tailieunhanh - Lecture Introduction to business - Lecture 3: Analyzing transactions

The following will be discussed in this chapter: Types of business organizations, types of businesses, business stakeholders, process of information, accounting system, GAAP, transactions of accounting equations, financial statements. | Accounting 1 MGT 130 Lecture 03 Chapter 02 Analyzing Transactions Types of Business Organizations Types of Businesses Business Stakeholders Process of Information Accounting System GAAP Transactions of Accounting equations Financial Statements 1. Explain why accounts are used to record and summarize the effects of transactions on financial statements. 2. Rules of debit and credit and the normal balances of accounts. 3. Analyze and summarize the financial statement effects of transactions. 4. Prepare a trial balance and explain how it can be used to discover errors. 5. Discover errors in recording transactions and correct them. 6. Use horizontal analysis to compare financial statements from different periods. A list of the accounts in a ledger is called a chart of accounts. Cash Supplies Building Accounts receivable Accounts payable Notes payable Wages payable Cash Supplies Building Accounts receivable Accounts payable Notes payable Wages payable Javid Iqbal, Capital Javid Iqbal, Drawing Fees Earned Fares Earned Commission Revenue Sales Rent Expense Salary Expense Utilities Expense Major Account Classifications Cash Cash Left side debit Cash Left side debit Right side credit Cash 3,750 4,300 2,900 850 1,400 700 2,900 Typical entries Cash 3,750 4,300 2,900 850 1,400 700 2,900 10,950 First, total the debit side. 850 1,400 700 2,900 Cash 3,750 4,300 2,900 10,950 5,850 Next, total the credit side. 850 1,400 700 2,900 Cash 3,750 4,300 2,900 10,950 5,850 5,100 Transactions and Balance Sheet Accounts Debits Credits Asset accounts . Increase (+) Decrease (-) Liability accounts Decrease (-) Increase (+) Owner’s equity (capital) accounts . Decrease (-) Increase (+) Rules of Debit / Credit Balance Sheet Accounts Credit for increases (+) Credit for increases (+) Credit for decreases (-) Debit for increases (+) Debit for decreases (-) Debit for decreases (-) ASSETS Asset Accounts LIABILITIES Liability Accounts Owner’s Equity Accounts OWNER’S EQUITY Balance Sheet Accounts . | Accounting 1 MGT 130 Lecture 03 Chapter 02 Analyzing Transactions Types of Business Organizations Types of Businesses Business Stakeholders Process of Information Accounting System GAAP Transactions of Accounting equations Financial Statements 1. Explain why accounts are used to record and summarize the effects of transactions on financial statements. 2. Rules of debit and credit and the normal balances of accounts. 3. Analyze and summarize the financial statement effects of transactions. 4. Prepare a trial balance and explain how it can be used to discover errors. 5. Discover errors in recording transactions and correct them. 6. Use horizontal analysis to compare financial statements from different periods. A list of the accounts in a ledger is called a chart of accounts. Cash Supplies Building Accounts receivable Accounts payable Notes payable Wages payable Cash Supplies Building Accounts receivable Accounts payable Notes payable Wages payable Javid Iqbal, Capital Javid Iqbal, .