Day 34: Nature of Adjustments

Preview chapter 3 by watching the videos online

• #4 Unearned Revenues (5:00)
• #5 Accrued Expenses (4:16)
• #6 Accrued Revenue (3:45)

Work on:

• Discussion Questions 1 - 5
• BE 3-1 and 3-2

Day 33: Accruals and Deferrals

Preview chapter 3 by watching the videos online

• #1 Accrual and Cash Basis Accounting (4:02)
• #2 Prepaid Expenses (5:59)
• #3 Depreciation (6:53)

some accounts need to be "brought up to date" at the end of an accounting cycle

• some expenses incurred as time goes by,
  not efficient to account for them as they are used:
• Prepaid Expenses (deferred expenses - assets)
• supplies
• inventories
• prepaid advertising
• prepaid insurance
• prepaid rent
• Depreciation
• Interest Expense
• some expenses are incurred before they are paid:
• Accrued Expenses (payables - liabilities)
• wages payable
• salaries payable
• taxes payable
• interest payable
• some revenues are earned over time,
  but paid for in advance:
• Unearned Revenues (deferred revenues - liabilities)
• unearned rental fees
• unearned subscription fees
• unearned service fees
• some revenues are earned before payment is received:
• Accrued Revenues (receivables - assets)
• sales on account
• interest income

Day 32: Intro to Chapter 3

Introduction to chapter 3.

- Revenue Recognition
- Matching Principle
- Accrual  Basis Accounting v. Cash Basis Accounting
- Nature of the Adjusting Process -- Accruals and Deferrals

• Preview chapter 3 by watching the videos online

• #1 Accrual and Cash Basis Accounting (4:02)
• #2 Prepaid Expenses (5:59)
• #3 Depreciation (6:53)
• #4 Unearned Revenues (5:00)
• #5 Accrued Expenses (4:16)
• #6 Accrued Revenue (3:45)

• Adjustments and Deferrals (14:47)
• Adjustments and Accruals (12:46)

Day 29: Ch 2 Quiz Retake

Retake Ch 2 Quiz

After Quiz:

• Preview chapter 3 by watching the videos online
• Adjustments and Deferrals (14:47)
• Prepaid Expenses (5:59)
• Depreciation (6:53)
• Unearned Revenues (5:00)
• Adjustments and Accruals (12:46) 
• Accrual and Cash Basis Accounting (4:02)
• Accrued Expenses (4:16)
• Accrued Revenue (3:45)

Day 28: Go Over Chapter 2

• Journalize transactions in white ch. 1 packet (on teacher desk) DUE MONDAY
• Review ch 2. material for quiz retake on Monday by completing these assignments in your yellow packet:

• Chapter 2 Review Questions
• BE 2-1
• EX 2-1
• EX 2-4
• EX 2-9
• EX 2-14

Day 27: Ch. 2 Quiz

• Complete the chapter 2 quiz
• Review chapter 2 concepts by watching these videos online:
• Intro to Rules of Debit and Credit (9:12)
    
• T-Account Transactions (11:15)
  T-Accounts and Journal Entries (6:00)
   
• General Journal and Ledgers (6:20)

Day 26: Study Day

Complete Review Questions


Review chapter 2 concepts by watching these videos online:

• Intro to Rules of Debit and Credit (9:12)
    
• T-Account Transactions (11:15)
  T-Accounts and Journal Entries (6:00)
   
• General Journal and Ledgers (6:20)

Day 25: Even More Transaction Practice

Problems:

   (pg 93, PR 2-3A)
   (pg 96, PR 2-3B)

Day 24: More Transaction Practice

Problems:

   (pg 93, PR 2-3A)
   (pg 96, PR 2-3B)

 Posting Journal Entries to Accounts

·    The debits and credits for each journal entry are posted to the accounts in the order in which they occur in the journal.

·    posting uses the following four steps:

o Step 1. The date (Dec. 1) of the journal entry is entered in the Date column of Prepaid Insurance and Cash.

o Step 2. The amount (2,400) is entered into the Debit column of Prepaid Insurance and the amount (2,400) is entered into the Credit column of Cash.

o Step 3. The journal page number (2) is entered in the Posting Reference (Post. Ref.) column of Prepaid Insurance and Cash.

o Step 4. The account numbers (15) and (11) are entered in the Posting Reference (Post. Ref.) column in the journal.

 Video: General Journal and Ledgers (6:20)  

Day 23: Transactions Practice

Problems:
   (pg 89, EX 2-14)
   (pg 84, Discussion #4)
   (pg 89, EX 2-15)
   (pg 88, EX 2-8)

 Video: General Journal and Ledgers (6:20)  

Day 22: Self-Reflection / Transactions

At the end of this week your teachers will be completing progress reports for you. In addition to your teachers' assessment of how you are doing, it is important for you to engage in honest self-assessment, too. 

Please complete this form regarding your performance over the last grading period.

Journalizing

•       Transactions are recorded in the journal using the following steps:

o   Step 1. The date of the transaction is entered in the Date column.

o   Step 2. The title of the account to be debited is recorded in the left-hand margin under the Description column, and the amount to be debited is entered in the Debit column.

o   Step 3. The title of the account to be credited is listed below and to the right of the debited account title, and the amount to be credited is entered in the Credit column.

o   Step 4. A brief description may be entered below the credited account.

o   Step 5. The Post. Ref. (Posting Reference) column is left blank when the journal entry is initially recorded. This column is used later when the journal entry amounts are transferred to the accounts in the ledger.

Exercises:
  2-8, 2-9, 2-14

Video: General Journal and Ledgers (6:20)  

 

Day 21: Journal Entries

Problem:
  (pg 88, EX 2-7)

Day 20: Double Entry Accounting

Double-Entry Accounting

Every transaction affects at least 2 accounts and debits must equal credits.

What did you "get"? What did you "give"?

• Video: Intro to Rules of Debit and Credit (9:12)

Exercises:

• BE 2-2, 2-3, 2-4, 2-7

Day 19: Accounts

Chart of Accounts

• list of all accounts
• each shows increases, decreases, and balance of a specific item
• in numeric order
• 100's Assets (permanent)
• items of value owned or controlled by business
• 200's Liabilities (permanent)
• items that are payable (owed)
• 300's Stockholders' Equity
• Capital (Common) Stock (permanent)
• represents investments made by owners
• Retained Earnings (permanent)
• represents income earned by business after all expenses (less dividends distributed)
• dividends (temporary) closed to retained earnings
• income summary (temporary) closed to retained earnings
• 400's Revenues (temporary) closed to Income Summary
• Fees Earned
• represents income earned from providing services (before expenses)
• Sales
• represents income earned from selling goods (before expenses)
• 500's Expenses (temporary) closed to Income Summary
• day-to-day costs of generating revenue

Assignment:

• pg 85 BE 2-1
• pg 86 EX 2-2 through 2-3

Day 18: Debit and Credit Rules

T-accounts

• left = debit
• right = credit
• left = right
• Debit = Credit

Rules of Debit and Credit

• Assets are on the left
• so increase on the debit side
• Liabilities are on the right
  so increase on the credit side
• Stockholders' Equity is on the right
  so increases with credits
• Common (Capital) Stock
• Retained Earnings
• Revenues
• Fees Earned
• Sales

Assignment:

• pg 84 Discussion #2
• pg 86 EX 2-1
• pg 87 EX 2-4

Day 17: Preview Chapter 2

Use What You've Got.... or lose it!

• Discuss Account Classifications
• Assets = Liabilities + Stockholders' Equity
• Investigate different accounts
• Cash
• Change Fund
• Petty Cash
• Accounts Receivable
• Allowance for Uncollectible Accounts
• Supplies
• Merchandise Inventory
• Prepaid Insurance
• PPE
• Equipment and Machinery
• Buildings
• Land
• Preview chapter 2 by watching the videos online
• T-Accounts and Journal Entries (6:00)
• General Journal and Ledgers (6:20)    

Day 16: Ch 1 Quiz Retake

Retake Ch 1 Quiz

After Quiz:

• Preview chapter 2 by watching the videos online
• T-Accounts and Journal Entries (6:00)
• General Journal and Ledgers (6:20)    

Day 15: Ch. 1 Quiz Review

Go over the results from the chapter 1 quiz

Prepare for the chapter 1 quiz retake