Good Morning

can you assist me with the Discussion for my Accounting class?

150-200 words

I attached the chapter reading just in case you need it

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The Importance of Accounting in Today?s Environment The increasing complexity of the current business and regulatory environment has created an increased demand for accountants who can analyze business transactions and interpret their effects on the financial statements. In addition, a basic ability to analyze the effects of transactions is necessary to be successful in all fields of business as well as in other disciplines, such as law, healthcare, etc. To better understand the importance of accounting in today?s environment, search the Internet for job opportunities. Use the following link below http://www.monster.com/geo/siteselection.aspx 1. Find an advertisement for an accounting job.

http://jobview.monster.com/Public-Accountant-GL-Job-New-York-City-NY-US-164744472.aspx?mescoid=1300101001001&jobPosition=2

2. Find an advertisement for a non-accounting job that requires accounting skills or basic knowledge.

http://jobview.monster.com/Administrative-Accounting-Agent-Job-Newark-NJ-US-164251908.aspx?mescoid=4300700001001&jobPosition=2

3. Describe how accounting is used in each position, the accounting background needed and the overall job duties.

4. Which one would you apply for and why?

2-1 2 The Recording Process Learning Objectives 1 2 Indicate how a journal is used in the recording process. 3 Explain how a ledger and posting help in the recording process. 4 2-2 Describe how accounts, debits, and credits are used to record business transactions. Prepare a trial balance. LEARNING OBJECTIVE 1 Describe how accounts, debits, and credits are used to record business transactions. The Account Debit = \"Left\" 2-3 Record of increases and decreases in a specific asset, liability, owners' equity, revenue, or expense item. An account can be illustrated in a Taccount form. Credit = \"Right\" Account Name Debit / Dr. Credit / Cr. LO 1 The Account DEBIT AND CREDIT PROCEDURES Double-entry system Each transaction must affect two or more accounts to keep the basic accounting equation in balance. Recording done by debiting at least one account and crediting at least one other account. 2-4 DEBITS must equal CREDITS. LO 1 Debits and Credits If the sum of Debit entries are greater than the sum of Credit entries, the account will have a debit balance. Account Name Debit / Dr. Credit / Cr. Transaction #1 $10,000 $3,000 Transaction #3 8,000 Balance 2-5 Transaction #2 $15,000 LO 1 Debits and Credits If the sum of Credit entries are greater than the sum of Debit entries, the account will have a credit balance. Account Name Debit / Dr. Balance 2-6 $10,000 $3,000 Transaction #2 8,000 Transaction #1 Credit / Cr. Transaction #3 $1,000 LO 1 Debits and Credits Assets - Debits should exceed credits. Liabilities - Credits should exceed debits. Debit / Dr. Assets Normal balance is on the increase side. Credit / Cr. Normal Balance Chapter 3-23 Liabilities Debit / Dr. Credit / Cr. Normal Balance Chapter 3-24 2-7 LO 1 Debits and Credits Owner's investments and revenues increase owner's equity (credit). Owner's Equity Owner's drawings and expenses decrease owner's equity (debit). Credit / Cr. Debit / Dr. Normal Balance Chapter 3-25 Owner's Capital Owner's Drawing Chapter 3-25 2-8 Credit / Cr. Debit / Dr. Normal Balance Debit / Dr. Normal Balance Credit / Cr. Helpful Hint Because revenues increase owner's equity, a revenue account has the same debit/credit rules as the Owner's Capital account. Expenses have the opposite effect. Chapter 3-23 LO 1 Debits and Credits The purpose of earning revenues is to benefit the owner(s). The effect of debits and credits on revenue accounts is the same as their effect on Owner's Capital. Debit / Dr. Revenue Expenses have the opposite effect: expenses decrease owner's equity. Credit / Cr. Normal Balance Chapter 3-26 Expense Debit / Dr. Credit / Cr. Normal Balance Chapter 3-27 2-9 LO 1 Debits/Credits Rules Liabilities Normal Balance Debit Normal Balance Credit Assets Credit / Cr. Normal Balance Chapter 3-24 Owner's Equity Credit / Cr. Debit / Dr. Debit / Dr. Debit / Dr. Credit / Cr. Normal Balance Normal Balance Chapter 3-23 Expense Debit / Dr. Chapter 3-25 Revenue Credit / Cr. Debit / Dr. Normal Balance Chapter 3-27 2-10 Credit / Cr. Normal Balance Chapter 3-26 LO 1 Debits/Credits Rules Balance Sheet Asset = Liability + Equity Income Statement Revenue - Expense Debit Credit 2-11 LO 1 Debits/Credits Rules Question Debits: a. increase both assets and liabilities. b. decrease both assets and liabilities. c. increase assets and decrease liabilities. d. decrease assets and increase liabilities. 2-12 LO 1 Debits/Credits Rules Question Accounts that normally have debit balances are: a. assets, expenses, and revenues. b. assets, expenses, and equity. c. assets, liabilities, and owner's drawing. d. assets, owner's drawing, and expenses. 2-13 LO 1 Summary of Debit/Credit Rules Relationship among the assets, liabilities and owner's equity of a business: Illustration 2-11 Basic Equation Assets = Liabilities + Owner's Equity Expanded Equation Debit/Credit Effects The equation must be in balance after every transaction. Total Debits must equal total Credits. 2-14 LO 1 DO IT! 1 Normal Account Balances Kate Browne has just rented space in a shopping mall. In this space, she will open a hair salon to be called \"Hair It Is.\" A friend has advised Kate to set up a double-entry set of accounting records in which to record all of her business transactions. Identify the balance sheet accounts that Kate will likely need to record the transactions needed to open her business. Indicate whether the normal balance of each account is a debit or a credit. Assets Liabilities Equity Cash (debit) Notes payable (credit) Owner's Capital (credit) Supplies (debit) Accounts payable (credit) Equipment (debit) 2-15 LO 1 LEARNING OBJECTIVE 2 Indicate how a journal is used in the recording process. Steps in the Recording Process Illustration 2-12 Analyze each transaction Enter transaction in a journal Transfer journal information to ledger accounts Business documents, such as a sales slip, a check, or a bill, provide evidence of the transaction. 2-16 LO 2 Steps in the Recording Process The Journal Book of original entry. Transactions recorded in chronological order. Contributions to the recording process: 1. Discloses the complete effects of a transaction. 2. Provides a chronological record of transactions. 3. Helps to prevent or locate errors because the debit and credit amounts can be easily compared. 2-17 LO 2 Steps in the Recording Process JOURNALIZING - Entering transaction data in the journal. Illustration: On September 1, Ray Neal invested $15,000 cash in the business, and Softbyte purchased computer equipment for $7,000 cash. Illustration 2-13 GENERAL JOURNAL Date Sept. 1 Account Title Cash Ref. Debit 15,000 Owner's Capital Equipment Cash 2-18 Credit 15,000 7,000 7,000 LO 2 Steps in the Recording Process SIMPLE AND COMPOUND ENTRIES Illustration: On July 1, Butler Company purchases a delivery truck costing $14,000. It pays $8,000 cash now and agrees to pay the remaining $6,000 on account. Illustration 2-14 Compound journal entry GENERAL JOURNAL Date July 1 Account Title Equipment Ref. Debit Credit 14,000 Cash Accounts payable 2-19 8,000 6,000 LO 2 2-20 LO 2 DO IT! 2 Recording Business Activities Kate Browne engaged in the following activities in establishing her salon, Hair It Is: 1. Opened a bank account in the name of Hair It Is and deposited $20,000 of her own money in this account as her initial investment. 2. Purchased equipment on account (to be paid in 30 days) for a total cost of $4,800. 3. Interviewed three persons for the position of hair stylist. Prepare the entries to record the transactions. 2-21 LO 2 DO IT! 2 Recording Business Activities Prepare the entries to record the transactions. 1. Opened a bank account and deposited $20,000. Cash Owner's Capital 20,000 20,000 2. Purchased equipment on account (to be paid in 30 days) for a total cost of $4,800. Equipment Accounts Payable 4,800 4,800 3. Interviewed three persons for the position of hair stylist. No entry 2-22 LO 2 LEARNING OBJECTIVE 3 Explain how a ledger and posting help in the recording process. The Ledger General Ledger contains all the asset, liability, and owner's equity accounts. Illustration 2-15 2-23 LO 3 2-24 LO 3 The Ledger STANDARD FORM OF ACCOUNT 2-25 Illustration 2-16 Three-column form of account LO 3 Ledger POSTING Transferring journal entries to the ledger accounts. Illustration 2-17 Posting a journal entry 2-26 LO 3 Posting Question Posting: a. normally occurs before journalizing. b. transfers ledger transaction data to the journal. c. is an optional step in the recording process. d. transfers journal entries to ledger accounts. 2-27 LO 3 Chart of Accounts Illustration 2-18 2-28 LO 3 The Recording Process Illustrated Follow these steps: 1. Determine what type of account is involved. 2. Determine what items increased or decreased and by how much. 3. Translate the increases and decreases into debits and credits. Illustration 2-19 2-29 LO 3 2-30 Illustration 2-20 Purchase of office equipment LO 3 Illustration 2-21 Receipt of cash for future service 2-31 LO 3 2-32 Illustration 2-22 Payment of monthly rent LO 3 Illustration 2-23 Payment for insurance 2-33 LO 3 2-34 Illustration 2-24 Purchase of supplies on credit LO 3 The Recording Process Illustrated Illustration 2-25 Hiring of employees 2-35 LO 3 2-36 Illustration 2-26 Withdrawal of cash by owner LO 3 2-37 Illustration 2-27 Payment of salaries LO 3 2-38 Illustration 2-28 Receipt of cash for services performed LO 3 Summary Journalizing and Posting Illustration 2-29 2-39 LO 3 2-40 Illustration 2-29 LO 3 Illustration 2-30 2-41 LO 3 DO IT! 3 Posting Kate Brown recorded the following transactions in a general journal during the month of March. Post these entries to the Cash account. Mar. 4 Mar. 15 Mar. 19 2-42 Cash Service Revenue Salaries and Wages Expense Cash Utilities Expense Cash 2,280 2,280 400 400 92 92 LO 3 LEARNING OBJECTIVE 2-43 4 Illustration 2-31 Prepare a trial balance. LO 4 Trial Balance Limitations of a Trial Balance Trial balance may balance even when: 1. A transaction is not journalized. 2. A correct journal entry is not posted. 3. A journal entry is posted twice. 4. Incorrect accounts are used in journalizing or posting. 5. Offsetting errors are made in recording the amount of a transaction. 2-44 LO 4 Dollar Signs and Underlining Dollar Signs Do not appear in journals or ledgers. Typically used only in the trial balance and the financial statements. Shown only for the first item in the column and for the total of that column. Underlining 2-45 A single line is placed under the column of figures to be added or subtracted. Totals are double-underlined. LO 4 Trial Balance Question A trial balance will not balance if: a. a correct journal entry is posted twice. b. the purchase of supplies on account is debited to Supplies and credited to Cash. c. a $100 cash drawing by the owner is debited to Owner's Drawing for $1,000 and credited to Cash for $100. d. a $450 payment on account is debited to Accounts Payable for $45 and credited to Cash for $45. 2-46 LO 4 2-47 LO 4 DO IT! 4 2-48 Trial Balance LO 4 DO IT! 4 2-49 Trial Balance LO 4 A Look at IFRS LEARNING OBJECTIVE 5 Compare the procedures for the accounting process under GAAP and IFRS. Key Points Similarities 2-50 Transaction analysis is the same under IFRS and GAAP. Both the IASB and the FASB go beyond the basic definitions provided in the textbook for the key elements of financial statements, that is assets, liabilities, equity, revenue, and expenses. The implications of the expanded definitions are discussed in more advanced accounting courses. LO 5 A Look at IFRS Key Points Similarities 2-51 As shown in the textbook, dollar signs are typically used only in the trial balance and the financial statements. The same practice is followed under IFRS, using the currency of the country where the reporting company is headquartered. A trial balance under IFRS follows the same format as shown in the textbook. LO 5 A Look at IFRS Key Points Differences 2-52 IFRS relies less on historical cost and more on fair value than do FASB standards. Internal controls are a system of checks and balances designed to prevent and detect fraud and errors. While most public U.S. companies have these systems in place, many non-U.S. companies have never completely documented the controls nor had an independent auditors attest to their effectiveness. LO 5 A Look at IFRS Looking to the Future The basic recording process shown in this textbook is followed by companies across the globe. It is unlikely to change in the future. The definitional structure of assets, liabilities, equity, revenues, and expenses may change over time as the IASB and FASB evaluate their overall conceptual framework for establishing accounting standards. 2-53 LO 5 A Look at IFRS IFRS Self-Test Questions Which statement is correct regarding IFRS? a) IFRS reverses the rules of debits and credits, that is, debits are on the right and credits are on the left. b) IFRS uses the same process for recording transactions as GAAP. c) The chart of accounts under IFRS is different because revenues follow assets. d) None of the above statements are correct. 2-54 LO 5 A Look at IFRS IFRS Self-Test Questions A trial balance: a) is the same under IFRS and GAAP. b) proves that transactions are recorded correctly. c) proves that all transactions have been recorded. d) will not balance if a correct journal entry is posted twice. 2-55 LO 5 A Look at IFRS IFRS Self-Test Questions One difference between IFRS and GAAP is that: a) GAAP uses accrual-accounting concepts and IFRS uses primarily the cash basis of accounting. b) IFRS uses a different posting process than GAAP. c) IFRS uses more fair value measurements than GAAP. d) the limitations of a trial balance are different between IFRS and GAAP. 2-56 LO 5 Copyright \"Copyright 2015 John Wiley & Sons, Inc. 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No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. PRINTED BY: irisgarcia3@student.kaplan.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. PRINTED BY: irisgarcia3@student.kaplan.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. PRINTED BY: irisgarcia3@student.kaplan.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. PRINTED BY: irisgarcia3@student.kaplan.edu. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. 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