Beruflich Dokumente
Kultur Dokumente
Accounting
2
Chapter
Information
System
ACCT 201
Topic LO Read HW
Generally Accepted
C1, C2 38-41 QS1, E1
Accounting Principles
Transactions,
C3, QS2,
Documents, and the 41-46
C4, C5 QS3
Accounting Equation
Transaction Analysis
and the Accounting A1 46-52 E3
Equation
derstanding
tastic
ancial
ACCT 201
Learning Accounting
Accounting
2
Chapter
Information
System
ACCT 201
Text Section:
ACCT 201
Objective
ACCT 201
Conceptual
The Accounting System:
A Conceptual Overview
Operating Environment
Entity B Entity C
Business Entity A
System Inputs: System Outputs:
Measurable Process and Financial
Transactions Summarize Statements
and Events and Reports
Entity D Entity E
Financial Reporting Environment
FASB GAAP
Financial
Statements
Preparers
Audit
Report Decision makers
Auditors
ASB
GAAS
Independent Management Management
Auditor Prepares
1
A
3 A
P Income Statement
G
Balance Sheet
Auditors
S Statement of
Cash Flows
G
A
A
Lends Basic
Credibility Mistrust
Users
4 2
International Accounting Principles
Despite our growing global economy,
countries continue to maintain their
unique set of acceptable accounting
practices.
C2 Learning
ACCT 201
Objective
ACCT 201
Conceptual
A business
continues operation
instead of being
closed or sold.
Financial Statement
A business is information is
accounted for supported by
separately from its independent,
owner(s). unbiased evidence.
Express
transactions and
events in monetary
units.
Accounting
2
Chapter
Information
System
ACCT 201
Text Section:
ACCT 201
Objective
ACCT 201
Conceptual
Exh.
Source
Transaction documents Analysis
or event
Reporting
Trial balance Recording &
posting
Transactions and Events
Exchanges of economic consideration
between two parties.
External Transactions
occur between the
organization and an
outside party.
Internal Transactions
occur within the
organization.
Accounting Information System
Ongoing Boundary
events in
world
Recording Data Bank
Information Classifying
C4 Learning
ACCT 201
Objective
ACCT 201
Conceptual
Source Documents
Other
Invoices
Bank Statement
Journal
Check
Stubs
C5 Learning
ACCT 201
Objective
ACCT 201
Conceptual
ACCT 201
Account
A storage unit used to classify and
ACCT 201
The Account
ACCT 201
The Formal
Account
ACCT 201
Ledger
Account Title Account No. ###
Post Balance
Date Item Ref Debit Credit Debit Credit
ACCT 201
Accounting
2
Chapter
Information
System
ACCT 201
Text Section:
ACCT 201
Objective
ACCT 201
Analyze business
transactions using the
accounting equation.
ACCT 201
Analytical
Owners’
Assets = Liabilities + Equity
Capital Retained
Stock Earnings
The
Revenue -Expenses
Accounting
Equation = Net
Income
A = L + OE
ACCT 201
Analyzing Transactions
Accounts Notes
Cash Supplies Equipment Payable Payable Equity
(1) $ 30,000 $ 30,000
$ 30,000 $ - $ - $ - $ - $ 30,000
ACCT 201
$ 30,000 = $ 30,000
2
ACCT 201 FastForward purchases $2,500 of
supplies for cash.
Accounts Notes
Cash Supplies Equipment Payable Payable Equity
(1) $ 30,000 $ 30,000
(2) (2,500) 2,500
$ 30,000 = $ 30,000
3
ACCT 201 FastForward spends $26,000 to
acquire equipment for testing
athletic shoes.
Accounts Notes
Cash Supplies Equipment Payable Payable Equity
(1) $ 30,000 $ 30,000
(2) (2,500) 2,500
(3) (26,000) 26,000
$ 30,000 = $ 30,000
4
ACCT 201
FastForward purchased $7,100 of
supplies on credit.
Accounts Notes
Cash Supplies Equipment Payable Payable Equity
(1) $ 30,000 $ 30,000
(2) (2,500) 2,500
(3) (26,000) 26,000
(4) 7,100 7,100
$ 1,500 $ 9,600 $ 26,000 $ 7,100 $ - $ 30,000
ACCT 201
$ 37,100 = $ 37,100
5
ACCT 201 FastForward provides consulting
services to an athletic club and
collects $4,200 in cash.
Accounts Notes
Cash Supplies Equipment Payable Payable Equity
(1) $ 30,000 $ 30,000
(2) (2,500) 2,500
(3) (26,000) 26,000
(4) 7,100 7,100
(5) 4,200 4,200
ACCT 201
$ 41,300 = $ 41,300
6
ACCT 201 FastForward pays $1,000 rent to the
landlord of the building where its
store is located.
Accounts Notes
Cash Supplies Equipment Payable Payable Equity
(1) $ 30,000 $ 30,000
(2) (2,500) 2,500
(3) (26,000) 26,000
(4) 7,100 7,100
(5) 4,200 4,200
ACCT 201
$ 40,300 = $ 40,300
7
ACCT 201 FastForward pays the biweekly
$700 salary of the company’s only
employee.
Accounts Notes
Cash Supplies Equipment Payable Payable Equity
(1) $ 30,000 $ 30,000
(2) (2,500) 2,500
(3) (26,000) 26,000
(4) 7,100 7,100
(5) 4,200 4,200
ACCT 201
$ 39,600 = $ 39,600
ACCT 201
Revenue Recognition Principle
$ 41,500 = $ 41,500
9
The client in transaction 8 pays $1,900
to FastForward 10 days after it is billed
for consulting services.
Assets = Liabilities + Equity
Accounts Accounts Notes
Cash Rec Supplies Equipment Payable Payable Equity
(1) $ 30,000 $ 30,000
(2) (2,500) 2,500
(3) (26,000) 26,000
(4) 7,100 7,100
(5) 4,200 4,200
(6) (1,000) (1,000)
(7) (700) (700)
(8) 1,900 1,900
(9) 1,900 (1,900)
$ 5,900 $0 $ 9,600 $ 26,000 $ 7,100 $ - $ 34,400
$ 41,500 = $ 41,500
10
FastForward pays $900 to CalTech
Supply as partial payment for its
earlier $7,100 purchase of supplies.
Assets = Liabilities + Equity
Accounts Accounts Notes
Cash Rec Supplies Equipment Payable Payable Equity
(1) $ 30,000 $ 30,000
(2) (2,500) 2,500
(3) (26,000) 26,000
(4) 7,100 7,100
(5) 4,200 4,200
(6) (1,000) (1,000)
(7) (700) (700)
(8) 1,900 1,900
(9) 1,900 (1,900)
(10) (900) (900)
$ 5,000 $0 $ 9,600 $ 26,000 $ 6,200 $ - $ 34,400
$ 40,600 = $ 40,600
11
FastForward declares and pays a
$600 cash dividend to its owner.
Assets = Liabilities + Equity
Accounts Accounts Notes
Cash Rec Supplies Equipment Payable Payable Equity
(1) $ 30,000 $ 30,000
(2) (2,500) 2,500
(3) (26,000) 26,000
(4) 7,100 7,100
(5) 4,200 4,200
(6) (1,000) (1,000)
(7) (700) (700)
(8) 1,900 1,900
(9) 1,900 (1,900)
(10) (900) (900)
(11) (600) (600)
$ 4,400 $0 $ 9,600 $ 26,000 $ 6,200 $ - $ 33,800
$ 40,000 = $ 40,000
Cash
(1) 30,000 (2) 2,500
(5) 4,200 (3) 26,000
(9) 1,900 (6) 1,000
(7) 700
Increases 36,100 (10) 900
Decreases -31,700 (11) 600
Balance 4,400 Decreases 31,700
Cash Account No. 101
Balance
Date Item PR Debit Credit Debit Credit
(1) 30,000 30,000
(2) 2,500 27,500
(3) 26,000 1,500
(5) 4,200 5,700
(6) 1,000 4,700
(7) 700 4,000
(9) 1,900 5,900
(10) 900 5,000
(11) 600 4,400
“One must learn by
doing the thing; though
you think you know it,
you have no certainty
until you try it.”
Publilius Syrus,
Moral Sayings