TAILIEUCHUNG - Lecture Financial and managerial accounting (12/e): Chapter 3 – Williams, Haka, Bettner, Meigs

Chapter 3 – The accounting cycle: Capturing economic events. When you finish this chapter, you should: Identify the steps in the accounting cycle and discuss the role of accounting records in an organization, describe a ledger account and a ledger, state the rules of debit and credit for balance sheet accounts, explain the double-entry system of accounting. | THE ACCOUNTING CYCLE: Capturing Economic Events Chapter 3 2 The Role of Accounting Records Establishes accountability for assets and transactions. Keeps track of routine business activities. Obtains detailed information about a particular transaction. Evaluates efficiency and performance within company. Maintains evidence of company’s business activities. The Ledger The entire group of accounts is kept together in an accounting record called a ledger. Cash Accounts Payable Capital Stock Accounts are individual records showing increases and decreases. 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 Let’s see how debits and credits are recorded in the Cash account for JJ’s Lawn Care Service. Receipts are on the debit side. Payments are on the credit side. The balance is the difference between the debit and credit entries in the account. Debit and Credit Entries A = L + OE ASSETS Debit for Increase Credit for Decrease EQUITIES Debit for Decrease Credit for Increase LIABILITIES Debit for Decrease Credit for Increase Debits and credits affect accounts as follows: Debit and Credit Rules 13 A = L + OE Debit balances Credit balances = In the double-entry accounting system, every transaction is recorded by equal dollar amounts of debits and credits. Double Entry Accounting The Equality of Debits and Credits 13 Let’s record selected transactions for JJ’s Lawn Care Service in the accounts. 9 May 1: Jill Jones and her family invested $8,000 in JJ’s Lawn Care Service and received 800 shares of stock. Will Cash increase or decrease? Will Capital Stock increase or decrease? 3 May 1: Jill Jones and her family invested $8,000 in JJ’s Lawn Care Service and received 800 shares of stock. Cash increases $8,000 with a debit. Capital Stock increases $8,000 with a credit. 3 May 2: JJ’s purchased a riding lawn mower for $2,500 cash. Will Cash increase or .

• Kế toán - Kiểm toán
• Capturing economic events
• Managerial accounting
• Business decisions
• Financial accounting
• Lecture Financial and managerial accounting
• Accounting cycle
• Lecture Financial accounting
• Time period principle
• Accounting periods
• Retained earnings
• Basic financial statements
• The accounting cycle
• Merchandising activities
• Financial assets
• Completing the accounting cycle
• Accounting worksheet
• Classified balance sheet
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Financial information
• Post closing trial balance
• Correcting entries
• Lecture Accounting principles
• Survey of accounting
• Lecture Survey of accounting
• Accounting for cash
• Financial resources
• Accounting provides information
• Principles of financial accounting
• Accounting information
• Recording closing entries
• Close debit balances
• Accounting for receivables
• Accounting information system
• The recording process
• Adjusting entries
• Converting assets
• Adjusted trial balance
• Reporting financial results
• Financial statements
• Evaluating liquidity
• Lecture International accounting
• International accounting
• The worksheet
• Closing the accounts
• Classifying assets
• Fundamental accounting
• Business transactions
• Adjusting accounts
• Completing the accounting cycle operations
• Financial statement
• External transactions
• Financial reporting
• Balance sheet
• Accounting information systems
• Lecture Accounting information systems
• Hệ thống thông tin kế toán
• Revenue cycle
• Revenue cycle activities
• Sales order entry processing