c2 - 1 finance and accounting. c2 - 2 英语班级： 08 级 3b6 专 业：会计学...
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Finance and Accounting
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英语班级： 08 级 3B6
专 业：会计学小组成员：吴双茜、陆妩玮 、路元、 郑艳
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• Accounting is the information system that measures business activities,processes that information into reports,and communicates the results to decision-makers.
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It includes ： personal financial planning education expenses loans car payments income taxes investments
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Double-Entry AccountingDouble-Entry AccountingDouble-Entry AccountingDouble-Entry Accounting
“ Double-entry accounting is based on a
simple concept: each party in a business
transaction will receive something and give
something in return. In bookkeeping terms,
what is received is a debit and what is given
is a credit. The T account is a representation
of a scale or balance.”
Luca PacioliDeveloper ofDouble-EntryAccounting
Scale or Balance
ReceiveDEBIT
GiveCREDIT
T account
Left SideReceiveDEBIT
Right SideGive
CREDIT
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Expanded Accounting EquationExpanded Accounting EquationExpanded Accounting EquationExpanded Accounting Equation
“ The basic accounting equation can be
expanded to include all five financial categories
indicating what has been received and given.”
DEBITSreceived
CREDITSgiven=
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Expanded Accounting EquationExpanded Accounting EquationExpanded Accounting EquationExpanded Accounting Equation
“ The basic accounting equation can be
expanded to include all five financial categories
indicating what has been received and given.”
Expenses
Liabilities
Owner’s EquityAssets
DEBITSreceived
CREDITSgiven=
Revenues
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Expanded Accounting EquationExpanded Accounting EquationExpanded Accounting EquationExpanded Accounting Equation
“ The basic accounting equation can be
expanded to include all five financial categories
indicating what has been received and given.”
Expenses
Liabilities
Owner’s EquityAssets
DEBITSreceived
CREDITSgiven=
Revenues
NetIncome
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NetSolutionsNetSolutionsNetSolutionsNetSolutions
“ On November 1, 2002, I started a business
called NetSolutions. I plan to use my
knowledge of microcomputers and offer
computer consulting services for a fee. The
following double-entry transactions show how
amounts received (debits) always equal
amounts given (credits).”
Chris Clark, Owner
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Business TransactionsBusiness Transactions
General Journal
receiveDebit
giveCredit
NetSolutions(investee)
Chris Clark (investor)
giveCredit
Entry A.
Date Description Debit Credit
11/1
Chris Clark deposits $25,000 in a bank account for NetSolutions in exchange for capital stock.
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Chris Clark deposits $25,000 in a bank account for NetSolutions in exchange for capital stock.
Business TransactionsBusiness Transactions
General Journal
receiveDebit
giveCredit
NetSolutions(investee)
Cash
Chris Clark (investor)
giveCredit
Entry A.
Date Description Debit Credit
11/1 Cash 25,000
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Business TransactionsBusiness Transactions
General Journal
Date Description Debit Credit
11/1 Cash 25,000 Capital Stock 25,000
receiveDebit
giveCredit
NetSolutions(investee)
Cash CapitalStock
Chris Clark (investor)
giveCredit
Entry A.
Chris Clark deposits $25,000 in a bank account for NetSolutions in exchange for capital stock.
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NetSolutions buys supplies for $1,350, agreeing to pay in the near future.
Business TransactionsBusiness Transactions
receiveDebit
giveCredit
NetSolutions(buyer)
Supplier (seller)
giveCredit
Entry C.
General Journal
Date Description Debit Credit
11/10
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NetSolutions buys supplies for $1,350, agreeing to pay in the near future.
Business TransactionsBusiness Transactions
receiveDebit
giveCredit
NetSolutions(buyer)
Supplies
Supplier (seller)
giveCredit
Entry C.
General Journal
Date Description Debit Credit
11/10 Supplies 1,350
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NetSolutions buys supplies for $1,350, agreeing to pay in the near future.
Business TransactionsBusiness Transactions
receiveDebit
giveCredit
NetSolutions(buyer)
Supplies
Supplier (seller)
giveCredit
Entry C.
A promiseto pay later
General Journal
Date Description Debit Credit
11/10 Supplies 1,350 Accounts Payable 1,350
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Date Description Debit Credit
11/18 Wages Expense 2,125Rent Expense 800Utilities Expense 450Misc. Expense 275
NetSolutions paid: wages, $2,125; rent, $800; utilities, $450; and miscellaneous, $275.
Business TransactionsBusiness Transactions
General Journal
receiveDebit
giveCredit
NetSolutions(buyer)
Services,benefits
Various suppliers
giveCredit
Entry E.
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Date Description Debit Credit
11/18 Wages Expense 2,125Rent Expense 800Utilities Expense 450Misc. Expense 275 Cash 3,650
NetSolutions paid: wages, $2,125; rent, $800; utilities, $450; and miscellaneous, $275.
Business TransactionsBusiness Transactions
General Journal
receiveDebit
giveCredit
NetSolutions(buyer)
Services,benefits
Various suppliers
giveCredit
Entry E.
Cash
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NetSolutionsChart of Accounts
Balance Sheet Income Statement
1. Assets11 Cash12 Accounts Receivable14 Supplies15 Prepaid Insurance17 Land18 Office Equipment
2. Liabilities21 Accounts Payable23 Unearned Rent
3. Owner’s Equity31 Capital Stock32 Retained Earnings33 Dividends
4. Revenue41 Fees Earned
5. Expenses51 Wages Expense52 Rent Expense54 Utilities Expense55 Supplies Expense59 Miscellaneous
Expense
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NetSolutionsTrial Balance
November 30, 2002
11 Cash 5,90014 Supplies 55017 Land 20,00021 Accounts Payable 40031 Capital Stock 25,00033 Dividends 2,00041 Fees Earned 7,50051 Wages Expense 2,12552 Rent Expense 80054 Utilities Expense 45055 Supplies Expense 80059 Miscellaneous Expense 275
32,900 32,900
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NetSolutionsTrial Balance
November 30, 2002
11 Cash 5,90014 Supplies 55017 Land 20,00021 Accounts Payable 40031 Capital Stock 25,00033 Dividends 2,00041 Fees Earned 7,50051 Wages Expense 2,12552 Rent Expense 80054 Utilities Expense 45055 Supplies Expense 80059 Miscellaneous Expense 275
32,900 32,900
BalanceSheet
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IncomeStatement
NetSolutionsTrial Balance
November 30, 2002
11 Cash 5,90014 Supplies 55017 Land 20,00021 Accounts Payable 40031 Capital Stock 25,00033 Dividends 2,00041 Fees Earned 7,50051 Wages Expense 2,12552 Rent Expense 80054 Utilities Expense 45055 Supplies Expense 80059 Miscellaneous Expense 275
32,900 32,900
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1. Transactions are analyzed and recorded in journal.
DocumentsJournal
2. Transactions are posted from journal to ledger.
Journal Ledger
3. Trial balance is prepared.
Journal, Ledger, Trial BalanceJournal, Ledger, Trial Balance
Trial Balance
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Post. Date Description Ref. Debit Credit
12/1 Prepaid Insurance 2,400 Cash 2,400
General Journal Page 1
Recording and Posting an EntryRecording and Posting an Entry
1. Analyze and record the transaction as shown.
2. Post the debit side of the transaction.
3. Post the credit side of the transaction.
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Post. Date Description Ref. Debit Credit
12/1 Prepaid Insurance 2,400 Cash 2,400
Post. BalanceDate Item Ref. Debit Credit Debit Credit
12/1
Account: Prepaid Insurance Account No. 15
General Journal
General Ledger
Page 1
Recording and Posting an EntryRecording and Posting an Entry
1
1 Enter the transaction date in the ledger account.
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Post. Date Description Ref. Debit Credit
12/1 Prepaid Insurance 2,400 Cash 2,400
Post. BalanceDate Item Ref. Debit Credit Debit Credit
12/1 1 2,400
Account: Prepaid Insurance Account No. 15
General Journal
General Ledger
Page 1
Recording and Posting an EntryRecording and Posting an Entry
2
2 Enter the debit amount in the ledger debit column.
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Post. Date Description Ref. Debit Credit
12/1 Prepaid Insurance 2,400 Cash 2,400
Post. BalanceDate Item Ref. Debit Credit Debit Credit
12/1 1 2,400 2,400
Account: Prepaid Insurance Account No. 15
General Journal
General Ledger
Page 1
Recording and Posting an EntryRecording and Posting an Entry
3
3 Update the ledger account balance.
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Post. Date Description Ref. Debit Credit
12/1 Prepaid Insurance 2,400 Cash 2,400
Post. BalanceDate Item Ref. Debit Credit Debit Credit
12/1 1
Account: Prepaid Insurance Account No. 15
General Journal
General Ledger
Page 1
Recording and Posting an EntryRecording and Posting an Entry
4
4 Enter the journal page in the ledger account.
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Post. Date Description Ref. Debit Credit
12/1 Prepaid Insurance 15 2,400 Cash 2,400
Post. BalanceDate Item Ref. Debit Credit Debit Credit
12/1 1 2,400 2,400
Account: Prepaid Insurance Account No. 15
General Journal
General Ledger
Page 1
Recording and Posting an EntryRecording and Posting an Entry
5
5 Enter the ledger account number in the journal.
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Recording and Posting an EntryRecording and Posting an Entry
Post. Date Description Ref. Debit Credit
12/1 Prepaid Insurance 15 2,400 Cash 11 2,400
Post. BalanceDate Item Ref. Debit Credit Debit Credit
11/30 Balance 5,90012/1 1 2,400 3,500
Account: Cash Account No. 11
General Journal
General Ledger
Page 1
1 5 2
3
4
All five parts of the credit posting are shown.
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Correcting ErrorsCorrecting Errors
Three Types of ErrorsJournal EntryJournal Entry Ledger PostingLedger Posting Correction ProcedureCorrection Procedure
Error 3 requires a correcting journal entry.
1. incorrect not posted correct Journal
2. correct incorrectly posted correct Ledger
3. incorrect already posted record and posta correcting entry
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