Professional Documents
Culture Documents
Accounting
and Business
1-1
Objective
Objective 11
Describe the nature of a
business and the role of ethics
and accounting in business.
4
1-1
Types of Businesses
Service
ServiceBusiness
Business
Plaza
Plaza Indonesia
Indonesia Realty
Realty Tbk.
Tbk.
Hotel
Hotel Sahid
Sahid Jaya
JayaTbk.
Tbk.
lodging
lodging
Bank
Bank Mandiri
MandiriTbk.
Tbk.
Garuda
Garuda Indonesia
Indonesia
Indosat
IndosatTbk.
Tbk.
Service
Service
Shopping
Shopping mall
mall
Hospitality
Hospitality and
and
Financial
Financial services
services
Transportation
Transportation
Telecommunication
Telecommunication
5
Types of Businesses
1-1
Merchandising
Merchandising Business
Business Product
Product
Matahari
Clothes
Matahari Putra
Putra Prima
PrimaTbk.
Tbk.
Clothes and
and apparel
apparel
Hero
Food
Hero Supermarket
SupermarketTbk.
Tbk.
Food and
and groceries
groceries
Toko
Books
Toko Gunung
GunungAgung
AgungTbk.
Tbk.
Books and
and stationeries
stationeries
Ace
Ace Hardware
Hardware Indonesia
IndonesiaTbk.
Tbk. Consumer
Consumer electronics
electronics
Alfa
Consumer
Alfa Retailindo
RetailindoTbk.
Tbk.
Consumer goods
goods
1-1
Types of Businesses
Manufacturing
Manufacturing Business
Business
Sepatu
Sepatu Bata
BataTbk.
Tbk.
Mustika
Mustika Ratu
RatuTbk.
Tbk.
Gudang
Gudang Garam
GaramTbk.
Tbk.
Mayora
Mayora Indah
IndahTbk.
Tbk.
Kalbe
Kalbe Farma
FarmaTbk.
Tbk.
Product
Product
Shoes
Shoes
Cosmetics
Cosmetics
Cigarettes
Cigarettes
Food
Food and
and beverages
beverages
Pharmaceutical
Pharmaceutical
1-1
Proprietorship
Partnership
Corporation
Cooperatives
1-1
1-1
1-1
Continued
11
1-1
12
1-1
Cooperatives (Koperasi)
Is owned by a group of people (named as
member). Cooperatives mainly are
organized by and for member only. For
example Employee Cooperatives
(Koperasi Karyawan), Milk Farmer
Cooperatives (Koperasi Pengrajin Susu),
Batik Business Owner Cooperatives
(Koperasi Pengusaha Batik), and many
more
13
1-1
A business stakeholder is a
person or entity having an
interest in the economic
performance and well-being
of a business.
14
1-1
15
1-1
1-1
1-1
1-1
19
1-1
The answer to
1. Individual
What went
character
wrong for these
2. Firm culture
companies?
3. Laws and
(Exhibit 2)
enforcement
involves three
factors.
20
1-1
1-1
1-1
23
23
1-1
1-1
1-2
Objective
Objective 22
Summarize the development
of accounting principles and
relate them to practice.
26
1-2
1-2
1-2
29
1-2
30
1-2
Example Exercise 1-1
On August 25, Bengkel Agung Jaya extended an offer of
Rp125,000,000 for land that had been priced for sale at
Rp150,000,000. On September 3, Bengkel Agung Jaya accepted the
sellers counteroffer of Rp137,000,000. On October 20, the land was
assessed at a value of Rp98,000,000 for property tax purposes. On
December 4, Bengkel Agung Jaya was offered Rp160,000,000 for
the land by a national retail chain. At what value should the land be
recorded in Bengkel Agung Jayas records?
31
1-3
Objective
Objective 33
State the accounting
equation and define each
element of the equation.
32
1-3
33
1-3
1-3
35
1-3
Example Exercise 1-2
Asep Sunarya is the owner and operator of Pasti Sukses, a motivational consulting
business.
At the accounts
end of its accounting
Decembertrial
31, 2007,
PastiofSukses has
The
following
appear inperiod,
the adjusted
balance
assets of Rp800,000,000 and liabilities of Rp350,000,000. Using the accounting
Hindsight
Consulting. Indicate whether each account would be
equation, determine the following amounts:
A = L + OE
Rp800,000,000 = Rp350,000,000 + OE
OE = Rp450,000,000
b.
A = L + OE
Rp130,000,000 = Rp25,000,000 + OE
OE = Rp155,000,000
OE on Dec. 31, 2008:
Rp605,000,000 (Rp450,000,000+Rp155,000,000)
36
36
1-4
Objective
Objective 44
Describe and illustrate how
business transactions can be
recorded in terms of the resulting
change in the basic elements of the
accounting equation.
37
1-4
A business transaction is an
economic event or condition that
directly changes an entitys
financial condition or directly
affects its results of operations.
38
1-4
@solusinet
1-4
Assets
Cash
25,000,000
a.
=
=
Owners Equity
Cinta Cita, Capital
25,000,000
Investment by Cinta
Cita
40
1-4
(in Rp000)
Assets
Cash + Land
Bal. 25,000
b. 20,000
+20,000
Bal. 5,000
20,000
=
=
Owners Equity
Cinta Cita, Capital
25,000
25,000
1-4
(in Rp000)
Assets
20,000
+1,350
1,350
20,000
Owners
Liabilities + Equity
Accounts
Cinta Cita,
Payable
Capital
25,000
+1,350
1,350
25,000
42
1-4
43
1-4
(in Rp000)
Assets
Cash + Supplies + Land
5,000
1,350
20,000
Bal.
d. +7,500
12,500
Bal.
1,350
20,000
44
(in Rp000)
1-4
Liabilities +
Owners Equity
Accounts
Cinta Cita,
Fees
Payable +
Capital + Earned
Bal.
1,350
25,000
+7,500 d.
1,350
25,000
7,500 Bal.
Expenses
1-4
1-4
(in Rp000)
Assets
Cash + Supplies + Land
Bal. 12,500
1,350
20,000
e. 3,650
Bal. 8,850
1,350
20,000
47
1-4
(in Rp000)
Liabilities +
Owners Equity
Accounts
Cinta Cita,
Fees
Wages
Rent
Utilities
Payable + Capital + Earned Expense Expense Expense
Expense
1,350
25,000
7,500
1,350
25,000
7,500
2,125
800
450
2,125
800
450
Misc.
275
e.
275
48
1-4
(in Rp000)
Assets
Cash + Supplies + Land
Bal. 8,850
1,350
20,000
f. 950
Bal. 7,900
1,350
20,000
49
1-4
(in Rp000)
Liabilities +
Owners Equity
Accounts
Cinta Cita,
Fees
Wages
Rent
Utilities
Misc.
Payable + Capital + Earned Expense Expense Expense
Expense
800
450
275
1,350
25,000
7,500 2,125
f.
950
400
25,000
7,500
2,125
800
450
275
50
1-4
(in Rp000)
Assets
Cash + Supplies + Land
Bal. 7,900
1,350
20,000
g.
Bal. 7,900
800
550
20,000
51
1-4
(in Rp000)
Liabilities +
Owners Equity
25,000
7,500
2,125
800
450 275
52
1-4
(in Rp000)
Assets
Cash + Supplies + Land
Bal. 7,900
550
20,000
h. 2,000
Bal. 5,900
550
20,000
53
1-4
(in Rp000)
Liabilities +
Owners Equity
25,000
7,500 2,125
h.
2,000
400
25,000
2,000
7,500 2,125
800
800
450
275
54
1-4
Owners Equity
Increased by
Decreased by
Owners
investments
Owners
withdrawals
Revenues
Expenses
55
1-4
Example Exercise 1-3
Simatupang Express is owned and operated by Bonar
Simatupang. The following selected transactions were
completed by Simatupang Express during February:
1. Received cash from owner as additional investment,
Rp35,000,00.
2. Paid creditors on account, Rp1,800,000.
3. Billed customers for delivery services on account,
Rp11,250,000.
4. Received cash from customers on account, Rp6,740,000.
5. Paid cash to owners for personal use, Rp1,000,000.
56
Continued
1-4
Example Exercise 1-3
Indicate the effect of each transaction on the accounting
equation elements (Assets, Liabilities, Owners Equity,
Drawing, Revenue, and Expense) by listing the numbers
identifying the transactions, (1) through (5). Also, indicate
the specific item within the accounting equation element
that is affected. To illustrate, the answer to (1) is shown
below.
(1) Asset (Cash) increases by Rp35,000,000; Owners
Equity (Bonar Simatupang, Capital) increases by
Rp35,000,000.
57
1-4
Follow My Example 1-3
(2) Asset (Cash) decreases by Rp1,800,000; Liability
(Accounts Payable) decreases by Rp1,800,000.
(3) Asset (Accounts Receivable) increases by Rp11,250,000;
Revenue (Simatupang Express) increases by
Rp11,250,000.
(4) Asset (Cash) increases by Rp6,740,000; Asset (Accounts
Receivable) decreases by Rp6,740,000.
(5) Asset (Cash) decreases by Rp1,000,000; Owners Equity
(Bonar Simatupang, Drawing) increases by Rp1,000,000.
58
For Practice: PE 1-3A, PE 1-3B
1-5
Objective
Objective 55
Describe the financial
statements of a proprietorship
and explain how they
interrelate.
59
1-5
60
1-5
61
1-5
Income Statement
1-5
63
1-5
64
1-5
65
1-5
Balance Sheet
1-5
67
1-5
68
Income Statement
1-5
1-5
1-5
Example Exercise 1-4
The assets and liabilities of Cimande Travel Service at April 30,
2008, the end of the current year, and its revenue and expenses
for the year are listed below. The capital of the owner, Adam
Kuncoro, was Rp80,000,000 at May 1, 2007, the beginning of the
current year.
Accounts payable
Accounts receivable
Cash
Fees earned
Land
Rp 12,200,000
31,350,000
53,050,000
263,200,000
80,000,000
Miscellaneous expense
Office expense
Supplies
Wages expense
Rp 12,950,000
63,000,000
3,350,000
131,700,000
1-5
Follow My Example 1-4
CIMANDE TRAVEL SERVICE
INCOME STATEMENT
For the Year Ended April 30, 2008
Fees earned
Expenses:
Wages expense
Office expense
Miscellaneous expense
Total expenses
Net income
Rp263,200,000
Rp131,700,000
63,000,000
12,950,000
207,650,000
Rp 55,550,000
72
1-5
1-5
Example Exercise 1-5
74
1-5
Follow My Example 1-5
CIMANDE TRAVEL SERVICE
STATEMENT OF OWNERS EQUITY
For the Year Ended April 30, 2008
Adam Kuncoro, capital, May 1, 2007
Additional investment by owner during year
Net income for the year
Less withdrawals
Increase in owners equity
Adam Kuncoro, capital, April 30, 2008
Rp 80,000,000
Rp 50,000,000
55,550,000
Rp 105,550,000
30,000,000
75,550,000
Rp 155,550,000
75
Balance Sheet
1-5
76
1-5
1-5
78
1-5
Example Exercise 1-6
Using the data for Cimande Travel Service shown in Example
Exercise 1-4 and 1-5, prepare the balance sheet as of April 30, 2008.
Assets
Cash
Accounts receivable
Supplies
Land
Total assets
Liabilities
Rp 12,200,000
155,550,000
Rp 167,750,000
79
1-5
80
1-5
81
1-5
82
1-5
1-5
Rp 251,000,000
50,000,000
210,000,000
80,000,000
30,000,000
84
84
1-5
Rp251,000,000
210,000,000
Rp 41,000,000
(80,000,000)
Rp 50,000,000
30,000,000
20,000,000
Rp (19,000,000)
72,050,000
Rp 53,050,000
85
85
1-5
86
1-5
1-5