CuentaCuentaCuentaCuenta

Una cuenta es un registro individual de contabilidad donde se registran aumentos y disminuciones de un activo, deuda, o owner’s equity especifico.

Una compañía va a tener cuentas separadas para cash, salaries expense, accounts payable, etc.

ILLUSTRATION ILLUSTRATION 2-1 2-1 Forma básica de una cuentaForma básica de una cuenta

ILLUSTRATION ILLUSTRATION 2-1 2-1 Forma básica de una cuentaForma básica de una cuenta

Lado Izquierdo o Debito

Titulo de la cuenta

Lado derecho o Credito

Balance debito Balance credito

En su forma mas simple, una cuenta consiste en :

1 el titulo de la cuenta,

2 un lado izquierdo o un lado debito

3 un lado derecho o un lado credito El arreglo de estas partes se parece a una letra T, y por

eso se le conoce como cuentas T

Debitos y CréditosDebitos y CréditosDebitos y CréditosDebitos y Créditos

El termino debito significa izquierda y credito significa derecha

El acto de entrar una cantidad en el lado izquierdo de una cuenta se le conoce como debitar y hacer una entrada en el lado derecho se le conoce como acreditar.

Cuando la cantidad de los debitos excede los creditos, la cuenta tiene un balance debito; cuando ocurre lo contrario tiene un balance credito

DR CR

ILLUSTRATION ILLUSTRATION 2-2 2-2 TABULAR SUMMARY COMPARED TO TABULAR SUMMARY COMPARED TO

ACCOUNT FORMACCOUNT FORM

ILLUSTRATION ILLUSTRATION 2-2 2-2 TABULAR SUMMARY COMPARED TO TABULAR SUMMARY COMPARED TO

ACCOUNT FORMACCOUNT FORM

Resumen Tabular

Cash

$15,000- 7,000

1,2001,500

- 1,700- 250

600- 1,300

CashDebit Credit

15,0001,2001,500

600

7,0001,700

1,300250

Balance

Forma de cuenta

$ 8,050

$8,050(Debit)

Cash

Debito Crédito

15,000

Example: Inversion inical del dueño del negocio de $15,000 Cash es debitado y the owner’s Capital es acreditado.

Example: Inversion inical del dueño del negocio de $15,000 Cash es debitado y the owner’s Capital es acreditado.

Debitando una cuentaDebitando una cuentaDebitando una cuentaDebitando una cuenta

Example: Renta mensual de $7,000 es pagada. Se acredita Cash y se debita Rent Expense

Example: Renta mensual de $7,000 es pagada. Se acredita Cash y se debita Rent Expense

Acreditar una cuentaAcreditar una cuentaAcreditar una cuentaAcreditar una cuenta

Cash

Debits Credits

7,000

Debitando Y Acreditando Debitando Y Acreditando una cuentauna cuenta

Debitando Y Acreditando Debitando Y Acreditando una cuentauna cuenta

Cash

Debits Credits

15,000 7,000

8,000

Example: Cash es debitado por $15,000 y acreditado por $7,000, dejando un balance debito de $8,000.

Example: Cash es debitado por $15,000 y acreditado por $7,000, dejando un balance debito de $8,000.

Sistema de doble entradaSistema de doble entradaSistema de doble entradaSistema de doble entrada

En un sistema de doble entrada (double-entry system), debitos y creditos iguales son realizados a las cuentas para cada transaccion

Asi, el total de debitos va a ser igual al total de creditos y la ecuacion siempre se queda balanceada

Assets Liabilities Equity

Efectos de los Debitos y Créditos Efectos de los Debitos y Créditos en los Activos y las Deudasen los Activos y las Deudas

Efectos de los Debitos y Créditos Efectos de los Debitos y Créditos en los Activos y las Deudasen los Activos y las Deudas

Debitos CréditosAumento en activo Disminuye activo

Disminuye deuda Aumenta la deuda

Balance NormalBalance NormalBalance NormalBalance Normal

Cada clasificacion de cuentas tiene un balance normal ya sea credito o debito.

Para una cuenta en particular, el lado opuesto de una cuenta no debe exceder el balance normal.

Balances NormalesBalances Normales

Activos y PasivosActivos y Pasivos

Balances NormalesBalances Normales

Activos y PasivosActivos y Pasivos

Activos (Assets)Aumentan Disminuyen Debito CréditoDisminuye Aumento Debito Credito

Deudas (Liabilities)

Balance

Normal

Balance

Normal

ILLUSTRATION ILLUSTRATION 2-5 2-5 Efectos de Debito y Credito-- OWNER’S CAPITALEfectos de Debito y Credito-- OWNER’S CAPITALILLUSTRATION ILLUSTRATION 2-5 2-5 Efectos de Debito y Credito-- OWNER’S CAPITALEfectos de Debito y Credito-- OWNER’S CAPITAL

Debitos CreditosDisminucion owner’s capital Aumento owner’s capital

NORMAL BALANCENORMAL BALANCE

OWNER’S CAPITALOWNER’S CAPITAL

NORMAL BALANCENORMAL BALANCE

OWNER’S CAPITALOWNER’S CAPITAL

Owner’s Capital

Disminuyen Aumentan Debito Credito

Normal Balance

DEBIT AND CREDIT EFFECTS DEBIT AND CREDIT EFFECTS

OWNER’S DRAWINGOWNER’S DRAWING

DEBIT AND CREDIT EFFECTS DEBIT AND CREDIT EFFECTS

OWNER’S DRAWINGOWNER’S DRAWING

Debits CreditsAumentan los retiros del Disminucion los retiros del dueño

dueño

ILLUSTRATION ILLUSTRATION 2-8 2-8 NORMAL BALANCE — OWNER’S DRAWINGNORMAL BALANCE — OWNER’S DRAWING

ILLUSTRATION ILLUSTRATION 2-8 2-8 NORMAL BALANCE — OWNER’S DRAWINGNORMAL BALANCE — OWNER’S DRAWING

Owner’s Drawing

Balance Normal

Debito para Aumentar

Credito para Disminuir

Efectos de los debitos y Creditos en losEfectos de los debitos y Creditos en los

Ingresos y los GastosIngresos y los Gastos

Efectos de los debitos y Creditos en losEfectos de los debitos y Creditos en los

Ingresos y los GastosIngresos y los Gastos

Debitos CreditosDisminuyen los Ingresos

Aumentan los gastos Disminuyen los Gastos

Aumentan los Ingresos

Balances normalesBalances normales

Ingresos & GastosIngresos & Gastos

Balances normalesBalances normales

Ingresos & GastosIngresos & Gastos

Gastos (expenses)

Ingresos (revenues)

Balance Normal

CreditoAumenta

DebitoDisminuye

CreditoDisminuye

DebitoAumentan

Balance Normal

ILLUSTRATION ILLUSTRATION 2-11 2-11 EXPANDED BASIC EQUATION AND EXPANDED BASIC EQUATION AND

DEBIT/CREDIT RULES AND EFFECTSDEBIT/CREDIT RULES AND EFFECTS

ILLUSTRATION ILLUSTRATION 2-11 2-11 EXPANDED BASIC EQUATION AND EXPANDED BASIC EQUATION AND

DEBIT/CREDIT RULES AND EFFECTSDEBIT/CREDIT RULES AND EFFECTS

LiabilitiesAssets Owner’s Equity

= + -

+=

+ -

Assets

Dr. Cr.+ -

Liabilities

Dr. Cr.- +

Dr. Cr.

Owner’s Drawing

+ -

Dr. Cr.

Revenues

- +Dr. Cr.

Expenses

+ -

Dr. Cr.

Owner’s Capital

- +

STUDY OBJECTIVE STUDY OBJECTIVE 33

Identify the basic steps in the recording process.Identify the basic steps in the recording process.

Los pasos basicos en el proceso de registro son:

1 Analizar cada transaccion para ver los efectos en las cuentas

2 Entrar la informacion en un jornal3 Transferir la informacion del jornal a las cuentas en el mayor

STEPS IN THE STEPS IN THE RECORDING PROCESSRECORDING PROCESS

STEPS IN THE STEPS IN THE RECORDING PROCESSRECORDING PROCESS

ILLUSTRATION ILLUSTRATION 2-12 2-12 THE RECORDING THE RECORDING

PROCESSPROCESS

ILLUSTRATION ILLUSTRATION 2-12 2-12 THE RECORDING THE RECORDING

PROCESSPROCESS

1 Analyze each transaction

2 Enter transaction in a journal

3 Transfer journal information to ledger accounts

JOURNAL

JOURNAL

LEDGER

STUDY OBJECTIVE STUDY OBJECTIVE 44

Explain what a journal is and how it helps in the recording process.Explain what a journal is and how it helps in the recording process.

El JornalEl JornalEl JornalEl Jornal

Transacciones son registradas inicialmente en orden cronologico en un jornal antes de transferirse a las cuentas.

Cada compania tiene un jornal general el cual contiene:

1 Espacio para la fechas,

2 titulos de las cuentas y explicaciones,

3 referencias

4 dos columnas de cantidad

El jornal hace varias contribuciones en el proceso de registro:

1 Divulga en un solo lugar el efecto completo de la transaccion

2 Provee registro cronologico de cada transaccion

3 Ayuda a prevenir y localizar errores ya que las cantidades pueden ser comparadas una con la otra

THE JOURNALTHE JOURNALTHE JOURNALTHE JOURNAL

JOURNALIZINGJOURNALIZINGJOURNALIZINGJOURNALIZING

Entrar data en el jornal se conoce como jornalizacion

Entradas separadas se hacen para cada transaccion

Una entrada completa consiste de :

1 la fecha de la transaccion

2 la cuenta y cantidades a debitar y acreditar

3 una explicacion breve de la transaccion

ILLUSTRATION ILLUSTRATION 2-13 2-13 TECHNIQUE OF TECHNIQUE OF

JOURNALIZINGJOURNALIZING

ILLUSTRATION ILLUSTRATION 2-13 2-13 TECHNIQUE OF TECHNIQUE OF

JOURNALIZINGJOURNALIZING

The date of the transaction is entered in the date column.The date of the transaction is entered in the date column.

ILLUSTRATION ILLUSTRATION 2-13 2-13 TECHNIQUE OF TECHNIQUE OF

JOURNALIZINGJOURNALIZING

ILLUSTRATION ILLUSTRATION 2-13 2-13 TECHNIQUE OF TECHNIQUE OF

JOURNALIZINGJOURNALIZINGLos titulos de la cuenta que se debita se entran en el margen izquierdo de la columna de titulos de cuenta y explicacion. Las cuentas credito se indenta hacia la derecha del margen.

Los titulos de la cuenta que se debita se entran en el margen izquierdo de la columna de titulos de cuenta y explicacion. Las cuentas credito se indenta hacia la derecha del margen.

ILLUSTRATION ILLUSTRATION 2-13 2-13 TECHNIQUE OF TECHNIQUE OF

JOURNALIZINGJOURNALIZING

ILLUSTRATION ILLUSTRATION 2-13 2-13 TECHNIQUE OF TECHNIQUE OF

JOURNALIZINGJOURNALIZINGLa cantidad para los debitos se registra en la columna de debito y la cantidad para los creditos se registra en la columna credito.

La cantidad para los debitos se registra en la columna de debito y la cantidad para los creditos se registra en la columna credito.

ILLUSTRATION ILLUSTRATION 2-13 2-13 TECHNIQUE OF TECHNIQUE OF

JOURNALIZINGJOURNALIZING

ILLUSTRATION ILLUSTRATION 2-13 2-13 TECHNIQUE OF TECHNIQUE OF

JOURNALIZINGJOURNALIZING

Una breve explicacion de la transaccion es dada.Una breve explicacion de la transaccion es dada.

ILLUSTRATION ILLUSTRATION 2-13 2-13 TECHNIQUE OF TECHNIQUE OF

JOURNALIZINGJOURNALIZING

ILLUSTRATION ILLUSTRATION 2-13 2-13 TECHNIQUE OF TECHNIQUE OF

JOURNALIZINGJOURNALIZINGUn espacio se deja entre entradas de jornal. El espacio en blanco separa entradas individuales y hace que el jornal se pueda leer mas facil.

Un espacio se deja entre entradas de jornal. El espacio en blanco separa entradas individuales y hace que el jornal se pueda leer mas facil.

ILLUSTRATION ILLUSTRATION 2-13 2-13 TECHNIQUE OF TECHNIQUE OF

JOURNALIZINGJOURNALIZING

ILLUSTRATION ILLUSTRATION 2-13 2-13 TECHNIQUE OF TECHNIQUE OF

JOURNALIZINGJOURNALIZINGLa columna titulada Ref. Se deja en blanco al momento de que se hace la entrada de jornal y se usa luego cuando las entradas se transfieren al mayor.

La columna titulada Ref. Se deja en blanco al momento de que se hace la entrada de jornal y se usa luego cuando las entradas se transfieren al mayor.

Si una entrada tiene dos cuentas, una debito y una credto se considera como una entrada simple.

Si una entrada tiene dos cuentas, una debito y una credto se considera como una entrada simple.

SIMPLE AND COMPOUND SIMPLE AND COMPOUND JOURNAL ENTRIESJOURNAL ENTRIES

SIMPLE AND COMPOUND SIMPLE AND COMPOUND JOURNAL ENTRIESJOURNAL ENTRIES

Cuando tres o mas cuentas se requieren en una entrada de jornal, la entrada se conoce como entrada compuesta

Cuando tres o mas cuentas se requieren en una entrada de jornal, la entrada se conoce como entrada compuesta

ILLUSTRATION ILLUSTRATION 2-14 2-14 COMPOUND JOURNAL ENTRYCOMPOUND JOURNAL ENTRY

ILLUSTRATION ILLUSTRATION 2-14 2-14 COMPOUND JOURNAL ENTRYCOMPOUND JOURNAL ENTRY

2

1

3

COMPOUND JOURNAL ENTRYCOMPOUND JOURNAL ENTRYCOMPOUND JOURNAL ENTRYCOMPOUND JOURNAL ENTRY

Este es el formato erroneo; TODOS los debitos deben listarse antes de los creditos

Este es el formato erroneo; TODOS los debitos deben listarse antes de los creditos

STUDY OBJECTIVE STUDY OBJECTIVE 55

Explain what a ledger is and how it helps in the recording process.Explain what a ledger is and how it helps in the recording process.

El mayorEl mayorEl mayorEl mayor

El grupo entero de cuentas que mantiene una compania se conoce como ledger (mayor).

Un general ledger (mayor general) contiene todas las cuentas de activos, deudas y owner’s equity.

GENERAL LEDGER

Individual Liabilities

Individual Assets

Individual Owner’s Equity

ILLUSTRATION ILLUSTRATION 2-15 2-15 THE GENERAL LEDGERTHE GENERAL LEDGER

ILLUSTRATION ILLUSTRATION 2-15 2-15 THE GENERAL LEDGERTHE GENERAL LEDGER

Equipment

Land

Supplies

Cash

Interest Payable

Salaries Payable

Accounts Payable

Notes Payable

Salaries Payable

Fees Earned

J. Lind, Drawing

J. Lind, Capital

STUDY OBJECTIVE STUDY OBJECTIVE 66

Explain what posting is and how it helps in the recording process.Explain what posting is and how it helps in the recording process.

ILLUSTRATION ILLUSTRATION 2-17 2-17 POSTING A JOURNAL ENTRYPOSTING A JOURNAL ENTRY

ILLUSTRATION ILLUSTRATION 2-17 2-17 POSTING A JOURNAL ENTRYPOSTING A JOURNAL ENTRY

In the ledger, enter in the appropriate columns of the account(s) debited the date, journal page, and debit amount shown in the journal.

ILLUSTRATION ILLUSTRATION 2-17 2-17 POSTING A JOURNAL ENTRYPOSTING A JOURNAL ENTRY

ILLUSTRATION ILLUSTRATION 2-17 2-17 POSTING A JOURNAL ENTRYPOSTING A JOURNAL ENTRY

In the reference column of the journal, write the account number to which the debit amount was posted.

ILLUSTRATION ILLUSTRATION 2-17 2-17 POSTING A JOURNAL ENTRYPOSTING A JOURNAL ENTRY

ILLUSTRATION ILLUSTRATION 2-17 2-17 POSTING A JOURNAL ENTRYPOSTING A JOURNAL ENTRY

In the ledger, enter in the appropriate columns of the account(s) credited the date, journal page, and credit amount shown in the journal.

ILLUSTRATION ILLUSTRATION 2-17 2-17 POSTING A JOURNAL ENTRYPOSTING A JOURNAL ENTRY

ILLUSTRATION ILLUSTRATION 2-17 2-17 POSTING A JOURNAL ENTRYPOSTING A JOURNAL ENTRY

In the reference column of the journal, write the account number to which the credit amount was posted.

Muchas companias tienen un chart of accounts (carta de cuenta) que enlista las cuentas y los numeros de cuenta la cual identifica la localizacion en el mayor

Muchas companias tienen un chart of accounts (carta de cuenta) que enlista las cuentas y los numeros de cuenta la cual identifica la localizacion en el mayor

CHART OF ACCOUNTSCHART OF ACCOUNTSCHART OF ACCOUNTSCHART OF ACCOUNTS

Inversion de Cash por el dueñoInversion de Cash por el dueñoInversion de Cash por el dueñoInversion de Cash por el dueño

AnalisisBasico

AnalisisDebit-Credit

TransaccionOctubre 1, C.R. Byrd invierte $10,000 en efectivo en un sociedad de publicidad que se conoce como Pioneer Advertising Agency.

Los activos Cash se aumentan $10,000, y el owner’s equity C. R. Byrd, Capital se aumenta por $10,000.

Debito aumenta los activos: debito Cash $10,000.Credito aumentan owner’s equity: credit C.R. Byrd, Capital $10,000.

ILLUSTRATION ILLUSTRATION 2-19 2-19 INVESTMENT OF CASH BY OWNERINVESTMENT OF CASH BY OWNERILLUSTRATION ILLUSTRATION 2-19 2-19 INVESTMENT OF CASH BY OWNERINVESTMENT OF CASH BY OWNER

JOURNAL ENTRYJOURNAL ENTRY

POSTINGPOSTING

PURCHASE OF PURCHASE OF

OFFICE EQUIPMENTOFFICE EQUIPMENT

PURCHASE OF PURCHASE OF

OFFICE EQUIPMENTOFFICE EQUIPMENT

AnalisisBasico

AnalisisDebit-Credit

TransaccionOctober 1, Se compra equipo de oficina costando $5,000 y se compra mediante el uso de una nota por pagar de 3-meses, 12%, $5,000.

Los activos Office Equipment se aumentan por $5,000, y las Notes Payable se aumentan por $5,000.

Debito aumentan los activos: debit Office Equipment $5,000. Creditos aumentan deudas: credit Notes Payable $5,000.

ILLUSTRATION ILLUSTRATION 2-20 2-20 PURCHASE OF OFFICE EQUIPMENTPURCHASE OF OFFICE EQUIPMENTILLUSTRATION ILLUSTRATION 2-20 2-20 PURCHASE OF OFFICE EQUIPMENTPURCHASE OF OFFICE EQUIPMENT

JOURNAL ENTRYJOURNAL ENTRY

POSTINGPOSTING

ILLUSTRATION ILLUSTRATION 2-21 2-21 RECEIPT OF CASH FOR FUTURE SERVICERECEIPT OF CASH FOR FUTURE SERVICEILLUSTRATION ILLUSTRATION 2-21 2-21

RECEIPT OF CASH FOR FUTURE SERVICERECEIPT OF CASH FOR FUTURE SERVICE

BasicAnalysis

Debit-CreditAnalysis

TransactionOctober 2, a $1,200 cash advance is received from R. Knox, a client, for advertising services that are expected to be completed by December 31.

The asset Cash is increased $1,200; the liability Unearned Fees is increased $1,200 because the service has not been rendered yet. Note that although many liabilities have the word “payable” in their title, unearned fees are considered a liability even though the word payable is not used.

Debits increase assets: debit Cash $1,200. Credits increase liabilities: credit Unearned Fees $1,200.

ILLUSTRATION ILLUSTRATION 2-21 2-21 RECEIPT OF CASH FOR FUTURE SERVICERECEIPT OF CASH FOR FUTURE SERVICEILLUSTRATION ILLUSTRATION 2-21 2-21

RECEIPT OF CASH FOR FUTURE SERVICERECEIPT OF CASH FOR FUTURE SERVICE

JOURNAL ENTRYJOURNAL ENTRY

POSTINGPOSTING

ILLUSTRATION ILLUSTRATION 2-22 2-22 PAYMENT OF MONTHLY RENTPAYMENT OF MONTHLY RENT

ILLUSTRATION ILLUSTRATION 2-22 2-22 PAYMENT OF MONTHLY RENTPAYMENT OF MONTHLY RENT

BasicAnalysis

Debit-CreditAnalysis

Transaction October 3, office rent for October is paid in cash, $900.

The expense Rent is increased $900 because the payment pertains only to the current month; the asset Cash is decreased $900.

Debits increase expenses: debit Rent Expense $900. Credits decrease assets: credit Cash $900.

ILLUSTRATION ILLUSTRATION 2-22 2-22 PAYMENT OF MONTHLY RENTPAYMENT OF MONTHLY RENT

ILLUSTRATION ILLUSTRATION 2-22 2-22 PAYMENT OF MONTHLY RENTPAYMENT OF MONTHLY RENT

JOURNAL ENTRYJOURNAL ENTRY

POSTINGPOSTING

ILLUSTRATION ILLUSTRATION 2-23 2-23 PAYMENT FOR INSURANCEPAYMENT FOR INSURANCE

ILLUSTRATION ILLUSTRATION 2-23 2-23 PAYMENT FOR INSURANCEPAYMENT FOR INSURANCE

The asset Prepaid Insurance is increased $600 because the payment extends to more than the current month; the asset Cash is decreased $600. Note that payments of expenses that will benefit more than one accounting period are identified as prepaid expenses or prepayments. When a payment is made, an asset account is debited in order to show the service or benefit that will be received in the future.

TransactionOctober 4, $600 is paid for a one-year insurance policy that will expire next year on September 30.

Debit-CreditAnalysis

Debits increase assets: debit Prepaid Insurance $600. Credits decrease assets: credit Cash $600.

BasicAnalysis

ILLUSTRATION ILLUSTRATION 2-23 2-23 PAYMENT FOR INSURANCEPAYMENT FOR INSURANCE

ILLUSTRATION ILLUSTRATION 2-23 2-23 PAYMENT FOR INSURANCEPAYMENT FOR INSURANCE

JOURNAL ENTRYJOURNAL ENTRY

POSTINGPOSTING

Prepaid Insurance 130 Oct. 4 600

ILLUSTRATION ILLUSTRATION 2-24 2-24 PURCHASE OF SUPPLIES ON CREDITPURCHASE OF SUPPLIES ON CREDITILLUSTRATION ILLUSTRATION 2-24 2-24

PURCHASE OF SUPPLIES ON CREDITPURCHASE OF SUPPLIES ON CREDIT

BasicAnalysis

Debit-CreditAnalysis

TransactionOctober 5, an estimated 3-month supply of advertising materials is purchased on account from Aero Supply for $2,500.

The asset Advertising Supplies is increased $2,500; the liability Accounts Payable is increased $2,500.

Debits increase assets: debit Advertising Supplies $2,500. Credits increase liabilities: credit Accounts Payable $2,500.

ILLUSTRATION ILLUSTRATION 2-24 2-24 PURCHASE OF SUPPLIES ON CREDITPURCHASE OF SUPPLIES ON CREDITILLUSTRATION ILLUSTRATION 2-24 2-24

PURCHASE OF SUPPLIES ON CREDITPURCHASE OF SUPPLIES ON CREDIT

JOURNAL ENTRYJOURNAL ENTRY

POSTINGPOSTING

ILLUSTRATION ILLUSTRATION 2-25 2-25 HIRING OF EMPLOYEESHIRING OF EMPLOYEES

ILLUSTRATION ILLUSTRATION 2-25 2-25 HIRING OF EMPLOYEESHIRING OF EMPLOYEES

BasicAnalysis

Debit-CreditAnalysis

Transaction

October 9, hire four employees to begin work on October 15. Each employee is to receive a weekly salary of $500 for a 5-day work week, payable every 2 weeks -- first payment made on October 26.

A business transaction has not occurred. There is only an agreement between the employer and the employees to enter into a business transaction beginning on October 15.

A debit-credit analysis is not needed because there is no accounting entry.

ILLUSTRATION ILLUSTRATION 2-26 2-26 WITHDRAWAL OF CASH BY OWNERWITHDRAWAL OF CASH BY OWNERILLUSTRATION ILLUSTRATION 2-26 2-26 WITHDRAWAL OF CASH BY OWNERWITHDRAWAL OF CASH BY OWNER

BasicAnalysis

Debit-CreditAnalysis

Transaction October 20, C. R. Byrd withdraws $500 cash for personal use.

The owner’s equity account C. R. Byrd, Drawing is increased $500; the asset Cash is decreased $500.

Debits increase drawings: debit C. R. Byrd, Drawing $500. Credits decrease assets: credit Cash $500.

ILLUSTRATION ILLUSTRATION 2-26 2-26 WITHDRAWAL OF CASH BY OWNERWITHDRAWAL OF CASH BY OWNERILLUSTRATION ILLUSTRATION 2-26 2-26 WITHDRAWAL OF CASH BY OWNERWITHDRAWAL OF CASH BY OWNER

JOURNAL ENTRYJOURNAL ENTRY

POSTINGPOSTING

ILLUSTRATION ILLUSTRATION 2-27 2-27 PAYMENT OF SALARIESPAYMENT OF SALARIES

ILLUSTRATION ILLUSTRATION 2-27 2-27 PAYMENT OF SALARIESPAYMENT OF SALARIES

BasicAnalysis

Debit-CreditAnalysis

TransactionOctober 26, employee salaries of $4,000 are owed and paid in cash. (See October 9 transaction.)

The expense account Salaries Expense is increased $4,000; the asset Cash is decreased $4,000.

Debits increase expenses: debit Salaries Expense $4,000. Credits decrease assets: credit Cash $4,000.

ILLUSTRATION ILLUSTRATION 2-27 2-27 PAYMENT OF SALARIESPAYMENT OF SALARIES

ILLUSTRATION ILLUSTRATION 2-27 2-27 PAYMENT OF SALARIESPAYMENT OF SALARIES

JOURNAL ENTRYJOURNAL ENTRY

POSTINGPOSTING

Salaries Expense 726 Oct. 26 4,000

ILLUSTRATION ILLUSTRATION 2-28 2-28 RECEIPT OF CASH FOR FEES EARNEDRECEIPT OF CASH FOR FEES EARNED

ILLUSTRATION ILLUSTRATION 2-28 2-28 RECEIPT OF CASH FOR FEES EARNEDRECEIPT OF CASH FOR FEES EARNED

BasicAnalysis

Debit-CreditAnalysis

TransactionOctober 31, received $10,000 in cash from Copa Company for advertising services rendered in October.

The asset Cash is increased $10,000; the revenue Fees Earned is increased $10,000.

Debits increase assets: debit Cash $10,000. Credits increase revenues: credit Fees Earned $10,000.

ILLUSTRATION ILLUSTRATION 2-28 2-28 RECEIPT OF CASH FOR FEES EARNEDRECEIPT OF CASH FOR FEES EARNED

ILLUSTRATION ILLUSTRATION 2-28 2-28 RECEIPT OF CASH FOR FEES EARNEDRECEIPT OF CASH FOR FEES EARNED

JOURNAL ENTRYJOURNAL ENTRY

POSTINGPOSTING

STUDY OBJECTIVE STUDY OBJECTIVE 77

Prepare a trial balance and explain its purposes.Prepare a trial balance and explain its purposes.

THE TRIAL BALANCETHE TRIAL BALANCETHE TRIAL BALANCETHE TRIAL BALANCE

Un trial balance es una lista de las cuentas y su balance a un tiempo especifico.

El proposito primordial del trial balance es verificar si los debitos igualan los creditos luego del posteo

Si los debitos no concuerdadn el reporte se usa para descubrir errores de jornalizacion y posteo

El procedimiento para preparar el trial balance consiste de:

1 Enlistar los titulos de la cuenta y sus balances

2 Totalizar las columnas de debito y credito

3 Proveer la igualdad de las dos columnas

The total debits must equal the total credits.

The total debits must equal the total credits.

ILLUSTRATION ILLUSTRATION 2-31 2-31 A TRIAL BALANCEA TRIAL BALANCE

ILLUSTRATION ILLUSTRATION 2-31 2-31 A TRIAL BALANCEA TRIAL BALANCE

LIMITATIONS OF A LIMITATIONS OF A TRIAL BALANCETRIAL BALANCE

LIMITATIONS OF A LIMITATIONS OF A TRIAL BALANCETRIAL BALANCE

Un trial balance no provee que todas las transacciones han sido registradas o que el mayor esta correcto

Numerosos errores pueden existir aunque las columnas cuadresn.

The trial balance puede cuadrar aunque:

1 una transaccion no se jornalize

2 una entrada de jornal correcta no se postee

3 se postee doble

4 cuentas incorrectas son usadas

5 offsetting errors are made in recording the amount of the transaction.