Kế toán doanh nghiệp - Chapter 2: Accounting system and financial statements

Financial AccountingJohn J. WildSeventh Edition Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Chapter 2Accounting System and Financial StatementsAnalyze each transaction and event from source documentsAnalyzing and Recording ProcessRecord relevant transactions and events in a journalPost journal information to ledger accountsPrepare and analyze the trial balanceC 12-*An account is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item.The Account and Its AnalysisThe general ledger is a record containing all accounts used by the company. C 22-*Ledger and Chart of AccountsThe ledger is a collection of all accounts for an information system. A company’s size anddiversity of operations affect the numberof accounts needed.The chart of accounts is a list of all accounts andincludes an identifying number for each account.C 32-* A T-account represents a ledger account and is a tool used to understand the effects of one or more transactions. Debits and CreditsC42-*LiabilitiesEquityAssets=+Double-Entry AccountingDebit CreditDebit CreditDebit CreditASSETS + -LIABILITIES - +EQUITY - +C42-*RevenuesExpensesCommonStockDividends_+_Debit CreditStock - +Debit CreditDividends + -Debit CreditExpenses + -Debit Credit Revenues - +Double-Entry AccountingEquityC42-*Journalizing and Posting TransactionsStep 1: Analyze transactions and source documents.LiabilitiesEquityAssets=+Step 2: Apply double-entry accountingStep 4: Post entry to ledgerStep 3: Record journal entryP12-*After processing its remaining transactions for December, FastForward’s trial balance is prepared.DebitsCreditsCash4,350$ Accounts receivable- Supplies9,720 Prepaid insurance2,400 Equipment26,000 Accounts payable6,200$ Unearned consulting revenue3,000 Common stock30,000 Dividends200 Consulting revenue5,800 Rental revenue300 Salaries expense1,400 Rent expense1,000 Utilities expense230 Total45,300$ 45,300$ FastForwardDecember 31, 2013The trial balance lists all account balances in the general ledger. If the books are in balance, the total debits will equal the total credits.P22-*Trial BalanceTrial BalanceSix Steps for Searching for and Correcting ErrorsIf the trial balance does not balance, the error(s) must be found and corrected.Verify that the trial balance columns are correctly added.Verify that account balances are correctly entered from the ledger.See whether a debit (or credit) balance is mistakenly listed as a credit (or debit). Recompute each account balance in the ledger.Verify that each journal entry is properly posted.Verify that each original journal entry has equal debits and credits.P22-*Using a Trial Balance to Prepare Financial StatementsStatement of Cash FlowsIncome StatementStatement of Retained EarningsBeginning Balance SheetEnding Balance SheetPeriod of TimePoint inTimePoint inTimeP32-*End of Chapter 22-*