太原工业学院管理工程系会计学原理英文课件CHAPTER4 Adjusting Accounts for Financial Statements.pptVIP

4.1 The Double-Entry System of Accounting  Debit side Credit side Luca Paciolio: Italian mathematician and Franciscan friar the father of accounting Summa de arithmetica, geometria, proportioni et proportionalita Double-entry accounting Debit Credit balance 4.2 The Account  The T- Accounts Four-Column Account Format Normal balance of an account The chart of accounts Four-column account format Increases Decreases Account classification T-account entry running balance post JR=Journal Reference debit-balance accounts credit-balnace accounts permanent accounts temporary accounts overdraw overpay miscellaneous expense 4.3 Debits and Credits  The symbol of debit and credit Debit side: Dr Credit side: Cr The rules of debit and credit 4.4 Applying for Double-Entry Accounting  use of assets, liabilities and owner’s equity use of revenues, expenses and net income Assets = liabilities + Owner’s Equity cash Ted Andy, Capital +30000 +30000 Transaction (2) :purchased office equipment on account, $ 2 500 Transaction (3) :purchased office supplies for cash, $ 350 Transaction (4) :paid amount owed to a creditor, $ 500 Transaction (5) :purchased office supplies on account, $ 400 Transaction (6) :owner withdrew $ 300 for personal use Transaction (7) :received cash as payment for professional fees, $ 3 500 Transaction (8) :paid office rent $ 1 000 Transaction (9) : paid telephone expense, $ 75 LOGO * LOGO Charpter four Accounting methods New words and terms 4.1 Title Dr Cr Notes： The T-account The increase and decrease should be recorded seperatly on debit side or credit side of every accounts Credit Debit Balance Credit Debit Post. Ref. Item Date Account: *** Accout No:*** New words and terms 4.2 New words and terms 4.2 Assets Liabilities Owner’s equity Beginning balances XXX XXX increase XXX decrease XXX Ending balances XXX