1. ACG 2021 – FINAL REVIEW
Jose Hortensi

2. Ch 1 – Intro Accounting What is Accounting ? Importance of Accounting.
Information System
The Language of Business
Transaction Analysis and the Accounting Equation
ASSETS = LIABILITIES + OWNER’S EQUITY
Financial Statements:
Income Statement
Statement of Retained Earnings
Balance Sheet
Statement of Cash Flow .

3. Ch 2 – Analyzing and Recording Business Transactions
WHAT IS A SOURCE DOCUMENT ?
ANALIZING AND PROCESSING TRANSACTIONS:
JOURNALIZING
Posting – LEDGER
DEBITS AND CREDITS
ACCOUNTING EQUATION ANALYSIS
TRIAL BALANCE
ADJUSTED TRIAL BALANCE
POST CLOSING TRIAL BALANCE

4. Ch 3 and 4– ADJUSTING, CLOSING ENTRIES AND PREPARING FINANCIAL STATEMENTS
ACCOUNTING PERIOD
CALENDAR YEAR
FISCAL YEAR
CASH BASIS VS. ACCRUAL BASIS
WHEN IS THE REVENUE AND EXPENSES RECORDED?
ADJUSTING ENTRIES: (EFFECT ON F/S)
ACCRUALS
DEFERRALS
CLOSING PROCESS (EFFECT ON F/S)
TEMPORARAY ACCOUNTS ( I/S ACCOUNTS)
WHAT HAPPENS AT THE END TO R/E
POST CLOSING TRIAL BALANCE

5. Ch 5 – REPORTING AND ANALYZING MERCHANDISING OPERATIONS
WHAT IS A THE MAIN DIFFERENCE W/ MERCHANDISING VS. SERVICE ?
MERCHANDISE INVENTORY IS AN ASSET
PROCESSING TRANSACTIONS FOR MERCHANDISING :
JOURNALIZING (MERCHANDISE PURCHASES)
TRADE DISCOUNTS
PURCHASE DISCOUNTS. EX.
PURCHASE RETURNS
TRANSPORTATION COST
JOURNALIZING (MERCHANDISE SALES)
SALE OF MERCHANDISE
SALES DISCOUNTS
SALES RETURNS AND ALLOWANCES

6. Ch 6 – REPORTING AND ANALYZING INVENTORIES
INVENTORY BASICS – COST.
MAIN DIFFERENCE BETWEEN PERIODIC AND PERPETUAL INVENTORY METHODS
INVENTORY COSTING UNDER A PERPETUAL SYSTEM :
FIFO
LIFO
WEIGHTED AVERAGE
FINANCIAL EFFECT ON FINANCIAL STATEMENTS

7. Ch 7 – CASH INTERNAL CONTROLS FOR CASH PETTY CASH BANK RECONCILIATION
J/E TO SET UP
J/E TO REPLENISH
BANK RECONCILIATION
PURPOSE
TEMPLATE
J/E FOR ?
CASH SHORT AND CASH OVER
TYPE OF ACCOUNT

8. Ch 8 – A/R J/E RECEIPT OF NOTE RECEIVABLE AND PAYMENT OF N/R
WHAT HAPPENS WITH A/R?
METHODS FOR A/R ( UNCOLLECTIBLES)
DIRECT METHOD
ALLOWANCE METHOD (GAAP)
J/E FOR BOTH METHODS: DM
ALLOWANCE
EXTRA : ALLOWANCE (AGING RECEIVABLE METHOD OR A/R METHOD) : J/E
J/E RECEIPT OF NOTE RECEIVABLE AND PAYMENT OF N/R

9. Ch 9 – FIXED ASSETS DEFINITION DEPRECIATION J/E A/D TYPE OF ACCOUNT
DEPRECIATION METHODS:
SLM
UNITS OF PRODUCTION
DDB
J/E FOR ASSET SOLD OR DISPOSED
INTANGIBLE ASSETS ( DEFINITION) AMORTIZATION
EXPENDITURES VS. CAPITAL EXPENDITURES

10. Ch 10 – CURRENT LIABILITIES & PAYROLL
DEFINITION
J/E FOR SHORT TERM NOTES PAYABLE
ISSUANCE
PAYMENT
GENERAL IDEA ON PAYROLL TAXES FOR EMPLOYEE AND EMPLOYER

11. Ch 11 – CORPORATIONS EQUITY
CHARACTERISTICS OF A CORPORATION
BENEFITS
DISADVANTAGES
COMPONENTS OF STOCKHOLDERS EQUITY
J/E ISSUANCE OF C/S AND PREFERRED STOCK
J/E CASH DIVIDEND DECLARED AND PAID
J/E PURCHASE AND SALE OF TREASURY STOCK
REPORTING STOCKHOLDERS’ EQUITY

12. ANY QUESTIONS…
Good Luck and Study Hard…