The document provides an overview of accounting concepts and procedures across multiple chapters:
- Chapter 1 defines the accounting equation and financial statements such as the income statement, balance sheet, and statement of cash flows.
- Chapter 2 covers the double-entry system including T-accounts, the general journal, general ledger, and trial balance.
- Chapter 3 discusses adjusting entries, including deferrals and accruals, and how the adjusted trial balance relates to the financial statements.
16. 3.2 The General Ledger Balance Cr. Item Ac. No. … Accounts Payable … … Dr. … 2,000 … 1,000 1,300 J2 7 … … … … … 2,300 J1 6 2007 May … … … … . … … Cr. Dr. Post Ref. Date General Ledger
17. Office supplies 2007 May 2,000 J1 √ 1 2 3 4 6 6 3,500 5 3.3 – Relationship between Journal and Ledger 2,000 AC. Payable on credit Purchase O.S by 2,000 Office supplies 6 2007 May … Credit Debit Post Ref. Description Date Page 1 General Journal Balance Cr. Item Ac. No. … … 1,500 Dr. … … … … … … … … … … … . … … Cr. Dr. Post Ref. Date General Ledger
18. Cash $ 2,000 4. Trial Balance 100 Telephone Expense ……………… ……………… ………………………… .. $ 2,500 Accounts Payable 1,400 AXY, Withdrawals 3,200 Fees Earned 10,000 AXY, Capital TRIAL BALANCE – May 31, 2007 Balance Cr. Item Ac. No. … Cash 2,000 1,500 Dr. … … … … … 31 … . May … … … . … . 2007 Cr. Dr. Post Ref. Date General Ledger
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26. Relationship of Adj Trial Balance to Income Statement … $ 9,000 John, Capital 900 Wages Expense 100 Utility Expense … 400 Rent Expense $18,810 $18,810 1,600 Art Fees Earned 3,000 Ad Fees Earned … . $1,200 Cash ADJUSTED TRIAL BALANCE 1,600 Art Fees Earned $4,600 Total Revenues Expenses $100 Utility Expense 900 Wages Expense 400 Rent Expense $1,400 Total Expenses $3,200 NET INCOME $3,000 Ad Fees Earned Revenues INCOME STATEMENT
27. Relationship of Ad Trial Balance to Balance Sheet $70 Acc. Depr, Off E 4,200 Office Equip. … $18,810 $18,810 … . $1,200 Cash ADJUSTED TRIAL BALANCE ASSETS $1,200 Cash . . . $4,200 Of. Equip 4,130 70 Less Accumulated Depreciation $14,500 Total Assets LIABILITIES … $3,900 Total Liabilities OWNER’S EQUITY $14,500 Total Lia. & OE 10,600 John, Capital, Jan 31, 07 BALANCE SHEET $600 … $10,600 John, Capital, Jan 31, 07 ___ John, Capital, Jan 1, 07 STATEMENT OF OE
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30. FINANCIAL STATEMENTS Revenues Expenses Work sheet Income statement Withdrawals Capital WORK SHEET + Net Income ➮ STATEMENT OF OWNER’S EQUITY INCOME STATEMENT Liabilities Assets WORK SHEET + Capital ➮ BALANCE SHEET STATEMENT OF OWNER’S EQUITY
31. Record CLOSING ENTRIES Dr. Revenues Cr. Income summary Dr. Income summary Cr. Expenses Dr. Net income Cr. Capital Dr. Capital Cr. Withdrawals
40. 4/ Record CLOSING ENTRIES Income Summary Expenses Merchandise Inventory (Begin) Sales Return & Allowances Sales Discounts Purchases Freight In Merchandise Inventory (End) Sales Purchases Return&Allowances Purchases Discounts Income Summary
41. 5/ Calculate COST OF GOODS SOLD GOODS Available for Sale Beginning Merchandise Inventory NET PURCHASES COST OF GOODS SOLD ** Cost of Goods Sold: Ending Merchandise Inventory
42. 6/ Income Statement Total Operating Expenses Operating Expenses Selling Expenses General & Administrative Expenses Net Income Gross Margin from Sales Cost of Goods Sold Cost of Goods Sold Net Sales Revenues from Sales INCOME STATEMENT For the Year Ended …..
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45. 2.1/ Relations between transactions and special-purpose journals CP C ash P ayments Journal Disbursements of cash CR C ash R eceipts Journal Receipts of cash P P urchases J Purchases on credit S S ales Journal Sales of mer on credit Abbre S-P Journal Transaction
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47. 4,950./ . . . . . . . . . . . . . . . . . 335./ 724 Peter Clark 8 500./ 722 Michael Powers 5 750./ 721 Peter Clark 1 Jul Dr AC Receivable Cr Sales PostRef. Invoice Number AC Debited Date SALES JOURNAL Page 1 4,950. 4,950 S1 31 Jul Cr Dr Balance Cr Dr Post. Ref. Date AC Receivable …… 4,950. 4,950 S1 31 Jul Cr Dr Balance Cr Dr Post. Ref. Date ……… . Sales
48. End of the month Daily 4,950./ . . . . . . . . . . . . . . . . . 335./ 724 Peter Clark 8 500./ 722 Michael Powers 5 750./ 721 Peter Clark 1 Jul Dr AC Receivable Cr Sales PostRef. Invoice Number AC Debited Date SALES JOURNAL Page 1 500. 500. S1 05 Jul Cr Dr Balance Cr Dr Post. Ref. Date Michael Powers …… 750. 750. S1 01 1,085. 335. S1 08 Jul Cr Dr Balance Cr Dr Post. Ref. Date Peter Clark …… 4,950. 4,950 S1 31 Jul Cr Dr Balance Cr Dr Post. Ref. Date AC Receivable ……
49. 500 750 C ash R eceipts Journal Page 1 2,600 1,250 10 3,840 1,400 1,400 sales 13 750 750 Peter Clark 16 500 10 490 Georgetta Jones 8 1,200 1,200 sales 1 Jul Other accounts Sales Accounts Receivable Other Accounts Sales discounts Cash Credits Debits Post. Ref. Account Debited/ Credited Date 500 CR1 08 Jul Cr Dr Balance Cr Dr Post. Ref. Date Georgetta Jones …… 100 CR1 16 Jul … .. 850 … .. … .. … . … … . Cr Dr Balance Cr Dr Post. Ref. Date Peter Clark …… 3,840 3,840 CR1 31 Jul Cr Dr Balance Cr Dr Post. Ref. Date Cash …… 850 S1 31 Jul 400 1,250 CR1 31 Cr Dr Balance Cr Dr Post.Ref. Date ……… . AC Receivable