Accounting–Financial Accounting Total-Beginners to Advanced

Including well over 100 hours of content, e-book (EPUB, MOBI, PDF) ,Excel worksheet, & PDF files, this is comprehensive

4.41 (2762 reviews)
Udemy
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English
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Accounting & Bookkeeping
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151,443
students
119 hours
content
Mar 2021
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$129.99
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What you will learn

An Introduction to Accounting, The Double Entry Accounting System, & Recording Transactions using Debits and Credits

Analyze, use, and create from scratch financial statements including a balance sheet, income statement, statement of equity, and statement of cash flows

Use the concepts of the double entry accounting system

Record financial transactions using the accounting equation

Record financial transactions using debits and credits

Learn when and how to use accounting methods such a the accrual method and cash method

Apply the concepts related to the revenue recognition principle and the matching principle to recording transactions and reading financial statements

Record period end adjusting entries and be able to explain why adjusting entries are necessary is a well designed accounting system

Record merchandising transactions. Record transactions involving inventory

Track inventory using cost flow methods like FIFO, LIFO, and Weighted Average Methods

Create and use subsidiary ledgers like accounts receivable by customer and accounts payable by vendor subsidiary ledgers

Learn how to create and use special journals and how they can be part of an accounting system

Construct and interpret a bank reconciliation, one of the most critical internal controls

Be able to implement internal controls over cash

Value account receivable and record bad debt expense using either the allowance method or direct write off method

Calculate depreciation using different depreciation methods including straight line depreciation, double declining balance, & units of production depreciation

Record payroll transactions and calculate net pay and income tax withholding

Record transaction specific to partnerships including methods to allocate net income to the partners, adding a new partner, and a partner leaving or selling a partnership interest

Record transaction specific to a corporation including selling capital stock, selling preferred stock, buying treasury stock, issuing cash dividends, and issuing stock dividends

Record transactions related to the issuance of bonds

Record transactions related to notes payable. Learn to create an amortization table.

Construct a statement of cash flows using the direct method and indirect method. We go into more detail about best practices to construct a statement of cash flows than any other course we have seen

Description

Recently updated with A LOT of added content.

Includes downloadable e-book in multiple formats so you can open it on your tablet or Kindle - Formats (EPUB, MOBI, PDF).

This course is an excellent supplement for students or anybody who wants to learn accounting and also have something they can refer back to in the future. Udemy generally provides lifetime access to the course.

Many accounting students do not receive a physical book, they get to keep from their school, and even if they did, the information could become dated. Students who want a useful reference tool they can keep, and one that can be more easily updated then a textbook, will benefit from a resource such as this.

Financial accounting is a LARGE topic and is not something that can be done well in 5, 10, or 20, hours of content, as you may see claimed elsewhere. We will cover accounting theory because theory and concepts are what accounting is. We need to learn theory so we can make appropriate adjustments in the real world. Learning procedures without understanding the theory will make us inflexible and unable to adapt to the ever-changing environment. We will learn the theory while we apply them to procedures.

Financial accounting is relatively standardized in format. In other words, most accounting institutions will cover much the same topics, often in much the same order. We suggest looking up a standard accounting textbook, checking the index, and comparing the topics to the courses you are considering purchasing. We believe this course will line up well to anybody’s needs who want to learn financial accounting.

Below is a list of topics by section:

Section SEC 1 An Introduction to Accounting, The Double Entry Accounting System, & Recording Transactions using Debits and Credits

Section SEC 2 – Recording Period End Adjusting Entries

Section SEC 3 – Recording Closing Entries

Section SEC 4 - Merchandising Transactions – Transactions Involving Inventory

Section SEC 5 – Inventory Cost Flow Assumptions (FIFO, LIFO, Weighted Average Methods)

Section SEC 6 – Subsidiary Ledgers & Special Journals

Section SEC 7 – Bank Reconciliations & Cash Internal Controls

Section SEC 8 – Accounts Receivable – Allowance Method & Direct Write Off Methods

Section SEC 9 – Depreciation Methods & Property Plant & Equipment

Section SEC 10 – Payroll Accounting

Section SEC 11 – Partnership Accounting

Section SEC 12 – Accounting for Corporations

Section SEC 13 – Bonds Payable, Notes Payable, & Long-Term Liabilities

Section SEC 14 – Statement of Cash Flows

The course will start off at the basics and work all the way through the financial accounting topics generally covered in an undergraduate program.

First, we will describe what financial accounting is and the objectives of financial accounting. We will learn how the double-entry accounting system works by applying it to the accounting equation. In other words, we will use an accounting equation to record financial transactions using a double-entry accounting system.

We well learn all topics by fist having presentations and then applying the skills using Excel practice problems. If you are not familiar with how to navigate through Excel, it is OK. We will use preformatted worksheets, have step by step instructional videos, and will start off relatively slow.

The next step is to apply the double-entry accounting system using debits and credits. Debits and credits are a new concept to most people not familiar with accounting, or possibly worse, many people have misconceptions about the meaning of debit and credit due to its use in areas like bank statements, credit cards, and debit cards.

We will cover the rules related to debits and credits in a lot of detail. We will then record similar transactions we had done using the accounting equation, but now using debits and credits.

After we get good at recording transactions using debits and credits, we will learn period end adjusting entries. Adjusting entries are used to adjust the books to represent an accrual basis at the period end better, and they are a great tool for enforcing the concepts of accrual accounting.

Next, we will use the data we have learned to put together by recording financial transactions into financial statements, including the balance sheet, income statement, and statement of equity. We will learn to construct a statement of cash flows much later in the course.

After completing the financial statements, we will learn how to journalize and post-closing entries. Closing entries are used to clean out temporary accounts and prepare for the transactions that will be recorded in the next period.

The steps we have just outlined are critically important to all accounting, and we will need a reasonably good understanding of them to move forward. In other words, the better we understand these concepts, the more natural learning the rest of financial accounting will be. We recommend spending a good deal of time on these concepts and reviewing them often. Think of these skills as a baseball player thinks of playing catch or a musician thinks of playing the basic scales. We should put in some practice with the basics every day.

Next, we will add inventory to the mix. All the skills we have learned will still apply, but we will now record transactions related to the purchase and sale of inventory.

We will also learn to track inventory using different methods. We can use specific identification. In other words, we can track the exact unit of inventory that was sold as a car dealership would do. However, companies generally use a cost flow assumption with smaller items that are the same in nature, assumptions like First In Fist Out (FIFO) or Last In Last Out (LIFO). A company may also use a weighted average method.

Next well will consider subsidiary ledger and special journals. Our main focus is on subsidiary ledger related to accounts receivable and accounts payable. Accounts receivable represents money owed to the organization.

The general ledger will provide the transactions that make up the accounts receivable account balance by date. However, we will want to see this data reported by customers, so we know who owes the company money and how much, and this is the accounts receivable subsidiary ledger.

We have a similar situation with accounts payable. Accounts payable represent vendors the company owes money to. We will want to sort this information by vendors, so we know which vendors we owe money to and how much.

Next, we will cover bank reconciliation and internal controls related to cash. The bank reconciliation is one of the most important internal controls outside of the double-entry accounting system itself. All businesses, large and small, should perform a bank reconciliation. The bank reconciliation will reconcile the cash balance on the company’s books to the cash balance reported by the bank as of a specific date, the date of the bank statement, typically the end of the month.

The bank statement balance will not agree to the book balance due to outstanding items, items recorded by the company, but which have not yet cleared the bank. The outstanding items will be the reconciling items in a bank reconciliation.

Next will learn how to value accounts receivable and deal with those accounts we will not be able to collect on. In other words, accounts receivable represent money owed to the business for work done in the past. However, some of those receivables may not ever be paid. How do we account for the a customers we do not think will pay and how do we value the accounts receivable account if we believe some of the receivable will may not be collected in the future, but we do not know which ones?

GAAP generally requires the use of what is called the allowance method to value accounts receivable. We will compare the allowance method to the direct write off method, an easier method but one that does not conform to accrual accounting as well.

Next, we will cover property plant and equipment. The most difficult concept related to property plant and equipment is calculating and recording depreciation. Deprecation can be calculated using different methods, including the straight-line method, the double-declining balance method, and the units of production method. We will compare and contrast each method in detail.

We will also consider how to record the purchase and sale of property plant and equipment.

Next, we will discuss the tracking and reporting of payroll. Payroll is a very large topic because of the payroll laws included in it. We will discuss how to calculate payroll taxes, including federal income tax FIT, social security, and Medicare. We will record journal entries related to payroll. Payroll journal entries are some of the longest and most complex journal entries recorded in the standard accounting cycle.

Next, we will learn partnership accounting. The concepts we learned related to the double-entry accounting system will apply to partnerships. Our focus now will be on those transactions unique to a partnership form of entity. For example, we will discuss how to allocate net income to each partners capital account. A partnership type of entity is very flexible, and there are many different ways partners can agree on to allocate income.

We will discuss how to record transactions when a new partner is added to a partnership or when an existing partner leaves a partnership.

We will also cover how to record the liquidation of a partnership. Much of the liquidation process will apply to the closing of other business entity types as well. However, the partnership type of entity has the added difficulty of allocating the final proceeds to the partners in accordance with their capital accounts.

Then we will consider transaction unique to a corporation format of entity. Like the partnership form of entity, the corporation will use the same double-entry accounting system we learned at the beginning of the course. In this section, we will learn how to record the sale of capital stock and the sale of preferred stock. We will record transaction related to the purchase of treasury stock. We will discuss how to record cash dividends and stock dividends.

Then we will learn concepts related to bonds payable, notes payable, and long term liabilities. Many people are familiar with bonds as a type of investment. We will consider bonds from the other side of the transaction with the issuance of bonds. Bonds are often used as a tool to understand the time-value of money concept and interest rates at a deeper level. Therefore, even if you do not plan on recording many transactions related to the issuance of bonds, it is a useful process to learn valuable concepts. Bonds are often issued at a premium or a discount. The premium or discount is then amortized over the life of the bond.

We will discuss how to record the initial sale of the bond. We will talk about how to amortize the bond discount and premium. We will record transactions related to bond interest, and we will discuss transactions for the dissolution of the bonds.

The course will also cover the recording of notes payable. One of the most complex components of notes payable is the breaking out of interest and principal portion of the payment. For the task of breaking out interest and principal, we will need an amortization schedule. We will build amortization schedules from scratch, a useful skill to understand.

The second complication with notes payable is breaking out the current and long term portion of the note. We will use the amortization schedule to perform the task of calculating the current and long term portion of the notes payable.

Finally, we will discuss how to create a statement of cash flows. The statement of cash flows is on the of primary financial statements along with the balance sheet, income statement, and statement of equity, but the statement of cash flows can be more complicated to construct.

The statement of cash flows represents the flow of cash broken out into three categories, operating activities, investing activities, and financing activities. We have constructed the financial statements using an accrual basis rather than a cash basis. We can think of the statement of cash flows as converting the accrual basis to a cash basis.

We can use two methods when constructing the operating section of the statement of cash flows, the direct method, and the indirect method. The indirect method is more common and often required, even if we also add the direct method. The indirect method starts with net income in then backs into cash flow from operations.

Sample of part to test in the book that comes with the course:

The first questions asked when introduced to any new topic are often:

• What is it?

• Why do I need to know it?

We will address the second question first: why do I need to know accounting?

Answer: Because it’s fun. Because accounting is fun is likely not the first thing that popped into your mind, but we want to start off with this concept, the idea of thinking of accounting as a kind of game, a sort of puzzle, something we can figure out. Thinking of accounting as a game will make learning accounting much more enjoyable.

Accounting can be defined as an “information and measurement system that identifies, records, and communicates relevant information about a company’s business activities” (John J. Wild, 2015).

The process of accounting includes the accumulation of data into a relevant form, which can be used for practical decision making.

Data is often identified using forms and documents such as bills, invoices, and timesheets. Once identified information is input into an accounting system, often an electronic one. The end goal of financial accounting is the creation of financial statements including a balance sheet, income statement, and statement of equity. The financial statements are used to make relevant decisions.

There are many reasons to learn accounting concepts, other than it being fun, although we always want to keep the fun factor in mind. Some of the most obvious reasons for learning accounting include:

· Accounting provides a format to understand business whether we are in the accounting department or not. Accounting is the language of business, a way of communicating business objectives and performance. All areas and departments benefit from understanding accounting because it provides a way to communicate between departments and communication is critical to business success.

· Accounting concepts apply to our personal finances. We all need to deal with our personal finances and learning basic accounting concepts and recording techniques helps ease our mind when dealing with our financial tasks.

Other reasons for learning accounting, which are not so obvious, include that accounting is a great tool to help develop critical thinking skills. Accounting requires reasoning to work through problems, and the practice of accounting will refine reasoning abilities and help us approach problems in a more systematic way, a more efficient way.

Accounting can also provide the same sense of satisfaction we receive when completing a puzzle, when mastering a new musical pattern, or when playing a game skillfully. Accounting can provide the same shot of dopamine when we figure out a problem, discern how something works and can claim that the double entry accounting system is in balance.

Accounting can be compared to a game of checkers

For example, the game of checkers starts with setting up pieces on a board, a spreadsheet, following a set of rules. To set up the board, we need to have memorized the rules for doing so. Memorizing rules is not the fun aspect of checkers but is a necessary one to receiving the enjoyment of playing the game. Once the board is set up the game of checkers is played by moving pieces according to a set of rules to achieve a certain objective, the elimination of opponent’s pieces.

Accounting is similar in that we will start off by learning how to set up the board, the accounting board being a T account or ledger. As with checkers, we will need to memorize where the pieces fit on the board, which side of the T account pieces will line up on. Accounting pieces are the accounts and account types which have a normal balance lining up on the left or right side of the board, of the T account or ledger.

Once we know the normal balance of accounts, we will play the accounting game by applying debits and credits to the accounts following a set of rules which have a particular objective, the creation of relevant information, the creation of financial statements.

The major obstacles for learning accounting are the same as those for learning music.

The primary obstacle to learning accounting concepts is the memorization of rules, a simple task, but one most do not find very enjoyable.

Memorizing rules is the same obstacle holding people back from learning many fulfilling activities, activities like learning music, or a new language. Rules of some kind must be learned to play music. The idea of rules, of structure, of constraints, seems counter-intuitive to the concept of creativity we associate with creating and playing music, but rules, structure, and limitations are often requirements for creativity. For example, writing and especially poetry, requires adherence to strict rules and many great writers have done their best work while constrained by deadlines and editors.

Whether it be notes, chords, or songs rote memorization is required before these learned concepts can be used to create something new, to create or play music, the structure critically contributing to the creation process. Creating, of course, is the fun part, the fulfilling part, the area to look forward to but memorization is a necessary part, a critical part, and a part well worth the effort.

Confidence in the system is required to learn accounting

Education is all about asking questions, testing theories, and being skeptical of claims given without a convincing argument, without supporting facts. Accounting is no different. Questioning is essential to setting up an efficient accounting system, but the tradition of questioning can also be used as a crutch, as an excuse for not moving forward and finding our mistakes.

I recommend accounting students start out having faith that the double entry accounting system works, in a similar way that we have faith that a 1,000 piece puzzle will contain all the pieces required and can be constructed to match the picture on box, because without this confidence we will lose the motivation to move forward, to complete the task, and therefore miss out on the enjoyment of completing the project.

Confidence in the double entry accounting system is necessary when first learning accounting concepts because doubting the system restricts us from moving forward to complete the necessary steps and look for the mistakes we have made. It is much easier to claim that the system does not work then look for the more likely problem, our own errors.

Having faith in a system does not mean we should not question a system. Questions are always encouraged, at all times, but it is best to give the concepts the benefit of the doubt and not allow our questioning of the system to be an excuse, a crutch, for not completing a task or figuring out a problem.

The double entry accounting system has been around for a long time, at least since the Franciscan monk Luca Pacioli around 1494, and while this does not prove its correctness it does show that it has been a useful tool to many in the past, and will therefore likely be a useful tool to many in the future.

Accounting is divided into two major groups; Financial Accounting & Managerial Accounting.

Financial accounting has the end goal of generating financial statements, financial statements designed with external user needs in mind. The aim of financial accounting toward external users may seem strange at first because financial data is required and used for internal, managerial, decision making as well but external users have needs that require more reliance on financial statements in many ways.

External users are users outside the company and include investors, creditors, the internal revenues service, and customers. Companies need these external users for things such as investments, loans, and to follow laws and regulations.

External users do not have intimate knowledge of the business and therefore need assurance to increase the level of trust, trust being a necessary component for business transactions to take place. To increase confidence levels, financial statements are required to follow a strict format of rules designed to standardize the financial reporting. Standardization allows for the comparison of financial information across time and between different companies.

Managerial accounting has the goal of generating relevant information for internal decision makers to make sound decisions, for management.

Managerial accounting does include the use of the same financial information generated in financial accounting, but information is not required to be in a particular format, managerial accounting being less regulated. Management has intimate knowledge of the company, and therefore there is less need for regulations on the format of data and information. Management will determine the best format for managerial statements to assist in making the best decisions.

Because managerial accounting is less regulated, it is commonly thought that managerial accounting will differ greatly from organization to organization. While it is true that managerial accounting practices will vary from company to company, there are also best practices which are applied, practices that have stood the test of time, those that have helped good companies be great. The study of managerial accounting is the study of best practices used to make good business decisions.

Financial accounting developed in much the same way, businesses looking for best practices to compile data for both themselves and external users. Over time financial accounting has solidified those best practices into a standardized form. Standardization often limits innovation but does provide a clear format for external users, this being one of the tradeoffs related to regulation. We will talk more about the need for standardization in a profession like accounting when we discuss what a profession is and the need for ethics and regulations within a profession.

Ethics plays a huge role in accounting as it does in most professions, in part, because ethics deals with trust and trust is an essential component of any business transaction. The concept of ethics is very broad, has been studied intensely since ancient times, and is an area which still has many open questions, but ethics related to accounting can be narrowed from the broader discussion in some ways.

One way to think of ethics as it relates to a profession is by implementing a kind of categorical imperative, acting in a way that we would wish to be universal for the entire profession. For example, stealing could benefit an individual but if everyone steals everyone is worse off and therefore stealing would be wrong.

Similarly acting in a way that is misleading could lead to gains for an individual but doing so harms the profession and is therefore wrong. Most professions can apply a concept like this. two of the oldest professions are law and medicine. The reason professions are needed in areas like law, medicine, and accounting is because they deal with specialized knowledge, knowledge most people do not have and that many are dependent on at some point in their lives. An uneven distribution of knowledge can cause incentives for individuals to seek short term gains through deceit.

For example, somebody claiming to know medicine could administer medicine that is not effective and the patient would not know, a patient having no choice but to trust the expertise of the doctor. If a physician abuses trust by administering remedies that are not effective, they are profiting off the name of the profession, from the brand of the occupation, and if this practice is done enough, it will result in a lack of trust in medicine.

A similar scenario can be painted for many areas of accounting, accounting having advanced to a specialized field, one that most do not understand, but are forced to deal in at some point or another. The need for trust drives and incentivizes a profession to self-regulate, to build a brand. One way the accounting profession self-regulates is by requiring different certifications to practice in different areas, certifications like a certified public accountant CPA license. A certification process helps provide the public with a level of trust that an individual has some basic understanding of concepts they are dealing with and provides ethical standards that must be met.

An example of the need for trust in accounting is when investors use financial statements to make investment decisions. Publicly traded stocks have an increased need for transparency in their financial reporting because their stock is being sold and traded by the public, a huge benefit to both companies and investors, providing capital to companies, and opportunities for gain to investors.

For an individual to invest, however, they need to analyze their options, and financial statements are the primary tool for this analysis. If investors do not have confidence in the numbers reported on the financial statements, do not understand how the numbers are reported, or cannot compare the numbers to related companies, investment transactions will decline due to a lack of information and trust.

The economy needs trust in the system as a major component which keeps interactions taking place, compelling people to take calculated risks, driving individuals to do business and drive growth and innovation.

Fraud is one component in the discussion of ethics, fraud being the deliberate attempt to deceive for personal gain. Fraud can take many forms in business from theft to falsifying the financial statements to drive up stock prices and increase bonus pay.

Most people believe fraud is all about employing the right people, honest people, those with integrity. While the right people is a huge component, it is not the only one. Good people in a bad environment or culture can fall victim to the group mentality. Businesses can reduce the likelihood of fraud by recognizing conditions that foster fraud and taking active steps in reducing them.

A criminologist has introduced the idea of a fraud triangle, consisting of three factors which increase the likelihood of fraud. Fraud factors include opportunity, pressure, and rationalization.

Opportunity means that the ability to commit fraud and not be caught is present, or at least perceived. For example, if a company had a policy of keeping their petty cash fund in a shoebox in the middle of the lunch room the opportunity for theft without detection would be greater than if the money was put into a more secure location.

Pressure or incentive means that a person is under pressure of some kind, often financial. If money if tight the likelihood of an individual committing fraud is significantly increased.

Rationalization is when a person justifies an action. Our minds are excellent at rationalizing. We generally believe that we think before acting, but we often act and then justify the action through rationalization. Rationalization is one reason fraud tends to continue, and even escalate over time.

For example, if a company left the petty cash in the lunchroom an employee may rationalize theft by reasoning that it’s the company’s fault for not better safeguarding their assets. While it may be true that leaving cash in the middle of the lunchroom is not a good internal control for a company, it is not a justification for theft. Another common rationalization is that a company is vast and rich while an employee may feel small and poor and taking to from the rich to give to the poor is not bad. Again, there may be some truth to this statement, but it is not a reason justifying theft.

Companies can reduce the likelihood of fraud by recognizing these fraud factors and taking active steps to reduce them, steps including internal controls. For example, companies should safeguard assets and should create a culture of honesty, communication, and respect, a culture that needs to be demonstrated from the top down. If the culture is bad at the top good employees will not be able to pull up the culture from the bottom.

Objectivity – To provide information useful to investors creditors, and others. The concept of objectivity seems obvious, but we always need to keep the end goal in mind, the creation of useful information for external users. Financial accounting is aimed at producing useful information for external users like investors, creditors, and customers, the format of this information usually being financial statements. By anticipating the needs of external users, we can set rules and guidelines to provide the most value.

Qualitative Characteristics – To require information that is relevant, reliable, and comparable. The characteristics of relevance, reliability, and comparability are related to the objective of providing useful information because external users will value these features.

· Relevant means the information is relevant or necessary to the needs of the users. Relevant information could be information that influences the decision-making process. For example, a bank deciding whether to make a loan to a business may request financial statements to assess the likelihood of a business’s ability to pay the loan back in the future.

· Reliable means that the information must be trusted or must be believed that it is free of material errors and is presented in a fair way. For example, a bank deciding whether to make a loan to a business may request financial statements and want assurance that they can be trusted. Part of the assurance requirement may be that the financial statements are presented in a standardized form, following a standardized set of rules. A bank may also ask for a third-party review or audit to add to the level of reliability.

· Comparability means that financial information needs to be comparable to prior periods and other companies. Comparability requires standardization, a systematic way of compiling data from one time to the next. For example, a bank deciding whether to make a loan to a business may want to compare financial

statement performance with prior years to see if there has been an improvement and to compare financial statements to other businesses in the industry. For comparisons of financial statements to be relevant, there needs to be conformity in presentation.

Going-concern assumption - the presumption that the business will continue operating instead of being closed. We assume a business is in business to stay in business, to have an objective of revenue generation and growth. If a business is planning on stopping business or is going bankrupt their behavior is likely to be much different than if they planned on continuing business. A business that is not a going concern, one that plans on stopping operations, needs to disclose this information to the readers of their financial statements so that readers can change their default assumption that the business will remain in business.

Separate business entity assumption - means that the business accounting will be kept separate from personal accounting and that of other businesses. Separating business accounting and personal accounting is clear conceptually, the separation providing more relevant information for making business decisions, but can be difficult in practice. The driving concept for deciding whether an accounting transaction is business or personal is the objective behind the transaction, the reason for the transaction. Every transaction will have a reason and we need to determine if the reason is business or personal in nature.

The business objective is revenue generation. A business’s mission statement will define what a business does to generate revenue, but from an accounting standpoint, the objective of revenue generation will help guide business actions and help us categorize transactions as either business or personal.

Personal objectives may include a goal of being happy or living well. Personal objectives will vary from person to person, and for more detail on personal objectives we would need to consult the study of philosophy, a topic for another time, but the objective of living well will suit our needs. If the driving reason for a transaction is to be happy or to live well, rather than the business accounting will be kept separate from personal accounting and that of other businesses. Separating business accounting and personal accounting is clear conceptually, the separation providing more relevant information for making business decisions, but can be difficult in practice. The driving concept for deciding whether an accounting transaction is business or personal is the objective behind the transaction, the reason for the transaction. Every transaction will have a reason and we need to determine if the reason is business or personal in nature.

The business objective is revenue generation. A business’s mission statement will define what a business does to generate revenue, but from an accounting standpoint, the objective of revenue generation will help guide business actions and help us categorize transactions as either business or personal.

Personal objectives may include a goal of being happy or living well. Personal objectives will vary from person to person, and for more detail on personal objectives we would need to consult the study of philosophy, a topic for another time, but the objective of living well will suit our needs. If the driving reason for a transaction is to be happy or to live well, rather than the more specific objective of revenue generation, the transaction is a personal one.

An example of separating business and personal objectives is the creation of a separate business checking account, a separate account allowing us to track the business revenue and expenditures more quickly, most deposits into the business checking account being revenue and most withdrawals being expenses.

The difference between a business expense and a personal expense is the objective for the expense. For example, if we went out to dinner the cost of the meal may be business or personal depending on the objective. If we took clients to dinner to pick up new business engagements, the meal would be a business expense and if we took our family out to dinner to have fun and live well it would be a personal expense.

In a similar way as expenses can be either business or personal, assets can also be either business or personal in nature. For example, if we purchase a building with the intention of making widgets for sale the building would be an asset rather than an expense because it will help generate revenue in the future and has not yet been consumed. On the other hand, if we purchase a building to live in as a home it would be a personal asset, the objective being to live well.

We can think of many areas where business and personal objectives overlap, areas were categorizing the transaction is difficult. For example, we may take both family and clients to dinner or we may work from our home. As accountants, our job is to differentiate the business and personal portion as much as possible to better measure our performance.

Our business objectives can be thought of as fitting inside our larger personal objectives, the generation of revenue being part of our larger personal goals of living well.

As the business grows and achieves the business objective of revenue generation owners can begin taking money and resources out of the business to be used for their larger personal objectives of living well.

“Generally Accepted Accounting Principles (GAAP) are uniform minimum standards of, and guidelines to, financial accounting and reporting. The Financial Accounting Standards Board (FASB), the Governmental Accounting Standards Board (GASB), and the Federal Accounting Standards Advisory Board (FASAB) are authorized to establish these principles.” (AICPA, n.d.)

Financial Accounting strives to generate financial information that is relevant, reliable, and comparable because these characteristics create value to users of financial reports, particularly to external users of financial reports.

Creating and implementing standard guidelines for the processing and reporting of financial statements makes the financial statements more relevant, reliable, and comparable. Standards help to standardize financial reporting, making financial statements comparable across time and to other companies.

The Securities and Exchange Commission SEC has authority to set Generally Accepted Accounting Principles GAAP and the SEC has delegated much of the responsibilities of setting GAAP to the Financial Accounting Standards Board FASB. The SEC is a governmental agency, and the FASB is a private sector group. The system of delegating authority to a private sector group makes sense because the accounting profession, like any profession, has an incentive to self-regulate and has a better understanding of the problems within the profession and how best to address them.

There are many useful ways to separate and categorize business entities, one being by business form, by type of business structure; another being by a business's relation to inventory, whether the business is selling inventory and whether they produce the inventory they are selling.

The three broad categories of business structure are a sole proprietorship, partnership, and corporation.

A sole proprietorship is a business owned by one person and is the most common type of business in the United States. The benefits of a sole proprietorship are that they are easy and inexpensive to form. An individual who starts acting as a business, generating revenue, is a sole proprietor by default unless they create some other type of organizations. The income from a sole proprietor is taxable but will be reported on the individual tax return, on Form 1040 supported by a supplemental Schedule C.

The disadvantages of a sole proprietor include limited personal liability protection and limited capital generation capability when compared to other types of organizations.

A partnership is similar to a sole proprietor except that the business now has two or more partners. A partnership has the same benefit of easy formation and the same drawbacks of liability exposure and limited capital generation.

A corporation is a separate legal entity. Corporations are less common than the sole proprietorship but generate the largest percentage of total U.S. revenue. The benefits of a corporation include that they provide liability protection through being a separate legal entity, the theory being that the assets of the corporation are liable but personal assets are not, personal assets having more protection when compared to other types of organizations. The disadvantages of a corporation include that they are more costly to form, more complicated to maintain, and can result in double taxation.

Much more can be said about types of entities, but this will provide a starting point. From an accounting perspective, we will start out with transactions related to a sole proprietorship and then move to a partnership and then a corporation. The reason for starting with the sole proprietorship is that it is a business form that most people can relate to and because many of the transactions found in a sole proprietorship will be the same for all entity types.

We will then move to a partnership, concentrating on the areas that are different from a sole proprietorship. Many of the transactions and processes will be the same, both entities needing to record the paying of the rent, employees, and utilities, both entities recording revenue. Transactions will differ, however, in the equity section because a partnership will have two or more owners, so the equity section is where we will spend much of our time.

We will then move to a corporation, concentrating on the areas that are different. Many transactions will remain the same, but the equity section is one area that will differ, the owners now being stockholders.

Another useful way to categorize businesses is by industry or by whether they use inventory and whether they produce inventory. A service company does not sell inventory, a merchandising business purchases and sells inventory, and a manufacturing business produces inventory to sell.

A company’s relationship with inventory has a significant impact on many accounting transactions and reporting. We will start out with a service company, using similar logic as we did when starting out with a sole proprietorship. Service companies have many of the same transactions as companies that deal with inventory, but they do not need to track inventory. We will then move to merchandising companies, companies that buy and sell inventory, adding the items that are different, items related to inventory. We will then move to a manufacturing companies, companies that produces inventory, adding things that differ, the tracking of inventory from raw materials to work in process and then to finished goods.

Generally Accepted Accounting Principle GAAP will be based on accrual concepts. The accrual basis can be compared and contrasted to a cash basis, the cash basis being a simplified method, one which does not provide information as useful, as relevant, or as accurate as an accrual method.

Cash basis – Records revenue when cash is received and expenses when cash is paid. A cash basis is not the basis required by GAAP, GAAP rules following an accrual basis, but understanding a cash basis helps in understanding both how an accrual basis works and the reasons for it. Cash and revenue are not the same things, as we will see when we record transactions, but a cash basis uses cash as an indicator of when revenue will be recorded. The concept of a cash basis is like a firefighter following the smoke to get to a fire, the smoke not pinpointing the exact location but being close enough. Cash collection does not always equal the exact location in time of revenue earnings but is often close enough.

In a similar way as revenue being recorded when cash is received under a cash basis, expenses are recorded when cash is paid under a cash basis. Cash and expenses are also not the same things, as we will see when we record transactions, but a cash basis uses cash as an indicator of when expenses will be recorded. The concept of a cash basis is like a firefighter following the smoke to get to a fire, the smoke not pinpointing the exact location but being close enough. Cash payment does not always equal the exact location in time expenses were incurred but is often close enough.

Very few businesses use a pure cash basis because there are times when the smoke is not close to the fire, times when revenue is not close to cash collection, and times when expense incursion is not close to cash payment. For example, almost any business would recognize a cash payment of $100,000 for a building as an asset of a building rather than an expense of building expense even though cash is paid. The reason a building is recorded as an asset is that the asset has not yet been consumed, has not yet been used to generate revenue.

Accrual basis – is driven by two main principles, the revenue recognition principle and the matching principle. Revenue recognition deals with the time to recognize revenue and the matching principle deals with the time to record expenses.

The revenue recognition principle records revenue when the revenue is earned, a time which is not always the same as when revenue is paid. Finding the exact time that revenue has been earned is not always easy but is usually when the job has been completed. For example, the time when revenue has been earned for a service company is when the job has been completed, when the service is done, and the time when revenue has been earned for a merchandising company is when inventory is delivered to the customer. An accrual method is closer to a firefighter using a GPS system to pinpoint the exact location of a fire rather than just estimating the location by following the smoke.

For example, a food truck may have a policy of only accepting cash for food. The policy of accepting cash as the only form of payment means the time cash is received and the time work is done will be the same. Therefore, both a cash method and an accrual method will result in the same journal entry but for different reasons, the cash method being driven by the cash received, the accrual method being driven by the earnings of the income, by the delivery of the food.

A bookkeeping business, on the other hand, will often need to perform work, invoice the client on completion of the work, expecting a check in the mail sometime in the future. The revenue recognition principle would require revenue to be recognized at the time the work was done, often when the invoice was generated and not when cash was received. We will cover the format of these transactions a little later but for now, recognize that revenue is the act of earning revenue which is different from receiving cash, cash usually being the form of payment for revenue earned. There are other forms of payment, including trade or barter, but cash is the most common form of payment. The revenue recognition principle is similar to how most of us think of our paychecks when working for a company. A business may pay employees every other week, but an employee has earned the revenue in the week the work was done. The company is expected to pay the employee for work done even if the employee leaves the company. For example, if an employee earned wages of $1,000 last week according to their employment agreement and employment is terminated this week the employee will still expect payment of $1,000 for the work performed last week, for revenue that was earned by the employee last week even though cash had not yet been received.

It is possible, but less common, to receive cash before work is performed, revenue still being recorded at the time work is done under an accrual basis rather than the time payment is received. For example, a newspaper company will collect money before doing the work, before delivering newspapers. A newspaper company will often collect money for a year’s subscription and then earn the revenue by delivering the newspapers in the future. Under an accrual method the newspaper company will have to wait on recording revenue until they earn the revenue by doing work, by delivering the papers, even though they already have the cash in hand. Even though the company has the cash related to future sales they have not earned the revenue for those

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It is possible, but less common, to receive cash before work is performed, revenue still being recorded at the time work is done under an accrual basis rather than the time payment is received. For example, a newspaper company will collect money before doing the work, before delivering newspapers. A newspaper company will often collect money for a year’s subscription and then earn the revenue by delivering the newspapers in the future. Under an accrual method the newspaper company will have to wait on recording revenue until they earn the revenue by doing work, by delivering the papers, even though they already have the cash in hand. Even though the company has the cash related to future sales they have not earned the revenue for those future sales and if they do not deliver the newspapers in the future they will owe the money back.

As mentioned earlier there are many ways the double entry accounting system can be expressed including the use of an accounting equation, debits and credits, and a balance sheet. We will focus on the accounting equations in this section. The benefits of an accounting equation include the use of a simple formula, simple math that can be explained and understood. Transactions will be described using the symmetry of the accounting equation. The problem with using the accounting equation to record transactions and build the financial statements is that it is not as efficient as the use of debits and credits. We will learn the balancing concept using the accounting equation, but as we do, keep in mind that the accounting equation is not the whole story, that we will need to understand new concepts, the concepts of debits and credits, to record data with which to generate financial statements well.

The accounting equation is:

Asset = Liabilities + Equity

The format above is the most common form of the accounting equation for financial accounting because the left side of the equation shows what the business owns and the right side shows who it is owed to, either a third-party liability or the owner. Recall our separate business entity assumption while considering the accounting equation. Thinking of the business as a separate entity helps to understand the accounting equation, the left side of the equal sign showing what the separate entity owns, the right showing who has claim to what the separate entity owns.

Because the accounting equation is a formula it can be expressed at least two other ways. A second way to write the equation is:

Assets – Liabilities = Equity

The format of the accounting equation above is useful because it emphasizes that equity is the book value of the company, the amount left over after subtracting liabilities from assets, an amount which can also be called net assets. To understand the meaning of equity we can consider the liquidation of a company, the selling of assets for cash, the payment of liabilities owed, and the leftover cash which would then be available to the owner, this amount being equal to equity if assets were sold at book value. Note that all assets will not be sold for the exact amount reported when a business is sold. For example, an asset of equipment valued at $50,000 may not be sold for $50,000 in a free market, possibly being sold for something less like $40,000 or something more like $60,000. We will discuss this more at a later time. For now, remember that equity represents net assets on a book value basis, assets minus liabilities.

A third way to write the accounting equation is:

Assets – Equity = Liabilities

This format of the accounting equation is not as useful but is another way the accounting equation can be expressed algebraically.

Account types include assets, liabilities, equity, revenue, and expenses. Recognize that account types are not the same thing as actual accounts, each account type having multiple accounts falling into the category. Understanding account types and the accounts that fall into each account type category is essential to the accounting process.

Assets are resources owned by the business. The most common asset is cash, but assets also include accounts receivable, prepayments, land, building, and equipment. Assets are items that have not yet been consumed, resources planned to be used in the future to achieve business goals, to help generate revenue.

Liabilities are claims by creditors. Liabilities come about from a transaction that happens in the past which obligates the company for some form of future payment. Purchasing something on a credit card is an example of how a liability can be created, the transaction creating a future obligation to pay cash. Liability accounts include accounts payable, notes payable, and bonds payable.

Equity is the owner’s claim to assets. Equity is equal to assets minus liabilities. Equity is often the most confusing section of the accounting equation, in part, because different organization types will organize the equity section differently and because the equity section is involved in the closing process of temporary accounts.

The equity section represents what is owed to the owner on a book basis. This is best illustrated by imagining we liquidate or close a business, selling the assets for cash, and then paying off the liabilities. The money left over would be equal to the equity section if all sales were made on a book value basis.

The equity section for a sole proprietor will be called owner’s equity and consist of one capital account. The equity section of a partnership will be called partnership equity and consist of two or more owners and therefore two or more capital accounts. The equity section of a corporation will be called shareholder’s equity, shareholders being the owners of a corporation, and will included capital stock and retained earnings. Although the format changes the equity section taken as a whole can still be thought of as what is owed to the owner or owners in each case.

When thinking about the accounting equation, the equity section includes all temporary accounts, including revenue accounts and expense accounts.

Revenue - is income generated from performing work. Revenue is not the same thing as cash. Cash is a form of payment while revenue represents the creation of value and the earning of compensation. Revenue is a timing account, needing to be measured over a time frame, a starting and ending point. For example, when somebody says they earn $100,000 the concept has no meaning unless we assign a time frame, most people naturally attributing a year as the time frame when hearing a number like $100,000. A different time frame would have a much different meaning. For example, revenue of $100,000 a month is much different than revenue of $100,000 a year.

We can contrast temporary accounts, like revenue and expense accounts, with permanent accounts like cash. Saying we have $100,000 cash does not require a time frame to define what we mean because cash is a permanent account, representing a position at a point in time.

Expense is the using of assets or incurrence of liabilities as part of operations to generate revenue. Expenses are what a business needs to consume to achieve the goal of revenue generation. Expenses are also temporary accounts needing a beginning and ending time.

There are usually many more expense accounts then revenue accounts, but we hope the revenue accounts add up to a greater dollar amount. The reason there are more expense accounts then revenue accounts is because of specialization, companies focusing on earning money by doing what they do best and paying for their other needs.

Before we demonstrate common transactions and how they are analyzed using the accounting equating we will cover transaction rules. Applying a process for recording transactions will reduce the likelihood of making bad assumptions and learning rules that do not apply in all cases.

It is possible to learn rules that apply in only some cases, requiring the unlearning of these rules when we move to cases where they do not apply. Learning rules that do not apply in all cases should be avoided because unlearning rules in cases where a bad rule does not apply is tough.

Learning and applying the steps below for recording transactions helps avoid problems, eliminating the need to unlearn false concepts in the future. These same rules will apply when we move to learning debits and credits at which time we will build on these rules, applying more concepts to the balancing ideas developed here.

Transaction Rules:

· Every transaction will affect at least two accounts.

· Every transaction will keep the accounting equation in balance.

Transaction thought process

When first learning transactions we will repeat this thought process for each transaction, the thought process being designed to make the recording of transactions as easy as possible, and avoid learning rules that are not always applicable. This process will make more sense as we work through transactions. Working transactions is the only way to understand the double entry accounting system fully.

We will now go through common financial transactions, transactions needed by most any business, and analyze them using the accounting equation and our set of rules and thought processes.

We will start off looking at transactions involving cash, cash being the most common account affected. Understanding how cash is affected will act like an add, or crutch, when considering the other account or accounts effected in the transaction.

First, imagine a situation where the cash goes up because the company received cash, and consider possibilities for the other account affected.

We know that at least one other account will be effect and that the accounting equation must remain in balance. If there is only one other account effected we are left with just three possibilities to keep the accounting equation in balance. Either the liabilities went up, equity went up, or another asset account also went down. Below are examples of each.

If cash went up because of a business receiving a bank loan, then liabilities would also go up, keeping the accounting equation in balance.

If cash went goes up do to collecting cash for work the company did then revenue or income would also go up, revenue being part of equity.

If cash went up because we are receiving money for work done in the past we would also reduce the accounts receivable account, an asset account representing money owed to the company for past work completed.

It is possible to use an expanded accounting equation, listing all accounts under each account type, forming a kind of trial balance which can be used to create the financial statements. We will not be using this format here because it is not an efficient way to generate financial statements and gives the impression that debits and credits are not needed, which is not a good impression to give.

To understand double entry accounting and how financial statements are created, the accounting equation is not sufficient, and debits and credit will be needed. We will introduce how debits and credits work later, but the concepts will build on the concepts we learn here working with the accounting equation.

Below are more common transaction and the effect on the accounting equation:

Owner invests cash into the business:

The asset account of cash goes up as well as equity, the amount owed to the owner. Equity goes up because the business basically owes the cash back to the owner. When investing cash into a business, an owner is hoping to receive a return on investment and be able to withdraw cash from the business in the future, to be used for personal use.

Purchase of supplies for cash:

The asset of cash goes down, but another asset of supplies goes up, the net result being no change in any account type of the account equation. The result of a transaction with no change to the accounting equation is one reason debits and credits are a more efficient way to record transactions then the use of the accounting equation. We will record much the same transaction using debits and credits later.

The increase in supplies is an increase in an asset type account rather than an expense type account, expenses being part of equity, because of the accrual accounting principle of matching. When the supplies are purchased, they have not yet been used to help generate revenue but will help to generate revenue in the future. Supplies will be expensed in the time they are used or consumed to help generate revenue.

Supplies will be our introduction to an inventory system because supplies will be tracked in a similar way as inventory. The recording of supplies will start with reporting supplies as an asset, followed by the counting of supplies at end of a time period, like a month, to determine how much has been used, and then the recording of the decrease is the supplies asset account and recording of the supplies utilized in the supplies expense account.

Supplies may be expenses when purchased if the amount is not material, not significant to decision making, because expensing the supplies is an easier process than capitalizing as an asset when the amount is not significant to decision making. For example, if we purchased two years’ worth of paper-clips for $100 we may just expense the purchase because the cost of $100 is not significant to decision making, $100 not being an amount that will impact financial statement user choices.

Purchase Supplies on Account – No Cash:

Because no cash is effected, we will first consider what is received, that being supplies in this case. The asset account of supplies will go up, and the liability account of accounts payable will go up. The accounts payable account is like a credit card account, going up when we purchase on account and going down when we pay off the balance owed.

Pay Cash for Telephone Service:

The asset account of cash will go down and the expense account of telephone expense will go up, bringing equity down. Expense accounts can be confusing when considering the effect on the accounting equation because expense accounts are temporary accounts and are part of the equity section of the accounting equation. Expenses represent the consumption of assets or the incursion of liabilities to help generate revenue. Assets consumed or liabilities incurred to help generate revenue will bring down equity, equity calculated as assets minus liabilities.

Completed Work on Account – No cash received:

If no cash is effected, we will consider what was received, that being an “I owe you” from a customer in this case. An asset of an “I owe you” from a customer seems strange at first, a promised payment not being tangible, but a promise to pay does have value even though there is a chance it will not ever be received. Accounts receivable is the account representing an “I owe you” from customers, an asset account showing value due for work done.

The asset of accounts receivable will go up, and revenue or income will go up, increasing the equity section of the accounting equation. Revenue is a temporary account representing income that has been earned, and temporary accounts are part of the equity section.

Payment for Amount Owed for Past Transaction:

Cash will go down, and liabilities will go down. Paying cash for a transaction that happened in the past, for value received in the past, means we are paying off a liability, like paying off a credit card. Accounts payable is the most common liability account for most companies, representing what is owed to third-party vendors. When we pay off a balance that is due the liability account of accounts payable will go down.

Financial statements are the end goal of financial accounting, the final product most useful to external users like investors, creditors, and customers. Financial statements include the balance sheet, the income statement, the statement of equity, and the statement of cash flows. We will concentrate on the first three statements here and move to the statement of cash flows later.



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Content

Introduction

Table Of Contents
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Section One - Financial Transactions

Section One Financial Transactions

SEC 1 - Why Learn Accounting

1 Why Learn Accounting
100 Why Learn Accounting
Notes - What is Accounting and Why Learn Accounting

SEC 1- Accounting Objectives, Accounting Equation, & Ethics

2 Accounting Objectives, Accounting Equation, & Ethics
102 Accounting Objectives U
Notes - Categories of Accounting – Financial Accounting & Managerial Accounting
115 Accounting Equation
Notes - Accounting Objectives
150 Ethic & Profession
Notes - Ethics in Accounting

SEC 1- Financial Statements

3 Financial Statements
120 Balance Sheet
130 Income Statement
131 Statement of Owner's Equity
132 Balance Sheet & Income Statement Relationship
Notes - Financial Statements

SEC 1- Accrual Method, Cash Method, Revenue & Expense Recognition

4 Accrual Method vs Cash Method
134 Revenue Recognition Principle
135 Cash Method vs Accrual Method
Notes - 8 Accrual Basis and Cash Basis

SEC 1 - Financial Transaction Rules & Thought Process

5 Financial Transaction Rules & Thought Process
155 Financial Transaction Rules
Notes - Accounting Equation and Account Types
160 Financial Transaction Thought Process
Notes - Transaction Rules & Thought Process Using the Accounting Equation

SEC 1 - Recording Transactions Using Accounting Equation

6 Recording Transactions Using Accounting Equation
165 Cash Transaction - Accounting Equation
Notes - Transactions & The Accounting Equation
170 Accounts Receivable Transactions Accounting Equation
170 Accounts Payable Transactions Accounting Equation

SEC 1 - End of Section One Resources

Glossary Click here for videos

SEC 1 - Debits and Credits Defined

7 Debits & Credits Defined
205 Debits & Credits
Notes - What are Debits and Credits
210 Rules for Using Debits & Credits
Notes - Account Types Normal Balances
Note - Define Account Types and List Accounts by Account Type

SEC 1 - Debit & Credit Rules & Thought Process

9 Debit & Credit Rules & Thought Process
215 Journal Entry Thought Process
Note - One Rule for Increasing and Decreasing an Account Balances
220 Trial Balance
Notes - The Rule Applied to Cash and Asset Accounts
Notes - The Rule Applied to Accounts Payable and Liability Accounts
Notes - The Rule Applied to Equity Accounts

SEC 1 - Record Cash Transactions Using Debits and Credits

10 Record Cash Transactions Using Debits & Credits
225 Cash Journal Entries with Cash
Notes - Transaction Rules Using Debits and Credits
Notes - Transaction Though Process
Worksheet - Prob 4 Debits and Credits Cash
Notes - Recording Transaction where Cash is Affected

SEC 1 - Record Accounts Receivable Transactions Using Debits and Credits

12 Record Accounts Payable Transactions Using Debits & Credits
230 Accounts Receivable Journal Entries
Notes - Recording Transaction for the Accounts Receivable or Revenue Cycle
Worksheet - Prob 5 Debits and Credits Accounts Receivable

SEC 1 - Record Accounts Payable Transactions Using Debits and Credits

240 Accounts Payable Journal Entries
Notes - Recording Transaction for the Accounts Payable Cycle
Worksheet - Prob 6 Debits and Credits Accounts Payable

SEC 1 - Record Transaction to General Ledger

13 Record Transactions to General Ledger
245 General Ledger
Notes - General Ledger & Trial Balance
Worksheet - General Ledger Cash
Worksheet - Prob 8 General Ledger Accounts Receivable
Worksheet - Prob 8 General Ledger Accounts Payable
Short Calculation Questions - Debits and Credits
Multiple Choice Questions - Debits and Credits

SEC 1 One - Comprehensive Problem Part 1

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Comprehensive Problem Part 1
Comprehensive Problem Part 2

Section Two - Adjusting Entries & Financial Statements

Section Two Adjusting Entries & Financial Statements

SEC 2 -Accounting Cycle, Types of Adjusting Entries, Cash vs Accrual

2 Accounting Cycle, Types of Adjusting Entries, Cash vs Accrual Overview
1 Accounting Cycle Steps in the Accounting Process
2 Types of Adjusting Journal Entries Adjusting Journal Entry
Notes - What Adjusting Journal Entries Are?
Notes - Why Adjusting Entries Are Needed

SEC 2 - Adjusting Entry Rules and Thought Process

3 Adjusting Entry Rules and Thought Process
3 Adjusting Journal Entry Rules - What are Adjusting Journal E
Notes - Adjusting Entry Rules
3.5 Why Use a Worksheet in Adjusting Process
Notes - Adjusting Entry Worksheet
4 Adjusting Journal Entry Thought Process How to Record Adju
Notes - Adjusting Entry Thought Process

SEC 2 - Supplies, Unearned Revenue, and Wages Adjusting Entri

4 Supplies, Unearned Revenue, and Wages Adjusting Entries
5 Adjusting Entry Supplies
Notes - Adjusting Entry For supplies
6 Adjusting entry unearned revenue
Notes - Unearned or Deferred Revenue
7 Adjusting Entry Wages Payable
Worksheet - 1.1 Adjusting entries Supplies%2C Unearned revenue%2C and Payroll Pa
Worksheet - 1.2 Adjusting entries Supplies%2C Unearned Revenue%2C and Payroll Pa
Notes - Accrued Expenses

SEC 2 - Accounts Receivable, Insurance, and Depreciation Adjusting Entries

5 Accounts Receivable, Insurance, and Depreciation Adjusting Entries
8 Adjusting Entry Accounts Receivable
Note - Accrued Revenue
9 Adjusting Entry Insurance
Notes - Prepaid Expenses
10 Adjusting Entry Depreciation
Notes - Depreciation expense for the period is calculated to be $1,100.
Worksheet - 2.1 Adjusting entries Prepaid Insurance and Depreciation Part 1-Acco
Worksheet - 2.2 Adjusting entries Prepaid Insurance and Depreciation Part 2-Acco

SEC 2 - Reversing Entries

6 Reversing Entries
11 Reversing Journal Entries - Accrued Revenue
Worksheet - 10.350 Accounts Receivable Reversing Entry
Notes - Reversing Entries
11.5 Reversing Entry Wages Payable
Worksheet - 10.550 Unearned Revenue Reversing Entry
Notes - Wages Payable Reversing Entry Example

SEC 2 - Create the Balance Sheet

8 Create the Balance Sheet
12 Balance Sheet Current Assets from Trial Balance
Notes - Analysis of The Financial Statement Relationships
Notes - Current Asset Portion of the Balance Sheet
13 Balance Sheet Property Plant %26 Equipment From Trial Balance
Notes - Property Plant & Equipment Portion of the Balance Sheet
14 Balance Sheet Liability Section Creation From Trial Balance
Notes - Liability Portion of the Balance Sheet
15 Balance Sheet Equity Section Creation from Trial Balance
Notes - Equity Portion of the Balance Sheet
Multiple Choice - Adjusting Process

SEC 2 - Create the Income Statement

9 Create the Income Statement
16 Income Statement from Trial Balance
Notes - Income Statement Created Form Adjusted Trial Balance
Multiple Choice - Adjusting Process
Short Calculation - Adjusting Process

SEC 2 - Create the Statement of Owner’s Equity from the Trial Balance

10 Create the Statement of Owner’s Equity from the Trial Balance
17 Statement of Equity From Trial Balance
Notes - Statement of Owner’s Equity Created Form Adjusted Trial Balance
Worksheet - Financial Statements from Trial Balance
Multiple Choice - Adjusting Process
Short Calculation - Adjusting Process

SEC 2 - Financial Statement Relationship

18 Financial Statement Relationships
Notes - Financial Statement Relationship Review
Notes - Balance Sheet Constructed from the Adjusted Trial Balance
Notes - Glossary (John J. Wild, 2015) Click here for
Multiple Choice - Adjusting Process
Short Calculation - Adjusting Process

SEC 2 - Comprehensive Problem Part 2

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1 Accounting%2C Financial - Comp Prob Service Co 1 Part 1
2 Accounting%2C Financial - Comp Prob Service Co 1 Part 2
3 Accounting%2C Financial - Comp Prob Service Co 1 Part 3
4 Accounting%2C Financial - Comp Prob Service Co 1 Part 4
5 Accounting%2C Financial - Comp Prob Service Co 1 Adjusting Entries part 5
6 Comp Prob Service Co 1 Adjusting Entries part 6
7 Accounting%2C Financial - Comp Prob Service Co 1 Financial Statements part 7
8 Accounting%2C Financial - Comp Prob Service Co 1 Financial Statements part 8

Section Three - Closing Process

Section Three Closing Process

SEC 3 -Review Accounting Cycle and Building Blocks

1 Review Accounting Cycle & Building Blocks
5 300 Accounting Cycle Steps in the Accounting Process (1)
10 100.90 Accounting Building Blocks

SEC 3 - Closing Process Overview

3 Closing Process Overview
20 400 Closing Process Explained
Notes - What the Closing Process Is
Notes - Goals of the Closing Process
23 Post Closing Trial Balance
Notes - Comparison of the Post Closing Trial Balance to The Financial Stat
Notes - Reasons for Demonstrating Three Formats for the Closing Process

SEC 3 - Closing Process – One Step

4 Closing Process – One Step
25 One Step Closing Process
Notes - One Step Closing Process
Multiple Choice - Closing Process

SEC 3 - Closing Process – Two Steps

5 Closing Process – Two Steps
28 Two Step Closing Process
Notes - Two Step Closing Process
Multiple Choice - Closing Process

SEC 3 - Closing Process – Four Steps

6 Closing Process – Four Steps
30 400 Closing Process Step 1 of 4 - Journal Entry 1 of 4
40 400 Closing Step 2 of 4 - Journal Entry 2 of 4
50 400 Closing Entries Journal Entry 3 of 4 Step 3 Income summary
60 400 Closing Process Step 4 of 4 Closing Journal Entry Draws or Withdraws
Notes - Four Step Closing Process
Short Calculation - Closing Process
Multiple Choice - Closing Process

SEC 3 - Post-Closing Trial Balance

7 Post-Closing Trial Balance
70 Post Closing Trial Balance & financial statements
Notes - Post-Closing Trial Balance
Multiple Choice - Closing Process
Short Calculation - Closing Process

SEC 3 - Closing Process Resources

Glossary Click here for videos

SEC 3 - Comprehensive Problem Part 3

Excel Download
1 Accounting%2C Financial - Comp Prob Service Co 1 Part 1
2 Accounting%2C Financial - Comp Prob Service Co 1 Part 2
3 Accounting%2C Financial - Comp Prob Service Co 1 Part 3
4 Accounting%2C Financial - Comp Prob Service Co 1 Part 4
5 Accounting%2C Financial - Comp Prob Service Co 1 Adjusting Entries part 5
6 Comp Prob Service Co 1 Adjusting Entries part 6
7 Accounting%2C Financial - Comp Prob Service Co 1 Financial Statements part 7
8 Accounting%2C Financial - Comp Prob Service Co 1 Financial Statements part 8
9 Accounting%2C Financial - Comp Prob Service Co 1 Closing Process Part 9
10 Comp Prob Service Co 1 Closing Process part 10

Part 4 Merchandising Transactions

Overview

Sec 4 Merchandising Accounting Cycle

1 Accounting Cycle Merchandising Company

Sec 4 Merchandising Transactions Overview

3 Merchandising Transactions Overview
20 500 - Merchandising Transaction Explained Purchaser and Se
30 500 Merchandising Transaction Journal Entry Purchaser
40 500 Merchandising Transaction Sales Journal Entry - COGS Jou

Sec 4 Perpetual and Periodic Inventory Systems

4 Perpetual and Periodic Inventory Systems Overview
5 Perpetual Inventory System
10 Worksheet - Perpetual Inventory System
10 Periodic Inventory System
20 Worksheet Periodic System
15 Perpetual vs. Periodic Inventory System

SEC 4 Sales Discount & Purchase Discount

5 Sales Discount %26 Purchase Discount Overview
50 500 Sales Discount VS. Purchase Discount
60 500 Purchase Discount Journal Entry Explained
70 500 Sales Discount Explained Journal Entry Record Discou
30 Worksheet Purchase Discount & Sales Discount

SEC 4 Inventory Shrinkage & Sales Returns

6 Inventory Shrinkage %26 Sales Returns
90 Inventory Shrinkage
40 Inventory Shrinkage
100 Sales Return & Allowance Transaction
50 Worksheet - Sales Return
10 Multiple Choice Questions Merchandising Company

SEC 4 Financial Statements - Merchandising Company

7 Financial Statements - Merchandising Company
110 500.20 Merchandising Financial Statements-Accounting instructions
20 Multiple Choice Questions Merchandising Company

SEC 4 Merchandising Transaction Problem

Excel Worksheet Download
60 500.10 Merchandising Ex Part 1-Accounting%2C Financial (2)
70 500.20 Merchandising Ex Part 2-Accounting%2C Financial (1)
80 500.30 Merchandising Ex Part 3-Accounting%2C Financial (1)
90 500.40 Merchandising Ex Part 4-Accounting%2C Financial (1)
10 Multiple Choice Questions Merchandising Company

Part 5 Inventory Costs - FIFO, LIFO Weighted Average Method

Section 5 Overview

SEC 5 Inventory Tracking & Inventory Methods

2 Inventory Tracking & Inventory Methods
10 600 Inventory Tracking Explained - Introduction-Specific Ide
15 600 Inventory Methods Explained and compared FIFO LIFO Ave

SEC 5 Inventory Cost, Principles, and Perpetual vs Periodic Inventory Systems

3 Inventory Cost, Principles, and Perpetual vs Periodic Methods
17 Inventory Costs
20 Consistency Concept
30 Lower of Cost or Market
40 Perpetual & Periodic Inventory Systems

SEC 5 Periodic System First In First Out (FIFO)

4 Periodic System First In First Out (FIFO)
42 First In First Out (FIFO) Periodic System
10 Worksheet FIFO Periodic System
Multiple Choice 1 - Inventory Cost

SEC 5 Periodic System Last In Last Out (LIFO)

5 Periodic System Last In First Out (LIFO)
44 Last In First Out LIFO Periodic
20 Worksheet Last In First Out (LIFO) Periodic System
Multiple Choice 2 - Inventory Cost

SEC 5 Periodic Weighted Average Method

6 Periodic Weighted Average Method
46 Weighted Average Periodic System
30 Worksheet Weighted Average Periodic System
Multiple Choice 3 - Inventory Cost

SEC 5 Perpetual System Fist In First Out (FIFO)

7 Perpetual System First In First Out (FIFO)
50 600 First In First Out FIFO Explained
40 600.10 Inventory Cost Problem First In First Out part 1 Ex.%2C how to calcula
50 600.20 Inventory Cost Problem First In First Out part 2 Ex.%2C how to calcula
Multiple Choice 4 - Inventory Cost

SEC 5 Perpetual System Last In First Out (LIFO)

8 Perpetual System Last In First Out LIFO
60 600 Last In First Out LIFO Inventory Method Explained
60 600.50 Cost Problem Last In First Out LIFO part 1 Ex.%2C how to calculate-Acc
70 600.60 Cost Problem Last In First Out LIFO part 2 Ex.%2C how to calculate-Acc
Multiple Choice 5 Inventory Cost

SEC 5 Perpetual System Weighted Average Method

9 Perpetual System Weighted Average Method
70 600 Average Inventory Method Explained
Worksheet - 80 600.30 Inventory Cost Problem Average method Part 1
Worksheet - 90 600.40 Inventory Cost Problem Average method Part 2
Multiple Choice 6 Inventory Cost

Part 6 Subsidiary Ledgers & Special Journals

Overview Subsidiary Ledgers & Special Journals
2 Special Journals Subsidiary Ledgers
Multiple Choice Question 1 - Special Journals

SEC 6 Accounts Receivable Subsidiary Ledger

5 Accounts Receivable AR Subsidiary Ledger Explained
Worksheet - 10 700.10 Accounts Receivable Subsidiary Ledger 700 Part 1
Worksheet - 20 700.20 Accounts Receivable Subsidiary Ledger 700 Part 2
Multiple Choice Question 2 - Special Journals

SEC 6 Accounts Payable Subsidiary Ledger

6 Accounts Payable AP Subsidiary Ledger
Worksheet - 30 700.30 Accounts payable subsidiary ledger 700 part 1
Worksheet - 40 700.10 Accounts payable subsidiary ledger 700 part 2
Multiple Choice Question 3 - Special Journals

SEC 6 Sales Journal

Sales Journal
10 Sales Journal Service Company
50 Worksheet - Sales Journal
20 Sales Journal Merchandising Co.
Excel Worksheet Download
50 Worksheet - Sales Journal
Multiple Choice Question 4 - Special Journals

SEC 6 Purchases Journal

Purchases Journal Overview
30 Purchases Journal Service Company
33 Purchase Journal Merchandising Co.
80 Worksheet - Purchases Journal Inventory
Multiple Choice Question 5 - Special Journals

SEC 6 Cash Receipts Journal

Cash Receipts Journal Overview
40 Cash Receipts Journal
90 Worksheet - Cash Receipts Journal
Multiple Choice Question 6 - Special Journals

SEC 6 Cash Payments Journal

Cash Payments Journal Overview
50 Cash Payments Journal Service Company
100 Worksheet Cash Payment Journal
Multiple Choice Question 7 - Special Journals

SEC 6 Comprehensive Problem

Comprehensive Problem Overview
Excel Worksheet Download
Comprehensive Problem Special Journals Part 1
Comprehensive Problem Special Journals Part 2
Comprehensive Problem Special Journals Part 3
Comprehensive Problem Special Journals Part 4
Comprehensive Problem Special Journals Part 5 Adjusting Entries
Comprehensive Problem Special Journals Part 6 Financial Statements
Comprehensive Problem Special Journals Part 7 Closing Process
Multiple Choice Question 8 - Special Journals

Section 7 Bank Reconciliations & Cash Internal Controls

Bank Reconciliations & Cash Internal Controls

SEC 7 Internal Controls Overview and Cash Internal Controls Introduction

Internal Controls Overview and Cash Internal Controls Introduction
10 Internal Controls
20 Cash Internal Controls Overview
Multiple Choice Questions 3 - Cash and Internal Controls

SEC 7 Cash Receipts Internal Controls

3 Cash Receipts Internal Controls
30 Cash Receipts Internal Controls
Multiple Choice Questions 4 - Cash and Internal Controls

SEC 7 Cash Disbursements Internal Controls

4 Cash Disbursements Internal Controls
40 Cash Disbursements Internal Controls
Multiple Choice Questions 5 - Cash and Internal Controls

SEC 7 Bank Reconciliations

5 Bank Reconciliations
50 Bank Reconciliation-Accounting%2C Financial
Worksheet - 9.10 Bank Reconciliation January
Worksheet - 9.12 Bank Reconciliation Adjusting Entries January
Worksheet - 9.15 Bank Reconciliation February
Worksheet - 9.20 Bank Reconciliation Feb. Adjusting Entries
Multiple Choice Questions 6 - Cash and Internal Controls
Multiple Choice Questions 1 - Cash and Internal Controls

SEC 7 Petty Cash

6 Petty Cash
60 Petty Cash
800.10 Petty Cash Journal Entries Part 1-Accounting%2C Financial
800.20 Petty Cash Journal Entries Part 2-Accounting%2C Financial
Multiple Choice Questions 7 - Cash and Internal Controls
Multiple Choice Questions 2 - Cash and Internal Controls

Section 8 Receivables & The Allowance vs The Direct Write Off Methods

Receivables & The Allowance vs The Direct Write Off Methods
10 Receivables Introduction

SEC 8 Accounts Receivable Journal Entries

2 Accounts Receivable Journal Entries
20 Accounts Receivable Journal Entries
05 Prob 5 Debits and Credits Accounts Receivable
Worksheet - 07 Prob 8 General Ledger Accounts Receivable
10 Multiple Choice Questions - Accounts Receivable

SEC 8 Accounts Receivable Subsidiary Ledger

3 Accounts Receivable Subsidiary Ledger
30 Accounts Receivable AR Subsidiary Ledger Explained
Worksheet - 10 700.10 Accounts Receivable Subsidiary Ledger 700 Part 1
Worksheet - 20 700.20 Accounts Receivable Subsidiary Ledger 700 Part 2
20 Multiple Choice Questions - Accounts Receivable

SEC 8 Direct Write Off Method

4 Direct Write Off Method
40 Direct Write Off Method
Worksheet - 20 Worksheet Direct Write Off Method
30 Multiple Choice Questions - Accounts Receivable

SEC 8 Allowance Method

5 Allowance Method
50 Allowance Method Accounts Receivable
Worksheet - 30 900.10 Allowance Method 900 Part 1
Worksheet - 32 900.20 Allowance Method 900 Part 2-Accounting%2C Financial
Worksheet - 34 900.30 Allowance Method 900 Part 3-Accounting%2C Financial
40 Multiple Choice Questions - Accounts Receivable

SEC 8 Allowance Method Compared to The Direct Write Off Method

6 Allowance Method Compared to The Direct Write Off Method
60 Allowance Method VS Direct Write Off Method
50 Multiple Choice Questions - Accounts Receivable

SEC 8 Allowance for Doubtful Accounts Calculation

7 Allowance for Doubtful Accounts Calculation
70 Allowance Method % Accounts Receivable vs % Sales Method
Worksheet - 40 % of AR Method - Allowance for Doubtful Accounts
Worksheet - 50 % of Sales Method - Allowance for Doubtful Accounts
60 Multiple Choice Questions - Accounts Receivable
900.10 Test questionsAccounts Receivable%2C Allowance %26 Direct

Notes Receivables

8 Notes Receivable
80 Notes Receivable
90 Interest Calculations
Worksheet - 60 Worksheet - Simple Interest
PDF - 100 Note Receivable Example
100 Note Receivable Example
Worksheet - 70 Worksheet 1 - Notes Receivable
Worksheet - 80 Worksheet 2 - Notes Receivable
70 Multiple Choice Questions - Accounts Receivable
900.20 Test questions Part 2 Accounts Receivable%2C Allowance %26 Direct Write O

Section 9 Depreciation Calculation & Fixed Assets

Depreciation Calculation & Fixed Assets
10 Property Plant & Equipment

SEC 9 Lump Sum Purchase

2 Lump Sum Purchase
20 Property Plant & Equipment Lump Sum Purchase
20 Worksheet - Lump Sum Purchase

SEC 9 Straight Line Method of Depreciation

3 Straight Line Method of Depreciation
30 1000.10 Calculating Depreciation Straight Line
Worksheet - 30 1000.10 Depreciation Straight Line Ex Part 1
Worksheet - 30.1 1000.20 Depreciation Straight Line Ex Part 2
10 Multiple Choice Question - Property Plant & Equipment

SEC 9 Double Declining Balance Method of Depreciation

4 Double Declining Balance Method of Depreciation
40 Calculating Depreciation Double Declining Balance
Worksheet - 40 Depreciation Ex double declining Part 1
Worksheet - 40.1 Depreciation Ex double declining part 2
Worksheet - 40.2 Depreciation Ex double declining part 3
20 Multiple Choice Question - Property Plant & Equipment

SEC 9 Units of Production Depreciation Method

5 Units of Production Depreciation Method
50 Calculating Depreciation Units of Production
Worksheet - 50 1000.60 Depreciation units of production Part 1
Worksheet - 50.1 1000.70 Depreciation Ex units of production Part 2
30 Multiple Choice Question - Property Plant & Equipment

SEC 9 Calculating Depreciation for a Partial Period

6 Calculating Depreciation for a Partial Period
Partial Year Depreciation
Worksheet - 55 Partial Year Depreciation
40 Multiple Choice Question - Property Plant & Equipment

SEC 9 Capital Expenditures and Revenue Expenditures

7 Capital Expenditures and Revenue Expenditures
Capital and Revenue Expenditures
50 Multiple Choice Question - Property Plant & Equipment
Short Calculation 1

SEC 9 Changes in Accounting Estimates

8 Changes in Accounting Estimates
60 Change In Estimates
Worksheet - 60 Depreciation Change of Estimate
60 Multiple Choice Question - Property Plant & Equipment
Short Calculation 2

SEC 9 Disposals of Property Plant and Equipment

9 Disposals of Property Plant and Equipment
70 Disposals Fully Depreciated No Cash Received
70.1 Worksheet – Disposals Fully Depreciated No Cash
80 Disposal Fully Depreciated & Cash Received u
80 Worksheet – Disposals Fully Depreciated Cash Received
90 Disposal - Not Fully Depreciated
90 Worksheet – Disposals Not Fully Depreciated No Cash
100 Disposal Not Fully Depreciated & Cash Received
100 Worksheet – Disposals Not Fully Depreciated Cash Received
70 Multiple Choice Question - Property Plant & Equipment
Short Calculation 3

Section 10 Payroll Accounting

10 Payroll Introduction

SEC 10 Payroll Legislation

2 Payroll Legislation
20 Payroll Legislation
310 Minimum Wage & Nonexempt Employees
410 Fringe Benefits

SEC 10 Payroll Forms and Time-Frames

3 Payroll Forms and Time-Frames
21 Payroll Consideration and Tax Forms
80 Payroll Tax Expense Journal Entry
90 Pay Payroll Tax Expense Journal Entry

SEC 10 Payroll Register & Earning Record

4 Payroll Register & Earnings Record
330 Payroll Register
Worksheet - 25 Earnings Record

SEC 10 Regular Pay & Overtime Pay Calculation

5 Regular Pay & Overtime Pay Calculation
10 Regular & Overtime Pay Calculation
Worksheet - 10 Regular & Overtime Pay
315 Payroll Calculations
320 Overtime Calculation

SEC 10 Federal Income Tax & Retirement Plans

6 Federal Income Tax & Retirement Plans
510 Federal Income Tax (FIT)
Worksheet - 20 Federal Income Tax Withholding FIT
415 Deductions From Gross Pay
420 Retirement Plans
20 Federal Income Tax FIT
25 Federal Income Tax FIT - Percent Method
Worksheet - 25 Federal Income Tax - Percentage Method

SEC 10 Federal Income Contributions Act Social Security

7 Federal Income Contributions Act Social Security
30 Federal Income Contributions Act (FICA)
515 Social Security
30 Social Security Tax Calculation
Worksheet - 30 OASDI

SEC 10 Federal Income Contribution Act Medicare

8 Federal Income Contribution Act (FICA) -Medicare
520 Medicare Tax
40 Medicare Tax Calculation
Worksheet - 40 Worksheet HI

SEC 10 Federal Unemployment Tax Act (FUTA)

9 Federal Unemployment Tax Act (FUTA)
40 FUTA, SUTA Workers Compensation
615 Federal & State Unemployment Tax
50 Federal Unemployment Tax Act Calculation
Excel Worksheet Download
Worksheet - 50 Worksheet FUTA

SEC 10 Worksheet FUTA

10 Other Deductions
425 Post Tax Deductions
525 Other Deductions & Payment Methods

SEC 10 Taxes – Employer & Employee

11 Taxes Employer & Employee
605 Taxes Employer Employee

SEC 10 Employer Responsibilities

12 Employer Responsibilities
60 Employer Responsibilities and Processes
55 Employer Taxes Calculation
610 FICA Employer
Worksheet - 55 Employer Taxes

SEC 10 Payroll Expense Journal Entry

13 Payroll Expense Journal Entry
505 Net Pay Calculation
70 Payroll Expense Journal Entry
Worksheet - 70 Payroll Expense Journal Entry

SEC 10 Payroll Taxes Journal Entry

14 Payroll Taxes Journal Entry
80 Payroll Tax Expense Journal Entry
Worksheet - 80 Worksheet Payroll Tax Expenses Journal Entry

SEC 10 Paying Payroll Tax Liability Journal Entry

15 Paying Payroll Tax Liability Journal Entry
90 Pay Payroll Tax Expense Journal Entry
Worksheet - 90 Pay Payroll Expenses Journal Entry

SEC 10 Payroll Ethics & Practices

50 Payroll Ethics & Practices

SEC 10 Payroll Controls & Documentation

17 Payroll Controls & Documentation
100 Payroll Controls and Documentation
10 Multiple Choice – Payroll

SEC 10 Form 941

620 Form 941
100 Form 941
20 Multiple Choice – Payroll

SEC 10 Form 940

19 Form 940
110 Form 940
625 Form 940
30 Multiple Choice – Payroll

SEC 10 Form W-2 & W-3

19 Form 940
120 Form W-3 & W-2
920 Form W-3
40 Multiple Choice – Payroll

SEC 10 Reconcile Year End Payroll Forms

21 Comprehensive Accounting Cycle Problem
130 Reconciling Year End Payroll Forms
50 Multiple Choice – Payroll

SEC 10 - Comprehensive Payroll Problem

Excel Worksheet Download
10 Payroll Comp Problem Introduction (Copy)
20 Payroll Comp Problem August Payroll Register
30 Payroll Comp Problem August Earning Records
40 Payroll Comp Problem August Journal Entry
45 Payroll Comp Problem September Payroll Register
50 Payroll Comp Problem September Earning Records
60 Payroll Comp Problem September Journal Entry
70 Payroll Comp Problem Form 941 3rd Qt
80 Payroll Comp Problem October Payroll Register
90 Payroll Comp Problem October Earning Records
100 Payroll Comp Problem October Journal Entry
110 Payroll Comp Problem November Payroll Register
120 Payroll Comp Problem November Earning Records
130 Payroll Comp Problem November Journal Entry
140 Payroll Comp Problem Dec. Payroll Register & Earning Records
150 Payroll Comp Problem Dec. Journal Entry
160 Payroll Comp Problem Form 941 4rd Qt
170 Payroll Comp Problem Form 940
180 W-2 & W-3 Comp Problem Form 940
190 Comp Problem Reconcile Payroll Tax Forms 941s, 940 & W-3

Section 11 Partnership Accounting

10 Partnerships Introduction

SEC 11 Set up New Partnership

2 Set up New Partnership
12 Partnership Set Up New Partnership
Worksheet - 12 New Partnership

SEC 11 Partnership Income Allocation

3 Partnership Income Allocation
20 Partnership Income Allocation
Worksheet - 20 Part 1 Partnership Income Allocation
Worksheet - 20 Part 2 Partnership Income Allocation.
Worksheet - 21 Partnership Income Allocation With Overallocation
20 - Multiple Choice – Partnership

SEC 11 Partnership Draws

4 Partnership Draws
22 Partnership Withdraws
Worksheet - 22 Partnership Withdraws
30 - Multiple Choice – Partnership

SEC 11 Partnership Closing Process

5 Partnership Closing Process
23 Partnership Closing Process
Worksheet - 23 Partnership Closing Process
40 - Multiple Choice – Partnership

SEC 11 Partner Leaves Partnership

6 Partner Leaves Partnership
25 Partnership Partner Leaves Partnership Cash Equal to Capital Account
26 Partnership Partner Leaves Partnership Cash less then Capital Account
28 Partner Leaves Partnership Cash Greater then Capital Account
Excel Worksheet Download
Worksheet - 29 Part 1 Selling Partnership Interest Leaving Partnership
Worksheet - 29 Part 2 Selling Partnership Interest Leaving Partnership
50 - Multiple Choice – Partnership

SEC 11 New Partner is Added to Partnership

7 New Partner Added to Partnership
29 Add New Partnership - Cash More Then Capital Account
29.1 Add New Partner - Cash Less Then Capital Account
29.2 partner sells partnership interest to a new Partner
29.3 Partner sells partnership interest - Cash Received Less Then Capital
Worksheet - 29.1 Part 1 Add Partner to Partnership
Worksheet - 29.1 Part 2 Add Partner to Partnership
60 - Multiple Choice – Partnership
Short Calculation 1

SEC 11 Liquidation of Partnership

8 Liquidation of Partnership
30 Partnership Liquidation Gain on sale of Assets
Worksheet - 30 Part 1 Partnership Liquidation Gain on Sale of Assets
Worksheet - 30 Part 2 Partnership Liquidation Gain on Sale of Assets
40 Partnerships Liquidation Loss on sale of Assets
Worksheet - 40 Part 1 Partnership Liquidation Loss on Sale of Assets
Worksheet - 40 Part 2 Partnership Liquidation Loss on Sale of Assets
50 Partnership Liquidation Partner Pays Partnership for Negative Capital Account
Worksheet - 50 Partnership Liquidation Partner Pays Partnership for Negative Cap
60 Partnership Liquidation Partner Does Not Pay Partnership for Negative Capita
Excel Worksheet Download
Worksheet - 60 Partnerships Liquidation Partner Does Not Pays Partnership for Ne
70 - Multiple Choice – Partnership
Short Calculation 2

Section 12 Accounting for Corporations

10 Corporation Introduction

SEC 12 Issuing Common Stock for Cash

2 Issuing Common Stock for Cash
20 Stock for Cash
Worksheet - 20 Issuing Stock for Cash

SEC 12 Issuing Common stock for Non-Cash

3 Issuing Common Stock for Non-Cash
30 Issuing Stock for Non-Cash Asset
Worksheet - 30 Issuing Stock for Non Cash Assets
10 Multiple Choice Questions - Corporations

SEC 12 Cash Dividends

4 Cash Dividends
40 Dividends Overview
45 Cash Dividends
Worksheet - 45 Cash Dividends
20 Multiple Choice Questions - Corporations

SEC 12 Stock Dividends

5 Stock Dividends
50 Stock Dividends & Stock Split
Worksheet - 55 Stock Dividends
30 Multiple Choice Questions - Corporations

SEC 12 Preferred Stock

6 Preferred Stock
60 Preferred Stock Introduction
65 Preferred Stock Example
Worksheet - 65 Preferred Stock
40 Multiple Choice Questions - Corporations

SEC 12 Treasury Stock

7 Treasury Stock
70 Treasury Stock
Worksheet - 70 Treasury Stock Part 1%2C how to calculate-Accounting%2C Financial
Worksheet - 70 Treasury Stock Part 2%2C how to calculate-Accounting%2C Financial
50 Multiple Choice Questions - Corporations

SEC 12 Statement of Stockholders’ Equity & Retained Earnings

8 Statement of Stockholders' Equity & Retained Earnings
80 Statement of Retained Earnings
Worksheet - 80 Statement of Retained Earnings
90 Corporations Statement of Stockholders Equity
Worksheet - 90 Statement of Stockholders' Equity
60 Multiple Choice Questions - Corporations

SEC 12 Closing Process - Corporation

9 Closings Process Corporations
95 Corporation Closing Process
Worksheet - 95 Closing Process - Corporations
70 Multiple Choice Questions - Corporations
Short Calculation 1

SEC 12 Earnings Per Share

10 Earning Per Share
100 Corporations Earning Per Share
Worksheet - 100 Earning Per Share
80 Multiple Choice Questions - Corporations
Short Calculation 2

Section 13 Bonds Payable, Notes Payable, Liabilities

10 Bonds & Notes Payable Introduction

SEC 13 Bonds - Market Rate vs Contract Rate

2 Bonds Market Rate vs Contract Rate
20 Bond Issued at Par
25 Bonds Market Rate vs Contract Rate
Worksheet - 20 Bond Issued at Par
Worksheet - 25 Bond Interest Journal Entry

SEC 13 Bonds Issued at Premium

3 Bonds Issued at Premium
50 Bond Issued at Premium
Worksheet - 50 Bond Issue at Premium
60 Premium Amortization & Interest
Worksheet - 55 Bond Premium and Interest Journal Entry

SEC 13 Bonds Issued at Discount

4 Bonds Issued at Discount
40 Issue bond at a discount calculate and record interest payment
Worksheet - 30 Bond Issued at Discount
Worksheet - 35 Bond Discount & Interest
Worksheet - 1400.10 Record issuance of bond at a discount amortize straight line
Worksheet - 1400.20 Record issuance of bond at a discount amortize straight line
Worksheet - 1400.40 Record issuance of bond at a premium amortize straight line
Worksheet - 1400.50 Record issuance of bond at a premium amortize straight line

SEC 13 Present Value - Bond Price

5 Present Value Bond Price
70 Bonds Present Value Formulas
Worksheet - 70 Bond Present Value Formula
80 Bond Price Present Value Tables
Worksheet - 80 Bond Present Value Tables
90 Bond Price Excel Formula
Worksheet - 90 Bond Present Value Excel

SEC 13 Bond Retirement

6 Bond Retirement
100 Bond Retirement
Worksheet - 100 Bond Retirement

SEC 13 Notes Payable Introduction

7 Notes Payable Introduction
110 Notes Payable Introduction
120 Note Payable Journal Entry
Worksheet - 120 Installment Note Initial Journal Entry

SEC 13 Amortization Schedule - Notes Payable

8 Amortization Schedule Notes Payable
130 Amortization Schedule
140 Notes Payable Payments Journal Entry
Worksheet - 130 Note Payable Amortization
Worksheet - 140 Note payable interest payments

SEC 13 Notes Payable Adjusting Entries

9 Notes Payable Adjusting Entries
150 Notes Payable Adjusting Entry
Worksheet - 150 Note Payable Adjusting Entry 1
Worksheet - 160 Note Payable Adjusting Entry 2

SEC 13 Financial Statements - Long Term Liabilities

10 Financial Statements Long Term Liabilities
170 Notes Payable Current vs. Non Current
Worksheet - 170 FS St LT One Loan 1 TB Account
Worksheet - 180 FS St LT Loan 1 loan 2 TB Accounts
Worksheet - 190 FS ST LT 2 loans 1 TB account
Worksheet - 200 FS ST LT 2 Loans 1 ST 1 LT TB account
Worksheet - 210 FS ST LT 2 Loans 2 Loan Account TB
Worksheet - 220 FS 2 Loans 4 Accounts TB
70 Multiple Choice Question – Long Term Liabilities

SEC 13 Bond Characteristics and Types

11 Bond Characteristics and Types
230 Bond Characteristics
80 Multiple Choice Question – Long Term Liabilities

SEC 13 Effective Method - Amortization Bond Discount & Premium

12 Effective Method Amortization Bond Discount & Premium
235 Discount Amortization Effective Method
Worksheet - 230 Effective Interest Discount Amortization
240 Premium Amortization Effective Method
Worksheet - 240 Effective Interest Premium Amortization
90 Multiple Choice Question – Long Term Liabilities

SEC 13 Leases - Operating vs. Capital

13 Leases Operating vs. Capital
250 Leases Capital vs. Operating
100 Multiple Choice Question – Long Term Liabilities
Short Calculation 2

Section 14 Statement of Cash Flows

10 Statement of Cash Flows Introduction

SEC 14 Classification of Cash Flows and Thought Process

20 Classification of Cash Flows
30 Cash Flow Category Thought Process

SEC 14 Statement of Cash Flows Outline & Resources Needed for Construction

40 Statement of Cash Flow Outline
50 Statement of Cash Flow Tools For Completion
60 Statement of Cash Flow Strategy

SEC 14 Direct Method vs Indirect Method

70 Statement of Cash Flows Direct Method Vs Indirect Method

SEC 14 Create Statement of Cash Flows - Indirect Method

80 Statement of Cash Flow Indirect Method Worksheet
90 Statement of Cash Flow Indirect Method Cash & Net Income
100 Statement of Cash Flow Indirect Method Adjustments to Reconcile Net Income t
110 Statement of Cash Flow Indirect Method Change In Accounts Receivable
120 Statement of Cash Flow Indirect Method Change In Inventory
130 Statement of Cash Flow Indirect Method Change in Prepaid Expense
140 Statement of Cash Flow Indirect Method Change In Accounts Payable
150 Statement of Cash Flow Investing Activities Cash Paid for Purchase of Equipm
160 Statement of Cash Flow Financing Activities Cash Borrowed on Notes
170 Statement of Cash Flow Financing Activities
180 Statement of Cash Flow Adjustments
1600.10 Creating a Statement of Cash Flow-Indirect Method-Accounting%2C financia
40 Cash flow statement indirect method part 1%2C how to calculate-Accounting%2C
50 Cash flow statement indirect method part 2%2C
60 Cash flow statement indirect method part 3%2C
70 Cash flow statement indirect method Part 4%2C
190 Worksheet Direct Method Worksheet Stmt of Cash Flow
190.10 Worksheet Direct Method Cash from Operations Stmt of Cash Flow
190.20 Worksheet Direct Method Cash from Investing Act Stmt of Cash Flow
190.30 Worksheet Direct Method Cash from financing Act Stmt of Cash Flow
190.40 Worksheet Direct Method Finalize Act Stmt of Cash Flow

SEC 14 Create Statement of Cash Flows - Direct Method

190 Statement of Cash Flow Direct Method
190.10 Worksheet Direct Method Cash from Operations Stmt of Cash Flow
190.20 Worksheet Direct Method Cash from Investing Act Stmt of Cash Flow
190.30 Worksheet Direct Method Cash from financing Act Stmt of Cash Flow
190.40 Worksheet Direct Method Finalize Act Stmt of Cash Flow

SEC 14 Non Cash Investing & Financing

200 Statement of Cash Flow Non Cash Items

Reviews

Dhiyaneshwar
July 9, 2022
This is a fantastic resource if you want to learn Financial Accounting! The decision to take this course is a smart one if you are passionate about learning Financial Accounting! My sincere thanks extend out to Udemy! I would like to thank Financial Accounting Instructor for his help!
Farah
July 6, 2022
If I try to appoint this course and tell how its working for me also my future is unpredictable and very useful for me . So course is one the best course I've seen.
Raenelle
June 22, 2022
Great introduction to an understanding of why to be an accountant and the different types of accounting and different types of entities.
Merlyn
June 21, 2022
The Course was awesome. I managed to consolidate all the necessary informations about Accounting and Finance
Renee
June 7, 2022
as you can see, I only was able to get through a few minutes of this instructor. I could not get his style of teaching. maybe it was the kiddy clip arts. I don't know.
Goutam
May 19, 2022
Thanks, Bob Steel, I learned a lot of things in accounting and get a better understanding of how to use them. Keep it up.
Gibrilla
May 8, 2022
Thanks very much for creating this learning platform. Such a brilliant explanation of Accounting Concepts. You're making learning much more easier and simple.
Maite
April 21, 2022
I started working in the Finance sector about a month ago with a background in engineering and no finance background. I was appointed as a financial analyst and so it is imperative for me to accustom myself to accounting principles. I feel that this course will enable me to learn the critical fundamentals which will help me perform my work.
Kawkab
March 5, 2022
I am a student, so I do not have enough experience, but I think this course will be useful to me language and also knowing important things about accounting
Nouha
February 27, 2022
The course is animated in a very fun way, it is so detailed, very clear and very easy to understand even though English is my third language. I'm really glad I signed up for it.
Jamie
February 14, 2022
Yes, the content is exactly what I have been wanting to learn. The in-depth explanations are very easy to understand, and I can take the lessons at my own free time. Great!
Ruan
February 8, 2022
The way it is presented is a bit dull, meaning that the visuals presented are not of high quality, and the voice is a bit monotonous.
Minaxi
December 15, 2021
thinking of changing my career to accounting, this course has given me good understanding about the field.
Carol
December 12, 2021
I would have given 5 if they didnt fill up with reading. I bought course for the videos, you can read anywhere.
Julie
November 4, 2021
Easy to understand, very clear and concise. Like the pictures explaining Assets =. Nice and slow not rushed. Pleased I chose this company. Being able to go back is great as I do some and might not come back for days and can refresh, go back to go forward. Love that now some of the subjects can give me credits to go forward to eventually become a CPA.

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1574798
udemy ID
2/28/2018
course created date
8/20/2019
course indexed date
Bot
course submited by