Professional Documents
Culture Documents
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Objectiv
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http://www.prolegomenes.com/img/the-accounting-cycle-3.jpg
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Date
Apr. 2
Accounts andJournal
Explanations
Cash
Lisa Hunter, Capital
Post
Ref.
Debit
Page
1
Credit
250,000
250,000
2-7
Cash
Accounts
Payable
Lisa Hunter,
Capital
Individual asset
accounts
Individual liability
accounts
Ledger
2-8
Cash
Accounts receivable
Notes receivable
Prepaid expenses
Land
Building
Equipment, Furniture, and Fixtures
2-9
Bank loan
Accounts payable
Notes payable
Accrued liabilities (taxes payable, salary payable, interest
payable)
2 - 10
This is incorrect
Account
Balance Sheet
Current portion ( < 1 yr)
Bank Loan
Capital
Withdrawals
Revenues
Expenses
2 - 12
Beginning Capital
+ Investments
+ Net Income (revenues > expenses)
Net loss (expenses > revenues)
Withdrawals
2 - 13
2 - 14
Assets
1100 Cash
1200 Accounts Receivable
1400 Office Supplies
1500 Office Furniture
1900 Land
Income Statement
Accounts (part of
owners equity)
Liabilities
2100 Accounts Payable
2300 Notes Payable
Owners Equity
3000 Lisa Hunter, Capital
3100 Lisa Hunter, Withdrawals
Revenue
4000 Service Revenue
Expenses
5100 Rent Expense
5200 Salary Expense
5300 Utilities Expense
2 - 15
2 - 16
The business
received cash
of $250,000
2 - 17
ASSETS
+$50,000
Increases
Equipment
2 - 18
Account Title
Debit
Credit
LEFT
SIDE
RIGHT
SIDE
2 - 19
Assets
Increase
= Debit
Decrease
= Credit
Increase
= Credit
2 - 20
Debit/Credit song
Copyright 2
2011
Pearson Canada
21
Inc.
DEBITS
ASSETS
Debit
+
Credit
=
=
CREDITS
LIABILITIES
Debit
Credit
+
+ OWNERS EQUITY
Debit
Credit
+
2 - 22
Debit for
increase,
$250,000
2 - 23
Assets
Cash
250,000
100,000
Balance
150,000
Land
100,000
2 - 24
Liabilities
Assets
Owners Equity
+ Capital Withdrawals
+ Revenues Expenses
Copyright 2014 Pearson Canada Inc.
2 - 25
2 - 26
2 - 27
2 - 28
2 - 29
2 - 30
Journal
Date
Apr. 2
Page 1
Post
Ref.
Debit
Credit
250,000
250,000
2 - 31
Sept 2
Sept 2
Sept 3
2 - 32
Date
Debit Credit
2 - 33
2 - 34
2 - 35
Account: Cash
Date
Item
Jrnl.
Ref.
Debit
Credit
Balance
2014
Apr. 2
250,000
250,000 Dr.
Item
Jrnl.
Ref.
Debit
Credit
Balance
2014
Apr. 2
250,000
Insert the journal page number
Copyright 2014 Pearson Canada Inc.
250,000 Cr
2 - 36
2 - 37
Account:
1000
Date
Account:
1300
Date
Cash
Item
Account No.
Ref
Debit
Credit
Accounts Receivable
Item
Balance
Account No.
Ref
Debit
Credit
Balance
Ref
Debit
Credit
Balance
Ref
Debit
Credit
Balance
Account:
Supplies
Account No. 1500
Date
Item
Account:
Accounts Payable
Account No. 2000
Date
Account:
3000
Date
Item
Capital, Moffat
Item
Account No.
Ref
Debit
Credit
Balance
Ref
Debit
Credit
Balance
Account:
Revenue
Account No. 4000
Date
Account:
5500
Date
Item
Rent Expense
Item
Account No.
Ref
Debit
Credit
Balance
2 - 38
2 - 39
2 - 40
2 - 41
Accounts Receivable
1400
Office supplies
1900
Land
2100
Accounts Payable
3000
3100
4999
6,000
5100
Rent Expense
6,000
5200
Salary Expense
6,500
5300
Utilities Expense
1,500
Totals
10,000
7,000
50,000
$
2,000
250,000
55,000
$307,000
Copyright 2014 Pearson Canada Inc.
$307,000
2 - 42
Does it balance?
2 - 43
Account Name
Debit
Credit
Total
2 - 44
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2 - 47
Accounting terms
Trial balances
2 - 48
2 - 49