accounting information systems accrual basis ◦ when it happens ◦ cash basis ◦ when paid ◦...
TRANSCRIPT
![Page 1: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/1.jpg)
Accounting Information Systems
![Page 2: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/2.jpg)
Accrual Basis◦ When it happens◦
Cash Basis◦ When paid◦ Mostly Service type business
Dentist, Doctor, Lawyers
![Page 3: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/3.jpg)
1/10 Places an order Record in purchase order file to track what has been
requested and what has been ordered ( managerial) but not in financial accounting records.
2/15 Receives desk and bill Record the exchange of assets --you now have the desk
and the cost of the desk, exact amount of the bill.
3/1 Pays the bill Writes a check and sends it to the vendor.
![Page 4: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/4.jpg)
COST◦Original Cost- “Historical”
![Page 5: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/5.jpg)
Classification: Assets= Liabilities+Stk Equity+Revenue-
Expense Accounts: Cash, A/R, Supplies, Inventory A/P, Mortgage Payable, X Payable,Unearned X Common Stock, Dividends, Retained Earnings Sales, Services Performed Rent X, Wages X,
![Page 6: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/6.jpg)
Chart or List of the Accounts
Chart of Accounts-◦ Lists accounts that can be used in recording a
business transaction. CFO approval to open an account.
![Page 7: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/7.jpg)
Revenue – Expenses = Net IncomeWho gets the net income? Stockholder
Net Income goes to Retained EarningsDividends reduces Retained Earnings and
goes to Stockholders
![Page 8: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/8.jpg)
A. A/P - B.Supplies - C. Dividend - D. Fees Earned- E. Supplies X - F. A/R - G. Unearned Revenue- H. Equipment -
![Page 9: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/9.jpg)
Double - TWO (2)◦ Every entry must have at least two entries or
accounts
![Page 10: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/10.jpg)
____Debit_______________Credit_______ | | | Washington D.C. AC/DC
![Page 11: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/11.jpg)
All transactions must have1 Debit1 Credit
![Page 12: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/12.jpg)
A=L+SE+R-EDr Cr Cr Cr Dr
![Page 13: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/13.jpg)
A+E+Div = L+SE+R Dr CrNormal NormalBalance Balance
![Page 14: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/14.jpg)
CLASS NORM BAL Cash Wages Expense A/R Common Stock Service Revenue Prepaid Rent A/P Investments
![Page 15: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/15.jpg)
CLASS NORM BALBonds Payable Income Taxes Exp Land Supplies Exp Prepaid Insurance Utilities Exp Fees Earned Dividends Wages Payable
![Page 16: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/16.jpg)
CLASS NORM BALUnearned Revenue Office Equipment Rent Payable Notes Receivable Interest Expense Notes Payable Supplies Interest Receivable Rent Expense
![Page 17: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/17.jpg)
What did you buy or receive How did you or your customer pay for it. What accounts do you use What is it’s classification What its normal balance. Did you increase it - same as normal
balance Did you decrease it-opposite of normal
balance
![Page 18: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/18.jpg)
4 steps: General Journal Post to General Ledger or T-accounts From GL do a Trial Balance From Trial Balance do Financial Statements
![Page 19: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/19.jpg)
May 2 Cash Common Stock
5 Office EquipmentCash
7 SuppliesAccounts Payable
19 Cash Program Service Rev (Earned
22 CashUnearned Program Service Rev
25 Rent ExpenseCash
31 Accounts Receivable Program Service Revenue
![Page 20: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/20.jpg)
Cash A/R Supplies Office Equipment
2000 | 300 800 | 150| 300 |
3000 | 700 1000 5000 A/P Common Stock Prog Svc Rev Rent
Expense 150 | | 2000 |3000 700|
| 800Unearned Rev 3800 | 1000
![Page 21: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/21.jpg)
Report :Does the equation balance-- trial Normal Balance must be maintained Accounting equation vertically A Dr L Cr SE Cr R Cr E Dr XX XX
![Page 22: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/22.jpg)
Comaque Shoe Repair Service, Inc.Trial BalanceJune 30, 20XX
Cash $4,210Repair Supplies 500Repair Equipment 1,900A/P $ 300Common Stock 5,900Dividends 600Repair Fees Earned 1,860Salaries Expense 450Rent Expense 400
_____ $8,060
$8,060
![Page 23: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/23.jpg)
Transposition 950 to 590
Slides 1000 to 100
All divisable by 9 or numbers add to 9
![Page 24: Accounting Information Systems Accrual Basis ◦ When it happens ◦ Cash Basis ◦ When paid ◦ Mostly Service type business Dentist, Doctor, Lawyers](https://reader036.vdocument.in/reader036/viewer/2022062314/56649ea95503460f94bae204/html5/thumbnails/24.jpg)
E2-10 pg 93 E2-13 pg 94
HOMEWORK P2A, P3A, P5A, P7A, P9A