Introduction to Financial accounting 1

Session04

Review of past learning :

The 14 rules, the most important ones, discussion
A brief glance at simple-entry book-keeping
Akin to a cash account, with an "in" column and an "out" column
What is double-entry book-keeping for
Why is it powerful
The problem of purchases, or sales, with credit

A full fledged illustration and Many exercises :

Transactions :

The journal :

The cash account :

The laundry equipment account :

The "notes and accounts payable" account :

Complete the posting of the journal of Campus Laundromat

In class solving of many textbook exercises, from 3.1 to 3.8, to build automatisms when recording transactions and working with accounts

Trial balance :

Balancing accounts, the balance carried down and the balance brought down (see above illustrations)
A simple trial balance
A trading activity where sales and purchases match
Examples
A trial balance with creditors and debtors accounts
Working through Exhibit 3.8 in detail
"Edward’s" Trial balance
Solving questions 3.13 and sequel

Toward the balance sheet and the income statement :

Transforming a trial balance into a balance sheet and an income statement
The problem of matching income and expenditures
The problem of stocks

For next session :

Read the entire chapter 3 of "Dyson"
Check your learning
Read the discussion questions, and try and answer them

New (in beta-test) On-line exercise :

Davies buys and sells goods on cash and credit terms. The following is a list of his transactions for April 2002. Answer the following questions by typing "...... account" in the answer box.

(Type in the answer like this : Sales account, Purchases account, Capital account, etc.)

Questions drawn at random from the list below.

Question :

Type in your answer :

The correct answer is :