ppt02 Recording transactions 会计英语（第四版） 教学文稿.ppt

Lesson 2;Recording transactions：Financial statements communicate accounting information to users. Generally accepted accounting principles are the guidelines used in the analysis, recording, and reporting of financial transactions on the financial statements. The financial statements are based on the accounting equation: A = L + E ;Economic events and source documents; Increases are recorded on one side of the T-account, and decreases are recorded on the other side.;The entire group of accounts is kept together in an accounting record called a ledger.;Receipts are on the debit side.;A = L + OE;A = L + OE;Net income is not an asset ??it’s an increase in owner’s equity from profits of the business.;The price for goods sold and services rendered during a given accounting period.;EQUITIES;EQUITIES;Accounting cycle;Step 1: Analyzing transactions;Step 2: Recording transactions;Step 2: Recording transactions (cont.);Step 3: Posting;Step 4: Preparing a trial balance;The Journal;Posting Journal Entries to the Ledger Accounts;Posting Journal Entries to the Ledger Accounts;Posting Journal Entries to the Ledger Accounts;Ledger Accounts After Posting;All balances are taken from the ledger accounts on May 31.;The Accounting Cycle;At the end of the period, we need to make adjusting entries to get the accounts up to date for the financial statements.;End of Lesson 2