ACCOUNTING Chapter Notes -Double-Entry Bookkeeping System, General Ledger

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presentingkat

10 Feb 2023

School

Polytechnic University of the Philippines

Department

Accounting

Course

ACCOUNTING

Professor

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Document Summary

Social media websites and applications such as facebook, instagram, and twitter allow you to capture moments in your life. They serve as a reminder of the things that you have done, places that you have gone to, and people you have met. The way that lives become so documented is similar to when people had diaries, when they would write in them regularly. This is similar to how journal transactions work. Journal entries are records of di erent business transactions. All transactions that happen in a business are recorded in the company"s journal. Journal works, you can look at any particular day in the business and get an idea of all the transactions that transpired during the day. Not all accounting journals look alike, but mainly, each one should have the date, description, debit, and credit. Below is a sample list of transactions and below that is a sample of how those transactions are written in the journal.

Related Questions

Record (journalize) transactions in the books) Doherty Tree Cellular, Inc.,
completed the following transactions during April 2012, its first month of operations:

Apr 1	Received $19,800 and issued common stock.
2	Purchased $200 of office supplies on account.
4	Paid $14,300 cash for land to use as a building site.
6	Performed service for customers and received cash of $2,600.
9	Paid $100 on accounts payable.
17	Performed service for UFax on account totaling $1,900.
23	Collected $100 from UFax on account.
30	Paid the following expenses: salary, $1,900; rent, $1,300.

1.Record the transactions in the journal of Doherty Tree Cellular, Inc. Key transactions by date and include an explanation for each entry.

CLASS, LETS TAKE RECORDING STEP 1 STEP FURTHER - THE TRIAL BALANCE

Now that we know what the accounting equation is and we have some experience with Journal Entries.

Letâs review the process and take the recording process one step further.

STEP 1) Analyze transaction: As an actual accountant, we determine if a transaction should be recorded by analyzing source documents.

For example: If the Company makes a sale; they will complete a sales document (or sales
tape is generated). If the Company purchases something a purchase invoice is forwarded to Accounting. There is a different type of source documents for different types of transactions.

Note: as an accountant a large part of the battle is making sure there is a source document for all transactions and that all departments capture and forward these documents to Accounting!

STEP 2) Accounting prepares journal entry: for each transaction based on GAAP. (Mostly using the constraints, assumptions, principles we've discussed: materiality, conservatism, matching, revenue recognition, etc).

The entry is entered into a Journal for those types of Transactions (There is a Sales Journal, A/P Journal for purchases, Payroll journal for payroll related entries, General Journal for misc. entries., etc.

Journal entries are made in the proper form, and include: date, description, indent of credit side of each entry.

STEP 3) The Journal entry is posted to General ledger; which includes all activity for all accounts.

However, the recording process is not over. Letâs talk about the trial balance. Please answer ALL however only post ONE question at a time to allow more to participate.

1) Why do we prepare it?

apricotox859

Marlow Company acquired 40 percent of the voting shares of Brown Company on January 1, 20X8, for $85,000. The following results are reported for Brown Company:

	20X8		20X9
Net income	$	20,000	$	30,000
Dividends paid		10,000		15,000
Fair value of shares held by Marlow:
January 1		85,000		97,000
December 31		97,000		92,000

Required:

Give all journal entries recorded by Marlow for 20X8 assuming that it uses the fair value method in accounting for its investment in Brown. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the purchase of Brown Company stock.

Record the dividends from Brown Company.

Record the change in value of Brown stock.

Give all journal entries recorded by Marlow for 20X9 assuming that it uses the fair value method in accounting for its investment in Brown. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

record the dividends from brown company

record the change in value of brown stock

champagnewater-buffalo279

Your father runs a small auto body shop. He has decided tocomputerize his records and has asked you to explain the basics ofaccounting to him so that he can enter the data into his accountingsoftware.
Explain to him the rules of debits and credits for the balancesheet and income statement.
Provide examples from the manufacturing industry of:
a journal entry that would be recorded that impacts the balancesheet.
a journal entry that would be recorded affecting the incomestatement.
Please provide the assumptions behind the transactions and the fulljournal entries.

amberalpaca853

ACCOUNTING Chapter Notes -Double-Entry Bookkeeping System, General Ledger

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