1. C2 - 1 Finance and Accounting

2. C2 - 2 英语班级： 08 级 3B6 专 业：会计学 小组成员：吴双茜、陆妩玮 、路元、 郑艳

3. C2 - 3 Accounting is the information system that measures business activities,processes that information into reports,and communicates the results to decision- makers.

4. C2 - 4 It includes ： personal financial planning education expenses loans car payments income taxes investments

5. C2 - 5 Double-Entry Accounting “ Double-entry accounting is based on a simple concept: each party in a business transaction will receive something and give something in return. In bookkeeping terms, what is received is a debit and what is given is a credit. The T account is a representation of a scale or balance.” Luca Pacioli Developer of Double-Entry Accounting Scale or Balance Receive DEBIT Give CREDIT T account Left Side Receive DEBIT Right Side Give CREDIT

6. C2 - 6 Expanded Accounting Equation “ The basic accounting equation can be expanded to include all five financial categories indicating what has been received and given.” DEBITS received CREDITS given =

7. C2 - 7 Expanded Accounting Equation “ The basic accounting equation can be expanded to include all five financial categories indicating what has been received and given.” Expenses Liabilities Owner’s Equity Assets DEBITS received CREDITS given = Revenues

8. C2 - 8 Expanded Accounting Equation “ The basic accounting equation can be expanded to include all five financial categories indicating what has been received and given.” Expenses Liabilities Owner’s Equity Assets DEBITS received CREDITS given = Revenues Net Income

9. C2 - 9 NetSolutionsNetSolutions “ On November 1, 2002, I started a business called NetSolutions. I plan to use my knowledge of microcomputers and offer computer consulting services for a fee. The following double-entry transactions show how amounts received (debits) always equal amounts given (credits).” Chris Clark, Owner

10. C2 - 10 Business Transactions General Journal receive Debit give Credit NetSolutions (investee) Chris Clark (investor) give Credit Entry A. DateDescriptionDebitCredit 11/1 Chris Clark deposits $25,000 in a bank account for NetSolutions in exchange for capital stock.

11. C2 - 11 Chris Clark deposits $25,000 in a bank account for NetSolutions in exchange for capital stock. Business Transactions General Journal receive Debit give Credit NetSolutions (investee) Cash Chris Clark (investor) give Credit Entry A. DateDescriptionDebitCredit 11/1Cash 25,000

12. C2 - 12 Business Transactions General Journal DateDescriptionDebitCredit 11/1Cash 25,000 Capital Stock 25,000 receive Debit give Credit NetSolutions (investee) Cash Capital Stock Chris Clark (investor) give Credit Entry A. Chris Clark deposits $25,000 in a bank account for NetSolutions in exchange for capital stock.

13. C2 - 13 NetSolutions buys supplies for $1,350, agreeing to pay in the near future. Business Transactions receive Debit give Credit NetSolutions (buyer) Supplier (seller) give Credit Entry C. General Journal DateDescriptionDebitCredit 11/10

14. C2 - 14 NetSolutions buys supplies for $1,350, agreeing to pay in the near future. Business Transactions receive Debit give Credit NetSolutions (buyer) Supplies Supplier (seller) give Credit Entry C. General Journal DateDescriptionDebitCredit 11/10Supplies 1,350

15. C2 - 15 NetSolutions buys supplies for $1,350, agreeing to pay in the near future. Business Transactions receive Debit give Credit NetSolutions (buyer) Supplies Supplier (seller) give Credit Entry C. A promise to pay later General Journal DateDescriptionDebitCredit 11/10Supplies 1,350 Accounts Payable 1,350

16. C2 - 16 DateDescriptionDebitCredit 11/18 Wages Expense2,125 Rent Expense800 Utilities Expense450 Misc. Expense275 NetSolutions paid: wages, $2,125; rent, $800; utilities, $450; and miscellaneous, $275. Business Transactions General Journal receive Debit give Credit NetSolutions (buyer) Services, benefits Various suppliers give Credit Entry E.

17. C2 - 17 DateDescriptionDebitCredit 11/18 Wages Expense2,125 Rent Expense800 Utilities Expense450 Misc. Expense275 Cash 3,650 NetSolutions paid: wages, $2,125; rent, $800; utilities, $450; and miscellaneous, $275. Business Transactions General Journal receive Debit give Credit NetSolutions (buyer) Services, benefits Various suppliers give Credit Entry E. Cash

18. C2 - 18 NetSolutions Chart of Accounts Balance Sheet Income Statement 1.Assets 11Cash 12Accounts Receivable 14Supplies 15Prepaid Insurance 17Land 18Office Equipment 2.Liabilities 21Accounts Payable 23Unearned Rent 3.Owner’s Equity 31Capital Stock 32Retained Earnings 33Dividends 4.Revenue 41Fees Earned 5.Expenses 51Wages Expense 52Rent Expense 54Utilities Expense 55Supplies Expense 59Miscellaneous Expense

19. C2 - 19 NetSolutions Trial Balance November 30, 2002 11Cash5,900 14Supplies550 17Land20,000 21Accounts Payable400 31Capital Stock25,000 33Dividends2,000 41Fees Earned7,500 51Wages Expense2,125 52Rent Expense800 54Utilities Expense450 55Supplies Expense800 59Miscellaneous Expense27532,900

20. C2 - 20 NetSolutions Trial Balance November 30, 2002 11Cash5,900 14Supplies550 17Land20,000 21Accounts Payable400 31Capital Stock25,000 33Dividends2,000 41Fees Earned7,500 51Wages Expense2,125 52Rent Expense800 54Utilities Expense450 55Supplies Expense800 59Miscellaneous Expense27532,900 Balance Sheet

21. C2 - 21 Income Statement NetSolutions Trial Balance November 30, 2002 11Cash5,900 14Supplies550 17Land20,000 21Accounts Payable400 31Capital Stock25,000 33Dividends2,000 41Fees Earned7,500 51Wages Expense2,125 52Rent Expense800 54Utilities Expense450 55Supplies Expense800 59Miscellaneous Expense27532,900

22. C2 - 22 1.Transactions are analyzed and recorded in journal. Documents Journal 2.Transactions are posted from journal to ledger. Journal Ledger 3.Trial balance is prepared. Journal, Ledger, Trial Balance Trial Balance

23. C2 - 23 Post. DateDescriptionRef.DebitCredit 12/1Prepaid Insurance 2,400 Cash 2,400 General Journal Page 1 Recording and Posting an Entry 1. Analyze and record the transaction as shown. 2. Post the debit side of the transaction. 3. Post the credit side of the transaction.

24. C2 - 24 Post. DateDescriptionRef.DebitCredit 12/1Prepaid Insurance 2,400 Cash 2,400 Post. Balance DateItemRef.DebitCredit DebitCredit 12/1 Account: Prepaid Insurance Account No. 15 General Journal General Ledger Page 1 Recording and Posting an Entry 1 1 Enter the transaction date in the ledger account.

25. C2 - 25 Post. DateDescriptionRef.DebitCredit 12/1Prepaid Insurance 2,400 Cash 2,400 Post. Balance DateItemRef.DebitCredit DebitCredit 12/11 2,400 Account: Prepaid Insurance Account No. 15 General Journal General Ledger Page 1 Recording and Posting an Entry 2 2 Enter the debit amount in the ledger debit column.

26. C2 - 26 Post. DateDescriptionRef.DebitCredit 12/1Prepaid Insurance 2,400 Cash 2,400 Post. Balance DateItemRef.DebitCredit DebitCredit 12/11 2,4002,400 Account: Prepaid Insurance Account No. 15 General Journal General Ledger Page 1 Recording and Posting an Entry 3 3 Update the ledger account balance.

27. C2 - 27 Post. DateDescriptionRef.DebitCredit 12/1Prepaid Insurance 2,400 Cash 2,400 Post. Balance DateItemRef.DebitCredit DebitCredit 12/11 Account: Prepaid Insurance Account No. 15 General Journal General Ledger Page 1 Recording and Posting an Entry 4 4 Enter the journal page in the ledger account.

28. C2 - 28 Post. DateDescriptionRef.DebitCredit 12/1Prepaid Insurance152,400 Cash 2,400 Post. Balance DateItemRef.DebitCredit DebitCredit 12/112,4002,400 Account: Prepaid Insurance Account No. 15 General Journal General Ledger Page 1 Recording and Posting an Entry 5 5 Enter the ledger account number in the journal.

29. C2 - 29 Recording and Posting an Entry Post. DateDescriptionRef.DebitCredit 12/1Prepaid Insurance152,400 Cash112,400 Post. Balance DateItemRef.DebitCredit DebitCredit 11/30Balance5,900 12/112,4003,500 Account: Cash Account No. 11 General Journal General Ledger Page 1 15 2 3 4 All five parts of the credit posting are shown.

30. C2 - 30 Correcting Errors Three Types of Errors Journal Entry Ledger Posting Correction Procedure Error 3 requires a correcting journal entry. 1.incorrectnot postedcorrect Journal 2.correctincorrectly postedcorrect Ledger 3.incorrectalready postedrecord and post a correcting entry

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