century 21 accounting © 2009 south-western, cengage learning lesson 1-1 using accounting principles...
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 1-1LESSON 1-1
Using Accounting Principles and Records
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 1-1
ACCOUNTING EQUATIONACCOUNTING EQUATION page 7
The Accounting Equation
Assets Liabilities Owners’ Equity+=
The Accounting Equation
(LEFT side of equation)
Assets
(RIGHT side of equation)
Liabilities Owners’ Equity+=
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 1-1
Right sideLeft side
Assets Liabilities Owners’ Equity= +
CREDITDEBIT
T Account
(Right side)(Left side)
GENERAL JOURNALGENERAL JOURNAL page 8
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 1-1
NORMAL BALANCES OF ACCOUNTSNORMAL BALANCES OF ACCOUNTS page 9
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 1-1
LEDGERSLEDGERS page 10
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 1-1
TERMS REVIEWTERMS REVIEW
asset liability equities owners’ equity stockholders’ equity accounting equation source documents double-entry accounting
journal special journal account ledger general ledger subsidiary ledger controlling account file maintenance
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 1-2LESSON 1-2
Journalizing and Posting Purchases and Purchases Returns
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 1-2
June 1. Purchased video equipment on account from Western Digital Systems, $845.00. Purchase Invoice No. 336.
JOURNALIZING PURCHASES ON JOURNALIZING PURCHASES ON ACCOUNTACCOUNT
1. Write approval date.
4. Write invoice amount.
3. Record invoice number.
2. Write vendor name.
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 1-2
1. Write the date.
5. Write vendor number.
4. Calculate new account balance.
3. Record the credit amount.
2. Write journal page number.
POSTING FROM A PURCHASES POSTING FROM A PURCHASES JOURNALJOURNAL page 14
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LESSON 1-2
4. Calculate new account balance.
3. Write column total.
2. Write journal page number.
POSTING THE TOTALS OF A POSTING THE TOTALS OF A PURCHASES JOURNALPURCHASES JOURNAL page 15
1. Write the date.
5. Write account number.
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LESSON 1-2
2. Enter accounts to be debited.
3. Record debit memo number.
JOURNALIZING PURCHASES RETURNS JOURNALIZING PURCHASES RETURNS AND ALLOWANCESAND ALLOWANCES page 16
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7755
1. Write the date.
4. Draw diagonal line.
5. Write debit amount.
7. Write credit amount.
6. Enter account to be credited.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 1-2
TERMS REVIEWTERMS REVIEW
departmental accounting system merchandising business posting debit memorandum contra account
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 1-3LESSON 1-3
Journalizing and Posting Cash Payments
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LESSON 1-3
June 1. Paid cash on account to AudioMax, $514.50, covering Purchase Invoice No. 331 for surround sound audio equipment for $525.00, less 2% discount, $10.50. Check No. 315.
1. Write the date. 4. Write the debit amount.
3. Record the check number.
2. Enter vendor name.
6. Enter the credit amount.
5. Record the discount amount.
JOURNALIZING A PURCHASES JOURNALIZING A PURCHASES DISCOUNTDISCOUNT page 19
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 1-3
June 2. Paid cash on account to Western Digital Systems, $781.55, covering Purchase Invoice No. 336 for video equipment for $845.00, less Debit Memorandum No. 22 for $47.50, and less 2% discount, $15.95. Check No. 316.
Amount owed on invoice:Original Purchase Invoice
Amount (P336)Purchase Invoice
Amount After ReturnPurchases Return
(DM22)– =
$845.00 – 47.50 = $797.50
$797.50 × 2% = $15.95
– $15.95 $781.55= $797.50
Purchases discount:Purchase Invoice Amount
After ReturnPurchases
DiscountPurchases
Discount Rate× =
Amount due after purchases discount:Purchase Invoice Amount
After ReturnTotal
Amount DuePurchases
Discount– =
TAKING A DISCOUNT AFTER A TAKING A DISCOUNT AFTER A PURCHASE RETURNPURCHASE RETURN page 20
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 1-3
June 2. Paid cash for administrative supplies, $136.00. Check No. 317.
RECORDING ENTRIES IN A CASH RECORDING ENTRIES IN A CASH PAYMENTS JOURNALPAYMENTS JOURNAL page 21
1. Write the date.
2. Enter the account title.
3. Record the check number.
4. Write the debit amount.
5. Enter the credit amount.
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LESSON 1-3
June 30. Paid cash to replenish the petty cash fund, $402.00: administrative supplies, $300.00; advertising expense—video, $56.00; miscellaneous expense, $46.00. Check No. 350.
1. Write the date.
3. Record the check number.
2. Enter account titles.
4. Write the debit amounts.
5. Enter the credit amount.
CASH PAYMENT TO CASH PAYMENT TO REPLENISH PETTY CASHREPLENISH PETTY CASH page 22
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LESSON 1-3
POSTING FROM A CASH POSTING FROM A CASH PAYMENTS JOURNALPAYMENTS JOURNAL page 23
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LESSON 1-3
TERMS REVIEWTERMS REVIEW
cash discount purchases discount petty cash
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