會(huì)計(jì)學(xué)基礎(chǔ)英文教學(xué)課件-4

1、Lesson 3Analyzing and Recording TransactionsTask team ofFundamental AccountingSchool of Business, Sun Yat-sen University第1頁，共47頁。OutlineAccountsDetailed Description of VariousAccountsT-AccountsRules of Debits and CreditsDouble-entry AccountingIllustrated Application of Rules2第2頁，共47頁。Opening StoryDo

2、 you have any idea about how your parents keep an “account” of how much the family spends?What a good family accountant!3第3頁，共47頁。Opening StoryA global demand for accountants where can the “Big Four” find accountants with talent and virtues?Mr.Land, E&Y British president (indirect quote) In the rece

3、nt 18 months, the shortage of accounting talents has been scarcely satisfied. The most valuable in the 21st century is accountants to special accounting firms like us. （2005721）4第4頁，共47頁。The Account5Accountings main summary deviceis the account, the record of changes.Assets = Liabilities + Stockhold

4、ers EquityAccounts are grouped in 3 broad categories,according to the accounting equation:第5頁，共47頁。The Assets Account6Assets are the economic resources that benefit the business now and in the futureCashAccounts receivableInventoryNotes receivablePrepaid expensesSuppliesPropertiesBuildingsEquipment第

5、6頁，共47頁。The Liabilities Account7Liabilities are the debts of the company.Notes payableAccounts payableAccrued liabilities (for expenses incurred but not paid)Long-term liabilities (bonds)第7頁，共47頁。The Equity Account8Stockholders (owners) equity is theowners claims to the assets of a corporation.A pro

6、prietorship uses a single account.A partnership uses separate accounts for eachowners capital balance and withdrawals.A corporation uses separate capital accounts for each source of capital.第8頁，共47頁。Details of Equity Account9Common StockRetained EarningsDividendsRevenuesExpenses第9頁，共47頁。The T-Accoun

7、t10Account TitleDebitLEFT SIDERIGHT SIDECredit第10頁，共47頁。Increases and Decreasesin the Accounts11AccountingEquation:Assets=Liabilities+StockholdersEquityRules ofDebit andCredit:Debit+DebitDebitCreditCredit+Credit+第11頁，共47頁。Rules of Debit and Credit12Air & Sea received $50,000 and issued stock.Assets=

8、Liabilities+StockholdersEquityDebitforIncrease,50,000CreditforIncrease,50,000CashCommon Stock第12頁，共47頁。Rules of Debit and Credit13Air & Sea purchased land for $40,000 cash.Common StockBal. 50,000CashCreditforDecrease,40,000Bal. 50,000LandDebitforIncrease,40,000Assets=Liabilities+StockholdersEquity第1

9、3頁，共47頁。Expansion of theAccounting Equation14+Common Stock+Retained EarningsDividends+RevenuesExpensesAssetsStockholdersEquityLiabilities第14頁，共47頁。Recording TransactionsRecord transactions first in the journal (analyses)LedgerPostingTrial balance15第15頁，共47頁。Analysis of each transaction Identify the

10、transaction from the source document, such as a sales invoice or check stubDetermine which accounts increase and which decreaseApply the rules of debit and credit Enter the transaction in the journal, listing first the debit and then the credit Verify that total debits equal total credits 16第16頁，共47

11、頁。A journal entry A journal entry would appear as follows: Account Name XX (debit amount) Account Name XX (credit amount)Brief explanation of the transaction.17第17頁，共47頁。LedgerA group of accounts. All the accounts of a business grouped together form a book called the ledger (or general ledger). 18第1

12、8頁，共47頁。PostingThe process of copying (transferring) data from the journal to accounts in the ledger.Debits in the journal are posted as debits to the appropriate accounts; credits in the journal are posted as credits to the appropriate accounts.All transactions must be keyed by date or number to pr

13、ovide a link between the journal and the ledger.Ledger accounts appear after a series of transactions have been posted and account balances calculated.19第19頁，共47頁。Trial balanceThe trial balance is a listing, in general ledger order (assets, liabilities, then stockholders equity), of the debit or cre

14、dit balance in each account 20第20頁，共47頁。Transactions, Accounts and Rules of Debits & CreditsOwners investment of cash increases both assets and stockholders equity.Purchase of an asset for cash increases assets and decreases assets (no effect on total assets).Purchase of an asset on credit (on accou

15、nt) increases both assets and liabilities.Receipt of cash for service revenue increases both assets and stockholders equity.Performance of services on account increases both assets and stockholders equity.Cash payment of expenses decreases both assets and stockholders equity.21第21頁，共47頁。Transactions

16、, Accounts and Rules of Debits & Credits (cont)Payment on account decreases both assets and liabilities.Personal transactions of the owner do not affect the business, per the entity concept.Collection of cash on account increases assets and decreases assets.Sale of an asset at a price equal to its c

17、ost increases assets and decreases assets.Declaration and payment of cash dividends decreases both assets and stockholders equity. 22第22頁，共47頁。An Practical IllustrationDo you still remember the example of Beauty Photo Store? We are using it again here!Remember always:The accounting equation must rem

18、ain in balance after each transaction has been recorded.23第23頁，共47頁。An Practical Illustration (cont)Wang Fang invests $30,000 cash to start her business of Beauty Photo Store.The accounts involved are:(1)Cash (asset) (2)Owners Equity (equity)24第24頁，共47頁。An Practical Illustration (cont)25Wang Fang in

19、vests $30,000 cash tostart her business.第25頁，共47頁。An Practical Illustration (cont)Purchased supplies paying $2,500 cash. The accounts involved are:(1) Cash (asset)(2) Supplies (asset)26第26頁，共47頁。An Practical Illustration (cont)Purchased supplies paying $2,500 cash.27第27頁，共47頁。An Practical Illustrati

20、on (cont)Purchased camera and producing equipment for the store for $20,000 cash.The accounts involved are:(1) Cash (asset) (2) equipment (asset) 28第28頁，共47頁。An Practical Illustration (cont)Purchased equipment for the store for $20,000 cash.29第29頁，共47頁。An Practical Illustration (cont)Purchased suppl

21、ies of $1,100 on account and equipment of $6,000 by signing a note. The accounts involved are:(1) Supplies (asset)(2) Equipment (asset)(3) Accounts payable (liability)(4) Notes payable (liability)30第30頁，共47頁。An Practical Illustration (cont)Purchased supplies of $1,100 on account and equipment of $6,

22、000 by signing a note.31第31頁，共47頁。An Practical Illustration (cont)Now lets look at transactions involvingrevenues and expenses.32第32頁，共47頁。An Practical Illustration (cont)Performed wedding-photo and graduation ceremony photo-taking services, receiving $2,200 cash.The accounts involved are:(1) Cash (

23、asset) (2) Owners capital (equity) 33第33頁，共47頁。An Practical Illustration (cont)Performed wedding photo-taking services, receiving $2,200 cash.34第34頁，共47頁。An Practical Illustration (cont)Paid rent for January, $1,000 and salaries to the stores employees, $700 cash.The accounts involved are:(1) Cash (

24、asset)(2) Owners capital (equity) (Rent expense) (3) Owners capital (equity) (Salaries expense )35第35頁，共47頁。An Practical Illustration (cont)Paid rent for the month, $1,000 and salary to employees, $700 cash.36第36頁，共47頁。An Practical Illustration (cont)Provided wedding photo services of $1,600 and ren

25、ted equipment for $300 to another store. The accounts involved are:(1) Cash (asset) (2) Owners capital (equity) (Sales revenue) (3) Owners capital (equity) (Rental revenue) 37第37頁，共47頁。An Practical Illustration (cont)Provided photo-taking services of $1,600 and rented equipment for $300 to another s

26、tore.38第38頁，共47頁。An Practical Illustration (cont)Received $1,900 cash on account. The accounts involved are:(1) Cash (asset) (2) Account receivable (asset)39第39頁，共47頁。An Practical Illustration (cont)Received cash of $1,900 on account.40第40頁，共47頁。An Practical Illustration (cont)Paid $900 on account.

27、The accounts involved are:(1) Cash (asset) (2) Account payable (liability)41第41頁，共47頁。An Practical Illustration (cont)Paid $900 cash on account.42第42頁，共47頁。An Practical Illustration (cont) Wang Fang withdrew $600 cash for personal living expenses. The accounts involved are:(1) Cash (asset) (2) Owner

28、s capital (equity) Withdrawals43第43頁，共47頁。An Practical Illustration (cont)Wang Fang withdrew $600 for personal living expenses.44第44頁，共47頁。Summary Accounts are used to appropriately categorize transactions.T-accounts are a simplified version used in practice.The type of account determines the side o

29、n which increases and decreases are recorded; the rules of debit and credit keep the accounting equation in balance In the double-entry accounting system, at least two accounts are always affected by a transaction. After a transaction is recorded, the accounting equation must remain in balance.Economic transactions of a business will impact various asset, liability, and/or equity accounts; but, they