tailieunhanh - Lecture Survey of Accounting (First edition): Chapter 17 – Kimmel, Weygandt

Chapter 17 - Double-entry accounting system. In this chapter, you will learn: Explain how accounts, debits, and credits are used to record business transactions; indicate how a journal and ledger are used in the recording process; prepare a trial balance; prepare adjusting entries and an adjusted trial balance. | Double-Entry Accounting System D WILEY Kimmel ● Weygandt Survey of Accounting, First Edition CHAPTER OUTLINE LEARNING OBJECTIVES Explain how accounts, debits, and credits are used to record business transactions. 1 Indicate how a journal and ledger are used in the recording process. 2 Prepare a trial balance. 3 Prepare adjusting entries and an adjusted trial balance. 4 Double-entry system Each transaction must affect two or more accounts to keep the basic accounting equation in balance. Recording done by debiting at least one account and crediting another. DEBITS must equal CREDITS. DEBITS AND CREDITS LEARNING OBJECTIVE Explain how accounts, debits, and credits are used to record business transactions. 1 LO 1 If Debits are greater than Credits, the account will have a debit balance. $10,000 Transaction #2 $3,000 $15,000 8,000 Transaction #3 Balance Transaction #1 DEBIT AND CREDIT PROCEDURES LO 1 $10,000 Transaction #2 $3,000 Balance Transaction #1 $1,000 8,000 Transaction #3 DEBIT AND CREDIT PROCEDURES If Credits are greater than Debits, the account will have a credit balance. LO 1 Assets - Debits should exceed credits. Liabilities – Credits should exceed debits. Dr./Cr. Procedures for Assets and Liabilities ▼ HELPFUL HINT The normal balance is the side where increases in the account are recorded. LO 1 Investments by stockholders and revenues increase stockholders’ equity (credit). Dividends and expenses decrease stockholder’s equity (debit). Procedures for Stockholders’ Equity LO 1 Revenues increase stockholder’s equity. Expenses have the opposite effect: expenses decrease stockholders’ equity. The effect of debits and credits on revenue and expense accounts is the same as their effect on stockholders’ equity. Procedures for Stockholders’ Equity LO 1 LO 1 Normal Balance Credit Normal Balance Debit DEBIT/CREDIT RULES Balance Sheet Income Statement = + - Asset Liability Equity Revenue Expense Debit Credit SUMMARY OF DEBIT/CREDIT RULES LO 1 Relationship among the . | Double-Entry Accounting System D WILEY Kimmel ● Weygandt Survey of Accounting, First Edition CHAPTER OUTLINE LEARNING OBJECTIVES Explain how accounts, debits, and credits are used to record business transactions. 1 Indicate how a journal and ledger are used in the recording process. 2 Prepare a trial balance. 3 Prepare adjusting entries and an adjusted trial balance. 4 Double-entry system Each transaction must affect two or more accounts to keep the basic accounting equation in balance. Recording done by debiting at least one account and crediting another. DEBITS must equal CREDITS. DEBITS AND CREDITS LEARNING OBJECTIVE Explain how accounts, debits, and credits are used to record business transactions. 1 LO 1 If Debits are greater than Credits, the account will have a debit balance. $10,000 Transaction #2 $3,000 $15,000 8,000 Transaction #3 Balance Transaction #1 DEBIT AND CREDIT PROCEDURES LO 1 $10,000 Transaction #2 $3,000 Balance Transaction #1 $1,000 8,000 Transaction #3 DEBIT AND