武汉理工大学：《会计学》课程教学课件（英文）03 Accounting Records and Systems

Chapter 3Accounting Recordsand SystemsWHUTAccountingdepartmentofmanagementschool

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 WHUT Accounting department of management school Chapter 3 Accounting Records and Systems

Learning ObjectivesThe nature of the account and entriesRecord transactions in a journal and postentries to a ledgerDefine debits and credits and explaintheir role in double-entry accountingThe closing processWHUTAccountingdepartmentofmanagementschool

McGraw WHUT-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 Accounting department of management school Learning Objectives The nature of the account and entries Record transactions in a journal and post entries to a ledger Define debits and credits and explain their role in double-entry accounting The closing process

1.Analyzing and Recording1ProcessAnalyze eachRecordrelevanttransactionandeventtransactionsandfrom sourceeventsinajournaldocumentsPost journalPrepareinformation tofinancial reportledgeraccountsWHUTAccountingdepartmentofmanagementschool

McGraw WHUT-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 Accounting department of management school Analyze each transaction and event from source documents 1.Analyzing and Recording Process Record relevant transactions and events in a journal Post journal information to ledger accounts Prepare financial report

Source DocumentsBills fromChecksPurchaseSuppliersOrdersEmployeeEarningsRecordsBankStatementsSalesTicketsWHUTAccountingdepartmentofmanagementschool

McGraw WHUT-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 Accounting department of management school Sales Tickets Bank Statements Purchase Orders Checks Source Documents Bills from Suppliers Employee Earnings Records

12. The Account and its AnalysisAnaccountis arecord ofThe generalincreasesandledgerisarecorddecreases in acontaining allspecific asset.accountsusedbyliability, equitythe company.revenue,orexpense item.WHUTAccountingdepartmentofmanagementschool

McGraw WHUT-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 Accounting department of management school An account is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item. 2. The Account and its Analysis The general ledger is a record containing all accounts used by the company

Asset AccountsAccountsCashLandReceivableNotesBuildingsAssetReceivableAccountsEquipmentPrepaidAccountsSuppliesWHUTAccountingdepartmentofmanagementschool

McGraw WHUT-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 Accounting department of management school Land Equipment Buildings Cash Notes Receivable Supplies Prepaid Accounts Accounts Receivable Asset Accounts Asset Accounts

Liability AccountsNotesAccountsPayablePayableLiabilityAccountsAccruedUnearnedLiabilitiesRevenueWHUTAccountingdepartmentofmanagementschool

McGraw WHUT-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 Accounting department of management school Accrued Liabilities Unearned Revenue Notes Payable Accounts Payable Liability Accounts Liability Accounts

Equity AccountsRetainEquityCapitalearningAccountsExpensesRevenuesWHUTAccountingdepartmentofmanagementschool

McGraw WHUT-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 Accounting department of management school Equity Accounts Revenues Retain earning Expenses Equity Accounts Capital

T-AccountCashPurchase landsInvestmentbyownerAnaccount balanceisthedifferencebetweenthe increases and decreases inanaccount.WHUTAccountingdepartmentofmanagementschool

McGraw WHUT-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 Accounting department of management school Investment by owner Purchase lands Cash T-Account An account balance is the difference between the increases and decreases in an account

1T-AccountingCash20,00025,000Purchase of landInvestmentbyowner800revenuesearned7,500Payment of rent2,125Payment of salary450Payment of utilities275Paymentofmiscellaneous950Paymentofaccountpayable2,000Withdrawal by owner32,500Totaldecreases26,600Total increases5,900BalanceWHUTAccountingdepartmentofmanagementschool

McGraw WHUT-Hill/Irwin © The McGraw-Hill Companies, Inc., 2007 Accounting department of management school Investment by owner 25,000 Purchase of land 20,000 revenues earned 7,500 Payment of rent 800 Payment of salary 2,125 Payment of utilities 450 Payment of miscellaneous 275 Payment of account payable 950 Withdrawal by owner 2,000 Total increases 32,500 Total decreases 26,600 Balance 5,900 Cash T-Accounting