Journal Entries, T Accounts, the Accounting Equation, Accruals, Inventory, Accounts Receivable

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Chapter 1-8 Review

• Journal Entries, T Accounts, the Accounting
  Equation, Accruals, Inventory, Accounts
  Receivable.

Financial Accounting, Seventh Edition
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In Chapter 8

• You learned
• How to account for cash and accounts receivable
• Why its important to control cash
• How a company accounts for bad debts
• Types of short term receivables

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Lets talk a walk down memory lane.

• What do Accountants do?
• What are the four Acct statements?
• What is an Accounting transaction?
• What is the FIRST step in booking a transaction?
• Next step
• Next step
• Next step

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More..

• How do you title one of the four statements
• Line 1
• Line 2
• Line 3
• What are the categories of Accounts?
• What are sample accounts under each category?
• Normal balance?

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Conventions

• What are adjusting journal entries?
• Examples?
• What is the transaction for booking the purchase
  of Inventory?
• What is the transaction for booking the sale of
  Inventory?
• What is the perpetual inventory method?
• What is the periodic inventory method?

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Chapters 5-8

• What is
• Average cost, FIFO, LIFO
• What is the Accounts Receivable?
• How do we account for Bad Debts?
• Lets practice. Refer to the handout that came
  with your coursepack (or use a blank paper)

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ACCT. 201 REVIEW. . .

• Stockholders invest 35,000 in a company
• DR ____________ ______________
• CR ____________ ______________

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ACCT. 201 REVIEW. . .

• Purchased 400 Office Supplies on Credit
• DR ____________ ______________
• CR ____________ ______________

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ACCT. 201 REVIEW. . .

• Purchased 6,000 Office Equipment on for 2,500
  Cash the rest on Credit.
• DR ____________ ______________
• CR ____________ ______________

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ACCT. 201 REVIEW. . .

• Billed clients for consulting fees for Services
  performed, 4,000.
• DR ____________ ______________
• CR ____________ ______________

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ACCT. 201 REVIEW. . .

• Paid 2,200 cash for office salaries.
• DR ____________ ______________
• CR ____________ ______________

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ACCT. 201 REVIEW. . .

• Received a check for 3,000 from a client in
  payment on account for commissions billed in
  previous transaction.
• DR ____________ ______________
• CR ____________ ______________

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Adjusting Entries

• Revenue Recognition
• Matching Principles
  

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So how do you adjust

• 1) Supplies, if at the end of the month you count
  them and there are only 225 on hand?
• DR ____________ ______________
• CR ____________ ______________
• 2) Revenue, if you performed 2,200 worth of
  consulting, but you didnt bill them?
• DR ____________ ______________
• CR ____________ ______________

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Accrual Basis Accounting

• Revenue recorded only when earned not when cash
  is received
• Expense recorded only when incurred not when
  cash paidin the period in which the company
  benefited from it

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Accrual Basis adheres to...

• Generally
• Accepted
• Accounting
• Principles

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Illustration 4-2
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Still confused?

• Do we need another way to learn this concept?

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Revenue Recognition a rap

• If you wanna be accrual
• Heres what you gotta do,
• When the service is performed
• You book the Revenue!

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Opener - Thursday

• Sit in your NEW TEAMS, delegate a note taker
• Email, phone , cell phone , NAME
• Assign homework chapter 8 9 (list by name)
• Give transparency to these people
• Send me and your teammates an email BEFORE
  Tuesday with above info.
• Turn in your outlines for Chapter 9 turn in to
  me as a group
• Get ready for mini quiz

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Mini quiz

• Write out expanded Accounting Equation
• List examples of accounts below (up to five
  accounts)
• Turn paper over when done
• Turn in by team

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Housekeeping

• Contract questions
• Outline, course schedule by day
• Begin ch 9
• extra credit
• WSA Mock Sessions AND Review Sessions