财务会计--第二章-transaction-analysis.ppt

Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,2-,*,Copyright 2010 Pearson Education Canada,Transaction Analysis,Chapter 2,1,Transaction,A transaction is any event that has financial impact on the business,Can be measured reliably,Provide objective information,Must be able to assign$amount to transaction,2,The Account,Accountings main summary device,is the,account,the record of changes.,Assets=Liabilities+Shareholders Equity,Accounts are grouped in three broad categories,according to the accounting equation:,3,Assets =Liabilities,What the company owns,What the company owes,+Equity,What the company owes the owners,The Accounting Equation,4,The Account,Assets,are economic resources that,benefit the business now and in the future,Cash,Accounts receivable,Inventory,Notes receivable,Prepaid expenses,Land,Buildings,Equipment,furniture,and fixtures,5,The Account,Liabilities,are the debts of the company.,Bank loan,Notes payable,Accounts payable,Accrued liabilities,(for expenses incurred but not paid),Long-term liabilities(bonds and mortgages),6,The Account,Shareholders(owners)equity,is the,owners claims to the assets of a corporation.,Contributed Capital,Retained Earnings,Dividends,Revenues,Expenses,7,Learning Objective 1,Analyze transactions.,8,Accounting for Business Transactions,A,transaction,is an event that both affects,the financial position of the business entity,and can be reliably recorded.,9,Accounting for Business Transactions,Students invest$50,000 to begin,Tara Inc.,and the business,issues common shares.,Transaction 1:,Shareholders,Assets =Liabilities+Equity,(1)Cash+50,000=+50,000,*,*,Common shares,10,Accounting for Business Transactions,Tara Inc.purchases land and,pays$40,000 in cash.,Transaction 2:,Balance+50,000=+50,000,*,*,Common shares,(2)Cash 40,000,Land,+40,000,50,000=+50,000,*,Shareholders,Assets =Liabilities+Equity,11,Accounting for Business Transactions,The business buys stationery and other office,supplies on account,agreeing to pay$3700 within 30 days.,Transaction 3:,*,Common shares,Balance+50,000=+50,000,*,(3)Supplies,+3,700,=,+3,700,53,700=3,700+50,000,Shareholders,Assets =Liabilities+Equity,12,Accounting for Business Transactions,Tara Inc.earns service revenue of,$7,000 and collects this amount in cash.,Transaction 4:,*,Common shares,Balance+53,700=3,700+50,000,*,(4)Cash,+7,000,=,+7,000,60,700=3,700 +57,000,Shareholders,Assets =Liabilities+Equity,13,Accounting for Business Transactions,Tara Inc.,performs service on account.,Transaction 5:,Balance+60,700=3,700+57,000,(5)Receivable,+3,000,=,+3,000,63,700=3,700+60,000,Shareholders,Assets =Liabilities+Equity,14,Accounting for Business Transactions,Tara Inc.pays$2,700 for the following expenses:,office rent$1,100,employee salary$1,200,and utilities$400,Transaction 6:,Balance+63,700=3,700+60,000,(6)Expenses,2,700,=,2,700,61,000 =3,700+57,300,Shareholders,Assets =Liabilities+Equity,15,Accounting for Business Transactions,Tara pays$1,900 on account for supplies purchased,in Transaction 3.,Transaction 7:,Balance+61,000=3,700+57,300,(7)Cash,1,900,=,1,900,59,100=1,800+57,300,Shareholders,Assets =Liabilities+Equity,16,Accounting for Business Transactions,The owner pays for the re-,modelling,of,his home at a cost of$30,000.,This event is a transaction of the,personal entity,not the business entity.,No transaction is recorded,for Tara Inc.,Transaction 8:,17,Accounting for Business Transactions,The business collects$1,000,from a customer on account.,Transaction 9:,Balance+59,100=1,800+57,300,(9)Cash+1,000,Receivable,1,000,59,100=1,800+57,300,Shareholders,Assets =Liabilities+Equity,18,Accounting for Business Transactions,Tara Inc.sells part of the land purchased in,Transaction 2 for$22,000 in cash.,Transaction 10:,Balance+59,100=1,800+57,300,(10)Cash +22,000,Land,22,000,59,100=1,800+57,300,Shareholders,Assets =Liabilities+Equity,19,Accounting for Business Transactions,The corporation declares a dividend and pays,$2,100 cash to the shareholders.,Transaction 11:,Balance+59,100=1,800+57,300,(11)Cash,2,100,=,2,100,57,000=1,800+55,200,Shareholders,Assets =Liabilities+Equity,20,Accounting for Business Transactions,(1)+50,000,(2)40,000+40,000,(3)+3,700,(4)+7,000,(5)+3,000,(6)1,100,1,200,400,(7)1,900,(8)Not a transaction of the business,(9)+1,000 1,000,(10)+22,000,22,000,(11),2,100,Bal.33,300 2,000 3,700 18,000,Assets,Accounts Office,Cash +Receivable +Supplies +Land,21,Accounting for Business Transactions,(1)+50,000Issued shares,(2),(3)+3,700,(4)+7,000Service revenue,(5)+3,000Service revenue,(6)1,100Rent expense,1,200Salary expense,400Utilities expense,(7)1,900,(8),(9),(10),(11),2,100,Dividends,Bal.1,800 50,000 5,200,Liabilities,+,Shareholders Equity,AccountsCommon Retained,Payable +Shares +Earnings,Type of Shareholders,Equity Transaction,22,Transactions and Financial Statements,Income Statement data,appear as revenues and expenses,under Retained Earnings.The revenues increase,retained earnings;the expenses decrease retained earnings.,Balance Sheet data,are composed of the ending balances,of the assets,liabilities,and shareholders equity,Statement of Retained Earnings,repeats net income,(or net loss)from the income statement.Dividends are,subtracted.Ending retained earnings is the final result.,23,Income Statement,Revenue:,Service revenue$10,000,Expenses:,Salary$1,200,Rent 1,100,Utilities,400,Total expenses,2,700,Net income,$7,300,For the Month Ended April 30,2009,24,Statement of Retained Earnings,Retained earnings,April 1,2009$0,Add:Net income for the month,7,300,$7,300,Less:Dividends,(2,100),Retained earnings,April 30,2009,$5,200,For the Month Ended April 30,2009,25,Balance Sheet,April 30,2009,Assets,Cash$33,300,Accounts receivable 2,000,Office Supplies 3,700,Land 18,000,Total assets,$57,000,Liabilities,Accounts Payable$1,800,Shareholders Equity,Common shares$50,000,Retained earnings,5,200,Total shareholders,equity$55 200,Total liabilities and,shareholders equity,$57,000,26,Learning Objective 2,Understand how,accounting works.,27,Double-Entry Accounting,Double-entry system of accounting uses,debits and credits to record the dual effects,of each business transaction.,Assets=Liabilities+Shareholders Equity,28,The T-Account,Account Title,Debit,LEFT SIDE,RIGHT SIDE,Credit,29,Assets =Liabilities,+Shareholders Equity,Debits =Credits,(Left side)(Right side),The Rule of Debit&Credit,30,Increases and Decreasesin the Accounts,Accounting,Equation:,Assets,=,Liabilities,+,Shareholders,Equity,Rules of,Debit and,Credit:,Debit,+,Debit,Debit,Credit,Credit,+,Credit,+,31,Rules of Debit and Credit,Tara Inc.received$50,000 and issued shares.,Assets,=,Liabilities,+,Shareholders,Equity,Debit,for,Increase,50,000,Credit,for,Increase,50,000,Cash,Common shares,32,Rules of Debit and Credit,Tara Inc.purchases land for$40,000 cash.,Common shares,Bal.50,000,Cash,Credit,for,Decrease,40,000,Bal.50,000,Land,Debit,for,Increase,40,000,Assets,=,Liabilities,+,Shareholders,Equity,33,Expansion of theAccounting Equation,Assets,Shareholders,Equity,Liabilities,+,Common shares,+,Retained Earnings,Dividends,+,Revenues,Expenses,34,Learning Objective 3,Record transactions,in the journal.,35,Recording Transactionsin the Journal,Identify,the transaction and,specify each account affected.,Step 1,Step 2,Determine whether each account is,increased or decreased,by the transaction.,Use the rules of debits and credits.,Step 3,Enter the transaction,in the journal,including a brief explanation for the entry.,36,Recording Transactionsin the Journal,DateAccounts and Explanation Debit Credit,Journal Page 1,Apr.1Cash50,000,Common shares50,000,Issued common shares,37,Posting from Journal to Ledger,The,ledger,is a grouping of all the,accounts;it shows their balances.,Data must be copied to the ledger,a process called,posting,.,The,journal,is a chronological record,of all transactions listed by date.,38,Posting from Journal to Ledger,Accounts and Explanation Debit Credit,Cash,50,000,Common shares,50,000,Issued common shares,Posting to the Ledger,Cash,Common shares,50,000,Journal Entry,50,000,39,Flow of Accounting Data,Transaction,Occurs,Transaction,Analyzed,Transaction,Entered in,the Journal,Amounts,Posted to,the Ledger,40,Accounts After Posting,Cash,(1)50,000 (2)40,000,(4)7,000 (6)2,700,(9)1,000 (7)1,900,(10)22,000(11)2,100,Bal.33,300,Accounts Receivable,(5)3,000 (9)1,000,Bal.2,000,Office Supplies,(3)3,700,Bal.3,700,Land,(2)40,000(10)22,000,Bal.18,000,ASSETS,Accounts Payable,(7)1,900(3)3,700,Bal.1,800,LIABILITIES,=,41,Accounts After Posting,Common Shares,(1)50,000,Bal.50,000,SHAREHOLDERS EQUITY,Dividends,(11)2,100,Bal.2,100,+,Service Revenue,(4)7,000,(5)3,000,Bal.10,000,REVENUE,Rent Expense,(6)1,100,Bal.1,100,Salary Expense,(6)1,200,Bal.1,200,Utilities Expense,(6)400,Bal.400,EXPENSES,42,Learning Objective 4,Use a trial balance.,43,Trial Balance,A,trial balance,lists all accounts with,their balances assets first,followed by,liabilities,and then shareholders equity.,44,Tara Inc.Trial Balance,Debit Credit,Cash 33,300,Accounts receivable 2,000,Office supplies 3,700,Land 18,000,Accounts payable 1,800,Common shares 50,000,Dividends 2,100,Service revenue 10,000,Rent expense 1,100,Salary expense 1,200,Utilities expense,400,61,800 61,800,45,Tara Inc.Chart of Accounts,Assets Liabilities Shareholders,Equity,101 Cash201 Accounts Payable301 Common Shares,111 Accounts Receivable231 Notes Payable311 Dividends,141 Office Supplies312 Retained Earnings,151 Office Furniture,191 Land,BALANCE SHEET ACCOUNTS:,INCOME STATEMENT ACCOUNTS,(PART OF SHAREHOLDERS EQUITY):,Revenues Expenses,401 Service Revenue501 Rent Expense,502 Salary Expense,503 Utilities Expense,46,Normal Balances of the Accounts,AssetsDebit,LiabilitiesCredit,Shareholders Equity overallCredit,Common sharesCredit,Retained earningsCredit,DividendsDebit,RevenuesCredit,ExpensesDebit,47,Learning Objective 5,Analyze transactions using,only T-accounts.,48,Quick Decision Making,Managers may make decisions without complete financial statements,Examples:,Can they afford to buy more equipment?,They could look at the cash account,How much cash do they have available to pay,Dividends?,they would look at the cash account,49,End of Chapter 2,50,