Chapter2AnalyzingTransactionsUsefulnessofanAccountCharacteristicsofanAccountRulesofDebitandCreditAnalyzingandSummarizingTransactionsinAccountsTrialBalanceContentsAnaccount賬戶

isabasicrecordusedtoshowtheincreasesanddecreasesineachfinancialstatementitem.MajorAccountClassificationsLiabilitiesaredebtsowedtooutsiders(creditors).CashSuppliesBuildingAccountsReceivableAccountspayableNotespayableWagespayableUnearnedRevenuesAssetsareresourcesownedbythebusiness.Owner’sequityistheowner’srighttotheassetsofthebusiness.Revenuesareincreasesinowner’sequityasaresultofsellingservicesorproducts.Expensesaretheusingupofassetsorconsumingofservicestogeneraterevenue.MajorAccountClassificationsOwner’sequityistheowner’srighttotheassetsofthebusiness.Revenuesareincreasesinowner’sequityasaresultofsellingservicesorproducts.ChrisClark,CapitalChrisClark,DrawingFeesEarnedFaresEarnedCommissionsRevenueSalesExpensesaretheusingupofassetsorconsumingofservicestogeneraterevenue.RentExpenseSalaryExpenseUtilitiesExpenseMajorAccountClassificationsAlistoftheaccountsinaledgeriscalledachartofaccounts會計科目表.Toassistyouinlearning,anaccountcanbedrawntoresembletheletterT.ThesimplifiedversionofledgeraccountsthattakestheformofthecapitalletterTiscallTaccountTheT-AccountTheT-accounthasatitle.CashTheT-AccountTherightsideoftheaccountisthecreditside.CashLeftsidedebitRightsidecreditTheT-AccountCash3,7504,3002,9008501,4007002,900TypicalentriesBalancingaT-Account8501,4007002,900Cash3,7504,3002,90010,9505,850Next,footthecreditside.8501,4007002,900Cash3,7504,3002,90010,9505,850Subtracttotalcreditsfromtotaldebitstoobtaintheaccountbalance.5,100

DebitsCreditsAssetaccounts………. Increase(+) Decrease(-)Liabilityaccounts…… Decrease(-) Increase(+)Owner’sequity

(capital)accounts…. Decrease(-) Increase(+)RulesofDebit/CreditBalanceSheetAccountsIncrease(NormalBalances)DecreasesBalancesheetaccounts:

Asset Debit Credit Liability Credit Debit Owner’sEquity: Capital Credit Debit Drawing Debit CreditIncomestatementaccounts:

Revenue Credit Debit Expense Debit CreditNormalBalancesofAccountsAnalyzingTransactionsinAccountsPost.Ref.JOURNALDateDescriptionDebitCreditPage11234Nov. 12005Cash 2500000ChrisClark,Capital 2500000InvestedcashinNetSolutions.(A) OnNovember1,ChrisClarkdeposits$25,000inabankaccountinthenameofNetSolutions.1011121314151610Supplies 135000AccountsPayable 135000Purchasedsuppliesonaccount.(C) OnNovember10,NetSolutionspurchasedsuppliesonaccountfor$1,350.(D) OnNovember18,NetSolutionsreceivedfeesof$7,500fromcustomersforservicesprovided.18Cash 750000FeesEarned 750000Receivedfeesfromcustomers.14151617181920(G) OnNovember30,acountrevealedthat$800ofthesuppliesinventoryhadbeenused.30SuppliesExpense 80000Supplies 80000SuppliesusedduringNovember.25262728293031Post.Ref.JOURNALDateDescriptionDebitCreditPage21234Nov. 302005ChrisClark,Drawing 200000Cash 200000ChrisClarkwithdrewcashforpersonaluse.(H) OnNovember30,ChrisClarkwithdrew$2,000incashfromNetSolutionsforpersonaluse.Ineveryentrythesumofthedebitsalwaysequalthesumofthecredits.Leftside=RightsideDebit=CreditDouble-EntryAccounting復式記賬法Themethodusuallyfollowedforrecordingtransactions,wherebyatleasttwoaccountsarealwaysaffectedbyeachtransactionsLucaPacioliDeveloperofDouble-EntryAccountingTaccountLeftSideDEBITRightSideCREDIT1.

Determinewhetheranasset,aliability,owner’sequity,revenue,orexpenseaccountisaffectedbythetransaction.2.

Foreachaccountaffectedbythetransaction,determinewhethertheaccountincreasesordecreases.3.

Determinewhethereachincreaseordecreaseshouldberecordedasadebitoracredit.SystemtoAnalyzeTransactionsFlowofBusinessTransactions1Transactionauthorized2Transactiontakesplace3Documentprepared4Entryrecordedinjournal5EntrypostedtoledgerJournalizingandPostingJournalizingandPostingJournal分錄簿AbookoforiginalentrythatlinksthedebitsandcreditsofindividualtransactionsbyprovidingacompleterecordofeachtransactioninoneplaceinchronologicalorderJournalentry記賬分錄Ananalysisifalltheeffectsofasingletransactiononthevariousaccounts,usuallyaccompaniedbyanexplanation.Journalizing編制分錄TheprocessofrecordingatransactionPosting過賬TheprocessoftransferringthedebitsandcreditsfromthejournalentriestotheaccountsPost.Ref.JOURNALDateDescriptionDebitCreditPage21234Dec. 312005PrepaidInsurance 240000Cash 240000Paidpremiumontwo-yearpolicy.Dec.1 NetSolutionspaidapremiumof$2,400foracomprehensiveinsurancepolicycoveringtwoyears.Post.Ref.JOURNALDateDescriptionDebitCreditPage21234Dec. 12005PrepaidInsurance 240000Cash 240000ACCOUNTPrepaidInsuranceACCOUNTNO.15BalanceDebitCreditDateDebitCreditItemPost.Ref.240000240000Dec. 12005Paidpremiumontwo-yearpolicy.Post.Ref.JOURNALDateDescriptionDebitCreditPage21234Dec. 12005PrepaidInsurance 240000Cash 240000ACCOUNTPrepaidInsuranceACCOUNTNO.15BalanceDebitCreditDateDebitCreditItemPost.Ref.240000240000Dec. 12005215Paidpremiumontwo-yearpolicy.Post.Ref.JOURNALDateDescriptionDebitCreditPage21234Dec. 12005PrepaidInsurance 240000Cash 240000Paidpremiumontwo-yearpolicy.15ACCOUNTCashACCOUNTNO.11BalanceDebitCreditDateDebitCreditItemPost.Ref.200000590000Nov. 3020052Dec.1240000350000Post.Ref.JOURNALDateDescriptionDebitCreditPage21234Dec. 12005PrepaidInsurance 240000Cash 240000Paidpremiumontwo-yearpolicy.15ACCOUNTCashACCOUNTNO.11BalanceDebitCreditDateDebitCreditItemPost.Ref.200000590000Nov. 3020052240000350000Dec.1112AdditionalTransactions1.Dec.1 NetSolutionspaidrentforDecember,$800.

2.Dec.1 NetSolutionsreceives$360forthreemonth’srentbeginningDecember1.3.Dec.4 NetSolutionspurchasedofficeequipmentonaccountfromExecutiveSupplyCo.for$1,800.4.Dec.6 NetSolutionspaid$180foranewspaperadvertisement.5.Dec.11 NetSolutionspaidcreditors$400.6.Dec.13 NetSolutionspaidareceptionistandpart-timeassistant$950fortwoweeks’wages.7.Dec.16 Feesearnedonaccounttotaled$1,750forthefirsthalfofDecember.8.Dec.16 NetSolutionsreceived$3,100fromfeesearnedforthefirsthalfofDecember.9.Dec.21 NetSolutionsreceived$650fromcustomersinpaymentoftheiraccounts.10.Dec.31 NetSolutionspaidits$310telephonebillforthemonth.11.Dec.31 NetSolutionspaidits$225electricbillforthemonth.14151617

1RentExpense 52 80000Cash 11 80000PaidrentforDecember.Dec.1 NetSolutionspaidrentforDecember,$800.14151617

1Cash 14 36000UnearnedRent 23 36000ReceivedadvancedpaymentForthreemonths’rentofland.Dec.1 NetSolutionsreceives$360forthreemonth’srentbeginningDecember1.Dec.4 NetSolutionspurchasedofficeequipmentonaccountfromExecutiveSupplyCo.for$1,800.18192021

4OfficeEquipment 18 180000AccountsPayable 21 180000Purchasedofficeequipmentonaccount.Dec.6 NetSolutionspaid$180foranewspaperadvertisement.21222324

6MiscellaneousExpense 59 18000Cash 11 18000Paidfornewspaperad.Dec.11 NetSolutionspaidcreditors$400.24252627

11AccountsPayable 21 40000Cash 11 40000Paidcreditorsonaccount.Dec.13 NetSolutionspaidareceptionistandpart-timeassistant$950fortwoweeks’wages.Post.Ref.JOURNALDateDescriptionDebitCreditPage31234Dec. 132005WagesExpense 51 95000Cash 11 95000Paidtwoweek’swages.Dec.16 NetSolutionsreceived$3,100fromfeesearnedforthefirsthalfofDecember.5678

16Cash 11 310000FeesEarned 41 310000Receivedfeesfromcustomers.Dec.16 Feesearnedonaccounttotaled$1,750forthefirsthalfofDecember.9101112

16AccountsReceivable 12 175000FeesEarned 41 175000Receivedfeesfromcustomers.Dec.21 NetSolutionsreceived$650fromcustomersinpaymentoftheiraccounts.18192021

21Cash 11 65000AccountsReceivable 12 65000Receivedcashfromcustomeronaccount.Dec.31 NetSolutionspaidits$310telephonebillforthemonth.31323334

31UtilitiesExpense 54 31000Cash 11 31000Paidtelephonebill.Dec.31 NetSolutionspaidits$225electricbillforthemonth.Post.Ref.JOURNALDateDescriptionDebitCreditPage41234Dec. 312005UtilitiesExpense 54 22500Cash 11 22500Paidutilitybill.TrialBalance

試算平衡表Trialbalanceisalistofallamountsinthegeneralledgerwiththeirbalances.Thislistingaidsinverifyingaccuracyandinpreparingfinancialstatements.NetSolutionsTrialBalanceDecember31,2005Cash 206500 AccountsReceivable 222000Supplies 200000PrepaidInsurance 240000Land 2000000OfficeEquipment 180000AccountsPayable 90000UnearnedRent 36000ChrisClark,Capital 2500000ChrisClark,Drawing 400000FeesEarned 1634000WagesExpense 427500RentExpense 160000UtilitiesExpense 98500SuppliesExpense 80000MiscellaneousExpense 45500 4260000 4260000NetSolutionsTrialBalanceDecember31,2005Cash 206500 AccountsReceivable 222000Supplies 200000PrepaidInsurance 240000Land 2000000OfficeEquipment 180000AccountsPayable 90000UnearnedRent 36000ChrisClark,Capital 2500000ChrisClark,Drawing 400000FeesEarned 1634000WagesExpense 427500RentExpense 160000UtilitiesExpense 98500SuppliesExpense 80000MiscellaneousExpense 45500 4260000 4260000BalanceSheetItemsNetSolutionsTrialBalanceDecember31,2005Cash 206500 AccountsReceivable 222000Supplies 200000PrepaidInsurance 240000Land 2000000OfficeEquipment 180000AccountsPayable 90000UnearnedRent 36000ChrisClark,Capital 2500000ChrisClark,Drawing 400000FeesEarned 1634000WagesExpense 427500RentExpense 160000UtilitiesExpense 98500SuppliesExpense 80000MiscellaneousExpense 45500 4260000 4260000StatementofOwner’sEquityItemNetSolutionsTrialBalanceDecember31,2005Cash 206500 AccountsReceivable 222000Supplies 200000PrepaidInsurance 240000Land 2000000OfficeEquipment 180000AccountsPayable 90000UnearnedRent 36000ChrisClark,Capital 2500000ChrisClark,Drawing 400000FeesEarned 1634000WagesExpense 427500RentExpense 160000UtilitiesExpense 98500SuppliesExpense 80000MiscellaneousExpense 45500 4260000 4260000Incom