1. AB113 Unit 31 Welcome to AB113 Accounting For Non-Majors Unit 3 Professor David Levenstam Unit 3 Seminar

2. AB113 Unit 32 Welcome to AB113 Accounting For Non-Majors Unit 3 Professor David Levenstam Unit 3 Seminar

3. AB113 Unit 33 Reading: Survey of Accounting, Chapter 2 Author: Warren Tech Support 866-522-7747 (or free online) Contact info: –Email: DLevenstam@kaplan.edu –AIM: LFCCEconinstruct (sign up for AIM at http://www.aim.com) http://www.aim.com –Office Hours: Wednesdays 8-10 PM ET When emailing, please include your full name & course number (AB113) Reading, Help & Contact

4. Please Read the Announcements! :-) Located on the Course Home page Contain important administrative and accounting material Please check the announcements and the syllabus first for administrative questions you might have AB113 Unit 34

5. 5 This Week’s Assignments Discussion (Don’t forget to post your initial response by Saturday! :-)) Quiz (You can take only once.) Homework Assignment: Submit to Dropbox We have an Excel template in Doc Sharing for each homework set Templates show you wrong answers (*) :-)

6. AB113 Unit 36 Quiz Weeks 2-9. 8 worth 20 each for a total of 160 (16% of your grade) 10 multiple-choice questions You can take it only once You have 1 hour You can see the results 7 days after a review closes

7. Please Read My “Hi Students” Posts! :-) Typically located early on the board Occasionally come later too Could say “Hi Class” or “Warning, Warning, Danger, Will Robinson!!” :-D Please give my tired old eyes a break and LABEL your multi-part answers! :-) AB113 Unit 37

8. Jing Links and Scripts To help you with the homework the course leads have created some voice presentations called Jings. You can find all the Jings in Doc Sharing by downloading the file named AC113-AB113 Jing Links.docx. After downloading, click on the link for this week’s chapter to see and hear the presentation. You can also download a script of each week’s presentation so that you can read the spoken words from the presentation later without reviewing the whole Jing presentation. For this week you can download AC113- AB113 Jing Chapter 2 Script.docx. AB113 Unit 28

9. Accounting for Transactions AB113 Unit 39

10. 10 Review What is the Accounting Equation?

11. AB113 Unit 311 What Is The Accounting Equation? Assets = Liabilities + Owners’ Equity

12. AB113 Unit 312 Remember that at all times the Accounting Equation must balance! That means that every transaction must balance too. Every transaction will affect at least two accounts Every transaction will affect the balance sheet, and might affect the income statement and statement of cash flows

13. AB113 Unit 313 Every Transaction Will Affect at Least Two Accounts 1 1.Could affect two assets, like buying supplies reduces Cash and increases Supplies (which also affects the statement of cash flows)

14. AB113 Unit 314 Every Transaction Will Affect at Least Two Accounts 2 2. Could affect an asset and a liability, like paying Accounts Payable, which reduces both Cash and Accounts Payable (which also affects the statement of cash flows)

15. AB113 Unit 315 Every Transaction Will Affect at Least Two Accounts 3 3. Could affect an asset and owners equity, like paying rent, which reduces both Cash and Retained Earnings (which also affects the statement of cash flows and the income statement)

16. AB113 Unit 316 Every Transaction Will Affect at Least Two Accounts 4 4. Could affect two liabilities, like paying an account payable by giving the vendor a note payable, which reduces Accounts Payable and increases Notes Payable (which does NOT affect the statement of cash flows or the income statement)

17. AB113 Unit 317 Every Transaction Will Affect at Least Two Accounts 5 5. A transaction could also affect two owners’ equity accounts, but that’s too advanced for the moment. :-)

18. AB113 Unit 318 Accountant on the Roof! Remember that at all times the Accounting Equation must balance! That means that every transaction must balance too. (Otherwise you will fall off the roof and break your neck! :-D)

19. AB113 Unit 319 Did I mention that every transaction must balance too? :-D

20. AB113 Unit 320 E2-10 textbook pages 68-69 10 transactions effect each has on the accounting equation:

21. AB113 Unit 321 RTP! [Commercial Break :-D] Professor Ken Perry: RTP! (Read The Problem!) [And now back to Accountant on the Roof :-D]

22. AB113 Unit 322 E2-10 2 a. Increase in one asset, decrease in another asset b. Increase in an asset, increase in a liability c. Increase in an asset, increase in owners’ equity (stockholders’ equity is what we sometimes call owners’ equity for a corporation since the owners are stockholders) d. Decrease in an asset, decrease in a liability e. Decrease in an asset, decrease in stockholders’ equity First, which accounts & financial statement(s) does each affect?

23. AB113 Unit 323 E2-10 3 1. Received cash from issuance of capital stock, $75,000 What accounts? Which letter? What financial statements?

24. AB113 Unit 324 E2-10 4 1. Received cash from issuance of capital stock, $75,000 Cash +$75,000 (Asset) Capital Stock + $75,00 (Equity) c. Increase in an asset, increase in owners’ equity Balance Sheet Statement of Cash Flows (Financing) +$75,000

25. AB113 Unit 325 E2-10 5 2. Paid rent for October, $4,200 What accounts? Which letter? What financial statements?

26. AB113 Unit 326 E2-10 6 2. Paid rent for October, $4,200 Cash -$4,200 (Asset) Rent Expense +$4,200 (-$4,200 Equity) e. Decrease in an asset, decrease in stockholders’ equity Balance Sheet Statement of Cash Flows (Operations) -$4,200 Income Statement -$4,200

27. AB113 Unit 327 E2-10 7 3. Paid advertising expense, $4,000 What accounts? Which letter? What financial statements?

28. AB113 Unit 328 E2-10 8 3. Paid advertising expense, $4,000 Cash -$4,000 (Asset) Advertising Expense +$4,000 (-$4,000 Equity) e. Decrease in an asset, decrease in stockholders’ equity Balance Sheet Statement of Cash Flows (Operations) -$4,000 Income Statement -$4,000

29. AB113 Unit 329 E2-10 9 4. Received cash for providing delivery services, $39,750 What accounts? Which letter? What financial statements?

30. AB113 Unit 330 E2-10 10 4. Received cash for providing delivery services, $39,750 c. Increase in an asset, increase in owners’ equity Cash +$39,750 (Asset) Service Revenue +$39,750 (Equity) Balance Sheet c. Increase in an asset, increase in owners’ equity Statement of Cash Flows (Operations) +$39,750 Income Statement +$39,750

31. AB113 Unit 331 E2-10 11 5. Purchased supplies for cash, $2,500 What accounts? Which letter? What financial statements?

32. AB113 Unit 332 E2-10 12 5. Purchased supplies for cash, $2,500 Cash -$2,500 (Asset) Supplies +2,500 (Asset) Balance Sheet a. Increase in one asset, decrease in another asset Statement of Cash Flows (Operations) -$2,500

33. AB113 Unit 333 E2-10 13 6. Billed customers for delivery services on account, $81,200 What accounts? Which letter? What financial statements?

34. AB113 Unit 334 E2-10 14 6. Billed customers for delivery services on account, $81,200 Accounts Receivable +$81,200 (Asset) Service Revenue +$81,200 (Equity) c. Increase in an asset, increase in owners’ equity Balance Sheet Income Statement +$81,200

35. AB113 Unit 335 E2-10 15 7. Paid creditors on account, $9,280 What accounts? Which letter? What financial statements?

36. AB113 Unit 336 E2-10 16 7. Paid creditors on account, $9,280 Cash -$9,280 (Asset) Accounts Payable -9,280 (Liability) d. Decrease in an asset, decrease in a liability Balance Sheet Statement of Cash Flows (Operations) -$9,280

37. AB113 Unit 337 E2-10 17 8. Received cash from customers on account, $25,600 What accounts? Which letter? What financial statements?

38. AB113 Unit 338 E2-10 18 8. Received cash from customers on account, $25,600 Cash +$25,600 (Asset) Accounts Receivable -$25,600 (Asset) a. Increase in one asset, decrease in another asset Balance Sheet Statement of Cash Flows (Operations) +$25,600

39. AB113 Unit 339 E2-10 19 9. Determined that the cost of supplies on hand was $900; therefore, $1,600 of supplies had been used during the month. What accounts? Which letter? What financial statements?

40. AB113 Unit 340 E2-10 20 9. Determined that the cost of supplies on hand was $900; therefore, $1,600 of supplies had been used during the month. Supplies -$1,600 (Asset) Supplies Expense +$1,600 (-$1,600 Equity) e. Decrease in an asset, decrease in stockholders’ equity Balance Sheet Income Statement -$1,600

41. AB113 Unit 341 E2-10 21 10. Paid dividends, $3,000. What accounts? Which letter? What financial statements?

42. AB113 Unit 342 E2-10 22 10. Paid dividends, $3,000. Cash -$3,000 (Asset) Retained Earnings -$3,000 (Equity) e. Decrease in an asset, decrease in stockholders’ equity Balance Sheet Statement of Cash Flows (Financing) -$3,000

43. AB113 Unit 343 Questions? :-)