Accounts & Preparing Financial Statements

1 Copyright © 2013 McGraw-Hill Ryerson Limited LO4 Differentiate between the different types of adjusting journal entries and understand their purposes.

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 7 Accounting Information Systems.

© The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin Analyzing and Recording Transactions Chapter 2 2.

©The McGraw-Hill Companies, Inc. 2006McGraw-Hill/Irwin Chapter Four The Double-Entry Accounting System.

Event 1: Collins Consultants was established on January 1, 2005, when it acquired $15,000 cash from Collins. 1.Increase assets (cash). 2.Increase equity.

Chapter Two Understanding the Accounting Cycle Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.

© The McGraw-Hill Companies, Inc., 2008 McGraw-Hill/Irwin Chapter Four The Double-Entry Accounting System.

Analyzing Transactions ACG 2021 Chapter 2. Steps in the Accounting Process Analyze Transactions from source documents Record relevant transactions in.

Assets = Liabilities Stock- holders’ Equity + The Financial Obligations or Debts of a Business The Basic Accounting Equation Economic Resources Owned by.

ACCOUNTS WHERE SIMILAR TRANSACTIONS ARE GROUPED. ASSETS CASH MARKETABLE SECURITIES ACCOUNTS RECEIVABLE INVENTORY PREPAID EXPENSES (SUPPLIES) EQUIPMENT.

© 2009 The McGraw-Hill Companies, Inc., All Rights Reserved ANALYZING AND RECORDING TRANSACTIONS Chapter 2.

ACTG 3110 Chapter 3 – The Accounting Information System.

1 Financial Accounting: Tools for Business Decision Making Kimmel, Weygandt, Kieso ELS.

© The McGraw-Hill Companies, Inc., 2003 McGraw-Hill/Irwin Slide Accounting Information System.

©The McGraw-Hill Companies, Inc. 2006McGraw-Hill/Irwin Chapter Three Accounting for Deferrals.

Chapter 3. 2 Chapter 3 The Accounting Information System After studying Chapter 3, you should be able to: zAnalyze the effect of business transactions.

Chapter 02 Demonstration Problems Recording Business Transactions Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall2-1.

©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.

Financial and Managerial Accounting Wild, Shaw, and Chiappetta Fourth Edition Wild, Shaw, and Chiappetta Fourth Edition McGraw-Hill/Irwin Copyright © 2011.

Gary A. Porter and Curtis L. Norton

Demonstration Problems Chapter 02 Recording Business Transactions 2-1 © 2016 Pearson Education, Inc.

1 Review of the Accounting Process A ppendix C. 2 1.Understand the components of an accounting cycle. 2. Know the major steps in the accounting cycle.

Financial Accounting Fundamentals John J. Wild Fourth Edition John J. Wild Fourth Edition McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies,

ACC 113 – Seminar Accrual Accounting Concepts. Accrual Accounting Transactions are recorded as they occur and thus affect the accounting equation (assets,

3–13–1 1-1 Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin.

Chapter Two Accounting for Accruals and Deferrals © 2015 McGraw-Hill Education.

Financial Accounting John J. Wild Seventh Edition John J. Wild Seventh Edition Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction.

Chapter 2: Recording Business Transactions. Learning Objectives: Use accounting terms: describe the basic tools of an accounting system, the account, the.

Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter 3 Applying Double-Entry Accounting.

McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Three The Double- Entry Accounting System.

Acct 201 RULES OF DEBIT & CREDIT JUDITH PAQUETTE.

Financial and Managerial Accounting

System to Analyze Transactions

Balance sheet accounts

The Accounting Cycle: Step 2

Financial Accounting: Tools for Business Decision Making, 3rd Ed.

The Double-Entry Accounting System

Chapter 3 The Double-Entry Accounting System

Simpson Company experienced the following events during Year 1.

Swift Corp. completed the following transactions during Year 1.

Received $50,000 cash from the issue of common stock.

Presentation transcript:

Chapter Three The Double-Entry Accounting System Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

3-2 Debit/Credit Terminology =+ DebitCredit Assets DebitCredit Liabilities DebitCredit Equity Claims In every transaction, the total dollar value of all debits equals the total dollar value of all credits.

3-3 Collins Brokerage Services began the period with the following balances: $5,000 in cash, $4,000 in common stock, and $1,000 in retained earnings.

3-4 Event 1: Collins acquired $25,000 from the issue of common stock. 1.Increase assets (cash). 2.Increase equity (common stock). Asset Source Transaction

3-5 Event 2: Collins purchased $850 of supplies on account. 1.Increase assets (supplies). 2.Increase liabilities (accounts payable). Asset Source Transaction

3-6 Event 3: Collins collected $1,800 as an advance to provide future services over a one- year period starting March 1. 1.Increase assets (cash). 2.Increase liabilities (unearned revenue). Asset Source Transaction

3-7 Event 4: Collins provided $15,760 of services on account. 1.Increase assets (accounts receivable). 2.Increase stockholders’ equity (consulting revenue). Asset Source Transaction

3-8 Event 5: Collins purchased land for $26,000 cash. 1.Increase assets (land). 2.Decrease assets (cash). Asset Exchange Transaction

3-9 Event 6: Collins paid $1,200 cash for a one- year insurance policy with coverage starting August 1. 1.Increase assets (prepaid insurance). 2.Decrease assets (cash). Asset Exchange Transaction

3-10 Event 7: Collins collected $13,400 from accounts receivable. 1.Increase assets (cash). 2.Decrease assets (accounts receivable). Asset Exchange Transaction

3-11 Event 8: Collins paid $9,500 for salaries expense. 1.Decrease assets (cash). 2.Decrease equity (salaries expense). Asset Use Transaction

3-12 The General Journal Accountants initially record data from source documents into a journal. Special Journals General Journals

3-13