tailieunhanh - Principles accounting financial (15th edition): Part 1

(BQ) Part 1 of the document Principles accounting financial (15th edition) has contents: Introduction to accounting and business, analyzing transactions, the adjusting process, completing the accounting cycle, accounting systems,. and other contents. Invite you to refer this document. | .Financial Accounting WARREN REEVE DUCHAC The Basics Accounting Equation Assets Liabilities Owner s Equity T Account Account Title Left side debit Right side redit Rules of Debit and Credit Accounting Cycle 1. Transactions are analyzed and recorded in the journal. 2. Transactions are posted to the ledger. 3. An unadjusted trial balance is prepared. 4. Adjustment data are assembled and analyzed. 5. An optional end-of-period spreadsheet is prepared. 6. Adjusting entries are journalized and posted to the ledger. 7. An adjusted trial balance is prepared. 8. Financial statements are prepared. 9. Closing entries are journalized and posted to the ledger. 10. A post-closing trial balance is prepared. ASSETS Asset Accounts Debit for Credit for increases decreases - Balance LIABILITIES OWNER S EQUITY Liability Accounts Owner s Capital Account Debit for decreases - Credit for increases Debit for decreases - Credit for increases Balance Balance Owner s Drawing Account Debit for increases Credit for decreases - Balance Income Statement Accounts Revenue Accounts Note The side of the account for recording increases and the normal balance is shown in green. Debit for Credit for decreases - increases Balance Expense Accounts Debit for Credit for increases decreases - Balance Types of Adjusting Entries Accrued revenue accrued asset Accrued expense accrued liability Unearned revenue deferred revenue Prepaid expense deferred expense Depreciation expense Each entry will always affect both a balance sheet account and an income statement account. Closing Entries 1. Debit each revenue account for its balance credit each expense account for its balance and credit net income or debit net loss the owner s capital account. Analyzing and Journalizing Transactions 1. Carefully read the description of the transaction to determine whether an asset a liability an owner s equity a revenue an expense or a drawing account is affected. 2. For each account .