Vous êtes sur la page 1sur 90

2 Analyzing Transactions

After studying this chapter, you should be able to: 1. Describe the characteristics of an account and record transactions using a chart of accounts and journal. 2. Describe and illustrate the posting of journal entries to accounts. 3. Prepare an unadjusted trial balance and explain how it can be used to discover errors. 4. Discover and correct errors in recording transactions.

2-1

Objective 1 Objective 1 Describe the characteristics of an account and record transactions using a chart of accounts and journal.
3

2-1

Accounting systems are designed to show the increases and decreases in each financial statement item as a separate record. This record is called an account.
4

The T Account

2-1

Title

The T account has a title.

5 5

2-1

Title Debit
The left side of the account is called the debit side.

6 6

2-1

Title Debit Credit


The right side of the account is called the credit side.

7 7

2-1

Title Debit Amounts entered on the left side are debits.


8 8

Credit

2-1

Title Debit Credit Amounts entered on the right side are credits.
9 9

2-1

(In Rp 000)

Cash
25,000 (b) 7,500 (e) (f) (h) 5,900
10 10

(a) (d)

20,000 3,650 950 2,000

Balance

Balance of the account Balance of the account

2-1

A group of accounts for a business entity is called a ledger.

11

2-1

A list of the accounts in a ledger is called a chart of accounts.

12

2-1

Assets are resources owned by the business entity.


Cash Supplies Prepaid expenses Buildings
13

2-1

Liabilities are debts owed to outsiders (creditors).


Accounts payable Notes payable Wages payable
14

2-1

Owners equity is the owners right to the assets of the business. A drawing account represents the amount of withdrawals by the owner.
15

2-1

Revenues are increases in owners equity as a result of selling services or products to customers.
Fees earned Commission revenue Rent revenue
16

2-1

The using up of assets or consuming services in the process of generating revenues results in expenses.
Wages expense Rent expense Miscellaneous expense
17

2-1

Every transaction affects at least two accounts.

18

Journalizing

2-1

This transaction is initially entered in a record called a journal. The process of recording a transaction in the journal is called journalizing.

19

2-1

Journalizing requires the following steps: 1. Record the date. If this is the first entry on the page, the year is inserted above the month. As long as the month does not change, the rest of the journal entries on the require on the day be recorded. 2. The title of the account debited is listed in the Description column.
(Continued) 20

2-1

3. Enter the amount in the Debit column. 4. Record the credit account in the Description column. 5. Enter the amount in the Credit column. Watch these steps take place as the entry to record Chris Clarks deposit is presented in the next slide.
21

Balance Sheet Accounts

2-1

@solusinet

(a) On November 1, Cita Cinta opens a new business and deposits Rp. 25,000,000 in a bank account in the name of SolusiNet.
22

2-1

JOURNAL Date Description P.R. Debit 25 000 000

Page 1 Credit 25 000 000

2007 1 Nov. 1 Cash 2 Cita Cinta, Capital 3 Invested cash in SolusiNet.

23 23

2-1

The effect of this entry is shown in the accounts of SolusiNet as follows:


Cash
Nov. 1 25,000

Cita Cinta, Capital


Nov. 1 25,000

(In Rp 000)

24

2-1

@solusinet

(b) On November 5, SolusiNet bought land for Rp 20,000,000 paying cash.


25

2-1

5 Land Cash Purchased land for building site.

20 000 000 20 000 000

26

2-1

@solusinet

(c) On November 10,

SolusiNet purchased supplies on account for Rp1,350,000


27

2-1

10 Supplies Accounts Payable Purchased supplies on account.

1 350 000 1 350 000

28

2-1

@solusinet

(f) On November 30, SolusiNet paid creditors on account, Rp. 950,000


29

2-1

30 Accounts Payable Cash Paid creditors on account.

950 000 950 000

30

2-1

Balance Sheet Accounts


Debits Credits Asset accounts. Increase (+) Decrease (-) Liability accounts. Decrease (-) Increase (+) Owners equity (capital) accounts Decrease (-) Increase (+)
31

2-1

Balance Sheet Accounts


Asset Accounts
Debit for increases (+) Credit for decreases ()

Liability Accounts
Debit for decreases () Debit for decreases () Credit for increases (+) Credit for increases (+)
32

Owners Equity Accounts

2-1 Example Exercise 2-1 Prepare a journal entry for the purchase of a truck on June 3 for Rp.42,500, 000 paying Rp.8,500,000 cash and the remainder on account. Follow My Example 2-1 June 3 Truck Cash Accounts Payable Rp. 42,500,000 8,500,000 34,000,000
33

For Practice: PE 2-1A, PE 2-1B

Income Statement Accounts

2-1

@solusinet

(d) On November 18, SolusiNet received fees of Rp7,500,000 from customers for services provided.

34

2-1

30 Cash Fees Earned Received fees from customers.

7 500 000 7 500 000

35

2-1

@solusinet

(e) Throughout the month, SolusiNet incurred the following expenses: wages, Rp. 2,125,000; rent Rp. 800,000; utilities, Rp. 450,000; and miscellaneous, Rp.275,000.
36

2-1

30 Wages Expense Rent Expense Utilities Expense Miscellaneous Expense Cash Paid expenses.

2 125 000 800 000 450 000 275 000 3 650000

37

2-1

@solusinet

(g) On November 30, a count revealed that Rp.800,000 of the supplies inventory had been used during the month.
38

2-1

30 Supplies Expense Supplies Supplies used during November.

800 000 800 000

39

Income Statement Accounts

2-1

Debits Revenue accounts Decrease (-) Expense accounts Increase (+)

Credits Increase (+) Decrease (-)

40

2-1 Income Statement Accounts

Revenue Accounts
Debit for Credit for decreases increases () (+) Less

Expense Accounts
Debit for increases (+) Credit for decreases ()
41

Continued

2-1

Equals Net Income (credit > debits) increases owners equity (capital) Net Loss (debits > credits) decreases owners equity (capital)
42

2-1 Example Exercise 2-2 Prepare a journal entry on August 7 for the fees earned on account, Rp.115,000,000. Follow My Example 2-2 Aug. 7 Accounts Receivable Fees Earned 115,000,000 115,000,000

For Practice: PE 2-2A, PE 2-2B

43

Drawing Account

2-1

The owner of a proprietorship may withdraw cash from the business for personal use. Such withdrawals have the effect of decreasing owners equity.

44

2-1

@solusinet

(h) On November 30, Cita Cinta withdrew Rp.2,000,000 in cash from SolusiNet for personal use.

45

2-1

Nov 30 Cita Cinta, Drawing Cash Cita Cinta withdrew cash for personal use.

2007

2 000 000 2 000 000

46

2-1 Example Exercise 2-3 Prepare a journal entry on December 29 for the payment of Rp.12,000,000 to the owner of Smartstaff Consulting Services, Dominique Walsh, for personal use. Follow My Example 2-3 Dec. 29 Dominique Walsh, Drawing Cash 12,000,000 12,000,000

47

For Practice: PE 2-3A, PE 2-3B

2-1 Increase (Normal Bal.) Decreases Balance sheet accounts: Asset Liability Owners Equity: Capital Drawing Income statement accounts: Revenue Expense Debit Credit Credit Debit Credit Debit Credit Debit Debit Credit Debit Credit
48

2-1 Example Exercise 2-4 State for each account whether it is likely to have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries. Also, indicate its normal balance. 1. 2. 3. 4. 5. 6. Ambarwati, Drawing Accounts Payable Cash Fees Earned Supplies Utilities Expense
49

2-1

Follow My Example 2-4 1. 2. 3. 4. 5. 6. Debit entries only; normal debit balance Debit and credit entries; normal credit balance Debit and credit entries; normal debit balance Credit entries only; normal credit balance Debit and credit entries; normal debit balance Debit entries only; normal debit balance

50

For Practice: PE 2-4A, PE 2-4B

2-1

The equality of debits and credits for each transaction is built into the accounting equation: Assets = Liabilities + Owners Equity. Because of this double equality, this system is called the doubleentry accounting system.
51

Transaction Analysis

2-1

1. Determine whether an asset, liability, owners equity, revenue, expense, or drawing account is affected by the transaction. 2. For each account affected by the transaction, determine whether the account increases or decreases. 3. Determine whether each increase or decrease should be recorded as a debit or a credit. Continued

52

2-1

4. Record the transaction using a journal entry. 5. Periodically post journal entries to the accounts in the ledger. 6. Prepare an unadjusted trial balance at the end of the period.

53

2-2

Objective 2 Objective 2 Describe and illustrate the posting of journal entries to the accounts.
54

2-2

The process of transferring the debits and credits from the journal entries to the accounts is called posting.
55

2-2

@solusinet

Dec. 1 SolusiNet paid a premium of Rp.2,400,000 for a comprehensive insurance policy covering liability, theft and fire. The policy covers a one-year period.
56

2-2

(In Rp. 000)

57

2-2

@solusinet

Dec. 1 SolusiNet paid rent for December, Rp.800,000. The company from which SolusiNet is renting its store space requires the payment of rent on the first of each month, rather than at the end of the month.
58

2-2

Rent Expense Cash Paid rent for December.

52 11

800 000 800 000

59

2-2

An alternative approach is to debit Rent Expense for Rp.800,000 on December 1. This avoids having to transfer the balance to an expense account at the end of the month.

60

2-2

SolusiNet received an offer from a local retailer to rent the land purchased on November 5. The retailer plans to use the land as a parking lot for its employees and customers. SolusiNet agreed to rent the land to the retailer for three months, with the rent payable in advance.
61

2-2

@solusinet Dec. 1 SolusiNet receives Rp. 360,000 for three months rent for use of its land beginning December 1.
1 Cash Unearned Rent Received advance payment for three months rent on land. 11 23 360 000 360 000

62

2-2

@solusinet Dec. 4 SolusiNet purchased office equipment on account from PD.Tunas Jaya. for Rp.1,800,000

Office Equipment Accounts Payable Purchased office equipment on account.

18 1 800 000 21 1 800 000

63

2-2

@solusinet

Dec. 6 SolusiNet paid Rp.180,000 for a newspaper advertisement.

Miscellaneous Expense Cash Paid for newspaper ad.

59 11

180 000 180 000

64

2-2

@solusinet

Dec. 11 SolusiNet paid creditors Rp.400,000

11

Accounts Payable Cash Paid creditors on account.

21 11

400 000 400 000

65

2-2

@solusinet

Dec. 13 SolusiNet paid a receptionist and part-time assistant Rp.950,000 for two weeks wages.
13 Wages Expense Cash Paid two weeks wages. 51 11 950 000 950 000

66

2-2

@solusinet

Dec. 16 SolusiNet received Rp.3,100,000 from fees earned for the first half of December.
16 Cash Fees Earned Received fees from customers. 11 41 3 100 00 3 100 00

67

2-2

@solusinet

Dec. 16 Fees earned on account totaled Rp.1,750,000 for the first half of December.
16 Accounts Receivable Fees Earned Recorded fees earned on account. 12 41 1 750 000 1 750 000

68

2-2

@solusinet Dec. 20 SolusiNet paid Rp.900,000 to Executive Supply Co. on the Rp.1,800,000 debt owed from the December 4 transaction.
20 Accounts Payable Cash Paid part of amount owed to Executive Supply Co. 21 11 900 000 900 000

69

2-2

@solusinet

Dec. 21 SolusiNet received Rp.650,000 from customers in payment of their accounts.


21 Cash Accounts Receivable Received fees from customers on account. 11 12 650 000 650 000

70

2-2

@solusinet

Dec. 23 SolusiNet paid Rp 1,450,000 for supplies.


23 Supplies Cash Purchased supplies. 14 11 1 450 000 1 450 000

71

2-2

@solusinet

Dec. 27 SolusiNet paid the receptionist and part-time assistant Rp.1,200,000 for two weeks wages.
27 Wages Expense Cash Paid two weeks wages. 51 11 1 200 000 1 200 000

72

2-2

@solusinet

Dec. 31 NetSolutions paid Rp.310,000 for telephone charges for the month.
31 Utilities Expense Cash Paid telephone charges. 54 11 310 000 310 000

73

2-2

@solusinet

Dec. 31 SolusiNet paid Rp.225,000 for electric usage for the month.
JOURNAL Date
2007

Page 1
Post. Ref.

Description Cash Paid for electric usage.

Debit 225 000

Credit 225 000

Dec 31 Utilities Expense

54 11

74

2-2

@solusinet

Dec. 31 SolusiNet received Rp.2,870,000 from fees earned for the second half of December.
31 Cash Fees Earned Received fees from customers. 11 41 2 870 000 2 870 000

75

2-2

@solusinet

Dec. 31 NetSolutions earned Rp.1,120,000 on account for the second half of December.
31 Accounts Receivable Fees Earned Recorded fees earned on account. 12 41 1 120 000 1 120 000

76

2-2

@solusinet

Dec. 31 Cita Cinta withdrew Rp.2,000,000 for personal use.


31 Cita Cinta, Drawing Cash Cita Cinta withdrew cash for personal use. 32 11 2 000 000 2 000 000

77

2-2 Example Exercise 2-5

On March 1, the cash account balance was Rp. 22,350,000. During March, cash receipts totaled Rp.241,880,000 and the March 31 balance was Rp.19,125,000. Determine the cash payments made during March.

78

2-2 Follow My Example 2-5

In Rp.000

Using the following T-account solve for the amount of cash payment (indicated by ? below). Cash Mar. 1 Bal 22,350 ? Cash receipts 241,880 Mar. 31 Bal. 19,125 Cash payments

Rp.19,125 = Rp.22,350 + Rp.241,880 Cash payments Cash payments = Rp.22,350 + Rp.241,880 Rp.19,125 = Rp.245,105
79

For Practice: PE 2-5A, PE 2-5B

2-3

Objective 3 Objective 3 Prepare an unadjusted trial balance and explain how it can be used to discover errors.
80

2-3

The equality of debits and credits in the ledger should be proved at the end of each accounting period by preparing a trial balance. The heading should first list the name of the company, the statements title, and the date it is prepared.
81

2-3
SolusiNet Unadjusted Trial Balance 31-Dec-07 In Rp. Debit Credit Balances Balances 0 6 5 000 2 2 0 000 0 0 0 000 4 0 0 000 0 0 0 000 8 0 0 000 9 0 0 000 3 6 0 000 25 0 0 0 000 0 0 0 000 16 3 4 0 000 2 7 5 000 6 0 0 000 9 8 5 000 8 0 0 000 4 5 5 000 6 0 0 000 42 6 0 0 000

Cash Account Receivable Supplies Prepaid Insurance Land Office Equipment Account Payable Unearned Rent Chris Clark, Capital Chris Clark, Drawing Fees Earned Wages Expense Rent Expense Utilities Expense Suppliexpense Miscellaneous Expense

2 2 2 2 20 1

4 4 1

82

42

2-3 Example Exercise 2-6


For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance total to be unequal, indicate whether the debit or credit total is higher and by how much. a. Payment of a cash withdrawal of Rp.5,600,000 was journalized and posted as a debit of RP.6,500,000 to Salary Expense and a credit of RP.6,500,000 to Cash. b. A fee of Rp.2,850,000 earned from a client was debited to Accounts Receivable for Rp.2,580,000 and credited to Fees Earned for Rp.2,850,000. c. A payment of Rp.3,500,000 to a creditor was posted as a debit of Rp.3,500,000 to Accounts Payable and a debit of Rp.3,500,000 to Cash.

83

2-3 Follow My Example 2-6 a. The totals are equal since both the debit and credit entries were journalized and posted for Rp.6,500,000. b. The totals are unequal. The credit total is higher by Rp.270,000 (Rp.2,850,000 Rp.2,580,000). c. The totals are unequal. The debit total is higher by Rp.7,000,000 (Rp.3,500,000 + Rp.3,500,000).

For Practice: PE 2-6A, PE 2-6B

84

2-4

Objective 4 Objective 4 Discover and correct errors in recording transactions.


85

2-4

A transposition occurs when the order of the digits is changed mistakenly, such as writing Rp.542,000 as Rp.452,000 or Rp.524,000. In a slide, the entire number is mistakenly moved one or more spaces to the right or the left, such as writing RP.542.000 as $54,200.

86

2-4

Another type of error is a posting error. Assume that on May 5 a Rp.12,500,000 purchase of office equipment on account was incorrectly journalized and posted as a debit to Supplies and a credit to Accounts Payable for Rp.12,500,000.
87

Entry to Correct Error

2-4

May 31 Office Equipment Supplies To correct erroneous debit to Supplies on May 5. See invoice from Bella Office Equipment Company.

18 12 500 000 14 12 500 000

88

2-4 Example Exercise 2-7 The following errors took place in journalizing and posting transactions: a. A withdrawal of Rp.6,000,000 by Roni Ahmad, owner of the business, was recorded as a debit to Office Salaries Expense and a credit to Cash. b. Utilities Expense of Rp.4,500,000 paid for the current month was recorded as a debit to Miscellaneous Expense and a credit to Accounts Payable. Journalize the entries to correct the errors. Omit explanations.

89

2-4 Follow My Example 2-7 a. Cheri Ramey, Drawing Office Salaries Expense b. Accounts Payable Miscellaneous Expense Utilities Expense Cash

In Rp.000
6,000 6,000 4,500 4,500 4,500 4,500

Note: The first entry in (b) reverses the incorrect entry, and the second entry records the correct entry. For Practice: PE 2-7A, PE 2-7B

90

Vous aimerez peut-être aussi