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Review: Journal Entries, T Accounts, The Accounting Equation, Accruals, Inventory, Accounts Receivable

This document provides a review of key concepts from chapters 1-8 of an accounting textbook. It begins with an overview of the topics covered in chapter 8, including accounting for cash, accounts receivable, controlling cash, and accounting for bad debts. The rest of the document quizzes the reader with questions about accounting fundamentals and asks them to practice journal entries for various accounting transactions. It emphasizes accrual basis accounting, revenue and expense recognition principles, and adjusting journal entries. The goal is to reinforce the reader's understanding of fundamental accounting concepts through review questions and practice problems.

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cheuleee
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43 views

Review: Journal Entries, T Accounts, The Accounting Equation, Accruals, Inventory, Accounts Receivable

This document provides a review of key concepts from chapters 1-8 of an accounting textbook. It begins with an overview of the topics covered in chapter 8, including accounting for cash, accounts receivable, controlling cash, and accounting for bad debts. The rest of the document quizzes the reader with questions about accounting fundamentals and asks them to practice journal entries for various accounting transactions. It emphasizes accrual basis accounting, revenue and expense recognition principles, and adjusting journal entries. The goal is to reinforce the reader's understanding of fundamental accounting concepts through review questions and practice problems.

Uploaded by

cheuleee
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 22

Chapter

1-8 Review

Journal Entries, T Accounts,


the Accounting Equation,
Accruals, Inventory,
Accounts Receivable.
Financial Accounting,
Seventh Edition

In Chapter 8
You learned:

o How to account for cash and accounts receivable


o Why its important to control cash
o How a company accounts for bad debts
o

Types of short term receivables

Lets talk a walk down memory lane.

What do Accountants do?


What are the four Acct statements?
What is an Accounting transaction?
What is the FIRST step in booking a
transaction?
Next step
Next step
Next step

More..
How do you title one of the four statements
Line 1
Line 2
Line 3

What are the categories of Accounts?


What are sample accounts under each
category?
Normal balance?

Conventions
What are adjusting journal entries?
Examples?

What is the transaction for booking the


purchase of Inventory?
What is the transaction for booking the sale of
Inventory?
What is the perpetual inventory method?
What is the periodic inventory method?

Chapters 5-8
What is
Average cost, FIFO, LIFO

What is the Accounts Receivable?


How do we account for Bad Debts?
Lets practice. Refer to the handout that
came with your coursepack (or use a blank
paper)

ACCT. 201 REVIEW. . .


Stockholders invest $35,000 in a company
DR: ____________ $______________
CR: ____________ $______________

ACCT. 201 REVIEW. . .


Purchased $400 Office Supplies on Credit
DR: ____________ $______________
CR: ____________ $______________

ACCT. 201 REVIEW. . .


Purchased $6,000 Office Equipment on for
$2,500 Cash & the rest on Credit.
DR: ____________ $______________
CR: ____________ $______________

ACCT. 201 REVIEW. . .


Billed clients for consulting fees for Services
performed, $4,000.
DR: ____________ $______________
CR: ____________ $______________

ACCT. 201 REVIEW. . .


Paid $2,200 cash for office salaries.
DR: ____________ $______________
CR: ____________ $______________

ACCT. 201 REVIEW. . .


Received a check for $3,000 from a client in
payment on account for commissions billed in
previous transaction.
DR: ____________ $______________
CR: ____________ $______________

Adjusting Entries

Revenue Recognition &


Matching Principles

So how do you adjust


1) Supplies, if at the end of the month you count
them and there are only $225 on hand?
DR: ____________ $______________
CR: ____________ $______________
2) Revenue, if you performed $2,200 worth of
consulting, but you didnt bill them?
DR: ____________ $______________
CR: ____________ $______________

Accrual Basis Accounting


Revenue recorded only when earned
not when cash is received
Expense recorded only when incurred
not when cash paidin the period in which the
company benefited from it

Accrual Basis adheres to...


Generally
Accepted
Accounting
Principles

Illustration 4-2

Year 1

Year 2

Activity
Purchased paint, painted building ,
paid employees

Accrual
basis

Cash
basis

Received payment for work


done in year one

Revenue
Expense
Net Income

$80,000
50,000
$30,000

Revenue
Expense
Net Income

Revenue
Expense
Net Loss

$
0
50,000
( $50,000)

Revenue
Expense
Net Income

$80,000
0
$80,000

0
0
0

Still confused?
Do we need another way to learn this
concept?

Revenue Recognition a rap

If you wanna be accrual


Heres what you gotta do,
When the service is performed
You book the Revenue!

Opener - Thursday
Sit in your NEW TEAMS, delegate a note taker
Email, phone #, cell phone #, NAME
Assign homework chapter 8 & 9 (list by name)
Give transparency to these people
Send me and your teammates an email BEFORE
Tuesday with above info.

Turn in your outlines for Chapter 9 turn in to


me as a group
Get ready for mini quiz

Mini quiz
Write out expanded Accounting Equation
List examples of accounts below (up to five
accounts)
Turn paper over when done
Turn in by team

Housekeeping
Contract questions
Outline, course schedule by day
Begin ch 9
extra credit -January 18, 2.30-4.30 Library Media
Center UW Seattle Admissions officer Michael
Richter

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