Accounting 1 

Chapter 1 Starting a Proprietorship: Changes That Affect the Accounting Equation

1-1       Accounting in Action

The Role of Accounting

What Is Accounting?

Accounting in Personal Life Personal Net worth Statement

Ethics in Business

Written Communication

1-2       How Business Activities Change the Accounting Equation

The Business—Delgado Web Services

Accounting Standards and Rules

The Accounting Equation

Receiving Cash

Received Cash Investment from Owner

Paying Cash

Paid Cash for Supplies

Paid Cash for Insurance

Transactions on Account

Bought Supplies on Account

Paid Cash on Account

1-3       How Transactions Change Owner's Equity in an Accounting Equation

Transactions Affecting Owner’s Equity

Received Cash from Sales

Sold Services on Account

Expense Transactions

Paid Cash for Expenses

Other Cash Transactions

Received Cash on Account

Paid Cash to Owner for Personal Use

Summary of Changes in Owner’s Equity

Chapter 2 Analyzing Transactions into Debit and Credit Parts

2-1       Using T Accounts

Analyzing the Accounting Equation Accounts

Accounts

Increases, Decreases, and Balances in Accounts

2-2       Analyzing How Transactions Affect Accounts

Received Cash from Owner as an Investment

Paid Cash for Supplies

Paid Cash for Insurance

Bought Supplies on Account

Paid Cash on Account

2-3       Analyzing How Transactions Affect Owner's Equity Accounts

Received Cash from Sales

Sold Services on Account

Paid Cash for an Expense

Received Cash on Account

Paid Cash to Owner for Personal Use

Chapter 3 Journalizing Transactions

3-1   Recording Transactions and the General Journal

Journals and Journalizing

A General Journal

Using a Journal

Accuracy

Chronological Record

Double-Entry Accounting

Source Documents

Checks

Sales Invoices

Other Source Documents

Receipts

Memorandums

Calculator Tapes

Preparing Journal Entries

Received Cash from Owner as an Investment

Paid Cash for Supplies

3-2   Transactions Affecting Prepaid Insurance and Supplies

Paid Cash for Insurance

Bought Supplies on Account

Paid Cash on Account

3-3   Transactions Affecting Owner's Equity and Asset Accounts

Received Cash from Sales

Sold Services on Account

Paid Cash for an Expense

Received Cash on Account

Paid Cash to Owner as Withdrawal of Equity

3-4   Starting a New Journal Page

A Completed Journal Page

Starting a New General Journal Page  

Correcting Errors in Journal Entries

Chapter 4 Posting to a General Ledger

4-1   Using Accounts and Preparing and Maintaining a Chart of Accounts

Account Form

Relationship of a T Account to an Account Form

Chart of Accounts

Preparing a Chart of Accounts

Account Numbers

Assigning Account Numbers

Opening an Account in a General Ledger

4-2   Posting from a General Journal to a General Ledger and Proving Cash

Posting an Amount from the Debit Column of a General Journal

Posting an Amount from the Credit Column of a General Journal

Posting a Debit Amount to an Account with a Balance

Journal Page with Posting Completed

General Ledger with Posting Completed

Proving Cash

4-3   Journalizing Correcting Entries and Correcting Posting Errors

         Memorandum for a Correcting Entry

Journal Entry to Record a Correcting Entry

Correcting an Error in Posting to the Wrong Account

Correcting an Incorrect Amount and an Amount Posted to the Wrong Column

Chapter 5 Cash Control Systems

5-1   Checking Accounts

How Businesses Use Cash

Depositing Cash

Deposit Recorded on a Check Stub

Blank Endorsement, Special Endorsement, and Restrictive Endorsement

Blank Endorsement

Special Endorsement

Restrictive Endorsement

Completed Check Stub and Check

Recording a Voided Check

5-2   Bank Reconciliation

Bank Statement

Bank Statement Reconciliation

Recording a Bank Service Charge on a Check Stub

Journalizing a Bank Service Charge

5-3   Dishonored Checks and Electronic Banking

Recording a Dishonored Check on a Check Stub

Journalizing a Dishonored Check

Journalizing an Electronic Funds Transfer

Journalizing a Debit Card Transaction

5-4   Petty Cash

Establishing a Petty Cash Fund

Making Payments from a Petty Cash Fund with a Petty Cash Slip

Petty Cash Report

Replenishing Petty Cash

Oral Communication of Accounting Information

Reinforcement Activity 1—Part A

    An Accounting Cycle for a Proprietorship: Journalizing and Posting Transactions

Chapter 6 Work Sheet and Adjusting Entries for a Service Business

6-1   Creating a Work Sheet

Consistent Reporting

Fiscal Periods

Work Sheet

Preparing the Heading of a Work Sheet

Preparing a Trial Balance on a Work Sheet

6-2   Planning Adjusting Entries on a Work Sheet

Planning Adjustments on a Work Sheet

Supplies Adjustment on a Work Sheet

Prepaid Insurance Adjustment on a Work Sheet

Proving the Adjustments Columns of a Work Sheet

6-3   Completing the Work Sheet and Finding Errors on a Work Sheet

Extending Balance Sheet Account Balances on a Work Sheet

Extending Income Statement Account Balances on a Work Sheet

Recording Net Income and Totaling and Ruling a Work Sheet

Calculating and Recording a Net Loss on a Work Sheet

Finding and Correcting Errors on the Work Sheet

Correcting Accounting Errors on the Work Sheet

Checking for Typical Calculation Errors

Checking for Errors in the Work Sheet

Preventing Errors

6-4   Journalizing and Posting Adjusting Entries

Adjusting Entry for Supplies

Adjusting Entry for Prepaid Insurance

Partial Ledger Accounts after Posting Adjusting Entries

Chapter 7 Financial Statements for a Proprietorship

7-1       Preparing an Income Statement

Reporting Financial Information

Preparing an Income Statement from Information on a Work Sheet

Heading of an Income Statement

Revenue, Expenses, and Net Income Sections of an Income Statement

Analyzing an Income Statement

Acceptable Financial Ratios

Total Expenses Ratio

Net Income Ratio

Income Statement with Two Sources of Revenue and a Net Loss

7-2       Preparing a Statement of Owner’s Equity and a Balance Sheet

Preparing a Statement of Owner’s Equity from Information on a Work Sheet

Statement of Owner’s Equity

Body of a Statement of Owner’s Equity

Statement of Owner’s Equity with a Net Loss

Preparing a Balance Sheet from Information on a Work Sheet

Heading of a Balance Sheet

Assets and Liabilities Sections of a Balance Sheet

Owner’s Equity Section of a Balance Sheet

Chapter 8 Recording Closing Entries and Preparing A Post-Closing Trial Balance for A Service Business

8-1   Recording Closing Entries

Need for Permanent and Temporary Accounts

Need for Closing Temporary Accounts

Need for the Income Summary Account

Closing Entry for an Income Statement Account with a Credit Balance

Closing Entry for Income Statement Accounts with Debit Balances

Closing Entry to Record Net Income or Loss and Close the Income Summary Account

Closing Entry for the Owner’s Drawing Account

8-2   Preparing a Post-Closing Trial Balance

General Ledger Accounts after Closing Entries Are Posted

Post-Closing Trial Balance

Accounting Cycle for a Service Business

Reinforcement Activity 1—Part B

An Accounting Cycle for a Proprietorship: End-of-Fiscal-Period Work