Professional Documents
Culture Documents
Accounting
Accounting
(Chapters 2 – 10)
I. Analyzing Business Transactions
B. Source documents
C. Journalizing Procedures
1. Date
A. Chart of Accounts
B. General Ledger
1. Account Title
2. Account Number
3. Date
Accounting – Unit 1 – p. 1
4. Item
5. Posting Reference
6. Debit
7. Credit
8. Debit Balance
9. Credit Balance
D. Opening an account
1. Recording Date
IV. Cash Control Systems (Banking and Petty Cash) (Chapter 7 & Checking
Account Simulation Packet Provided By Rome Savings Bank)
A. Checking Accounts
2. Preparing Checks
a) Parts of a check
c) Voiding a check
3. Depositing Cash
4. Endorsing Checks
a) Blank endorsement
Accounting – Unit 1 – p. 2
b) Special endorsement
c) Restrictive endorsement
B. Bank Statements
C. Dishonored Checks
1. Reasons
D. Petty Cash
Accounting – Unit 1 – p. 3
2. Record petty cash short or over
1. Trial balance
2. Adjustments
a) Supplies
b) Prepaid Insurance
4. Balance Sheet
B. Financial statements
1. Income Statement
a) Source of data
b) Components
(1) Revenue
(2) Expenses
a) Source of data
b) Components
(1) Assets
Accounting – Unit 1 – p. 4
(2) Liabilities
a) Adjusting Entries
b) Closing Entries
Topic: Journalizing
The student will be able to:
1. Identify accounting concepts and practices related to journalizing transactions and
correcting simple errors. (D)
2. Explain the purpose of journalizing (D)
3. Identify journalizing procedure (D)
4. Explain the significance of source documents (D)
5. Analyze a business transaction into its debit and credit parts given a description of the
transaction. (D)
6. Explain the importance of an audit trail (D)
7. Journalize selected business transactions (P)
Accounting – Unit 1 – p. 5
Topic: Posting
The student will be able to:
1. Identify accounting concepts and practices related to posting from a general journal to
a general ledger (D)
2. Prepare a chart of accounts for a service business organized as a proprietorship. (P)
3. Explain the need for a general ledger. (D)
4. Explain the format of a four amount column general ledger account. (D)
5. Open the general ledger accounts (P)
6. Post amounts from a general journal to a general ledger (P)
Accounting – Unit 1 – p. 6
1. Complete an 8-column worksheet utilizing Microsoft Excel
2. Utilize South and Western Automated Accounting Software to enter transactions and
produce reports
general journal (p. 73) - A journal with two amount columns in which all kinds of
entries can be recorded.
double-entry accounting (p.74) - The recording of debit and credit parts of a transaction.
source document (p.74) - A business paper from which information is obtained for a
journal entry.
check (p.74) - A business form ordering a bank to pay cash from a bank account.
receipt (p. 75) - A business form giving written acknowledgement for cash received.
general ledger (p. 96) - A ledger that contains all accounts needed to prepare financial
statements.
file maintenance (p. 97) - The procedure for arranging accounts in a general ledger,
Accounting – Unit 1 – p. 7
assigning account numbers, and keeping records current.
opening an account (p. 99) - Writing an account title and number on the heading of an
account.
posting (p. 100) - Transferring information from a journal entry to a ledger account.
proving cash (p. 111) - Determining that the amount of cash agrees with the accounting
records.
checking account (p. 131) - A bank account from which payments can be ordered by a
depositor.
bank statement (p. 138) - A report of deposits, withdrawals, and bank balance sent to a
depositor by a bank.
electronic funds transfer (p. 146) - A computerized cash payments system that uses
electronic impulses to transfer funds.
petty cash (p. 147) - An amount of cash kept on hand and used for making small
payments.
petty cash slip (p. 149) - A form showing proof of a petty cash payment.
fiscal period (p. 171) - The length of time for which a business summarizes and reports
financial information.
worksheet (p. 172) - A columnar accounting form used to summarize the general ledger
information needed to prepare financial statements.
trial balance (p. 172) - A proof of the equality of debits and credits in a general ledger.
Accounting – Unit 1 – p. 8
adjustments (p. 175) - Changes recorded on a work sheet to update general ledger
accounts at the end of a fiscal period.
income statement (p. 178) - A financial statement showing the revenue and expenses for
a fiscal period.
net income (p. 180) - The difference between total revenue and total expenses when total
revenue is greater.
net loss (p. 182) - The difference between total revenue and total expenses when total
expenses are greater.
component percentage (p. 197) – The percentage relationship between one financial
statement item and the total that includes that item.
adjusting entries (p. 211) - Journal entries recorded to update general ledger account at
the end of a fiscal period.
permanent accounts (p. 214) - Accounts used to accumulate information from one fiscal
period to the next.
closing entries (p. 215) - Journal entries used to prepare temporary accounts for a new
fiscal period.
post-closing trial balance (p. 226) - A trial balance is prepared after the closing entries
are posted.
accounting cycle (p. 227) - The series of accounting activities included in recording
financial information for a fiscal period.
Accounting – Unit 1 – p. 9
Unit 2: Accounting for a Merchandise Business Organized as a Partnership
(Chapters 11 – 17)
VII. Partnership
1. Merchandise Inventory
2. Purchases (merchandise)
3. Sales (merchandise)
B. Source documents
1. Purchase invoice
2. Sales invoice
3. Check stub
a) Purchases
Accounting – Unit 1 – p. 10
1. Column headings
c) Cash Credit
f) Cash Withdrawal
1. Column Headings
c) Sales Credit
Accounting – Unit 1 – p. 11
3. Posting daily transactions to the accounts receivable subsidiary ledger
(three amount columns)
1. Column headings
c) Sales Credit
e) Cash Debit
b) Merchandise Withdrawal
Accounting – Unit 1 – p. 12
2. Posting Transactions
a) General Ledger
b) Subsidiary Ledgers
F. Schedules
1. Accounts Receivable
2. Accounts Payable
X. Introduction to Payroll
A. Source Documents
1. Time Cards
B. Mandatory Deductions
a) Marital Status
b) Withholding Allowance
C. Voluntary Deductions
D. Payroll Register
Accounting – Unit 1 – p. 13
1. Journalizing employer’s payroll tax liability
B. Adjustments
1. Merchandise Inventory
2. Supplies
3. Prepaid Insurance
1. Income Statement
a) Components
(4) Expenses
Accounting – Unit 1 – p. 14
b) Component Percentages
c) Withdrawals
a) Assets
b) Liabilities
c) Owner’s Equity
Topic: Partnership
The student must be able to:
9. Identify accounting concepts and practices related partnership (D)
Accounting – Unit 1 – p. 15
The student must be able to:
8. Identify accounting concepts and practices related to merchandising business (D)
9. Identify accounts unique to a merchandising business (D)
10. Compare and contrast transactions between a merchandising business and a service
business (D)
11. Identify source documents encountered in a merchandising business. (D)
Accounting – Unit 1 – p. 16
6. Identify accounting concepts and practices related to a worksheet for a merchandising
business. (D)
7. Plan adjustments on a work sheet for a merchandising business. (P)
8. Complete a work sheet for a merchandising business. (P)
9. Identify accounting concepts and practices related to financial statements for a
merchandising business organized as a partnership. (D)
10. Prepare an income statement for a merchandising business organized as a partnership.
(P)
11. Analyze an income statement using component percentages for a merchandising
business organized as a partnership. (P)
12. Prepare a distribution of net income statement for a merchandising business
organized as a partnership. (P)
13. Prepare an owners’ equity statement for a merchandising business organized as a
partnership. (P)
14. Prepare a balance sheet for a merchandising business organized as a partnership. (P)
partnership (p. 246) - A business in which two or more persons combine their assets and
skills.
merchandising business (p. 246) - A business that purchases and sells goods.
special journal (p. 246) - A journal used to record only one kind of transaction.
cost of merchandise (p. 246) - The price a business pays for goods it purchases to sell.
markup (p. 247) - The amount added to the cost of merchandise to establish the selling
price.
vendor (p. 247) - A business from which merchandise is purchased or supplies or other
assets are bought.
Accounting – Unit 1 – p. 17
be paid for later.
purchases journal (p. 248) - A special journal used to record only purchase on account
transactions.
special amount column (p. 248) - A journal amount column headed with an account title.
invoice (p. 248) - A form describing the goods sold, the quantity, and the price.
purchase invoice (p. 248) - An invoice used as a source document for recording a
purchase on account transaction.
terms of sale (p. 249) - An agreement between a buyer and a seller about payment for
merchandise.
cash payments journal (p. 251) - A special journal used to record only cash payment
transactions.
general amount column (p. 251) - A journal amount column that is not headed with an
account title.
correcting entry (p. 262) - A journal entry made to correct an error in the ledger.
customer (p. 271) - a person or business to whom merchandise or services are sold.
sale on account (p.272) - a sale for which cash will be received at a later date.
sales journal (p. 272) - a special journal used to record only sales on account
transactions.
sales invoice (p. 272) - an invoice used as a source document for recording a sale on
account.
cash receipts journal (p. 275) - a special journal used to record only cash receipt
transactions.
cash sale (p. 277) - a sale in which cash is received for the total amount of the sale at the
time of the transaction.
credit card sale (p. 277) - a sale in which a credit card is used for the total amount of the
sale at the time of the transaction.
subsidiary ledger (p. 290) - a ledger that is summarized in a single general ledger
account.
Accounting – Unit 1 – p. 18
accounts payable ledger (p. 290) - a subsidiary ledger containing only accounts for
vendors from whom items are purchased or bought on account.
accounts receivable ledger (p. 290) - a subsidiary ledger containing only accounts for
charge customers.
controlling account (p. 290) - an account in a general ledger that summarizes all
accounts in a subsidiary ledger.
schedule of accounts payable (p. 304) - a listing of vendor accounts, account balances
and total amount due all vendors.
payroll (p. 341) - The total amount earned by all employees for a pay period.
total earnings (p. 343) - The total pay due for a pay period before deductions.
withholding allowance (p. 346) - A deduction from total earnings for each person
legally supported by a taxpayer.
Medicare (p. 346) - The federal health insurance program for people who have reached
retirement age.
FICA tax (p. 347) - A federal tax paid by employees and employers for old-age,
survivors, disability, and hospitalized insurance.
federal unemployment tax (p. 348) - A federal tax used for state and federal
administrative expenses of the unemployment program.
state unemployment tax (p. 348) - A state tax used to pay benefits to unemployed
workers.
payroll register (p. 348) - A business form used to record payroll information.
tax base (p. 350) - The maximum amount of earnings on which a tax is calculated.
net pay (p. 352) - The total earnings paid to an employee after payroll taxes and other
Accounting – Unit 1 – p. 19
deductions.
automatic check deposit (p. 354) - Depositing payroll checks directly to an employee’s
checking or savings account in a specific bank.
employee earnings record (p. 355) - A business form used to record details affecting
payments made to an employee.
merchandise inventory (p. 407) – The amount of goods on hand for sale to the customer.
cost of merchandise sold (p. 425) - The total original price of all merchandise sold during
a fiscal period.
gross profit on sales (p. 428) - The revenue remaining after cost of merchandise sold has
been deducted.
owner’s equity statement (p. 435) - A financial statement that summarizes the changes in
owner’s equity during a fiscal period.
supporting schedule (p. 442) - A report prepared to give details about an item on a
principal financial statement.
cost of merchandise sold (p. 425) - The total original price of all merchandise sold
during a fiscal period.
gross profit on sales (p. 428)- The revenue remaining after cost of merchandise sold has
been deducted.
owner’s equity statement (p. 435)- A financial statement that summarizes the changes in
owner’s equity during a fiscal period.
supporting schedule (p. 442) - A report prepared to give details about an item on a
principal financial statement.
Accounting – Unit 1 – p. 20