Accounting 1 tips



10-Column Worksheet Solutions from Workshop

posted Mar 19, 2012, 12:59 PM by Prof Kiernan

Help With Numbers Tutoring
Worksheet
Period Ending Dec. 31, 2011

Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
  Debits Credits Debits Credits Debits Credits Debits Credits Debits Credits
Cash 3425       3425       3425  
Accounts Receivable 7000   1000   8000       8000  
Supplies 1270     890 380       380  
Prepaid Insurance 620     315 305       305  
Office Equipment 51650       51650       51650  
Accumulated Depreciation- Office Equipment   9700   4950   14650       14650
Accounts Payable   925       925       925
Wages  Payable   0   440   440       440
Unearned Fees   1250 500     750       750
Capital Stock   5000       5000       5000
Retained Earnings   24000       24000       24000
Dividends 5200       5200       5200  
Fees Earned   59125   1500*   60625   60625    
Wages Expense 22415   440   22855   22855      
Depreciation Expense 0   4950   4950   4950      
Rent Expense 4200       4200   4200      
Utilities Expense 2715       2715   2715      
Supplies Expense 0   890   890   890      
Insurance Expense 0   315   315   315      
Miscellaneous Expense 1505       1505   1505      
Totals 100000 100000 8095 6595 106390 106390 37430 60625 68960 45765
Net Income/Loss





23195     23195







60625 60625 68960 68960

Journal Entries

posted Feb 4, 2010, 1:44 PM by Prof Kiernan   [ updated Feb 16, 2011, 12:28 PM ]

Debit or Credit?
Debit doesn't have anything to do with a debit card, it only means left in Latin! Credit means Right!

When writing journal entries I use 2 simple questions to alleviate any confusion. 

Debit (the left side):  What did I get? 
Credit (the right side): How did I get it? 

Here are a few examples of this in action:
 
   1. I sold you my MP3 player for $50
            Debit (the left side):  What did I get? 
                  $50 cash 
            Credit (the right side): How did I get it? 
                  I sold my MP3 player 

        Journal entry:
            Cash                            $50
                    MP3 player                     $50

    2. Purchased Accounting textbook for $160 on account
            Debit (the left side):  What did I get? 
                  an accounting textbook 
            Credit (the right side): How did I get it? 
                  I payed $160 on an accounts payable (on account means you don't pay with cash)

        Journal entry:
            Accounting textbook       $160
                    Accounts Payable           $160

    3. Paid $700 Rent
            Debit (the left side):  What did I get? 
                  A bill for Rent expense
            Credit (the right side): How did I get it? 
                  $700 cash  

        Journal entry:
            Rent Expense               $700
                    Cash                             $700

    4. Sold math book for $75 on account 
            Debit (the left side):  What did I get? 
                  $75 accounts receivable (on account means you don't get cash yet)
            Credit (the right side): How did I get it? 
                  I sold my math book 

        Journal entry:
            Accounts receivable      $75
                    Math Book                    $75

General Accounting Equation

posted Feb 4, 2010, 5:45 AM by Prof Kiernan

Assets = Liabilities + Stockholder's Equity

English Translation:
Assets are things like Cash, Supplies, Land, Buildings, Equipment, Big shiny metal things, etc.
Liabilities are bills and frequently have the key word "payable". i.e. accounts payable, notes payable, etc.
Stockholder's equity is the net worth of the company. Stockholder's equity normally has something to do with stocks or has the key words "expenses, revenues, or earned."

Note: Every transaction has 2 sides to it, however there does not have to be an increase and a decrease, the transaction may compose of: two increasing accounts, two decreasing accounts, or one account that increases while the other decreases.

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