In this class you will be required to create a course map as we move through the semester. Your

course mapping project will essentially be the most important accounting concepts covered in

this class. This is your project and it can be as detailed or simple as you would like for it to be

but it must include at least 1 important concepts from each chapter totaling 12 concepts at a

minimum. Your map can be presented in whatever manner you feel is best. You will be graded

on the following:

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Creativity

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Conceptual Understanding

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Clarity of the map

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Please feel free to also use images, words, formulas or diagrams in your concept map

I have attached 2 examples of the project. with each one giving summary's of the 12 chapters. it needs to be a power point presentation and needs to be in a format like the ones shown but it can not be plagiarism and i need new photos and need the concepts told in a different way.

INTRODUCTION TO ACCOUNTING 1403 Course Project CHAPTER 1 BASIC ACCOUNTING EQUATION The basic accounting equation provides a basis for understanding the conventional accounting system of a business. The accounting equation records business transactions in a logical and orderly way that shows their impact on the company's assets, Basic Accounting Equation Assets = Liabilities + Owner's Equity Assets = Equities 1. Liabilities : rights of creditors 2. Owner's Equity : rights of owner CHAPTER 2 THE TRIAL BALANCE The trial balance lists all accounts with their balances in the same order as they appear in the chart of accounts. The total number of the debits should equal the total number of the credits. Businesses use the trial balance to find out ending balances on account and also to prepare their financial The Trial Balance A list of the ending balances of all the accounts in a ledger. The trial balance is used to prepare the financial statements: Income statement Statement of Owner's Equity Balance Sheet CHAPTER 3 GENERAL JOURNAL & LEDGER The General Journal is the point of entry of business transactions into the accounting system. It is a chronological record of the transactions, showing an explanation of each transaction, the accounts affected whether those accounts are increased or decreased and by what amount. Account numbers or codes, which are referred to the chart of accounts may be included in the business journal entries. It allows each account to be positively identified with no confusion between similar accounts. When a business is accurate with the journal, the transactions are posted to the appropriate T-accounts of the general ledger. A general ledger is a complete record of financial transactions over the life of a business. The ledger holds account information that is needed for the trial balance which prepares for financial statements. CHAPTER 3 GENERAL JOURNAL & LEDGER Examples of the general journal and edger, entries and postings. CHAPTER 4 ACCOUNTING WORKSHEET An accounting worksheet is a large spreadsheet of data to help accountants reduce forgetting any adjustments or any arithmetic errors to complete the accounting cycle. The worksheet shows the main account titles with the debits and credits of the Trial Balance, Adjustments, Adjusted Trial Balance, Income Statement and Balance Sheet. Trial Balance Adjustment s Adjusted Trial Balance Income Statement Balance Sheet CHAPTER 4 ACCOUNTING WORKSHEET To prepare the worksheet First, the trial balance is taken from every account listed in the ledger that has a balance. Additional titles from the ledger are added as they are needed. Next is the Adjustments, businesses have to keep track of inside transactions that occur during the accounting cycle. They calculate the latest up-to-date balance of each account at the end of an accounting period. CHAPTER 4 ACCOUNTING WORKSHEET After the adjustments comes the Adjusted Trial Balance. This is prepared by combining the amount of each account in the original trial balance column with the corresponding amounts in the adjustment column. Entering the combined amounts on a line by line in the adjusted trial balance. CHAPTER 4 ACCOUNTING WORKSHEET Next comes the Income Statement, which only list the revenue and expenses from the adjusted trial balance. Revenue is placed in the credit column and expenses is placed in the debit column. The debits and credits are totaled in each column and the difference of the two is equal to the net income or net loss. Last is the Balance Sheet, it list all the assets, contra-assets, liabilities, capital and withdrawals from the adjusted trial balance. Depending on if the business had a net income or net loss it would be brought over to the balance sheet. Net income would be in the credit column and net loss would be in the debit column. CHAPTER 4 From the information recorded now businesses are ready to move on to prepare the financial statements of the accounting cycle. Income Statement Statement of Owner's Equity Balance Sheet CHAPTER 5 THE ACCOUNTING CYCLE COMPLETED To complete the final steps of the accounting cycle , a business needs to bring the ledger up-to-date with the financial statements. From the worksheet , the adjustment column needs to be placed into the journal and posted to the ledger accounts, which is called Adjusting Journal Entries. The adjusting journal entries will bring the ledger up-to-date and ready for the closing entries. Analyze Transactions Adjusting Journal Entries Transactions recorded in Journal Financial statements Posted from Journal to Ledger Prepare a Worksheet CHAPTER 5 THE ACCOUNTING CYCLE COMPLETED Step 2 Close Expense Accounts Posting closing entries is intended to close off the temporary accounts: revenue, expenses, and withdrawal at the end of the accounting period. Revenue is cleared to zero and the balance is transferred to Income Summary. Income summary is a temporary account in the ledger needed for closing. Expenses is cleared to zero and the balance is transferred to Income Summary. The balances in Income Summary is cleared to zero and transferred to Capital. Withdrawals is cleared to zero and transferred to Capital. Step 1 Close Revenue Accounts Step 3 Close Income Summary Account Net Income or Net Loss Step 4 Close Withdrawals Account Capital CHAPTER 5 THE ACCOUNTING CYCLE COMPLETED The final step of the accounting cycle is the preparation of Post-Closing Trial Balance, which lists only permeant accounts in the ledger and their balances after adjusting and closing entries. Post-Closing Trial Balance helps the accountant of a business to verify that all temporary accounts have been closed properly and the total debits and credits in the accounting system equal after the closing entries have been made. The Accounting Cycle is complete and the ending figures will be the opening balances for the ledger accounts for the new accounting cycle. Analyze Transaction s Post-Closing Trial Balance Transaction s recorded in Journal Posted from Journal to Ledger Closing Entries Adjusting Journal Entries Prepare a Worksheet Financial Statements Calculations For Shortage Or Overage Of Cash CHAPTER 6 CHANGE FUND AND CASH SHORT OR OVER When a business is set up a manager will establish a Change Fund, which is made up of various denomination of bills and coins that are used to make change for customers. The manager will have a certain amount put in to the cash register drawer for the day. When it is closing time, the manager will calculate the totals of her change fund and cash register. Her ending amount will determine if they balance or have a cash shortage or overage. Cash short or over is the account that records cash shortages and overage. If it is a shortage, it will have a debit balance and recorded on the income statement as a miscellaneous expense. When it is an overage, it will have a credit balance and recorded as miscellaneous income. Beginning Change Fund Cash Register Total Cash Should Have On Hand Counted Cash Shortage or Overage Of Cash CHAPTER 7 EMPLOYEE NET PAY When owning a business , you have a payroll list of all working employees. When a certain pay period comes to an end , it is time to prepare checks for employees. When checks are distributed employees only take home what is their Net Pay. Net Pay is gross earnings, less deductions. To calculate an employees net pay , 1. Is to find out the gross pay , which is the amount received before any deductions. Calculate the hours worked x their rate of pay. 2. Next , is to calculate the payroll taxes which is paid by the employee. Federal Income Tax (FIT), is withheld amount depending on the gross pay and the status of their W-4. State Income Tax (SIT), depending on what state you live in a withholding amount will be deducted on the same information as FIT. Social Security Tax , also know as FICA, which is two taxes OASDI(old-age, survivor's, and disability insurance) and Medicare. OASDI taxes are wage base amounts set by the federal government. Medicare has no wage base, all gross earning are subject to taxations. 3. Other withholdings may include medical, vision, and dental insurance provided by the company. Along with retirement plans contributions or life insurance depending on the employee. CHAPTER 7 EMPLOYEE'S NET PAY Gross Pay Hours X Rate Deductions Payroll Taxes & other withholding s Net Pay CHAPTER 8 PAYING FIT AND FICA TAXES When employers withheld amounts required by law from employees pay checks, they have the have responsibility to pay payroll taxes as well. Employers must report them and related earnings to federal, state, and sometimes local government. The employers then turn the over to those levels of government. To comply with the law employers need to make sure they pay FIT and FICA on time and report them these taxes on Form 941, the Employers Quarterly Federal Tax Return. This is a tax report that a business will complete after the end of each calendar quarter indicating the total FICA (OASDI and Medicare) taxes owed plus the amount of FIT withheld from employees pay for the quarter. If federal tax deposit have been made correctly and on time, the total amount deposited should equal the amount due on Form 941. Any difference results in a payment due or a refund. CHAPTER 8 PAYING FIT AND FICA TAXES An example of a 941 employers summary and a 941 Tax Form , before being transferred to the fill out the form. CHAPTER 9 NET SALES When owning a business , retailers buy their merchandise from wholesales for resale to customers. Gross sales would be the revenue earned from sales of merchandise to customers. When a customer charges on account and pays within a discounted period , they get a sales discount. Sales Discount is an amount a customer is allowed to deduct from their bill total. Along the way sometimes merchandise can be defective and customers will want to return the item or ask for a price reduction, this is called Sales Returns and Allowances (SRA). This is a contra-revenue account that records price adjustments and allowances granted on merchandise. After any kind of adjustments are made retailers can finally calculate the total of net sales. Gross Sales less Sales Discount less SRA equal the Net Sales. Gross Sales Sales Discount Sales Returns And Allowances Net Sales CHAPTER 10 INTRO TO MERCHANDISE CYCLE In most businesses they use a Perpetual Inventory System. This system keeps continual track of each type of inventory by recording units on hand at beginning, units sold, and the current balance after each sale or purchase. When a business is both a buyer and a seller, they must buy inventory from suppliers to sell to customers, which is called Merchandise Inventory. It is an asset sold to the business for cash or accounts receivable and represents sales revenue. The merchandise inventory that is brought into the business and sold is called Cost Of Goods Sold. These cost do not include any operating expenses to run the business. To calculate net income or net loss for the business : First, provide sales inflow of cash or accounts receivable. Second, is to show when inventory is sold and is recognized as cost of goods sold, by subtracting sales less cost of goods sold and get the gross profit. Last, the operating expenses is subtracted from gross profit and gives a net income or a net loss. 1 CHAPTER 10 INTRO TO MERCHANDISE CYCLE Sales Revenue 2 Less Cost Of Goods Sold 3 Equal Gross Profit 4 Less Operating Expenses 5 Equal Net Income Or Net Loss CHAPTER 11 COST OF GOODS SOLD Having a business, every owner keeps track of what their cost of goods sold were. Cost Of Goods Sold (COGS), is the cost of merchandise that was sold to customers. The cost of goods sold is reported on the income statement, when the sales, revenue, of the goods sold are reported. To calculate the cost of goods sold is to start with the beginning inventory on hand for the for the new accounting period. Next, add any purchases of merchandise that are made. Also add freight-in for any shipping cost that the business pays for the merchandise. Last, subtract the ending inventory of merchandise to get the total for cost of goods sold. Beginning Inventory CHAPTER 11 COST OF GOODS SOLD TO CALCULATE COST OF GOODS SOLD Purchases Freight-in Ending Inventory COST OF GOODS SOLD CHAPTER 12 CLASSIFIED BALANCE SHEET During the preparation of the financial statement , some business go into more detail and prepare a Classified Balance Sheet. A Classified Balance Sheet breaks down the asserts as current or plant and equipment and groups liabilities as current and long-term. They also provide management, owner's, creditors, and suppliers with more information for the business ability to pay current and long-term debts. Here are the classifications in detail with examples : CHAPTER 12 CLASSIFIED BALANCE SHEET Current Liabilities - obligations that will come due within one year or within the operating cycle. Current Assets - assets that can be converted into Accrued Expenses sh or used within one year or the normal operating Current Tax Liabilities cle of the business. Current portion of loans payable Cash Salaries Payable Petty Cash Unearned Rent Accounts Receivable Prepaid Expenses Inventory Long-Term Liabilities - obligations that are not du payable for a long time, usually more than a year. Mortgage Payable Plant and Equipment - long-lived assets that are Loans Payable ed in the production or sale of goods or services. Equipment Land Buildings Accumulated Depreciation Computer Software & Hardware. Introduction to Accounting COURSE MAPPING PROJECT BY: Chapter 1 The Basic Accounting Equation The accounting equation displays that assets are financed by borrowing money or paying with the money of the company's shareholders. The accounting equation is a basic equation that forms the establishment of a businesses performance of the accounting's logical process that shows they are meeting the basic equation. If the company keeps precise records, then in the end the equation will always be in balance meaning the left side should equal the right side. In a business there are at least two accounts that are affected what it owes and what it owns. Assets= Liabilities+ Owners equity. Assets are things company's own. For example assets can be cash, investments, accounts receivable etc. Liabilities are an amount a company owes. Examples can be loans payable, notes, accounts payable,ect. Liabilities can be viewed in 2 ways 1) claims by creditors against the company's assets. 2)A source of the company's assets. Equity is the amount left over after liabilities are deducted from assets Chapter 2 Debits & Credits A debit is an accounting entry that increases an asset or an expense account, it also decreases a liability or equity account. It is positioned to the left in an accounting entry. A credit is an accounting entry that increases a liability or equity account, it can also decreases an asset or expense account. In a business accountants have developed a system that sorts the transactions into records. Once accounts are set up they will be affected by a company's transactions and are posted. It is important for a business to record each of there transactions through the five steps transaction analysis to make sure it is done correctly and accurately for the accounts listed. It benefits the company by creating an accurate financial statement. Chapter 3 Journal & Ledger A General Journal is a point of entry of business transactions that is inserted into the accounting system. A General Ledger is a businesses set of numbered accounts for its accounting records. It holds the accounts information that is needed to prepare financial statements and includes accounts for assets, liabilities, owners' equity, revenues and expenses. Transactions in a journal are recorded in chronological order in which they occur. It is showed with an explanation, which account is affected, and whether which account is increased or decreased. A ledger gives information on a transaction history and current balance in each account throughout the accounting period. Account numbers and codes are referred back to the chart of an account so if there is ever a need for a reference there will not be any complications. The general ledger holds all the financial information used to create the income statement and balance sheet reports, which also serves several main purposes in the financial operation of the business. Chapter 4 Accounting Worksheet An accounting worksheet is a spreadsheet used to prepare accounting information and reports. Accounting worksheets are most often used in the accounting cycle process to draft an unadjusted trial balance, adjusting journal entries, adjusted trial balance, and financial statements. The accounting worksheet is prepared at the end of an accounting period which displays the main account titles with the debits and credits of the trial Balance, Adjustments, Adjusted Trial Balance, Income Statement, and Balance Sheet. The accounting worksheet makes transferring taccounts into an adjusted trial balance much easier and also reduces the risk of making errors when producing financial statements Steps on how to prepare an Accounting Worksheet: Name of the business organization and preparation date Column and mentioning the head of the column Unadjusted Trial Balance Adjustment column Adjusted trial balance column Income statement column Retained earnings statement Balance sheet Chapter 5 Completed Accounting Cycle The accounting cycle is the name given to the collective process of recording and processing the accounting events of a company. The series of steps begin when a transaction occurs and end with its inclusion in the financial statements. Getting towards the final steps of the accounting cycle the business needs to make sure to bring the ledger up-to-date with the financial statements. Then is the adjusting journal entries which will bring the ledger up-to-date and ready for the closing entries. Next is closing temporary accounts such as revenue, expenses, and withdrawals at the end of the accounting cycle. Once all accounts have been cleared to zero they will then be transferred. The final step of the accounting cycle is the Post-Closing Trial Balance, which lists only permeant accounts in the ledger and balances. Which will help the accountant of the business to check and be sure that all temporary accounts are closed accurately, and the total debits and credits are equal after the closing entries have been made. Once the accounting cycle is completed the new amount will be the opening balance for the ledger account of the beginning of the new cycle. Chapter 6 Cash Shortage Or Over Cash over and short, most often called cash over short, is an income statement account that records errors in cash receipts or payments resulting in overages or shortages. When you are working somewhere such as a food restaurant usually when you begin a shift somewhere that has to do with a register a manager will have a certain amount of cash put in a cash register drawer for the day or at the beginning of a shift. When it is time to close, the manager will total up the change and dollar amounts that are in that persons change fund at the end of the shift in the cash register drawer. The ending amount will determine if they balance or have a cash shortage or overage. If there happens to be a shortage, it will have a debit balance and will be recorded on the income statement as a miscellaneous expense. When it is an overage, it will have a credit balance and is considered as other-income Chapter 7 Employees Net Pay Net pay is the amount of a person's paycheck left over after any deductions are taken out. In a business there needs to be a list of all working employees who you are required to pay. Whether you get paid weekly, semi weekly, monthly, whatever day your company has for your pay period to end. Employees checks are ready to be processed, after all are deductions taken out employees are only taking home there net pay. How to Calculate Net Pay: Start with Gross Pay. To begin the calculation of net pay, you must start with the employee's gross pay. Deduct Federal Income Tax Withholding. Deduct any State and Local Withholding. Withhold FICA taxes. Take any additional voluntary deductions. Chapter 8 Fit & Fica Taxes Federal Insurance Contributions Act (FICA) tax is a United States federal payroll tax imposed on both employees and employers to fund Social Security and Medicare. FICA is the federal law that requires you to withhold two separate taxes from the wages you earn. It includes Social Security Tax and Medicare Tax at a flat percentage rate.pay check, they are also responsible for paying payroll From an employees taxes. An employer must report there related earnings to the federal, state, and sometimes there local government. Employers need to be sure that there employees pay FIT and FICA on time and report them on Form 941which is Employers Quarterly Federal Tax Return. It is a tax report that a business will complete after the end of each calendar quarter indicating the total FICA (OASDI and Medicare) taxes owed plus the amount of FIT withheld from employees pay for the quarter. If the deposit has been made correctly and on time, the total amount deposited should equal the amount due on Form 941. Any difference results in a payment due or a refund. An example of a 941 Tax Form Chapter 9 Net Sales Net sales are the amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any discounts allowed. The sales number reported on a company's financial statements is a net sales number, reflecting these deductions. At the end of your accounting period, you can now determine the sales figures for your income statement. Starting with gross sales, subtract the total sales discounts, returns and allowances that you gave your customers to determine your net sales. In a business the gross sales will be the revenue that you earned from what you sold in merchandise to your customers. Sales discount is an amount a customer gets that is eventually deducted from there total bill within that discounted period. When owning a business such as retail there will be many times that some merchandise will be ruined and either a customer will return the item or ask for a discounted price which is called Sales Returns and Allowances. It is a contra revenue account that documents price readjustments which is accepted for that piece of requesting merchandise. Any goods that a company buys in order to resell are known as merchandise. Chapter 10 Perpetual Inventory System Perpetual inventory is a method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software. Using the perpetual inventory system, it provides the business owner with a record of what is sold, where it was sold from, when it was sold, and for what price it was sold. As a result, it allows for businesses to have more than one location with one centralized inventory management system. Every inventory item is kept on a separate ledger. These inventory ledgers contain information on cost of goods sold, purchases, and inventory on hand. The inventory tracking system records store balances of inventory after every transaction through a point-of-sale inventory system. By a business having this eliminates the need for the store to close down for a physical inventory stock-taking. Chapter 11 Cost Of Goods Sold Cost of goods sold is the accumulated total of all costs used to create a product or service, which has been sold. Every owner need keeps track of what their cost of goods sold were, which is merchandise that was sold to customers and is reported on the income statement. A business should calculate costs of goods sold by having new inventory on hand for new accounting period. Add any purchases, freight in for shipping cost that a business will pay for any merchandise. Then subtract your ending inventory of merchandise to get your total of costs of goods sold. Beginning Inventory + Purchases + Freight in - Ending Inventory = Cost of goods sold Chapter 12 Current assets, long lived assets & Long term, Current liabilities To prepare a financial statement businesses will go into more depth to prepare a final balance sheet which breaks down the protest as current assets groups of current and long term liabilities. It can also provide management, owner's, creditors, and suppliers with more input for the businesses ability to pay current and long-term debts. Current assets are cash and assets that will turnover within one year or the operating cycle. Some examples of assets are: Cash Marketable securities. Prepaid expenses. Accounts receivable. Inventory. Current liabilities are amounts due to be paid to creditors within twelve months. Sales taxes payable. Payroll taxes payable Income taxes payable Interest payable A long lived asset is any asset that a business expects to retain for at least one year which would include furniture Fixtures Manufacturing equipment Buildings, Vehicles Computer equipment Long-term liabilities are liabilities with a future benefit over one year, such as notes payable that mature longer than one year such as: long-term loans Mortgage payable postretirement healthcare liabilities