中山大学：《基础会计学》（英文版）Lesson 3 Analyzing and Recording Transactions

m中山大學管捏學院 经m00 BUSINESS SUN YAT-SEN UNIVERSIT Lesson 3 Analyzing and Recording Transactions A ask team of Fundamental Accounting School of business. sun yat-sen niversity

Lesson 3 Analyzing and Recording Transactions Task team of Fundamental Accounting School of Business, Sun Yat-sen University

Outline ◆ Accounts Q Detailed Description of Various ◆ Accounts ◆ T-Accounts Q Rules of debits and Credits Q Double-entry accounting Q Illustrated Application of rules Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

2 Outline ⧫Accounts ⧫Detailed Description of Various ⧫Accounts ⧫T-Accounts ⧫Rules of Debits and Credits ⧫Double-entry Accounting ⧫Illustrated Application of Rules

Opening Story Q Do you have any idea about how your parents keep an“ account” of how much the family spends? Q What a good family accountant Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 3

3 Opening Story ⧫Do you have any idea about how your parents keep an “account” of how much the family spends? ⧫What a good family accountant!

Opening Story C Aglobal demand for accountants- where can the “ Big four” find accountants with talent and virtues n MrLand, E&Y British president (indirect quote) In the recent 18 monthS, the shortage of accounting talents has been scarcely satisfied. The most valuable in the 2lst century is accountants to special accounting firms like us.(2005-7-21 Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

4 Opening Story ⧫ A global demand for accountants – where can the “Big Four” find accountants with talent and virtues?  Mr.Land, E&Y British president (indirect quote) In the recent 18 months, the shortage of accounting talents has been scarcely satisfied. The most valuable in the 21st century is accountants to special accounting firms like us. （2005－7－21）

The Account Accounting's main summary device is the account, the record of changes. Accounts are grouped in 3 broad categories, according to the accounting equation: Assets= Liabilities Stockholders'Equity CAsh Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 5

5 The Account Cash Accounting’s main summary device is the account, the record of changes. Accounts are grouped in 3 broad categories, according to the accounting equation:

The Assets account Assets are the economic resources that benefit the business now and in the future Cash Supplies Accounts receivable Inventory Properties Notes receivable Buildings Prepaid expenses Equipment Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

6 The Assets Account Assets are the economic resources that benefit the business now and in the future Cash Accounts receivable Inventory Notes receivable Prepaid expenses Supplies Properties Buildings Equipment

The liabilities account Liabilities are the debts of the company. Notes payable Accounts payable Accrued liabilities (for expenses incurred but not paid) Long-term liabilities(bonds) Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 7

7 The Liabilities Account Liabilities are the debts of the company. Notes payable Accounts payable Accrued liabilities (for expenses incurred but not paid) Long-term liabilities (bonds)

The Equity Account Stockholders(owners)equity is the owners' claims to the assets of a corporation A proprietorship uses a single account. a partnership uses separate accounts for each owners capital balance and withdrawals A corporation uses separate capital accounts for each source of capital. Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

8 The Equity Account Stockholders’ (owners’) equity is the owners’ claims to the assets of a corporation. A proprietorship uses a single account. A partnership uses separate accounts for each owner’s capital balance and withdrawals. A corporation uses separate capital accounts for each source of capital

Details of Equity Account Common Stock Retained earnings Dividends Revenues Expenses Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

9 Details of Equity Account Common Stock Retained Earnings Dividends Revenues Expenses

The account Account title Debit Credit LEFT SIDE L RIGHT SIDE Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

10 The T-Account Account Title Debit LEFT SIDE RIGHT SIDE Credit