会计学（第21版）课件：Analyzing Transactions

AnalyzingTransactionsAccounting,21stEditionWarrenReeveFess

Someoftheactionhasbeenautomated,soclickthemousewhenyouseethislightningboltinthelowerright-handcornerofthescreen.Youcanpointandclickanywhereonthescreen.1.

Explainwhyaccountsareusedtorecordandsummarizetheeffectsoftransactionsonfinancialstatements.2.

Describethecharacteristicsofanaccount.3.

Listtherulesofdebitandcreditandthenormalbalancesofaccounts.4.

Analyzeandsummarizethefinancialstatementeffectsoftransactions.ObjectivesAfterstudyingthischapter,youshouldbeableto:5.

Prepareatrialbalanceandexplainhowitcanbeusedtodiscovererrors.6. Discovererrorsinrecordingtransactionsandcorrectthem.7. Usehorizontalanalysistocomparefinancialstatementsfromdifferentperiods.ObjectivesEachfinancialstatementitem,calledanaccount,isincludedintheledger.Agroupofaccountsforabusinessentityiscalledaledger.Alistoftheaccountsinaledgeriscalledachartofaccounts.MajorAccountClassificationsAssetsareresourcesownedbythebusiness.Liabilitiesaredebtsowedtooutsiders(creditors).CashSuppliesBuildingAccountsreceivableAccountspayableNotespayableWagespayableMajorAccountClassificationsLiabilitiesaredebtsowedtooutsiders(creditors).CashSuppliesBuildingAccountsreceivableAccountspayableNotespayableWagespayableAssetsareresourcesownedbythebusiness.Liabilitiesareoftenidentifiedonthebalancesheetbytitlesthatincludepayable.Owner’sequityistheowner’srighttotheassetsofthebusiness.Revenuesareincreasesinowner’sequityasaresultofsellingservicesorproducts.ChrisClark,CapitalChrisClark,DrawingFeesEarnedFaresEarnedCommissionRevenueExpensesaretheusingupofassetsorconsumingofservicestogeneraterevenue.RentExpenseSalaryExpenseUtilitiesExpenseMajorAccountClassificationsToassistyouinlearning,anaccountcanbedrawntoresembletheletterT.TheT-AccountTheT-accounthasatitle.CashTheT-AccountTheleftsideoftheaccountisthe

debit

side.CashLeftsidedebitTheT-AccountTherightsideoftheaccountisthecreditside.CashLeftsidedebitRightsidecreditTheT-AccountCash3,7504,3002,9008501,4007002,900TypicalentriesBalancingaT-AccountCash3,7504,3002,9008501,4007002,90010,950First,footthedebitside.8501,4007002,900Cash3,7504,3002,90010,9505,850Next,footthecreditside.8501,4007002,900Cash3,7504,3002,90010,9505,850Subtracttotalcreditsfromtotaldebitstoobtaintheaccountbalance.5,100TransactionsandBalanceSheetAccountsPost.Ref.JOURNALDateDescriptionDebitCreditPage11234Nov. 12005Cash 2500000ChrisClark,Capital 2500000InvestedcashinNetSolutions.(A) OnNovember1,ChrisClarkdeposits$25,000inabankaccountinthenameofNetSolutions.(A) OnNovember1,ChrisClarkdeposits$25,000inabankaccountinthenameofNetSolutions.EffectsofthisentryintheLedgerCashNov.1 25,000Nov.1 25,000ChrisClark,Capital456789105Land 2000000Cash 2000000Purchasedlandforbuildingsite.(B) OnNovember5,NetSolutionsboughtlandfor$20,000,payingcash.EffectsofthisentryintheLedgerCashNov.1 25,000Nov.5 20,000LandNov.5 20,000(B) OnNovember5,NetSolutionsboughtlandfor$20,000,payingcash.1011121314151610Supplies 135000AccountsPayable 135000Purchasedsuppliesonaccount.(C) OnNovember10,NetSolutionspurchasedsuppliesonaccountfor$1,350.(C) OnNovember10,NetSolutionspurchasedsuppliesonaccountfor$1,350.EffectsofthisentryintheLedgerSuppliesNov.10 1,350AccountsPayableNov.10 1,35030AccountsPayable 95000Cash 95000Paidcreditorsonaccount.30313233343536(F) OnNovember30,NetSolutionspaidcreditorsonaccount,$950.CashNov.1 25,000Nov.5 25,000 18 7,500

30 3,650EffectsofthisentryintheLedgerAccountsPayableNov.10 1,350Nov.30 950 30 950(F) OnNovember30,NetSolutionspaidcreditorsonaccount,$950.DebitsCreditsAssetaccounts………. Increase(+) Decrease(-)Liabilityaccounts…… Decrease(-) Increase(+)Owner’sequity

(capital)accounts…. Decrease(-) Increase(+)RulesofDebit/CreditBalanceSheetAccountsCreditforincreases(+)Creditforincreases(+)Creditfordecreases(-)Debitforincreases(+)Debitfordecreases(-)Debitfordecreases(-)ASSETSAssetAccountsLIABILITIESLiabilityAccountsOwner’sEquityAccountsOWNER’SEQUITYBalanceSheetAccounts(D) OnNovember18,NetSolutionsreceivedfeesof$7,500fromcustomersforservicesprovided.18Cash 750000FeesEarned 750000Receivedfeesfromcustomers.14151617181920EffectsofthisentryintheLedgerCashNov.1 25,000Nov.5 25,000FeesEarnedNov.18 7,500

18 7,500(D) OnNovember18,NetSolutionsreceivedfeesof$7,500fromcustomersforservicesprovided.(E) Throughoutthemonth,NetSolutionsincurredthefollowingexpenses:wages,$2,125;rent,$800;utilities,$450;andmiscellaneous,$275.30WagesExpense 212500RentExpense 80000UtilitiesExpense 45000MiscellaneousExpense 27500Cash 365000Paidexpenses.18192021222324EffectsofthisentryintheLedgerCashNov.1 25,000Nov.5 25,000WagesExpenseNov.30 2,125 18 7,500RentExpenseNov.30 800UtilitiesExpenseNov.30 450MiscellaneousExpenseNov.30 275 30 3,650(E) Throughoutthemonth,NetSolutionsincurredthefollowingexpenses:wages,$2,125;rent,$800;utilities,$450;andmiscellaneous,$275.Ineveryentrythesumofthedebitsalwaysequalthesumofthecredits.(G) OnNovember30,acountrevealedthat$800ofthesuppliesinventoryhadbeenused.30SuppliesExpense 80000Supplies 80000SuppliesusedduringNovember.25262728293031EffectsofthisentryintheLedgerSuppliesNov.10 1,350SuppliesExpenseNov.30 800Nov.30 800(G) OnNovember30,acountrevealedthat$800ofthesuppliesinventoryhadbeenused.Double-EntryAccounting“Double-entryaccountingisbasedonasimpleconcept:eachpartyinabusinesstransactionwillreceivesomethingandgivesomethinginreturn.Inbookkeepingterms,whatisreceivedisadebitandwhatisgivenisacredit.TheTaccountisarepresentationofascaleorbalance.”LucaPacioliDeveloperofDouble-EntryAccountingScaleorBalanceReceiveDEBITGiveCREDITTaccountLeftSideReceiveDEBITRightSideGiveCREDITCreditforincreases(+)Creditfordecreases(-)Debitforincreases(+)Debitfordecreases(-)ExpenseAccountsRevenueAccountsRulesofDebit/CreditIncomeStatementAccountsDebitsCreditsRevenueaccounts…… Decrease(-) Increase(+)Expenseaccounts…… Increase(+) Decrease(-)IncomeStatementAccountsWithdrawalsbytheOwnerPost.Ref.JOURNALDateDescriptionDebitCreditPage21234Nov. 302005ChrisClark,Drawing 200000Cash 200000ChrisClarkwithdrewcashforpersonaluse.(H) OnNovember30,ChrisClarkwithdrew$2,000incashfromNetSolutionsforpersonaluse.

30 950 30 2,000CashNov.1 25,000Nov.5 25,000 18 7,500

30 3,650EffectsofthisentryintheLedgerChrisClark,DrawingNov.10 1,350Nov.30 2,000(H) OnNovember30,ChrisClarkwithdrew$2,000incashfromNetSolutionsforpersonaluse.Increase(NormalBalances)DecreasesBalancesheetaccounts:

Asset Debit Credit Liability Credit Debit Owner’sEquity: Capital Credit Debit Drawing Debit CreditIncomestatementaccounts:

Revenue Credit Debit Expense Debit CreditNormalBalancesofAccountsFlowofBusinessTransactions1Transactionauthorized2Transactiontakesplace3Documentprepared4Entryrecordedinjournal5Entrypostedtoledger1.

Determinewhetheranasset,aliability,owner’sequity,revenue,orexpenseaccountisaffectedbythetransaction.2.

Foreachaccountaffectedbythetransaction,determinewhethertheaccountincreasesordecreases.3.

Determinewhethereachincreaseordecreaseshouldberecordedasadebitoracredit.SystemtoAnalyzeTransactionsJournalizingandPostingPost.Ref.JOURNALDateDescriptionDebitCreditPage21234Dec. 312005PrepaidInsurance 240000Cash 240000Paidpremiumontwo-yearpolicy.Dec.1 NetSolutionspaidapremiumof$2,400foracomprehensiveinsurancepolicycoveringtwoyears.Post.Ref.JOURNALDateDescriptionDebitCreditPage21234Dec. 12005PrepaidInsurance 240000Cash 240000ACCOUNTPrepaidInsuranceACCOUNTNO.15BalanceDebitCreditDateDebitCreditItemPost.Ref.240000240000Dec. 12005Paidpremiumontwo-yearpolicy.Post.Ref.JOURNALDateDescriptionDebitCreditPage21234Dec. 12005PrepaidInsurance 240000Cash 240000ACCOUNTPrepaidInsuranceACCOUNTNO.15BalanceDebitCreditDateDebitCreditItemPost.Ref.240000240000Dec. 12005215Paidpremiumontwo-yearpolicy.Post.Ref.JOURNALDateDescriptionDebitCreditPage21234Dec. 12005PrepaidInsurance 240000Cash 240000Paidpremiumontwo-yearpolicy.15ACCOUNTCashACCOUNTNO.11BalanceDebitCreditDateDebitCreditItemPost.Ref.200000590000Nov. 3020052Dec.1240000350000Post.Ref.JOURNALDateDescriptionDebitCreditPage21234Dec. 12005PrepaidInsurance 240000Cash 240000Paidpremiumontwo-yearpolicy.15ACCOUNTCashACCOUNTNO.11BalanceDebitCreditDateDebitCreditItemPost.Ref.200000590000Nov. 3020052240000350000Dec.111214151617 1RentExpense 52 80000Cash 11 80000PaidrentforDecember.Dec.1 NetSolutionspaidrentforDecember,$800.14151617 1Cash 14 36000UnearnedRent 23 36000ReceivedadvancedpaymentForthreemonths’rentofland.Dec.1 NetSolutionsreceives$360forthreemonth’srentbeginningDecember1.Dec.4 NetSolutionspurchasedofficeequipmentonaccountfromExecutiveSupplyCo.for$1,800.18192021 4OfficeEquipment 18 180000AccountsPayable 21 180000Purchasedofficeequipmentonaccount.Dec.6 NetSolutionspaid$180foranewspaperadvertisement.21222324 6MiscellaneousExpense 59 18000Cash 11 18000Paidfornewspaperad.Dec.11 NetSolutionspaidcreditors$400.24252627 11AccountsPayable 21 40000Cash 11 40000Paidcreditorsonaccount.Dec.13 NetSolutionspaidareceptionistandpart-timeassistant$950fortwoweeks’wages.Post.Ref.JOURNALDateDescriptionDebitCreditPage31234Dec. 132005WagesExpense 51 95000Cash 11 95000Paidtwoweek’swages.Dec.16 NetSolutionsreceived$3,100fromfeesearnedforthefirsthalfofDecember.5678 16Cash 11 310000FeesEarned 41 310000Receivedfeesfromcustomers.Dec.16 Feesearnedonaccounttotaled$1,750forthefirsthalfofDecember.9101112 16AccountsReceivable 12 175000FeesEarned 41 175000Receivedfeesfromcustomers.Dec.20 NetSolutionspaid$900toExecutiveSupplyCo.onthe$1,800debtowedfromtheDecember4transaction.13141516 20AccountsPayable 21 90000Cash 11 90000PaidpartofamountowedtoExecutiveSupplyCo.Dec.21 NetSolutionsreceived$650fromcustomersinpaymentoftheiraccounts.18192021 21Cash 11 65000AccountsReceivable 12 65000Receivedcashfromcustomeronaccount.Dec.23 NetSolutionspaid$1,450forsupplies.22232425 23Supplies 14 145000Cash 11 145000Purchasedsupplies.Dec.27 NetSolutionspaidthereceptionistandpart-timeassistant$1,200fortwoweeks’wages.27282930 27WagesExpense 51 120000Cash 11 120000Paidtwoweeks’wages.Dec.31 NetSolutionspaidits$310telephonebillforthemonth.31323334 31UtilitiesExpense 54 31000Cash 11 31000Paidtelephonebill.Dec.31 NetSolutionspaidits$225electricbillforthemonth.Post.Ref.JOURNALDateDescriptionDebitCreditPage41234Dec. 312005UtilitiesExpense 54 22500Cash 11 22500Paidutilitybill.Dec.31 NetSolutionsreceived$2,870fromfeesearnedforthesecondhalfofDecember.5678 31Cash 11 287000FeesEarned 41 287000Receivedfeesfromcustomers.Dec.31 NetSolutionsearned$1,120onaccountforthesecondhalfofDecember.9101112 31AccountsReceivable 12 112000FeesEarned 41 112000Recordedfeesearnedonaccount.Dec.31 ChrisClarkwithdrew$2,000forpersonaluse.14151617 31ChrisClark,Drawing 32 200000Cash 11 200000ChrisClarkwithdrewcashforpersonaluse.TrialBalanceNetSolutionsTrialBalanceDecember31,2005Cash 206500 AccountsReceivable 222000Supplies 200000PrepaidInsurance 240000Land 2000000OfficeEquipment 180000AccountsPayable 90000UnearnedRent 36000ChrisClark,Capital 2500000ChrisClark,Drawing 400000FeesEarned 1634000WagesExpense 427500RentExpense 160000UtilitiesExpense 98500SuppliesExpense 80000MiscellaneousExpense 45500 4260000 4260000NetSolutionsTrialBalanceDecember31,2005Cash 206500 AccountsReceivable 222000Supplies 200000PrepaidInsurance 240000Land 2000000OfficeEquipment 180000AccountsPayable 90000UnearnedRent 36000ChrisClark,Capital 2500000ChrisClark,Drawing 400000FeesEarned 1634000WagesExpense 427500RentExpense 160000UtilitiesExpense 98500SuppliesExpense 80000MiscellaneousExpense 45500 4260000 4260000BalanceSheetItemsNetSolutionsTrialBalanceDecember31,2005Cash 206500 AccountsReceivable 222000Supplies 200000PrepaidInsurance 240000Land 2000000OfficeEquipment 180000AccountsPayable 90000UnearnedRent 36000ChrisClark,Capital 2500000ChrisClark,Drawing 400000FeesEarned 1634000WagesExpense 427500RentExpense 160000UtilitiesExpense 98500SuppliesExpense 80000MiscellaneousExpense 45500 4260000 4260000StatementofOwner’sEquityItemNetSolutionsTrialBalanceDecember31,2005Cash 206500 AccountsReceivable 222000Supplies 200000PrepaidInsurance 240000Land 2000000OfficeEquipment 180000AccountsPayable 90000UnearnedRent 36000ChrisClark,Capital 2500000ChrisClark,Drawing 400000FeesEarned 1634000WagesExpense 427500RentExpense 160000UtilitiesExpense 98500SuppliesExpense 80000MiscellaneousExpense 45500 4260000 4260000IncomeStatementItemsErrors1. Failuretorecordatransactionortopostatransaction.2. Recordingthesameerroneousamountforboththedebitandthecreditpartsofatransaction.3. Recordingthesametransactionmorethanonce.4. Postingapartofatransactioncorrectlyasadebitorcreditbuttothewrongaccount.Errorsthatwillnotcausethetrialbalancetobeunequal:

ErrorCorrectionProcedure1. Journalentryisincorrect Drawalinethroughtheerror butnotposted. andinsertcorrecttitleor amount.

ErrorCorrectionProcedureCorrectionofErrors

ErrorCorrectionProcedure1. Journalentryisincorrect Drawalinethroughtheerror butnotposted. andinsertcorrecttitleor amount.

ErrorCorrectionProcedure2. Journalentryiscorrect Drawalinethroughthe butpostedincorrectly. postederrorandpost correctly.CorrectionofErrors

ErrorCorrectionProcedure

ErrorCorrectionProcedureJournalentryisinco