muhasebe slaytları
TRANSCRIPT
![Page 1: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/1.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Debits and Credits: Analyzing and Recording Business Transactions
Chapter 2
![Page 2: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/2.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Account
An individual accounting record of increases and decreases in a specific asset, liability, or owner’s equity item
Establish an account for each individual assets, liability, capital, withdrawal, revenue, expense
![Page 3: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/3.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
T-Account
Title of Account
Left side Right side
Debit Credit
Three parts: title, debit side, credit sidePositioning of these parts resembles the letter TTherefore called a T account
![Page 4: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/4.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
The Use of Accounts
Increases are recorded on one
side of the T-account, and decreases are
recorded on the other side.
Left or
Debit Side
Right or
Credit Side
Title of Account
![Page 5: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/5.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
T-Account
Account Name (Title)Account Name (Title)
Dr. (debit)Dr. (debit)4,0004,000 500500
Cr. (credit)Cr. (credit)300300400400
4,5004,500 700700
3,8003,800
EntriesEntries
FootingsFootings
BalanceBalance
![Page 6: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/6.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Account Title.Account Title.
ttRevenue
Ledger
Group of accounts that records data from business transactions
Account Title.Account Title.
ttCapital
Account Title.Account Title.
ttAccountPayable
Account Title.Account Title.
ttCash
![Page 7: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/7.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
RevenuesRevenues
NotesPayable
NotesPayable
Accounts Receivable
C. Lapp,Capital
C. Lapp,Capital
AccountsPayable
AccountsPayable
LedgerLedger
CashCash
All individual accounts combined make up the ledger
![Page 8: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/8.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Debits & Credits Debit (Dr.) indicates left; Credit (Cr.) indicates
right Entering an amount on the left side is called “debiting
the account” Entering an amount on the right side is “crediting the
account” Debit balance
Debit amounts exceed the credits Credit balance
Credit amounts exceed the debits
![Page 9: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/9.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
AA = LL + OEOEASSETSASSETS
Debit for
Increase
Credit for
Decrease
EQUITIESEQUITIES
Debit for
Decrease
Credit for
Increase
LIABILITIESLIABILITIES
Debit for
Decrease
Credit for
Increase
Debits and credits affect accounts as follows:
Debits and credits affect accounts as follows:
Debit and Credit Rules
![Page 10: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/10.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Rules of Debit and Credit
Assets = Liabilities + Owner’s EquityDr. Cr. Dr. Cr. Dr. Cr.
+ - +- +-
![Page 11: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/11.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Rules of Debit and Credit
Dr. Cr.
ExpensesDr. Cr.
+ -
RevenuesDr. Cr.
+-
+-
Capital
WithdrawalsDr. Cr.
+ -
![Page 12: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/12.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
RevenuesRevenues ExpensesExpensesOwner’s Owner’s CapitalCapital
Owner’s Owner’s WithdrawalsWithdrawals
__ ++ __
Expanding the Rules of Debit and Credit
Owner’s Equity
Debit CreditDebit Credit - +- +
Debit CreditDebit Credit - +- +
Debit CreditDebit Credit + + --
Debit CreditDebit Credit + + --
![Page 13: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/13.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Footing
Add total debits and total credits in each account
Determine each account balance
![Page 14: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/14.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
AA = LL + OEOEDebit
balancesCredit Credit
balancesbalances=In the double-entry accounting system, every transaction is recorded by equal dollar amounts of debits and credits.
In the double-entry accounting system, every transaction is recorded by equal dollar amounts of debits and credits.
Double Entry AccountingThe Equality of Debits and Credits
![Page 15: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/15.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Double-Entry Accounting
Double entry bookkeeping means to record the dual effects of each business transaction.
Assets = Liabilities + Owner’s Equity Assets are on the left (debit) side. Liabilities and Equity are on the right
(credit) side.
![Page 16: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/16.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
One debit One credit
Each transaction is recorded with at least:
Total debits must equal total credits.
The Double-Entry System
![Page 17: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/17.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
The Transaction Analysis
Step 1: Determine which accounts are affected.Step 1: Determine which accounts are affected.
Step 2: Determine which category accounts belong to.Step 2: Determine which category accounts belong to.
Step 3: Determine whether accounts increase or Step 3: Determine whether accounts increase or decrease.decrease.
Step 4: What do the rules of debits and credits say?Step 4: What do the rules of debits and credits say?
Step 5: Place amounts into T accounts.Step 5: Place amounts into T accounts.
![Page 18: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/18.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Let’s record selected
transactions for JJ’s Lawn Care Service in the
accounts.
![Page 19: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/19.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
May 1: Jill Jones and her family invested $8,000 in JJ’s Lawn Care Service.
Step 1: Which accounts are affected?Step 1: Which accounts are affected?
Step 2: Which category does the account belong to?Step 2: Which category does the account belong to?
Step 3: Is the account increasing/decreasing? Step 3: Is the account increasing/decreasing?
Step 4: Debit or credit?Step 4: Debit or credit?
Step 5: Place amounts into accounts.Step 5: Place amounts into accounts.
Cash Capital
Assets Owner’s Equity
Increasing Increasing
Debit Credit
![Page 20: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/20.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Capital5/1 8.000
Cash5/1 8,000
May 1: Jill Jones and her family invested $8,000 in JJ’s Lawn Care Service.
May 1: Jill Jones and her family invested $8,000 in JJ’s Lawn Care Service.
Cash increases $8,000 with a debit.
Capital increases $8,000 with a credit.
![Page 21: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/21.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
May 2: JJ’s purchased a riding lawn mower for $2,500 cash.
May 2: JJ’s purchased a riding lawn mower for $2,500 cash.
Will Cash increase or decrease?
Will Tools & Equipment increase
or decrease?
![Page 22: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/22.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
May 2: JJ’s purchased a riding lawn mower for $2,500 cash.
May 2: JJ’s purchased a riding lawn mower for $2,500 cash.
Tools & Equipment5/2 2,500
Cash5/1 8,000 5/2 2,500
Cash decreases $2,500 with a credit.
Tools & Equipment increases $2,500
with a debit.
![Page 23: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/23.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
May 8: JJ’s purchased a $15,000 truck. JJ’s paid $2,000 down in cash and issued a note payable for the remaining $13,000.
May 8: JJ’s purchased a $15,000 truck. JJ’s paid $2,000 down in cash and issued a note payable for the remaining $13,000.
Will Truck increase or decrease?
Will Cash and Notes Payable
increase or decrease?
![Page 24: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/24.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
May 8: JJ’s purchased a $15,000 truck. JJ’s paid $2,000 down in cash and issued a note payable for the remaining $13,000.
May 8: JJ’s purchased a $15,000 truck. JJ’s paid $2,000 down in cash and issued a note payable for the remaining $13,000.
Truck5/8 15,000
Cash5/1 8,000 5/2 2,500
5/8 2,000
Notes Payable5/8 13,000
Truck increases $15,000 with a debit.
Cash decreases $2,000 with a credit.
Notes Payable increases $13,000
with a credit.
![Page 25: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/25.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
May 11: JJ’s purchased some repair parts for $300 on account.
May 11: JJ’s purchased some repair parts for $300 on account.
Will Tools & Equipment increase
or decrease?
Will Accounts Payable increase or
decrease?
![Page 26: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/26.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
May 11: JJ’s purchased some repair parts for $300 on account.
May 11: JJ’s purchased some repair parts for $300 on account.
Tools & Equipment increases $300 with
a debit.
Accounts Payable increases $300 with
a credit.
Tools & Equipment5/2 2,500
5/11 300
Accounts Payable5/11 300
![Page 27: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/27.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
May 18: JJ’s sold half of the repair parts to ABC Lawns for $150, a price equal to JJ’s cost. ABC Lawns agrees to pay JJ’s within 30 days.
May 18: JJ’s sold half of the repair parts to ABC Lawns for $150, a price equal to JJ’s cost. ABC Lawns agrees to pay JJ’s within 30 days.
Will Tools & Equipment increase
or decrease?
Will Accounts Receivable increase
or decrease?
![Page 28: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/28.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
May 18: JJ’s sold half of the repair parts to ABC Lawns for $150, a price equal to JJ’s cost. ABC Lawns agrees to pay JJ’s within 30 days.
May 18: JJ’s sold half of the repair parts to ABC Lawns for $150, a price equal to JJ’s cost. ABC Lawns agrees to pay JJ’s within 30 days.
Tools & Equipment decreases $150 with
a credit.
Accounts Receivable increases $150 with
a debit.
Tools & Equipment5/2 2,500 5/18 150
5/11 300
Accounts Receivable5/18 150
![Page 29: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/29.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Net income is not an asset it’s an increase in owners’ equity from profits of the business.
Net income is not an asset it’s an increase in owners’ equity from profits of the business.
AA = LL + OEOEIncrease Decrease Increase
Either (or both) of these effects occur as net income
is earned . . .
. . . but this is what “net income”
really means.
What is Net Income?
![Page 30: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/30.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Revenue and ExpensesThe price for goods sold and services rendered during a given accounting period.
Increases owner’s equity.
The costs of goods and services used up in the process of earning revenue.
Decreases owner’s equity.
![Page 31: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/31.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
The Realization Principle: When To Record Revenue
Realization Principle
Revenue should be recognized at the
time goods are sold and services are
rendered.
![Page 32: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/32.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
The Matching Principle: When To Record Expenses
Matching Principle
Expenses should be recorded in the
period in which they are used up.
![Page 33: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/33.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Debits and Credits for Revenue and Expense
EQUITIESEQUITIES
Debit for
Decrease
Credit for
Increase
REVENUESREVENUES
Debit for
Decrease
Credit for
Increase
EXPENSESEXPENSES
Credit for
Decrease
Debit for
Increase
Expenses decrease owner’s equity.
Revenues increase owner’s equity.
![Page 34: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/34.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Let’s analyze the revenue, and
expense transactions for JJ’s Lawn Care Service for the month of May.
Let’s analyze the revenue, and
expense transactions for JJ’s Lawn Care Service for the month of May.
![Page 35: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/35.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
May 29: JJ’s provided lawn care services for a client and received $750 in cash.
May 29: JJ’s provided lawn care services for a client and received $750 in cash.
Will Cash increase or decrease?
Will Sales Revenue increase or decrease?
![Page 36: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/36.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Sales Revenue5/29 750
May 29: JJ’s provided lawn care services for a client and received $750 in cash.
May 29: JJ’s provided lawn care services for a client and received $750 in cash.
Cash increases $750 with a debit.
Sales Revenue increases $750 with
a credit.
Cash5/1 8,000 5/2 2,500
5/29 750 5/8 2,000
![Page 37: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/37.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
May 31: JJ’s purchased gasoline for the lawn mower and the truck for $50 cash.
May 31: JJ’s purchased gasoline for the lawn mower and the truck for $50 cash.
Will Cash increase or decrease?
Will Gasoline Expense increase or
decrease?
![Page 38: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/38.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Gasoline Expense5/31 50
May 31: JJ’s purchased gasoline for the lawn mower and the truck for $50 cash.
May 31: JJ’s purchased gasoline for the lawn mower and the truck for $50 cash.
Cash decreases $50 with a credit.
Gasoline Expense increases $50 with a
debit.
Cash5/1 8,000 5/2 2,500
5/29 750 5/8 2,000 5/31 50
![Page 39: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/39.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
May 31: JJ’s Lawn Care paid Jill Jones and her family a $200 dividend.
May 31: JJ’s Lawn Care paid Jill Jones and her family a $200 dividend.
Will Cash increase or decrease?
Will Dividends increase or decrease?
![Page 40: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/40.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Dividends5/31 200
May 31: JJ’s Lawn Care paid Jill Jones and her family a $200 dividend.
May 31: JJ’s Lawn Care paid Jill Jones and her family a $200 dividend.
Cash decreases $200 with a credit.
Dividends increase $200 with a debit.
Cash5/1 8,000 5/2 2,500
5/29 750 5/8 2,000 5/31 50 5/31 200
![Page 41: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/41.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Learning Objectives
Setting up and organizing a chart of accounts
![Page 42: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/42.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Chart of Accounts Lists accounts and their account numbers
Indicates where accounts can be found in the ledger
Usually starts with balance sheet accounts, followed by income statement accounts
Varies by company Number of accounts Types of accounts Numbering system
![Page 43: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/43.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Assets101 Cash111 Accounts Receivable141 Office Supplies151 Office Furniture191 Land
Gay Gillen eTravelChart of Accounts
![Page 44: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/44.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Liabilities201 Accounts Payable231 Notes PayableOwner’s Equity301 Capital311 WithdrawalsRevenues401 Service Revenue
Gay Gillen eTravelChart of Accounts
![Page 45: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/45.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Expenses501 Rent Expense503 Utilities Expense502 Salary Expense
Gay Gillen eTravelChart of Accounts
![Page 46: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/46.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
The Recording Process
1. Analyze each transaction Determine effect on accounts
2. Enter transaction in a journal Book of original entry
3. Transfer journal information to ledger accounts
![Page 47: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/47.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
THE RECORDING PROCESSTHE RECORDING PROCESS
1 Analyze each transaction
2 Enter transaction in a journal
3 Transfer journal information to ledger accounts
JOURNAL
JOURNAL
LEDGER
![Page 48: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/48.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
The Journal
Where transactions are first recorded Every company has a general journal Contributes to recording process:
Discloses complete transaction in one place Provides a chronological record Helps prevent and locate errors Provides explanation and identifies the source
document
![Page 49: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/49.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Journalizing
Entering transaction data in the journal Separate journal entry for each
transaction A complete entry consists of
Transaction date Accounts & amounts to be debited and
credited Brief explanation of transaction
![Page 50: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/50.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
General Journal
Journal Page 1
Date Description Debit Credit
Jul 1 Cash 45,000
Lange, Capital 45,000
Investment from owner
Accounts AffectedAccounts Affected
Dollar amount of debits and credits
Dollar amount of debits and credits
Explanation of transaction
Explanation of transaction
Transaction Date
Transaction Date
![Page 51: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/51.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
General Journal
Debits are ALWAYS entered first in an entry. Use the EXACT account title and do not abbreviate
Credits are INDENTED and listed second Do not use dollar signs SKIP A LINE between each entry Never split an entry between two pages
![Page 52: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/52.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Journalizing Technique
Transaction date is entered in date column Debit account title is entered at the left margin of
the “Account Titles and Explanation” column Credit account title is indented on the next line.
GENERAL JOURNAL J1
Date Account Titles and Explanation Ref. Debit Credit2008
Sept. 1 Cash 15,000 M. Doucet, Capital 15,000
Invested cash in business.
1 Equipment 7,000 Cash 7,000
Purchased equipment for cash.
![Page 53: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/53.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Journalizing Technique 2
Debit amounts are recorded in the Debit column Credit amounts are recorded in the Credit column A brief explanation of the transaction is provided
GENERAL JOURNAL J1
Date Account Titles and Explanation Ref. Debit Credit2008
Sept. 1 Cash 15,000 M. Doucet, Capital 15,000
Invested cash in business.
1 Equipment 7,000 Cash 7,000
Purchased equipment for cash.
![Page 54: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/54.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Journalizing Technique 3
Separate entries with a blank line Ref. column is used later when transferred to ledger List all debits in each entry before listing credits
GENERAL JOURNAL J1
Date Account Titles and Explanation Ref. Debit Credit2008
Sept. 1 Cash 15,000 M. Doucet, Capital 15,000
Invested cash in business.
1 Equipment 7,000 Cash 7,000
Purchased equipment for cash.
![Page 55: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/55.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Journalizing Technique 4
Simple entry: involves two accounts Compound entry: involves three or more
accountsGENERAL JOURNAL J1
Date Account Titles and Explanation Ref. Debit Credit2008
Sept. 9 Cash 1,500
Service Revenue 3,500Performed services for cash and credit
Accounts Receivable 2,000
![Page 56: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/56.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Posting involves copying
information from the
journal to the ledger
accounts.
Posting Journal Entries to the Ledger Accounts
![Page 57: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/57.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
GENERAL JOURNAL
Date Account Titles and ExplanationPR Debit Credit
2003
May 1 Cash 8,000
Capital Stock 8,000
Owners invest cash in the business.General LedgerCash
Date Debit Credit Balance2003
May 1 8,000 8,000
Posting Journal Entries to the Ledger Accounts
![Page 58: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/58.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Standard Form of Account
Date Explanation Ref. Debit Credit Balance2008Sept. 1 15,000 15,000
1 7,000 8,000 3 1,200 9,200 9 1,500 10,700
17 600 10,100 17 900 9,200 20 200 9,000 25 250 8,750 30 600 9,350 30 1,300 8,050
General LedgerCASH
Date Explanation Ref. Debit Credit Balance2008Sept. 1 15,000 15,000
1 7,000 8,000 3 1,200 9,200 9 1,500 10,700
17 600 10,100 17 900 9,200 20 200 9,000 25 250 8,750 30 600 9,350 30 1,300 8,050
General LedgerCASH
![Page 59: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/59.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Learning Objectives
Preparing a trial balance
![Page 60: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/60.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
The Trial Balance
List of accounts and their balances at a specific time
Proves that debits equal credits after posting
Uncovers errors in journalizing and posting To prepare a trial balance:
1. List accounts and their balances
2. Total the debit and credit columns
3. Ensure the two columns are equal
![Page 61: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/61.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Trial Balance
List of the ending balances of all the accounts in a ledger
Total debits should equal total credits
![Page 62: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/62.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Limitations of a Trial Balance
Does not prove: That all transactions have been recorded, or That the ledger is correct
Numerous errors may exist even though the trial balance columns agree Total debits and total credits may be equal,
but may still be posted to the wrong account or in the wrong amount
![Page 63: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/63.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Locating Errors
If trial balance does not balance, then: Re-calculate account balances Scan trial balance for errors:
If divisible by two, look for entry in wrong column
If divisible by nine, look for transposition errors
Otherwise, scan to see if an account balance has been omitted
![Page 64: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/64.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
JJ's Lawn Care Service Unadjusted Trial Balance
May 31, 2003
Cash 3,925$ Accounts receivable 75 Tools & equipment 2,650 Truck 15,000 Notes payable 13,000$ Accounts payable 150 Capital stock 8,000 Dividends 200 Sales revenue 750 Gasoline expense 50 Total 21,900$ 21,900$
All balances are taken from
the ledger accounts on May 31 after
considering all of JJ’s
transactions for the month.
Proves equality of debits and
credits.
![Page 65: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/65.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Journalize transactions.
Post entries to the ledger accounts.
Prepare trial balance.
Make end-of-year
adjustments.
Prepare adjusted trial balance.
Prepare financial
statements.
Prepare after closing trial balance.
Journalize and post closing
entries.
The Accounting Cycle
![Page 66: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/66.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
Learning Objectives
Preparing financial statements from a trial balance
![Page 67: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/67.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
End of Chapter 2
![Page 68: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/68.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater
![Page 69: Muhasebe slaytları](https://reader033.vdocuments.mx/reader033/viewer/2022061410/554950b7b4c905f74e8b4a9c/html5/thumbnails/69.jpg)
© 2007 Prentice Hall Business Publishing, College Accounting: A Practical Approach, 10e by Slater