Accounting 101

Fundamentals of Accounting
 Chapter 3
Record Keeping and the
Accounting Process
 Objectives

Review Transaction Analysis

Chart of Account
General Journal
Posting Process
Preparation of Financial Statement
 The Chart of Accounts

Account Name Number Sequence

ASSET 101 - 199
LIABILITY 200 - 299
EQUITY 300 - 399
REVENUES 400 – 499
EXPENSES 500 - 599
The Chart of Accounts

Alpine’s Travel and Tours

Chart of Accounts
ASSET ACCOUNTS
Account Number Account Title
101 Cash
102 Account Receivable
103 Supplies
104 Equipment
105 Land
106 Building
107 Bus
The Chart of Accounts

Alpine’s Travel
LIABILITY and Tours
ACCOUNTS
Account Number Chart of Title
Account Accounts
200 Bank Loan
205 Accounts Payable
210 Notes Payable
EQUITY ACCOUNTS
301 Capital
305 Retained Earnings
360 Income Summary
The Chart of Accounts
REVENUE ACCOUNTS
Alpine’s Travel and Tours
Account Number Account Title
Chart of Accounts
410 Tour Revenue
420 Bus Rental Revenue
430 Commission Revenue – Ticket Sales
EXPENSE ACCOUNTS
501 Advertising Expense
505 Tour Expense
510 Supplies Expense
535 Rental Expense
540 Utilities Expense
555 Miscellaneous Expense
 Accounting Records

Journal (General; Special)

Ledger (General; Special)
 General Journal

Date 2018 Description F Debit Credit

Aug 2 Bus 12,500,000
Cash 4,000,000
Bank Loan 8,500,000
Purchase of bus with 4,000,000
Cash and 8,500,000 loan

5 Cash 15,560
Accounts Receivable 31,990
Tour Revenue 35,000
Commission Revenue 12,550
Revenue of the Day