Explore
For Enterprise
Join for Free
Log In

HEC Paris
Register today for HEC Paris' upcoming webinar
RSVP for their upcoming webinar on Jan 23 to learn more about the MSIE program.
University of Michigan
Gain new skills in construction management in under 7 months
Earn the Construction Engineering & Management MasterTrack™ Certificate from a top-ranked school.

Explore todo o Coursera

Navegar
Os melhores cursos
For Enterprise
Entrar
Inscreva-se gratuitamente

Recording Transactions: Example 2

Loading...

Financial Accounting Fundamentals

Universidade da Virgínia

4.8 (754 classificações) | 41K alunos inscritos

This course will teach you the tools you'll need to understand the fundamentals of financial accounting. Concise videos, the financial records of a small business, and "your turn" activities guide you through the three most commonly used financial statements: the Balance Sheet, the Income Statement, and the Statement of Cash Flows. Beyond recording transactions, you'll learn how to prepare these financial statements, and read and analyze them to draw basic conclusions about a company's financial health. By the end of this course, you will be able to: - Use journal entries to record transactions - Prepare and use t-accounts to summarize transactions recorded during an accounting period - Describe the three most commonly used financial statements and how they fit together - Prepare these financial statements based on transactions recorded during an accounting period - Draw basic conclusions about a company's financial health

Visualizar o programa do curso

Habilidades que você aprenderá

Financial Accounting, Accounting, Financial Statement, Balance Sheet

Avaliações

4.8 (754 classificações)

5 stars
649 ratings
4 stars
93 ratings
3 stars
7 ratings
2 stars
1 ratings
1 star
4 ratings

PG

Jul 31, 2017

One of the Best course on Financial Accounting. Gives end to end hands on experience of entire Accounting Cycle. Quizzes are really engaging and require hands on working in many cases.

YY

Jan 24, 2019

This course gives me a practical understanding of accounting principles and key financial statements, which is helpful for my work. Strongly recommend to my friends and colleagues

Na lição

Introduction to Recording Transactions

After learning about the Balance Sheet, we’re ready to move on to using journal entries to record transactions, then t-accounts to summarize transactions recorded during an accounting period. We’ll apply those tools to record transactions for a fictional startup company, The Garden Spot, during its first year of operations (TGS Year 1). As we go along, we’ll also evaluate the effect of transactions on the balance sheet equation to ensure it remains balanced.

Introduction to Recording Transactions1:27

T-Accounts: A Tutorial4:06

Journal Entries: A Tutorial3:47

Recording Transactions: Example 15:32

Recording Transactions: Example 24:50

Recording Transactions: Example 36:10

Recording Transactions: Your Turn10:42

Introduction to TGS Year 15:42

TGS Year 1: Transaction 16:05

TGS Year 1: Transaction 24:35

TGS Year 1: Transaction 32:30

TGS Year 1: Transaction 41:50

TGS Year 1: Transaction 5 and a Summary3:58

Ministrado por

Luann J. Lynch
Almand R. Coleman Professor of Business Administration

Transcrição

Let's look at a second example. In this example, the company buys $100 worth of inventory. But instead of paying with cash, it purchases the inventory on account. In other words, it will pay it's supplier at a later date. Remember the four things that we need to know to record the journal entry. You need to know the accounts affected, what type of accounts they are, whether they go up or down, and the dollar amount. Let's use the balance sheet equation as a tool again to help us think about what accounts are affected. Well the company gets inventory through this transaction. And the inventory account increases by $100. But instead of paying cash, the company incurs an obligation to pay it's supplier at a later date. So it now has a liability that it must record on it's books. Let's call that liability accounts payable. That's what we would typically call a liability when we purchase something from a supplier and decide we'll pay the supplier later. So an accounts payable account is affected and it increases by $100. So now we know the accounts affected, what type they are, whether they go up or down and the dollar amount by which they're affected. So we know everything we need to know to record the journal entry. Let's start with inventory. Inventory is an asset and it increases. We'll we know an increase in an asset account as a left hand side entry or a debit. So let's write the left side entry, inventory the account name, the account type, increases by $100. Accounts payable is a liability and it increases by $100. Increases and liabilities are right side entries. Remember they are on the right side of the equation, so they're right side entries. Let's write the account name indented to the right underneath the left portion of the entry. Accounts payable, the account type is a liability. It increases, By $100. Now if we compare this to the transaction that we just recorded in the prior example. In both situations, we record a left side to inventory because inventory increased by $100 in both examples. But in the first example, the company paid cash. So assets went down so that was our right side entry. But in this example the company buys on account. So liabilities go up, so that's our right side entry. So these two entries differ only by the right side of the entry. Let's post these to the individual T accounts. The inventory account is affected, And the accounts payable account is affected. Let's take the left side of the journal entry, the debit to the inventory account. And let's put it on the left side of the inventory T account. And the right side of the entry, the accounts payable increase, goes on the right side of the accounts payable T account. Our left side total and our right side total are equal, we're happy about that. Let's go back to the balance sheet equation and make sure that our equation stays in balance after we've completed our journalizing and posting. Inventory which is an asset goes up by 100, so assets are up by 100. Accounts payable which is a liability increase by 100, so liabilities in total are up by 100. The left side of the equation is increased by 100. The right side of the equation is increased by 100. So the equation stays in balance.

Explore nosso catálogo

Registre-se gratuitamente e obtenha recomendações, atualizações e ofertas personalizadas.

O Coursera proporciona acesso universal à melhor educação do mundo, fazendo parcerias com as melhores universidades e organizações para oferecer cursos on-line.

© 2020 Coursera Inc. Todos os direitos reservados.

Baixar no Google Play

Coursera
Sobre
Liderança
Carreiras
Lista de cursos
Certificados
Certificados MasterTrack™
Notas
For Enterprise
For Government
For Campus

Comunidade
Learners
Partners
Developers
Beta Testers
Translators

Conectar
Blog
Facebook
LinkedIn
Twitter
Instagram
YouTube
Tech Blog

Mais
Termos
Privacidade
Ajuda
Acessibilidade
Imprensa
Contato
Diretório
Afiliados