Accounting 121

Accounting 121

1. Chapter 1: Accounting in Business

   • Assets= Liabilities-Equity
     • Assets= Liabilities+Owner's Capital-Owner Withdrawals+Revenue-Expenses

2. Chapter 2: Analyzing and Recording Transactions

   • Debit= Left, Credit= Right
     • Assets, Expenses, W/D= Debit
     • Liabilities, Revenue, Capital= Credit

3. Chapter 3: Adjusting and Prepping Financial Statements

   • Prepaid Expenses= ASSET
     • Prepaid-> Expense as used
   • Unearned Revenue= LIABILITY
     • Cash-> Unearned-> Revenue
   • Depreciation- Expense[Dr] & Accum. Depreciation [Cr]

4. Chapter 4: Completing Acct. Cycle

   • Temporary Accts- zero @ end of period- Pre-closing Trial Balance
     • Close to Income Summary
       • Close to Equity
         • Close W/D to Equity Last
     • Revenue, Expenses, W/D
   • Permanent Accts Recorded on Post- Closing TB
   • Structured & Unstructured Balance Sheet
     • Unstructured Lists all accounts into broad categories (Asset, Liability, Equity)
     • Structured further divides broad categories (current/non-current asset/liability, plant asset, investment [long/short term])

5. Chapter 5: Merchandising

6. Chapter 9: Accts Receivable

7. Chapter 8: Cash & Internal Controls

8. Chapter 6: Inventory & Cost of Sales

9. Chapter 10: Plant Assets, Natural Resources & Intangibles

10. Chapter 11: Current Liabilities & Payroll