AccountingNotes - Hospitality Accounting 1 12/3/2007...

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Hospitality Accounting 1 03/12/2007 10:36:00 Chapter 1: Intro to Accounting Financial Accounting: External uses of accounting info Managerial Accounting: internal uses of accounting info Organizations: Distinct entities Person(s) with stated purpose Operating in environment by interacting with other organizations Business Transaction Donatations and Contracts are exchanges of value, but not recorded by  accounting  Forms of Legal Organization: can start at step one and move up – harder to  move back down (tax problems) Sole proprietorship o One owner (in CO if married, couple is sole) o 100% responsibility; unlimited liability o Don’t share profits o Simple (no registration requirements) o Taxation – no tax breaks (50%) o Limited Life – when you die, buz dies Partnership: 2 or more, not married o Easy to organize o Combination or capital and experience
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o Taxation (50%) o Limited Life o Mutually agency (if one partner leaves or files bankruptcy); Unlimited  Liability o Hard to expand Corporations o Limited Liability o Unlimited life o Separated from owner o If sold, then transfer of ownership – easy o Access to capital – sell stocks to make money o Double taxation (65%) (c-corps); c-corps raise price of goods/services  the percentage needed to pay taxes o More government control Regulate how you do business. With audits… o Complex decision-making process S-Corporation o IRS Tax status o No double taxation (43%) o Qualifications Less than 72 shareholders USA citizens Corporations is not owned by/owns other C-corps
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Accounting Cycle  Transaction analysis  Journalize transaction  Post transaction  Prepare trial balance  Prepare adjusting entries  Prepare reports  Post closing entries Chapter 2-Accounting Basics GAAP- Generally Accepted Accounting Principles The Balance Sheet o Business Entity Concept Owner/business = 2 separate business entities Separate sets of financial statements o Money Measurement o Objectivity: measurements are viable, without bias o Going Concern (aka Continuity); assumption that organization will be  open indefinitely. o Cost Principle: Proper bias to account for assets o Conservatism: be conservative with estimates Asset = Liabilities + Equity Assets o Cash o Accounts receivable o Prepaid expenses o Inventories Liabilities: accounts payable o Notes payable o Taxes payable Equity Revenue-Expenses = Profit Balance sheets are only good for the day written
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Chapter 3 03/12/2007 10:36:00 Basic Financial Statements
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Annual financial statements o Fiscal: 12 months not starting on January Interim Report
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This note was uploaded on 04/06/2008 for the course ACCT 1011 taught by Professor Gilbert during the Winter '07 term at Johnson & Wales University - Denver.

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AccountingNotes - Hospitality Accounting 1 12/3/2007...

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