Understanding Accounting
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ACC 300 · Meeting 1 · Tue 9/1

From transaction to trial balance

43 slides · Unit 1 · Optional Kieso: Chapter 1, sections 1.1-1.2; Chapter 2, sections 2.1-2.4 · Meeting overview

Lecture

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  1. Slide 1. Before-class trivia
  2. Slide 2. Welcome to ACC 300
  3. Slide 3. This course might look different from what you expected.
  4. Slide 4. Humans plus technology are better than humans or technology
  5. Slide 5. From accounting knowledge to judgment
  6. Slide 6. Coursework and points
  7. Slide 7. 7
  8. Slide 8. Due this week
  9. Slide 9. The reporting system and the accounting cycle
  10. Slide 10. From transaction to trial balance
  11. Slide 11. Learning objective for this meeting
  12. Slide 12. Where today’s work fits in the accounting cycle
  13. Slide 13. Refresher: find the net change in assets
  14. Slide 14. Refresher answer: total assets rise $8,000
  15. Slide 15. Refresher: classify cash received before work
  16. Slide 16. Refresher answer: cash and a liability both increase
  17. Slide 17. Debit and credit name the 2 sides of an account
  18. Slide 18. Find the balance of this Cash account
  19. Slide 19. Which side normally increases each account type?
  20. Slide 20. How routine transaction data reaches the trial balance
  21. Slide 21. Meet Red Cedar Paddle Co.
  22. Slide 22. Step 1: Analyze the transaction
  23. Slide 23. Worked example: analyze the stock issue
  24. Slide 24. Step 2: Record the journal entry
  25. Slide 25. The stock issue reaches the journal
  26. Slide 26. Step 3: Post to the ledger
  27. Slide 27. The journal entry reaches the ledger
  28. Slide 28. Your turn: equipment bought on account
  29. Slide 29. Answer: the purchase increases an asset and a liability
  30. Slide 30. Your turn: a 12-month insurance payment
  31. Slide 31. Answer: unused insurance coverage is an asset
  32. Slide 32. Your turn: cash received before a tour
  33. Slide 33. Answer: cash before service creates a liability
  34. Slide 34. Step 4: Prepare the unadjusted trial balance
  35. Slide 35. Red Cedar’s unadjusted trial balance
  36. Slide 36. What equal trial-balance totals prove
  37. Slide 37. Equal totals do not prove that every service was recorded
  38. Slide 38. Exam check: does a duplicate entry break the balance?
  39. Slide 39. Answer: both columns remain $60,500
  40. Slide 40. Equal totals can still hide these errors
  41. Slide 41. Exam check: which error can stay hidden?
  42. Slide 42. Answer: the omitted entry can stay hidden
  43. Slide 43. Adjusting the records at period end

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Contents

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Course structure and first deadlines Slides 1–8

  1. 1 Before-class trivia
  2. 2 Welcome to ACC 300
  3. 3 This course might look different from what you expected.
  4. 4 Humans plus technology are better than humans or technology
  5. 5 From accounting knowledge to judgment
  6. 6 Coursework and points
  7. 7 7
  8. 8 Due this week

Unit 1, its objective, and the accounting cycle Slides 9–12

  1. 9 The reporting system and the accounting cycle
  2. 10 From transaction to trial balance
  3. 11 Learning objective for this meeting
  4. 12 Where today’s work fits in the accounting cycle

Accounting equation refresher Slides 13–16

  1. 13 Refresher: find the net change in assets
  2. 14 Refresher answer: total assets rise $8,000
  3. 15 Refresher: classify cash received before work
  4. 16 Refresher answer: cash and a liability both increase

Debits, credits, and automated records Slides 17–20

  1. 17 Debit and credit name the 2 sides of an account
  2. 18 Find the balance of this Cash account
  3. 19 Which side normally increases each account type?
  4. 20 How routine transaction data reaches the trial balance

Worked example: analyze and post one transaction Slides 21–27

  1. 21 Meet Red Cedar Paddle Co.
  2. 22 Step 1: Analyze the transaction
  3. 23 Worked example: analyze the stock issue
  4. 24 Step 2: Record the journal entry
  5. 25 The stock issue reaches the journal
  6. 26 Step 3: Post to the ledger
  7. 27 The journal entry reaches the ledger

Practice: record an equipment purchase Slides 28–29

  1. 28 Your turn: equipment bought on account
  2. 29 Answer: the purchase increases an asset and a liability

Practice: separate cash from recognition Slides 30–33

  1. 30 Your turn: a 12-month insurance payment
  2. 31 Answer: unused insurance coverage is an asset
  3. 32 Your turn: cash received before a tour
  4. 33 Answer: cash before service creates a liability

Read and reconcile the unadjusted trial balance Slides 34–37

  1. 34 Step 4: Prepare the unadjusted trial balance
  2. 35 Red Cedar’s unadjusted trial balance
  3. 36 What equal trial-balance totals prove
  4. 37 Equal totals do not prove that every service was recorded

Test a duplicate entry Slides 38–40

  1. 38 Exam check: does a duplicate entry break the balance?
  2. 39 Answer: both columns remain $60,500
  3. 40 Equal totals can still hide these errors

Exam check: an error that stays hidden Slides 41–43

  1. 41 Exam check: which error can stay hidden?
  2. 42 Answer: the omitted entry can stay hidden
  3. 43 Adjusting the records at period end