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Confidentiality Requirement This material is prohibited for reproduction or distribution without prior consent from the author. 1 Study Guide in Introductory Accounting for Service Business Benedick Manalaysay Accountancy Department De La Salle University – Manila Created with novaPDF Printer ( www.novaPDF.com ). Please register to remove this message. Confidentiality Requirement This material is prohibited for reproduction or distribution without prior consent from the author. 2 TABLE OF CONTENTS Lesson Number Topic Starting Page 1 Introduction to Accounting 3 2 Transaction Analysis 12 3 General Journal, General Ledger, Trial Balance 22 4 Financial Statements 29 5 Statement of Cash Flows 36 6 Correcting Entries 38 7 Payroll Accounting 40 8 Accounting for Promissory Notes 43 9 Accrued Income 52 10 Accrued Expense 55 11 Prepaid Expense 58 12 Unearned Income 62 13 Depreciation 66 14 Doubtful Accounts 71 15 Closing Entries, Post-Closing Trial Balance 76 16 Reversing Entries 82 Created with novaPDF Printer ( www.novaPDF.com ). Please register to remove this message. Confidentiality Requirement This material is prohibited for reproduction or distribution without prior consent from the author. 3 LESSON 1 INTRODUCTION TO ACCOUNTING Study Objectives After studying this lesson, you should be able to: Achievement of Objective (Put a Check mark) 1 Learn the history of accounting 2 Define accounting 3 Know the difference between bookkeeping and accounting 4 Know the branches of accounting 5 Distinguish the forms of business organizations according to ownership and according to activity 6 Know the role of Certified Public Accountant in the society 7 Know the functions of different government agencies and professional bodies relevant to the accounting profession 8 Know the purposes of the business documents 9 Define financial statements and its components, generally accepted accounting principles (GAAP), Financial Reporting Standards Council (FRSC), and users of the financial statements 10 Explain the different basic accounting concepts or assumptions 11 Know other terms related to basic accounting Created with novaPDF Printer ( www.novaPDF.com ). Please register to remove this message. Confidentiality Requirement This material is prohibited for reproduction or distribution without prior consent from the author. 4 Objective 1 History of Accounting Accounting has a long history. Some scholars claim that writing arose in order to record information. Account records date back to the ancient civilizations of China, Babylonia, Greece and Egypt. The rulers of these civilizations used accounting to keep track of the cost of labor and materials used in building structures like the great pyramids. (Source: Horngren, Harrison and Robinson, 1995) Accounting developed as a result of the information needs of merchants in the city-states of Italy during the 1400s. In that commercial climate a monk, Luca Pacioli, a mathematician and friend of Leonardo da Vinci, published the first known description of double-entry bookkeeping entitled ... View Full Document

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