1、Chapter 3: The Recording Process,Glossary,AccountCharts of accountsCommon stockCompound entry Credit Debit,Glossary,Double-entry system General journal General ledger Journal Journalizing Ledger Posting,Glossary,Retained earnings Simple entry T account Three column form of accountTrial balance,The R
2、ecording Process,1.The Account,2.Steps in the Recording Process,3.The Recording Process Illustrated,4.The Trial Balance,5.Electronic Data Processing,3.1 The Accounts,An individual accounting recordof increases and decrease in,A basic storage unit for data,Must be established for each separate classi
3、fication,Account,(Name of Account),(left side),T-account,(right side),Three basic parts,Debit balance,Credit balance,The expand basic equation is:,Assets,=,Liabilities,+,Stockholders equity,- Dividends,Revenues,+,-,Expenses,Common stock,The effects of debits and credits on assets and liabilities,Acc
4、ountsAssetsliabilities,DebitsIncreaseDecrease,CreditsDecreaseIncrease,Normal balanceDebitCredit,Double-entry system,The effects of debits and credits on stockholders equity,AccountsCommon stockRetained earningsDividendsRevenuesexpenses,DebitsDecreaseDecreaseIncreaseDecreaseIncrease,CreditsIncreaseIn
5、creaseDecreaseIncreaseDecrease,Normal balanceCreditCreditDebitCreditDebit,Q1:,The debit or credit, which one you like or which one is better? why?,3.2 The recording process,Analyze each transaction,Enter transaction in a journal,Transfer journal information to ledger account,3.2.1General journal,P75
6、,76 Illustration 3-14,3-15,Q2：about Journalizing,In actual practice, transactions are seldom recorded directly in ledger accounts . Why?,Reasons:,1. There is not room for much detailed information in a ledger account.2.Fail to record a complete record of each transaction in any one place.3.If transa
7、ctions are recorded directly in the accounts, errors are easily made and are difficult to locate.,Journalizing,Transactions,GeneralJournal,Journalizing,Explanation of the transaction,3.2.2 The Ledger,General ledger（P78）Charts of accounts (P81),Standard Form of Account,Uniform system of Accounts for
8、the LodgingIndustry(9th),Assets 100-199Liabilities 200-280Equity 281-299Revenue 300-399Cost of Sales 400-499Payroll and Related Expenses 500-599Other Expenses 600-699Fixed Charges 700-799,Assets 100-199,100 Cash 101 House Funds 103 Checking Account 105 Payroll Account 107 Saving Account 109 Petty Ca
9、sh 110 Short-term Investments,Assets 100-199,120 Accounts Receivable 121 Guest ledger 122 Credit card Accounts 123 Direct Bill 124 Notes Receivable (current) 124 Due from employees 126 Receivable from Owner 127 Other Accounts Receivable 128 Intercompany Receivables 129 Allowance for Doubtful Account
10、s,Assets 100-199,130 Inventory 131 Food 132 Liquor 133 Wine 135 Operating Supplies 136 Paper Supplies 137 Cleaning Supplies 138 China, Glassware, Silver, Linen, and Uniforms (Unopened Stock) 139 Other,Assets 100-199,140 Prepaids 141 Prepaid Insurance 142 Prepaid Taxes 143 Prepaid Workers Compensatio
11、n 144 Prepaid Supplies 145 Prepaid Contracts 149 Other Prepaids,Assets 100-199,160 Property and Equipment 161 Land 162 Buildings 163 Accumulated Depreciation-Buildings 164 Leaseholds and Leaseholds Improvements 165 Accumulated Depreciation- Leaseholds 166 Furniture and Fixtures 167 Accumulated Depre
12、ciation- Furniture and Fixtures 168 Machinery and Equipment 169 Accumulated Depreciation- Machinery and Equipment,Posting,Journal,Ledger,A book of original entry,A book of final entry,Posting is done periodically,Illustration of Relation of Journal and Ledger Accounts,1,3,2,100,Cash,4,3.3 The record
13、ing process illustrated,Transaction,Basic Analysis,Journal entry,Posting,Debit- Credit analysis,P82-86 Illustration 3-20,3.4 The Trial Balance,Determine the balance of each account in the ledger,List the accounts and show debit balances in one column on the left and credit balances in a separate col
14、umn to its right,3.4 The Trial Balance,Add the debit balances,Add the credit balances,Compare the totals of the debit and credit balances.,P88 Illustration 3-30,Cases:Transaction 1: Molly Mable invests $100000 in her lodging enterprise, the Mable MotelTransaction 2: Molly Mable borrows $50,000 from
15、First Bank.Transaction 3: For this lodging enterprise is the purchase of $80,000 worth of furniture by the Mable Motel.,Cases:Transaction 4: the receipt for $50 for a room rented to Susan Smith, a guest.Transaction 5: a $30 cash payment to Jason Jones for work performed for the motel.Transaction 6:
16、The Mable Motel illustrates the withdrawal for $100 by Molly Mable from her business.,3.4 The Trial Balance,ASSETS = LIABILITIES + OWNERS EQUITY,(1)100000(2)50000(4) 50,(3)80000(5)30(6)100,150050,80130,69,920,cash,(3)80000,80000,Furniture,100000,Notes PayableFirst Bank,(6)100,Molly Mable, Drawing,(4
17、)50,Room Revenues,100,50,(5)30,30,Wages Expense,3.4 The Trial Balance,Mable MotelTrial Balance,Debit CreditCash $69920Furniture 80000Notes Payable-First Bank $50000Molly Mable,Capital 100,000Molly Mable, Drawing 100Room Revenue 50Wages Expense 30 Total $150050 $150,050,Comprehensive IllustrationJour
18、nalizing, Posting, and Preparing a Trial Balance,Cases: Carson Catering, owned by Don Carson is a new hospitality enterprise, only a few transactions are incurred during the first month of operations.,Cases: Carson Catering hospitality enterprise,Cases: Carson Catering hospitality enterprise,Transac
19、tion 1: Don Carson forms Carson Catering on December 1,2008,and invests $5000 of his personal funds in the business.Transaction 2: on December 5, Carson Catering pays $500 for advertising in the local paper.Transaction 3: In anticipation of catering events, Carson Catering purchases a van on Decembe
20、r 8, costing $15000, A down payment of $3000 is made, and the remainder($12000) is financed through Big Motors Acceptance Corporation.,Transaction 4: on December 12, Carson Catering purchased food costing $200 to be served at a party for M.J. Jolly.Transaction 5: on December 13, Carson Catering purc
21、hases $300 of operating supplies on account from Supplies, Inc.Transaction 6: on December 13, Carson Catering caters the party for M.J. Jolly and receives payment for $800.,Transaction 7: on December 19, Carson Catering purchases food for a party to be catered for Mary Chris Smith.Transaction 8: on
22、December 20, Carson Catering caters the party for Mary Smith for $1000, She pays $300, and Carson agrees to allow Mary two weeks to pay the remainder due of $700.Transaction 9: on December 22, Carson Catering purchases $25 of gasoline for its van.,Transaction 10: on December 28, Carson Catering pays
23、 $400 to part-time employees who assisted with the two catered events.Transaction 11: on December 28, Carson Catering pays Supplies, Inc., the $300 due.Transaction 10: on December 28, Carson Catering withdraws $200 from Carson Catering for his personal use.,Cases: Carson Catering hospitality enterpr
24、ise,Page 1,Cases: Carson Catering hospitality enterprise,Page 2,Cases: Carson Catering hospitality enterprise,Page 3,Cases: Carson Catering hospitality enterprise,Page 4,Cases: Carson Catering hospitality enterprise,Page 5,General Ledger, Carson Catering,Cases: Trial Balance of Carson Catering,Carso
25、n CateringTrial BalanceDecember 31,2008,AccountNumbers Debits CreditsCash $1175105 Accounts Receivable 700110 Operating Supplies 300Van 15000200 Accounts Payable $-0-210 Notes Payable-BMAC 12000Don Carson, Capital 5000Don Carson, Drawing 200400 Catering Revenue 1800500 Wages Expense 400501Adervertis
26、ing Expense 500502 Food Expense 500503 Gas Expense 25 Totals $18,800 $18,800,Choice,1.Transaction are initially recorded in the A, general ledgerB, general journalC, trial balanceD, balance sheet,Choice,2.The right side of an account is referred to as the A, footingB, chart sideC, debit sideD, credi
27、t side,Choice,3.A purchase of office equipment for cash requires a credit to A, office equipmentB, cashC, accounts payableD, stockholders equity,Choice,4.The equality of the accounting equation can be proven by preparing a A, trial balanceB, journalC, general ledgerD, T-account,Choice,5.Which of the
28、 following accounts would be increased with a debit? A, Rent PayableB, Common stockC, Service revenueD, Dividends,Choice,6 Customarily, a trial balance is prepared A, at the end of each dayB, after each journal entry is postedC, at the end of an accounting periodD, only at starting of the business,C
29、hoice,7, The procedure of transferring journal entries to the ledger accounts is calledA, journalizingB, analyzingC, reportingD, posting,8, A number in the reference column in a general journal indicatesA, that the entry has been posted to a particular accountB, the page number of the journalC, the
30、dollar amount of the transactionD, the date of the transaction,9, Transaction in a journal are initially recorded inA, account number orderB, dollar amount orderC, alphabetical orderD, chronological order,10, A journal providesA, the balance for each account.B, information about a transaction in sev
31、eral different places.C, a list of all accounts used in the businessD, a chronological record of transactions,Matching,A Account B Normal account balance C Debit D Revenue account E Compound entry F JournalG Posting H Chart of accountsI Trial balance J Simple entry,_ 1. An entry that involves three
32、or more accounts._2 Transferring journal entries to ledger accounts._3 The side which increases an account._4 A list of all the accounts used by an enterprise._5 A record of increases and decreases in specific asset, liability, and stockholders equity items.,_6 Left side of an account._7. An entry that involves only two accounts._8 A book of original entry._9 A list of accounts and their balances at a given time._10 Has a credit normal balance.,Exercises 1-10,the end,
