download materi Intermediate Accounting 3

    The Accounting Information System

Chapter

3

Learning Objectives

•    Understand basic accounting terminology.

•    Explain double-entry rules.

•    Identify steps in the accounting cycle.

•    Record transactions in journals, post to ledger accounts, and prepare a trial balance.

•    Explain the reasons for preparing adjusting entries.

•    Prepare financial statement from the adjusted trial balance.

•    Prepare closing entries.

•    Explain how to adjust inventory accounts at year-end.

Accounting Information System

Accounting Information System

Accounting Information System

Basic Terminology

Debits and Credits

Debits and Credits

Debits and Credits

Debits and Credits

Debits and Credits Summary

Debits and Credits Summary

Basic Accounting Equation

Relationship among the assets, liabilities and stockholders’ equity of a business: 

Double-Entry System Exercise

Double-Entry System Exercise

Double-Entry System Exercise

Double-Entry System Exercise

Double-Entry System Exercise

Double-Entry System Exercise

Double-Entry System Exercise

Ownership Structure

Corporation Ownership Structure

The Accounting Cycle

Transactions and Events

Review “Transactions and Events”

1. Journalizing

2. Posting

3. Trial Balance

4. Adjusting Entries

Classes of Adjusting Entries

Adjusting Entries – “Prepaid Expenses”

Payment of cash that is recorded as an asset because  service or benefit will be received in the future.

Adjusting Entries – “Prepaid Expenses”

Adjusting Entries – “Prepaid Expenses”

Adjusting Entries – “Unearned Revenues”

Receipt of cash that is recorded as a liability because the revenue has not been earned.

Adjusting Entries – “Unearned Revenues”

Adjusting Entries – “Unearned Revenues”

Adjusting Entries – “Accrued Revenues”

Revenues earned but not yet received in cash or recorded.

Adjusting Entries – “Accrued Revenues”

Adjusting Entries – “Accrued Revenues”

Adjusting Entries – “Accrued Expenses”

Expenses incurred but not yet paid in cash or recorded.

Adjusting Entries – “Accrued Expenses”

Adjusting Entries – “Accrued Expenses”

5. Adjusted Trial Balance

6. Preparing Financial Statements

6. Preparing Financial Statements

6. Preparing Financial Statements

6. Preparing Financial Statements

7. Closing Entries

7. Closing Entries

7. Closing Entries

8. Post-Closing Trial Balance

9. Reversing Entries

Perpetual Inventory System

Periodic Inventory System

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