《港中文会计课》PPT课件.ppt

Accounting In Action,ISV Financial Accounting,Sixth Edition,Chapter 1,Three Activities,What is Accounting?,SO 1 Explain what accounting is.,Illustration 1-1Accounting process,The accounting process includes the bookkeeping function.,Various users need financial information,The accounting profession has attempted to develop a set of standards that are generally accepted and universally practiced.,Financial StatementsBalance SheetIncome StatementRetained Earnings StatementStatement of Cash FlowsNote Disclosure,Generally Accepted Accounting Principles(GAAP),The Building Blocks of Accounting,SO 4 Explain generally accepted accounting principles and the cost principle.,Provides the underlying framework for recording and summarizing economic events.,The Basic Accounting Equation,Resources a business owns.Provide future services or benefits.Cash,Supplies,Equipment,etc.,Assets,Assets,Liabilities,Stockholders Equity,=,+,SO 6 State the accounting equation,and define assets,liabilities,and stockholders equity.,Provides the underlying framework for recording and summarizing economic events.,The Basic Accounting Equation,Claims against assets(debts and obligations).Creditors-party to whom money is owed.Accounts payable,Notes payable,etc.,Liabilities,Assets,Liabilities,Stockholders Equity,=,+,SO 6 State the accounting equation,and define assets,liabilities,and stockholders equity.,Provides the underlying framework for recording and summarizing economic events.,The Basic Accounting Equation,Ownership claim on total assets.Referred to as residual equity.Paid-in Capital,Retained Earnings(Corporation).,Stockholders Equity,Assets,Liabilities,Stockholders Equity,=,+,SO 6 State the accounting equation,and define assets,liabilities,and stockholders equity.,Stockholders Equity,Revenues result from business activities entered into for the purpose of earning income.Common sources of revenue are:sales,fees,services,commissions,interest,dividends,royalties,and rent.,Illustration 1-6,SO 6 State the accounting equation,and define assets,liabilities,and stockholders equity.,Expenses are the cost of assets consumed or services used in the process of earning revenue.Common expenses are:salaries expense,rent expense,utilities expense,tax expense,etc.,Stockholders Equity,Illustration 1-6,SO 6 State the accounting equation,and define assets,liabilities,and stockholders equity.,Dividends are the distribution of cash or other assets to stockholders.Dividends reduce retained earnings,however dividends are not an expense.,Stockholders Equity,Illustration 1-6,SO 6 State the accounting equation,and define assets,liabilities,and stockholders equity.,Stockholders Equity,P1-1A:Barones Repair Shop was started on May.Prepare a tabular analysis of the following transactions for the month of May.,Transactions(Problem),+10,000,1.,+10,000,Cash,Accounts Receivable,Equipment,Accounts Payable,Common Stock,SO 7 Analyze the effects of business transactions on the accounting equation.,+,+,=,+,1.Stockholders invested$10,000 cash to start the repair shop.,Investment,Assets,Liabilities,Transactions(Problem),+10,000,1.,+10,000,SO 7 Analyze the effects of business transactions on the accounting equation.,2.Purchased equipment for$5,000 cash.,-5,000,2.,+5,000,Investment,Stockholders Equity,Cash,Accounts Receivable,Equipment,Accounts Payable,Common Stock,+,+,=,+,Assets,Liabilities,Transactions(Problem),+10,000,1.,+10,000,SO 7 Analyze the effects of business transactions on the accounting equation.,3.Paid$400 cash for May office rent.,-5,000,2.,+5,000,-400,3.,-400,Stockholders Equity,Cash,Accounts Receivable,Equipment,Accounts Payable,Common Stock,+,+,=,+,Assets,Liabilities,Retained Earnings,Expense,+,Transactions(Problem),+10,000,1.,+10,000,SO 7 Analyze the effects of business transactions on the accounting equation.,-5,000,2.,+5,000,-400,3.,-400,Stockholders Equity,Cash,Accounts Receivable,Equipment,Accounts Payable,Common Stock,+,+,=,+,Assets,Liabilities,Retained Earnings,+5,100,4.,+5,100,4.Received$5,100 from customers for repair service.,Revenue,+,Transactions(Problem),+10,000,1.,+10,000,SO 7 Analyze the effects of business transactions on the accounting equation.,-5,000,2.,+5,000,-400,3.,-400,Stockholders Equity,Cash,Accounts Receivable,Equipment,Accounts Payable,Common Stock,+,+,=,+,Assets,Liabilities,Retained Earnings,+5,100,4.,+5,100,5.Paid dividends of$1,000 cash.,-1,000,5.,-1,000,+,Transactions(Problem),+10,000,1.,+10,000,SO 7 Analyze the effects of business transactions on the accounting equation.,-5,000,2.,+5,000,-400,3.,-400,Stockholders Equity,Cash,Accounts Receivable,Equipment,Accounts Payable,Common Stock,+,+,=,+,Assets,Liabilities,Retained Earnings,+5,100,4.,+5,100,-1,000,5.,-1,000,6.Paid part-time employee salaries of$2,000.,-2,000,6.,-2,000,Expense,+,Transactions(Problem),+10,000,1.,+10,000,SO 7 Analyze the effects of business transactions on the accounting equation.,-5,000,2.,+5,000,-400,3.,-400,Stockholders Equity,Cash,Accounts Receivable,Equipment,Accounts Payable,Common Stock,+,+,=,+,Assets,Liabilities,Retained Earnings,+5,100,4.,+5,100,-1,000,5.,-1,000,-2,000,6.,-2,000,Expense,7.Incurred$250 of advertising costs,on account.,+250,-250,7.,+,Transactions(Problem),+10,000,1.,+10,000,SO 7 Analyze the effects of business transactions on the accounting equation.,-5,000,2.,+5,000,-400,3.,-400,Stockholders Equity,Cash,Accounts Receivable,Equipment,Accounts Payable,Common Stock,+,+,=,+,Assets,Liabilities,Retained Earnings,+5,100,4.,+5,100,-1,000,5.,-1,000,-2,000,6.,-2,000,Revenue,+250,-250,7.,8.Provided repair services on account to customers$750.,+750,8.,+750,+,6,820+630+5,000=250+10,000+2,200,Transactions(Problem),+10,000,1.,+10,000,SO 7 Analyze the effects of business transactions on the accounting equation.,-5,000,2.,+5,000,-400,3.,-400,Stockholders Equity,Cash,Accounts Receivable,Equipment,Accounts Payable,Common Stock,+,+,=,+,Assets,Liabilities,Retained Earnings,+5,100,4.,+5,100,-1,000,5.,-1,000,-2,000,6.,-2,000,+250,-250,7.,+750,8.,+750,9.Collected$120 cash for services previously billed.,+120,9.,-120,+,Income Statement,Financial Statements,SO 8 Understand the four financial statements and how they are prepared.,Retained Earnings Statement,Net income is needed to determine the ending balance in retained earnings.,Financial Statements,SO 8 Understand the four financial statements and how they are prepared.,Balance Sheet,Retained Earnings Statement,The ending balance in retained earnings is needed in preparing the balance sheet.,