{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

W5_lecture_handout_slides

# W5_lecture_handout_slides - 1 Week 5 Business Transactions...

This preview shows pages 1–4. Sign up to view the full content.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1 Week 5: Business Transactions and the Accounting Information System Text: Ch.5 (LO 5-6,8) Lecture Exercises: E5.6 extended, Sole Trader exercise, Company exercise Self-Study Exercises: P5.3-P5.4, P5.8 Announcements: Today you elect student representatives Start working on Task 1 of the group assignment Outline Transaction analysis: Exercise 5.6 The accounting worksheet Simplified financial statements Income Statement Statement of Changes in Equity Statement of Financial Position (or Balance Sheet) Recording errors 2 Exercise 5.6 Show what effect the following business transactions, let say during June 2008 , will have on the accounting equation: ABC Pty Ltd Chart of Accounts is : Cash, Accounts Receivable, Office Equipment, Inventory, Sales Revenue, Cost of Goods Sold, Accounts Payable, Share Capital, Retained Earnings Wages Exp, Utilities Exp ! Injection of cash into private company ABC Retailers Pty Ltd &amp;quot; A (Cash) = L + &amp;quot; E (Share Capital) # Paid casual wages \$ A (Cash) = L + \$ E (Wages Expense) % Sold goods on credit (sale price), that were originally purchased at a different price (cost price) Sale price : &amp;quot; A (A/cs Rec.) = L + &amp;quot; E (Sales Revenue) Cost price : \$ A (Inventory) = L + \$ E (Cost of Goods Sold) Exercise 5.6 &amp;amp; Purchased goods on credit &amp;quot; A (Inventory) = &amp;quot; L (Accounts Payable) + E Received a gas invoice and paid the account \$ A (Cash) = L + \$ E (Utilities Expense) ( Owner withdrew computer from business \$ A (Office Equipment) = L + \$ E (Share Capital) ) Sold goods for cash Sale price : &amp;quot; A (Cash) = L + &amp;quot; E (Sales Revenue) Cost price : \$ A (Inventory) = L + \$ E (Cost of Goods Sold) * Debtor paid amount outstanding \$ A (Accounts Receivable) + &amp;quot; A (Cash) = L + E + Business paid creditor in full \$ A (Cash) = \$ L (Accounts Payable) + E 3 The Accounting Worksheet A worksheet helps to analyse the dual effect from business transactions, in the same manner like in the previous slides, but in a more readable format The worksheet is a simple table that records the the dual effect of each transaction to each subdivided categories of Assets, Liabilities and Equity (i.e. into accounts) At the end of a period, this table can be used to sum up the transactions for each account and use the totals to prepare financial statements E5.6 extended: prepare June statements ! ABC Pty Ltd Chart of Accounts : Cash, A/cs Receivable, Office Equip, Inventory, A/cs Payable, Share Capital, Retained Earnings, Sales Revenue, Cost of Goods Sold, Wages Exp, Utilities Exp, Tax Exp...
View Full Document

{[ snackBarMessage ]}

### Page1 / 11

W5_lecture_handout_slides - 1 Week 5 Business Transactions...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online