2. Welcome Back… ^^

4. Review Types of Business Service Business Merchandising Business
Manufacturing & Production Business

5. Business Ownership
Sole Proprietorship
Partnership
Corporation

6. Professional Organizations
To be fully qualified accountant, you must complete one of the following designations:
CGA (Certified General Accountant)
CMA (Certified Management Accountant)
CA (Chartered Accountant)

7. Special Accounting Terms:
Asset
Liablility
Owner’s Equity
Capital
On Account
Accounts Receivable
Accounts Payable
Taking Off a trial balance
Auditing
Public vs. Private Accounting

8. GAAP Business Entity concept Going Concern concept
Conservatism principle
Revenue Recognition
Time Period concept
Matching principle

9. ‘Accounting’ for a Service Business

10. The balance sheet shows the fundamental accounting equation: A – L = OE

11. 1.

14. Calculating our Ending Capital:
Beginning Capital
+ Net Income
- Drawings
= Ending Capital

15. The balance sheet shows the fundamental accounting equation: A – L = OE

16. Changes in Financial Position (Transactions)

17. 1.

18. The Capital Account:

20. Sales
‘Fees Earned’
‘Revenue’
‘Sales’
‘Services Rendered’
etc.

21. What will my ledger look like now?

22. ‘Double Entry’ Accounting
Dr = Cr
(Always!!!!)

23. Expenses
Revenue
Drawings

24. Paid $75 electricity bill with cash.
Took $500 out of the business for personal use.
Provided consulting services worth $800. It was paid in a cash.
Provided consulting services worth $900, on account, to J&J Contractors.
Bought a truck for $5500 from Huron Motor Products. Paid $1000 cash as a downpayment.

25. The Accounting Cycle

26. Annual Reports

27. Homework:
Comprehensive Exercise
Page 149: # 7 (B, C, D only.)