会计入门第二讲(英文版).pptVIP

* THE RECORDING PROCESS ILLUSTRATED continued Journal entry Posting Debit-credit analysis Debits increase assets: debit Advertising Supplies $250 Credits increase liabilities: credit Accounts Payable $2500 Oct 5 Advertising Supplies 126 2 500 Accounts Payable 201 2 500 (Purchased supplies  on account from  Aero Supply) Accounts Payable 201 Oct 5 2 500 Advertising Supplies 126 Oct 5 2 500 School of Business * THE RECORDING PROCESS ILLUSTRATED continued 7. Hiring of employees Basic analysis Debit-credit analysis Transaction 9 October, hire 4 employees who begin work on 15 October. Each is to receive a weekly salary of $500 for a 5-day work week, payable every 2 weeks – first payment made on 26 October A business transaction has not occurred. There is only an agreement between the employer and the employees to enter into a business transaction beginning on 15 October Not needed because there is no accounting entry School of Business * THE RECORDING PROCESS ILLUSTRATED continued 8. Withdrawal of cash by owner Basic analysis Debit-credit analysis Transaction 20 October, C.R. Hill withdraws $500 cash for personal use The owner’s equity account C.R. Hill, Drawings is increased $500; the asset Cash is decreased $500 Debits increase drawings: debit C.R. Hill, Drawings $500 Credits decrease assets: credit Cash $500 School of Business * THE RECORDING PROCESS ILLUSTRATED continued Journal entry Posting Debit-credit analysis Debits increase drawings: debit C.R. Hill, Drawings $500 Credits decrease assets: credit Cash $500 Oct 20 C.R. Hill Drawings 306 500 Cash 101 500 (Withdrew cash for  personal use) Cash 101 Oct 1 10 000 Oct 3 900 2 1 200 4 600 20 500 C.R. Hill Drawings 306 Oct 20 500 School of Business * TH