Debit and Credit Theory 4.2 200 Transaction 1 The company purchases $200 of supplies from Packham Products to be paid for later. Supplies AssetsLiabilities.

Slides:

Advertisements

Similar presentations

Debit and Credit Theory. Accounts Accounts are individual items which affect financial position. Examples are bank, mortgage payable, land, equipment.

Advertisements

The Simple Ledger Debit and Credit Rules.

More Review of Special Journals!

4.3 – Account Balances & Terminology Chapter 4. What is the Balance in the Cash T-Account (Ledger)? 2.

CHAPTER THIRTEEN ACCOUNTING FOR PURCHASES McGraw-Hill/Irwin Accounting Fundamentals, 7/e © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.

Sold merchandise to a customer on account, customer is tax exempt.

This is NOT a complete review of Chapter 2 & 3. You must still study your notes and chapter reviews from your electronic workbooks and read the Key Concepts.

Appendix C Special Journals and Subsidiary Ledgers.

Property and Financial Claims

Business Transactions and the Accounting Equation

 Property  Property Rights  Financial Claims  Credit  Creditor  Assets  Investments  Equity  Owner’s Equity  Liabilities  Business Transaction.

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

Debit and Credit Theory. Do not be confused by the cards you have in your wallets and purses. In accounting, Debit refers to the LEFT side of an account.

Dr. Mohamed A. Hamada Lecturer of Accounting Information Systems

Accounting Processes IS 484.

1-1 A Starting Point: Statement of Financial Position.

Chapter 2 Balance Sheet Accounts UNIT 3 Recording Transactions in T-Accounts Accounting 11 September 2011.

Chapter 3 The Equation Analysis Sheet

Accounting Is an information system that provides reports to stakeholders about the economic activities and conditions of a business.

The Double Entry System

THE BALANCE SHEET. The Balance Sheet is: a financial statement showing the financial position of a person, business, or other organization on a specific.

Analyzing & Recording Business Transactions

ASSETS, LIABILITIES, AND OWNER’S EQUITY MANAGEMENT INFORMATION SYSTEMS II - FINANCIALS.

Jobs Chapter 12. Jobs Chapter 12 How to keep a record of amounts owed to creditors How to prepare a schedule of Accounts Payable How to use.

Principles of Accounting Chapter 1 The Balance Sheet.

Review HST recoverable – tax you paid for purchases related to business HST payable - tax you charge customers We analysed our transactions using HST.

Business Transactions & the Accounting Equation

Chapter 2: The Recording Process ACT 201 Lecture By: Ms. Adina Malik.

© 2010 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 11e by Slater Chapter 2 Debits and Credits: Analyzing and Recording.

1Transaction Analysis, Chapt 3 Transaction Analysis, Chapter 3, p Practice Q: p. 59 & 60 ex. #1,2,3 BUSINESS TRANSACTION: examples:

Analyzing Changes in Financial Position

Buying equipment with Cash 1 Equipment (Asset) Cash (Asset) + - Debit Credit Debit Credit.

Chapter 4.  Assets have debit balances  Liabilities and Capital have credit balances.

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

The Accounts of the General Ledger BALANCE SHEET SECTION DEBIT (DR) CREDIT (CR) CAPITAL DRAWINGS ASSETS INCOME EXPENSES NOMINAL SECTION LIABILITIES.

Introduction to Accounting

2 - 1 Debits and Credits – Analyzing and Recording Business Transactions Assets = Liabilities + Owner’s Equity Owner’s Equity = Capital – Withdrawals +

Account Balances and Terminology. Pacific Truckings.

Chapter 4 – Debit and Credit Theory l Accounting 1, 7 th Edition1 Chapter 4 Debit and Credit Theory 4.

Charpter four Accounting methods.

© The McGraw-Hill Companies, Inc., 2003 McGraw-Hill/Irwin Slide 3-1 Chapter 3 THE ACCOUNTING CYCLE: Capturing Economic Events.

Property and Financial Claims Property is anything of value that is owned or controlled. Financial Claim is the legal right to an item or property. Property.

PACIFIC TRUCKING. OPENING ENTRY Purpose: To record balances to establish accounts at the beginning of a new fiscal period.

Chapter 4. Objective test 2 On 20 June 20x3 an entity pays R500 in advance for repairs on its vehicle. The supplier first had to order the spare part.

4.3 – Account Balances & Terminology Chapter 4. What is the Balance in the Cash T-Account (Ledger)? 2.

Chapter 4 - The Simple Ledger

ACCOUNTING I Business Transactions and the Accounting Equation Chapter 3 Vocabulary.

© The McGraw-Hill Companies, Inc., 2003 McGraw-Hill/Irwin Slide 3-1 Chapter 4 THE ACCOUNTING CYCLE: ภาคแรก.

Analyzing Changes in Financial Position

Sales Invoices Double Entry.

October 21,  The purpose of accounting is to provide the necessary financial information so that accurate and timely decisions can be made.

วัฎจักรทางการบัญชี – ภาคแรก

Chapter 4: The Simple Ledger.

Balance Sheet Accounts

The Accounting Cycle: Step 2

Chapter 4 Debit and Credit Theory

Section 3.2 Exercise #1, p (t), p. 28 (w)

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

The Simple Ledger 4 1.

Chapter 4: The Simple Ledger 1.

The Balance Sheet.

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

Pacific Trucking.

วัฎจักรทางการบัญชี – ภาคแรก

Point 4 The double-entry system

Analyzing Changes in Financial Position

Closing Entries and Corrective Entries

Review of Accounting 1 Day 2

Debits and Credits: A Review

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

Presentation transcript:

Debit and Credit Theory Transaction 1 The company purchases $200 of supplies from Packham Products to be paid for later. Supplies AssetsLiabilities + Equity A/P Packham Products 200 $ $ $$ $ DrCr

Debit and Credit Theory Transaction 2 The company pays $500 to Dini Bros. in partial payment of the amount owed to them. Cash AssetsLiabilities + Equity A/P Dini Bros. 500 $$ CrDr $ $

Debit and Credit Theory Transaction 3 The company receives $200 cash from R. Van Loon in partial payment of her debt. Cash AssetsLiabilities + Equity $ Dr A/R—R. Van Loon $ $ Cr 200

Debit and Credit Theory Transaction 4 A delivery service is provided for a customer at a price of $400. The customer pays cash at the time the service is completed. Cash AssetsLiabilities + Equity B. Rissien, Capital 400 $ $ $$ $ DrCr

Debit and Credit Theory Transaction 5 A used truck costing $8 000 is purchased from Dini Bros. A cash down payment of $2 500 is made; the balance is to be paid later. TruckA/P Dini Bros DrCr Cash Cr $ $ $ $$ $ AssetsLiabilities + Equity

Debit and Credit Theory Transaction 6 A delivery service is provided for R. Van Loon customer at a price of $350. The customer agrees to pay within 60 days. A/R—R. Van Loon AssetsLiabilities + Equity B. Rissien, Capital 350 $ $ $$ $ DrCr

Debit and Credit Theory Transaction 7 One of the lifting machines (equipment) breaks down. The company spends $650 cash to have the machine repaired. Cash AssetsLiabilities + Equity B. Rissien, Capital 650 $$ CrDr $ $