财务会计概念与应用英文版Lecture3研讨.pptVIP

Chapter 3 The Mechanics of Accounting Terminology to Help Analyze Transactions Account Accounting record where similar transactions are recorded. T-Account Simplified depiction of an account. Debit Entry on the LEFT. Credit Entry on the RIGHT. Double Entry Accounting Debits must ALWAYS equal credits! If for every transaction, debits equal credits, then the accounting equation will balance. Expanded Accounting Equation Journals and Journal Entries Journal An accounting record in which transactions are originally entered. Chronological record. Journal Entries 3 steps for success: 1. Identify which accounts are involved. 2. Determine if the account is increased or decreased. 3. Determine by how much the account has changed. Journal Entry Example You purchase $250 worth of inventory for cash on January 30. Remember the 3 step process. Compound Journal Entry Compound Journal Entry A journal entry that involves more than one debit or more than one credit or both. You make a mortgage payment of $175. Of this, $150 reduces the mortgage while $25 is interest. Posting Journal Entries Posting Transferring amounts from the journal to the ledger. Ledger A book of accounts where journal transactions are posted and thereby summarized. Chart of accounts A systematic listing of all accounts used by a company. The General Ledger The Trial Balance Trial Balance A listing of all account balances. Provides a means of ensuring debits equal credits. From this data, the balance sheet and income statement can be prepared. Prepared by listing all accounts and their respective balances. Example Trial Balance How Have Computers Changed the Accounting Cycle? Allows businesses to calculate vast amounts of data quickly. Eases posting of journal entries and summarizing the data into reports and financial statements. Computers can’t think. That is your job! * COPYRIGHT ? 2008 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western