...CHAPTER 2 THE RECORDING PROCESS ACCT100 Fall 2013 Teresa Chu Chapter 2-1 The Account Record increases and decreases in a specific asset, liability or equity item Debit = “Left” Credit = “Right” Account Name T-Account form Debit / Dr. Credit / Cr. Chapter 2-2 Debits and Credits Double-entry system Dual effect of transaction Each transaction MUST affect 2 or more accounts to keep the basic accounting equation balance DEBIT = CREDIT for each transaction Chapter 2-3 Summary of Debit/Credit Rules Debits > Credits → Debit balance Credits > Debits → Credit balance Normal balance: the side to record increases Chapter 2-4 Steps in the Recording Process 1) Analysis of transaction → Analyze business documents which provide evidence of transactions (e.g. sales invoice, check, bill or cash register tape) 2) Journalizing 3) Posting Chapter 2-5 The Journal Also refer to “General Journal” Book of original entry Contributions: Record transactions in chronological order 1. Show complete effects of a transaction 2. Provide chronological record of transactions Chapter 2-6 Step 2 Journalizing: entering transactions in a journal 3. Help preventing or locating errors because debit and credit amounts can be easily compared Journalizing Oct. 1 Lynn Robbins begins business as a real estate agent with a cash investment of ¥200,000 in exchange for ordinary shares 2 Hires an administrative assistant. 3 Purchases office furniture...
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...ACC 280 Principles of Accounting Chapter Questions ACC 280 FINAL EXAM - CORRECT ANSWERS http://www.learnyourcourse.com/acc-280/545-acc-280-final-exam-8-chapter-questions.html Chapter 4 1. It is not true that current assets are assets that a company expects to 2. After closing entries are posted, the balance in the owner's capital account in the ledger will be equal to 3. When using a worksheet, adjusting entries are journalized 4. Liabilities are generally classified on a balance sheet as Chapter 5 5. At the beginning of the year, Hinz Company had an inventory of $400,000. During the year, the company purchased goods costing $1,600,000. If Hinz Company reported ending inventory of $600,000 and sales of $2,000,000, the company's cost of goods sold and gross profit rate must be 6. The Merchandise Inventory account is used in each of the following except the entry to record 7. On a classified balance sheet, merchandise inventory is classified as 8. The Sales Returns and Allowances account does not provide information to management about Chapter 6 9. Merchandise inventory is 10. Lee Industries had the following inventory transactions occur during 2010: 11. The company sold 51 units at $63 each and has a tax rate of 30%. Assuming that a periodic inventory system is used, what is the company's gross profit using LIFO? (rounded to whole dollars) 12. Shandy Shutters has the following inventory information. Nov. | 1 | |...
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...Save Reset Print Name(s): Course & Selection: Identifier: Client: Chapter 03: Financial Accounting Exercise 03-02: Basic Financial Accounting Process Single Company Code Version 1 Rev: 01/03/2011 Introduction General Notes and Information It is strongly recommended that you read through the entire exercise prior to starting. Not all instructions can be provided in a linear manner. The following symbols are used to indicate important information as described below: An arrow highlights an important instruction that must not be overlooked. A text box prompts you to type-in an important piece of information. Each student or group will be assigned a unique three digit identifier. This identifier is used in all exercises to uniquely identify your data. Whenever you see ### in these exercises, replace it with your identifier. Always work with your data. Business Process Overview The financial accounting process allows GBI to pay vendors for services or materials acquired. This process can be used to pay for liabilities that GBI has incurred due to normal operations. This exercise is about paying off liabilities within the accounting statements. Chapter 04 Save Reset Print Chapter 03: Financial Accounting Exercise 03-02 Exercise 04-02 Exercise Prerequisites Chapter 04: ProcurementFinancial Accounting Master Data-SCC Exercise 3-1 Process Exercise 04-02: Basic Procurement Process Exercise Single Company Code Workflow Invest in GBI View Account Balances Purchase...
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...DEPARTMENT OF MARKETING AND BUSINESS ECONOMICS ALBERTA SCHOOL OF BUSINESS International Marketing MARK 644 - X50, Winter 2015 Instructor: Edy Wong, PhD Office: BUS 3 – 21B Phone: 780 492 8137 Email: edy@ualberta.ca Office Hours: By appointment Class Location: Business B 9 Class Times: Wednesday, 6:30 p.m. to 9:30 p.m. Course Duration: January 7th to April 8th, 2015 I. COURSE DESCRIPTION This course is designed to provide students with an understanding of how marketing principles and strategy must be adapted to the international business environment and how an effective international marketing strategy should be formulated. Topics for the course include an overview of the global business environment, influence of culture on consumer preferences and marketing strategy, effects of socio-economic and political factors on market analysis and marketing strategy, techniques of competitive analysis, logistical and supply chain considerations, and relevant government regulations on international trade. The learning strategy for this course will be based on a combination of class lectures, group discussions and presentations, and a group paper. Students are encouraged to contribute to the learning process by drawing on their professional and business experience in class discussions and projects. Learning outcomes in this course will include an understanding of the principles of international marketing, an appreciation of the relevance of politics, culture...
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...of Study: | BACHELOR OF ACCOUNTING AND FINANCE, BACHELOR OF ACCOUNTING, BACHELOR OF FINANCE AND INVESTMENTS | 3. | Year of Study: | 1 | 4. | Year and Semester: | JAN 2015 | 5. | Credit Hour & Contact Hours: | 3 credit hours Lecture: 3Tutorial: 3Practical: | 6. | Lecturer: | SHAKERIN ISMAIL | 7. | Tutor: | SHAKERIN ISMAIL | 8. | Mode of Delivery: | LECTURE, TUTORIAL | 9. | Objective: | This subject would enable the students: 1. To understand and appreciate of the accounting concepts and accounting practice. 2. To prepare the recording process and understand the whole accounting cycle. 3. To possess the technical ability in preparing basic financial statements. | 10. | Learning Outcome: | At the end of the course, students should be able to:Knowledge 1. Distinguish different forms of business and its reporting environment. 2. Explain the accounting principles and the role of accounting reports.Thinking Skills 3. Use accounting equation to analyse the economic effect of a transaction. 4. Use double entry system of accounting to record business transactions.Subject-based Practical Skills 5. Prepare trial balance. 6. Prepare adjusting entries and closing entries. 7. Prepare entry for special journals and subsidiary ledgers. 8. Prepare cash book and petty cash systems. 9. Value the stock using FIFO, LIFO and Weighted Average. 10. Prepare basic financial statements. 11. Prepare...
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...Chapter 3 (REVIEW-Self study chapter) After studying this chapter, you should be able to: Understand basic accounting terminology. Explain double-entry rules. Explain how transactions affect the accounting equation. Identify the steps in the accounting cycle and the steps in the recording process. Explain the reasons for and prepare adjusting entries. Explain how the type of ownership structure affects the financial statements. Prepare closing entries and consider other matters relating to the closing process. Prepare a 10-column work sheet and financial statements. After studying Appendix 3A, you should be able to: Identify adjusting entries that may be reversed. THE ACCOUNTING INFORMATION SYSTEM The Accounting Information System Basic Terminology Event: The cause of changes of assets, liabilities, and equity Transaction: A transfer or exchange between two or more entities or parties Account: Where transactions are recorded - A separate account is used for each asset, liability, revenue, expense, gain, loss and capital (owner’s equity) Permanent accounts (or “real” accounts) * Asset, liability, and equity accounts * Appear on the balance sheet * Permanent accounts are not closed at year end Temporary accounts (or “nominal” accounts) * Revenue, expense, and dividend accounts * Revenue and expenses are on the income statement; dividends are on the statement of changes in shareholders equity. * Temporary...
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...The final exam consists of 100 multiple-choice questions from the information presented in Chapter 1 through Chapter 13. Each question is worth 2.5 points. This study guide indicates the items you should review before taking the exam. GOOD LUCK! CHAPTER 1 1. Know the 3 forms of business entities 2. Know the definitions of revenues and expenses 3. Know the difference between internal and external users 4. FASB – responsible for GAAP (accounting principles) 5. Accounting Equation 6. Know the 3 activities that business engage in and give examples of each activity. (These 4 questions also relate to Chapter 12, The Statement of Cash Flows) 7. The International Accounting Standards Board is responsible for developing a single set of worldwide accountings standards (IFRS). 8. These standards will help companies to reduce accounting costs, make it easier to acquire foreign companies, and facilitate comparisons between foreign companies. 9. Know the primary objective of financial reporting 10. What makes information relevant? 11. Financial information should be understandable to whom 12. Balance Sheet – lists assets, liabilities and owners’ equity 13. Income Statement – revenues minus expenses equal net income 14. Net Income = Revenues - Expenses 15. Assets are recorded at historical/original cost because it is objective and verifiable CHAPTER 2 1. Review various source documents. Source documents indicate a transaction has occurred...
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...registered on the appropriate Pearson website. Bring in some notebook paper. If you purchased your Literature book, bring it in, hopefully still wrapped in the plastic. Don’t break the plastic, since you may be using the mywritinglab.com website and can purchase the lit book without the mylitlab access code. Assignment #4 for Thursday, January 16: Read Chapter One in your Literature for Composition textbook or e-text version “How to Write an Effective Essay: A Crash Course” (1-8). Bring in either your text or e-book, since you may be called on to answer one of the Chapter One journal entry questions I will upload onto mywritinglab.com, questions you can download and bring to class. Whatever Chapter One work we do not finish Thursday, we will complete next class, then begin the Chapter Two journal entry questions and answers. Assignment #5 for Tuesday, January 21: Before class, read Chapter Two, “The Writer as Reader” in either your Literature for Composition text or e-book (9-19). Again, bring in your text or e-book and the Chapter Two journal entry questions downloaded from mywritinglab, and begin a discussion of Chapter Two. Since we may not conclude the...
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...ch10 Student: ___________________________________________________________________________ 1. An advantage of issuing a bond relative to stock is that the bond interest payments are tax deductible. True False 2. Issuing bonds dilutes the voting power of the common shareholders because bonds have preferential voting rights. True False 3. The major disadvantages of issuing a bond are the risk of bankruptcy and the negative impact on cash flow because debt must be repaid at a specified date in the future. True False 4. A bond's interest payments are determined by multiplying the bond's principal amount by the stated interest rate. True False 5. A convertible bond can be called for early retirement at the option of the issuing company. True False 6. The issuing company and the bond underwriter determine the selling price of a bond. True False 7. The issuance price of a bond is the present value of both the principal plus the cash interest to be received over the life of the bond discounted by the stated (coupon) rate. True False 8. When the market rate of interest is greater than the stated interest rate, the bond will sell at a discount. True False 9. A bond will sell for a premium when the market rate of interest is greater than the stated rate of interest. True False 10. The proceeds received from a bond issue will be greater than the bond maturity value when the stated interest rate exceeds the market rate of interest. True...
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...Review - Exam 2 Carryover material • All material from Chapters 1-4 • Accounting Equation (increase/decrease questions) • Debits/Credit Rules and normal balances • Financial statements: Income Statement, Statement of Retained Earnings and Classified Balance Sheet - know how each is composed and how they are affected by journal entries • Application of Revenue Recognition, Matching Principle, Cost Principle Chapter 5 • Perpetual Inventory Systems • Recording all transactions involving Inventory under perpetual inventory system • Recording collection of Accounts Receivable, with or without a discount • Income statement of merchandising company (multi-step) • Cost of Goods Sold Calculation for periodic method • Gross profit rate and profit margin ratio Chapter 6 • Cost Flow Assumptions (FIFO, LIFO, Average methods) Use each method to calculate Ending Inventory and/or Cost of Goods Sold • Effect of different cost flow methods (and errors made) on both the Balance Sheet and Income Statement • Shipping terms/ownership (F.O.B; consignment) • Lower of cost or market • Inventory Turnover Ratio and Average Days in Inventory Chapter 8 • Types of Receivables • Accounts receivable account activity (Recognition, Valuation, & Disposition) • Allowance method Estimating uncollectible amounts (bad debt expense) using percent of receivables method Write-off of uncollectible accounts (including journal entry) • Notes Receivables Calculation of interest for full...
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...receivable 2. Long Term: Those assets with long lives Example: buildings, land, patents D Liability accounts: debts 1. Short term: those paid in less than 12 months, e.g. accounts payable 2. Long term: those paid in longer than 12 months, e.g. home mortgage E. Double entry 1. For each transaction, must be two entries – a debit and a credit 2. Debits must equal credits F. T accounts: debits (dr) on the left; credits (cr) on the right IV. Accounting review A Definition B Financial Statements 1 Balance Sheet (BS) (accounting equation) 2 Income (Profit and Loss) Statement (IS) 3 Cash Flow Statement 4 Footnotes 5 Retained earnings (RE) links BS and IS C Accounting cycle V. Pacioli reading A. Father of accounting B. Chapter 1 1. Three things to run a business a. Cash b. A good bookkeeper and ready mathematician c. Transactions arranged in a systematic way 2. The Venetian system 3. Ubi non est ordo, ibi est confusion (translated?) C. Chapter 2 1. Begin the business book with God’s name. Why? 2. Make an inventory or asset list – short-term and long-term D. Chapter 3 – example of inventory (asset) list, starting with...
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...AC 410B Intermediate Accounting II Final Exam Topics Chapter 11: Depreciation, Impairments, and Depletion Questions 1. Explain the meaning of depreciation. 2. Describe factors involved in the depreciation process. 3. Describe the different methods of depreciation. 4. Identify the conditions for impairment of fixed assets. 5. Explain the treatment of impairments for different kinds of assets. 6. Describe the full cost vs. successful efforts concepts for depletion. 7. Explain liquidating dividends. 8. Explain the required disclosures related to depreciation and depletion. Exercises 1. Calculate depreciation using the following methods: [E11-6] a. activity method b. straight-line method c. sum-of-the-years’ digits method d. declining balance method e. group & composite methods [E11-9] 2. Calculate partial-period depreciation. 3. Calculate depreciation based on revision of salvage value or estimated life. [E11-11], [E11-13] 4. Conduct a recoverability test for impairment. [E11-17] 5. Determine the amount of impairment to be recorded on a fixed asset. [E11-17] 6. Prepare the journal entries to record: a. depreciation expense b. the impairment of a fixed asset c. the restoration of impairments d. impairment and restoration of impairment for an asset held for disposal [E11-17] e. depletion of a natural resource...
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...You have three hours and 30 minutes to complete this exam. * This exam contains two pages. You don't need to complete them in order. My suggestion is to start with the 5 essay questions (page 2) and then go back to the multiple choice questions leaving about 1 hour for the multiple choice. This allots approximately 30 minutes to each essay (2.5 hours) and 5 minutes to each multiple choice (1.0 hours). Multiple Choice: there is one multiple choice question from each of the following chapters: 1, 2, 3, 4, 5, 6, 8, 9, 12, 14, 16, 17. Essay Question Topics: 30 point question (there is one of these) you will be given 6 transactions, and asked to indicate which fund each transaction would be recorded in. The fund summary document and week 1 & 2 document should be helpful here, as well as the notes you have taken on each fund. Review chapters 2, 4, 5, 6, 7 on what transactions are accounted for in each fund. 40 point essay questions (there are 4 of these) 1. Question covering uses of the general fund, proprietary funds and special revenue funds; accounting and reporting for enterprise funds (essay only – chapter 7) 2. Journal entries and portion of Statement of Operations for a Hospital (journal entries somewhat like 17-6) 3. Capital projects funds journal entries (somewhat like 5-7 but JEs only for Capital Projects Fund) 4. Preparation of a Statement of Revenues,...
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...ACC211 Chapter 3 Click Link Below To Buy: http://hwcampus.com/shop/acc211-chapter-3/ *Brief Exercise 3-1 Transactions for Mehta Company for the month of May are presented below. Prepare journal entries for each of these transactions. Brief Exercise 3-3 Your answer is correct. On July 1, 2014, Crowe Co. pays $27,000 to Zubin Insurance Co. for a 3-year insurance policy. Both companies have fiscal years ending December 31. For Crowe Co., journalize the entry on July 1 and the adjusting entry on December 31. Brief Exercise 3-4 On July 1, 2014, Crowe Co. pays $9,000 to Zubin Insurance Co. for a 3-year insurance policy. Both companies have fiscal years ending December 31. Journalize the entry on July 1 and the adjusting entry on December 31 for Zubin Insurance Co. Zubin uses the accounts Unearned Service Revenue and Service Brief Exercise 3-5 Your answer is correct. Assume that on February 1, Procter & Gamble (P&G) paid $733,000 in advance for 1 years’ insurance coverage. Prepare P&G’s February 1 journal entry and the annual adjusting entry on June 30. Brief Exercise 3-6 Your answer is correct. LaBouche Corporation owns a warehouse. On November 1, it rented storage space to a lessee (tenant) for 3 months for a total cash payment of $300 received in advance. Prepare LaBouche’s November 1 journal entry and the December 31 annual adjusting entry Brief Exercise 3-7 Your answer is correct. Dresser Company’s weekly payroll, paid...
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...JWCL165_c10_444-505.qxd 8/12/09 7:24 AM Page 444 10 Liabilities Chapter STUDY OBJECTIVES After studying this chapter, you should be able to: 1 Explain a current liability, and identify the major types of current liabilities. 2 Describe the accounting for notes payable. 3 Explain the accounting for other current liabilities. 4 Explain why bonds are issued, and identify the types of bonds. 5 Prepare the entries for the issuance of bonds and interest expense. 6 Describe the entries when bonds are redeemed or converted. 7 Describe the accounting for long-term notes payable. 8 Identify the methods for the presentation and analysis of long-term liabilities. ✓ The Navigator Scan Study Objectives Read Feature Story Read Preview Read text and answer p. 453 p. 465 ■ ■ ■ ■ ■ p. 458 ■ Do it! p. 461 Do it! ■ p. 463 ■ ■ ■ ■ ■ Work Comprehensive p. 469 Review Summary of Study Objectives Answer Self-Study Questions Complete Assignments ✓ The Navigator Feature Story FINANCING HIS DREAMS What would you do if you had a great idea for a new product, but couldn’t come up with the cash to get the business off the ground? Small businesses often cannot attract investors. Nor can they obtain traditional debt financing through bank loans or bond issuances. Instead, they often resort to unusual, and costly, forms of nontraditional financing. Such was the case for Wilbert Murdock. Murdock grew up in a New York housing project, and always...
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