My Chapter 3 Lecture Slides

My Chapter 3 Lecture Slides - The Accounting Information...

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Unformatted text preview: The Accounting Information System Chapter 3-23 Asset s Asset s Debit / Dr. Credit / Cr. Normal Balance Normal Balance Chapter 3-27 Debit / Dr. Credit / Cr. Normal Balance Normal Balance Expense Expense Chapter 3-24 Liabilit ies Liabilit ies Debit / Dr. Credit / Cr. Normal Balance Normal Balance Chapter 3-25 Debit / Dr. Credit / Cr. Normal Balance Normal Balance Equit y Equit y Chapter 3-26 Debit / Dr. Credit / Cr. Normal Balance Normal Balance Revenue Revenue Normal Balance Credit Normal Balance Debit Debits and Credits Summary LO 2 Explain double-entry rules. LO 2 Explain double-entry rules. The Accounting Equation LO 2 Explain double-entry rules. LO 2 Explain double-entry rules. Relationship among the assets, liabilities and stockholders equity of a business: The equation must be in balance after every transaction. For every Debit there must be a Credit . Illustration 3-3 The Accounting Cycle LO 3 Identify steps in the accounting cycle. LO 3 Identify steps in the accounting cycle. Transactions 1. Journalization 6. Financial Statements 7. Closing entries 8. Post-closing trial balance 9. Reversing entries 3. Trial balance 2. Posting 5. Adjusted trial balance 4. Adjustments Work Sheet Illustration 3-6 General Journal General Journal a chronological record of transactions. Journal Entries are recorded in the journal. 1. Journalizing LO 4 LO 4 Record transactions in journals, post to Record transactions in journals, post to ledger accounts, and prepare a trial balance. ledger accounts, and prepare a trial balance. September 1: Stockholders invested $15,000 cash in the corporation in exchange for shares of stock. Illustration 3-7 Posting Posting the process of transferring amounts from the journal to the ledger accounts. 2. Posting LO 4 LO 4 Record transactions in journals, post to Record transactions in journals, post to ledger accounts, and prepare a trial balance. ledger accounts, and prepare a trial balance. Illustration 3-7 Illustration 3-8 Posting Posting Transferring amounts from journal to ledger. 2. Posting LO 4 LO 4 Illustration 3-8 Special Journals Journal Transaction Recorded Sales All merchandise sales on account Purchases All merchandise purchases on account Cash Receipts All cash receipts (including sales) Cash Payments All cash payments (including purchases) Trial Balance Trial Balance A list of each account and its balance; used to prove equality of debit and credit balances. 3. Trial Balance LO 4 LO 4 Record transactions in journals, post to Record transactions in journals, post to ledger accounts, and prepare a trial balance. ledger accounts, and prepare a trial balance. Illustration 3-19 Types of Adjusting Entries 1. Prepaid Expenses. Expenses paid in cash and recorded as assets before they are used or consumed....
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My Chapter 3 Lecture Slides - The Accounting Information...

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