Lecture International accounting: Chapter 1 - Nguyễn Quốc Nhất

International Accounting<br /> <br /> Chapter 1: Recording Business Transactions<br /> <br /> MINISTRY OF INDUSTRY AND TRADE<br /> INDUSTRIAL UNIVERSITY OF HO CHI MINH CITY<br /> FACULTY OF ACCUONTING-AUDITING<br /> <br /> INTRODUCE<br /> <br /> MA.Nguyen Quoc Nhat<br /> 1<br /> <br /> INTRODUCE<br /> •<br /> <br /> Code modules: 2127407<br /> <br /> •<br /> <br /> Credits: 3<br /> <br /> •<br /> <br /> Texbook:<br /> <br /> •<br /> <br /> Reference material:<br /> <br /> -<br /> <br /> Accounting, Charles T. Horngren, Walter T. Harrison Jr. and M.<br /> Suzanne Oliver, 2012, Prentice hall.<br /> <br /> -<br /> <br /> PRINCIPLES OF ACCOUNTING Published by McGraw-Hill/Irwin,<br /> a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of<br /> the Americas, New York, NY, 10020. Copyright © 2009.<br /> <br /> -<br /> <br /> Website: http://www.ifrs.org/IFRSs/Pages/IFRS.aspx<br /> www.iasplus.com<br /> <br /> 2<br /> <br /> INTRODUCE<br /> <br /> Learning objective:<br /> • Presenting the basic knowledge about accounting cycle<br /> from record economic transactions arising in their<br /> diary, to take notes on ledger, trial balance spreadsheet<br /> program, implementing adjustments.<br /> • Applying the knowledge to create a good platform for<br /> students to acquire academic accounting research<br /> deeper, higher.<br /> 3<br /> <br /> MA. Nguyen Quoc Nhat –nhatnq.faa@gmail.com<br /> <br /> 1<br /> <br /> International Accounting<br /> <br /> Chapter 1: Recording Business Transactions<br /> <br /> INTRODUCE<br /> <br /> Table of content:<br /> Chapter<br /> 1<br /> 2<br /> 3<br /> 4<br /> 5<br /> 6<br /> 7<br /> 8<br /> 9<br /> 10<br /> 11<br /> 12<br /> <br /> RECORDING BUSINESS TRANSACTIONS<br /> THE ADJUSTING PROCESS<br /> COMPLETING THE ACCOUNTING CYCLE<br /> MERCHANDISING OPERATIONS<br /> MERCHANDISE INVENTORY<br /> INTERNAL CONTROL AND CASH<br /> RECEIVABLES<br /> PLANT ASSETS AND INTANGIBLES<br /> CURRENT LIABILITIES AND PAYROLL<br /> LONG-TERM LIABILITIES, BONDS PAYABLE, AND<br /> CLASSIFICATION OF LIABILITIES ON THE BALANCE SHEET<br /> CORPORATIONS: PAID-IN CAPITAL AND THE BALANCE<br /> SHEET<br /> PARTNERSHIPS<br /> 4<br /> <br /> CHAPTER1: RECORDING BUSINESS TRANSACTIONS<br /> Learning of objective:<br /> <br /> <br /> Explain accounts, journals, and ledgers as they relate to<br /> recording transactions and describe common accounts<br /> <br /> <br /> <br /> Define debits, credits, and normal account balances, and use<br /> double-entry accounting and T-accounts<br /> <br /> <br /> <br /> List the steps of the transaction recording process Journalize<br /> and post sample transactions to the ledger<br /> <br /> <br /> <br /> Prepare the trial balance from the T-accounts<br /> <br /> 5<br /> <br /> CHAPTER1: RECORDING BUSINESS TRANSACTIONS<br /> <br /> Table of content:<br /> 1.1 The Account, the Journal, and the Ledger<br /> 1.2 Debits, Credits, and Double-Entry Accounting<br /> 1.3 List the Steps of the Transaction Recording Process<br /> 1.4 Journalizing Transactions and Posting to the Ledger<br /> 1.5 Preparing the Trial Balance from the T-Accounts<br /> <br /> 6<br /> <br /> MA. Nguyen Quoc Nhat –nhatnq.faa@gmail.com<br /> <br /> 2<br /> <br /> International Accounting<br /> <br /> Chapter 1: Recording Business Transactions<br /> <br /> 1.1 The Account, the Journal, and the Ledger<br /> 1.1.1 The Accounting Cycle<br /> <br /> (9) Prepare the post closing<br /> trial balance<br /> <br /> Start with the<br /> balances in the<br /> ledger at the<br /> beginning of the<br /> period<br /> <br /> (1) Identify and analyze<br /> transactions as they occur<br /> <br /> (8) Journalize and post alize<br /> an the closing entries<br /> <br /> (2) Record transactions in a<br /> journal<br /> <br /> (7) Prepare the financial<br /> statements<br /> <br /> (3) Post (copy) from the<br /> journal to the ledger<br /> accounts<br /> <br /> (6) Prepare an adjusted trial<br /> balance<br /> <br /> OPTIONAL:<br /> Worksheet<br /> <br /> (4) Prepare the unadjusted<br /> trial balance<br /> <br /> (5) Journalize and post<br /> adjusting entries<br /> 7<br /> <br /> 1.1 The Account, the Journal, and the Ledger<br /> 1.1.2 The Accounting Equation :<br /> <br /> Assets = Liabilities + Owner’s Equity<br /> <br /> 8<br /> <br /> 1.1 The Account, the Journal, and the Ledger<br /> 1.1.2 The Accounting Equation (continue)<br /> •<br /> <br /> An asset is any resource controlled by the business that has<br /> measurable value and is expected to provide future benefits.<br /> <br /> •<br /> <br /> A liability is a measurable amount that a business owes to a<br /> creditor.<br /> <br /> •<br /> <br /> Owner’s equity represents the owner’s claim to the business.<br /> <br /> 9<br /> <br /> MA. Nguyen Quoc Nhat –nhatnq.faa@gmail.com<br /> <br /> 3<br /> <br /> International Accounting<br /> <br /> Chapter 1: Recording Business Transactions<br /> <br /> 1.1 The Account, the Journal, and the Ledger<br /> 1.1.2 The Accounting Equation (continue)<br /> •<br /> <br /> A T-account is a quick way to show the effect of transactions on<br /> a particular account—a useful shortcut or tool used in<br /> accounting. T-accounts are not part of the formal accounting<br /> records.<br /> <br /> 10<br /> <br /> 1.2 Debits, Credits, and Double-Entry Accounting<br /> 1.2.1 Double-entry accounting<br /> The T-acount: The form of account used for most<br /> illustrations in this book is called the T-account because it takes the<br /> form of the capital letter “T.”<br /> cash<br /> (left side)<br /> <br /> (right side)<br /> <br /> Debit<br /> <br /> Credit<br /> 11<br /> <br /> 1.2 Debits, Credits, and Double-Entry Accounting<br /> 1.2.1 Double-entry accounting (continue)<br /> The type of an account (asset, liability, owner’s equity)<br /> determines how we record increases and decreases. For any given<br /> type of account, all increases are recorded on one side, and all<br /> decreases are recorded on the other side. Increases in assets are<br /> recorded in the left (debit) side of the account. Decreases in assets are<br /> recorded in the right (credit) side of the account. Conversely,<br /> increases in liabilities and owner’s equity are recorded by credits.<br /> Decreases in liabilities and owner’s equity are recorded by debits .<br /> 12<br /> <br /> MA. Nguyen Quoc Nhat –nhatnq.faa@gmail.com<br /> <br /> 4<br /> <br /> International Accounting<br /> <br /> Chapter 1: Recording Business Transactions<br /> <br /> 1.2 Debits, Credits, and Double-Entry Accounting<br /> 1.2.1 Double-entry accounting (continue)<br /> Revenues<br /> <br /> are increases in owner’s equity from providing<br /> <br /> goods and services to customers. Expenses are decreases in owner’s<br /> equity from using assets or increasing liabilities in the course of<br /> operating the business.<br /> <br /> 13<br /> <br /> 1.3 List the Steps of the Transaction Recording Process<br /> <br /> 14<br /> <br /> 1.4 Journalizing Transactions and Posting to the Ledger<br /> <br /> Learning objective:<br /> •<br /> <br /> Record transactions in the journal<br /> <br /> •<br /> <br /> Post from the journal to the ledger<br /> <br /> 15<br /> <br /> MA. Nguyen Quoc Nhat –nhatnq.faa@gmail.com<br /> <br /> 5<br /> <br />