Week 4 Lecture Notes (6 slides)

Week 4 Lecture Notes (6 slides) - THE UNIVERSITY OF NEW...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Session 2, 2011 AFM1A THE UNIVERSITY OF NEW SOUTH WALES Australian School of Business School of Accounting ACCT 1501: Accounting and Financial Management 1A Week 4 Record Keeping Student Handout Lecturer: Dr. Tami Dinh Thi School of Accounting UNSW QUAD 3100 t.dinhthi@unsw.edu.au Blackboard: http://elearning.unsw.edu.au WEEK 4: Record-Keeping
Background image of page 1

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

View Full DocumentRight Arrow Icon
Session 2, 2011 AFM1A 1. Introduction This week covers the processes by which transactions are recorded in the accounting system. You will learn about the criteria that are used to determine if an accounting transaction occurs. We will then focus on the basic steps in the accounting cycle: source document, journal entries, posting to ledgers, trial balances, adjusting entries, closing entries and the preparation of financial statements. Learning objectives At the end of this topic you should be able to: Explain the various steps in the accounting cycle Prepare journal entries Post to ledger accounts and calculate the closing balances Prepare a trial balance, closing entries and financial statements from post-closing trial balance Required reading Trotman & Gibbins Chapter 4 2. Tutorial Questions – Week 5 Students should attempt these questions before the tutorial. Preparation Questions DQ 4.2, 4.6, 4.7 P4.4, P4.5, P4.13 Tutorial Questions DQ 4.15, 4.16 P4.14, P4.17 Case 4A
Background image of page 2
1 Accounting and Financial Management 1A Week 4 Session 2, 2011 Dr. Tami Dinh Thi Quad 3100 Record-Keeping Today’s lecture objectives: HOT: Explain the various steps in the accounting cycle Prepare journal entries Post to ledger accounts and calculate the closing balances Prepare a trial balance, closing entries and financial statements from posting-closing trial balance Accounting Cycle: Big picture Identifying and measuring Source documents Recording Journal entries Transactions 3 Transformation • Adjusting entries • Closing entries Reporting Financial Position Financial Performance Cash Flows Classifying and summarising Ledger Account Trial Balance Accounting assumptions and principles Transactions Judgement required to determine: relevant events to record when and how events enter the accounting system. Ex) transaction 4: Signed six-month agreement to provide catering service for a monthly fee of $2500 starting next month. Transactions: External Characteristics: exchange of items of economic value involves a party external to business evidence (documentation) exists measurable in monetary units. Transactions: External Examples: payment of wages and salaries to employees receipt of cash from a customer who bought on credi credit borrowing money from a bank purchase of equipment.
Background image of page 3

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

View Full DocumentRight Arrow Icon
2 Transactions: Internal Adjustments made to records that introduce new data or alter existing data: intended to enhance information reflect economic events that are not exchanges reflect economic events that are not exchanges. Examples:
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 12

Week 4 Lecture Notes (6 slides) - THE UNIVERSITY OF NEW...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online