Chapter 4 Double Entry Accounting

Revenue,Income Statement, Credit, Temporary – Sales Revenue
purchases discount – A cash discount on purchases taken by a customer
Paid Rent for a month – Rent Expense: Cash.
Expense and Assets.
Expense: Increases.
Cash: Decreases.
Debit and Credit/
Balance Sheet and Income Statement.
Financial Accounting – Accounting field that provides economic and financial information for investors, creditors and external users.
Weighted Average Method – An inventory costing method based on the weighted average cost per unit on inventory that is calculated after each purchase.
1.INTERNAL DIRECT IMPACT IN PROCESS OF FINANANCE – Know the difference between internal and external users of accounting information.
Matching – deferring the expense recognition provides more accurate
The reliability principle is also called the – objectivity principle
Personal Net Worth – The difference between personal assets and personal liabilities.
Beginning inventory + net purchases – ending inventory =: – Cost of Goods sold
Aurora Corporation produces outdoor security lighting products. All products go through three processes before completion. Use the expected overhead costs and related data shown below to compute departmental overhead rates based on machine hours in Department A1A; based on direct labor hours in Department B2B; and machine hours in Department C3C.     Department A1A Department B2B Department C3C Direct labor hours   90,000 DLH   80,000 DLH   72,000 DLH Machine hours   54,000 MH   32,000 MH   54,000 MH Manufacturing overhead costs $ 540,000   $ 160,000   $ 216,000  
Assets – The things one owns are
Accounts payable 300
Merchandise Inventory 300 – Journal Entry: The buyer returns inventory costing $300 how does the buyer recorde this
Order of Financial Statements – 1. Income Statement
2. Retained Earnings Statement
3. Balance Sheet
4. Statement of Cash Flows
Continuous process management – continually improving employees, business processes, and products. Looks for what wrong and delete it.
accounting cycles – semi annually
quarterly
bi monthly
bi weekly
Aurоrа Cоrpоrаtion produces outdoor security lighting products. All products go through three processes before completion. Use the expected overheаd costs and related data shown below to compute departmental overhead rates based on machine hours in Department A1A; based on direct labor hours in Department B2B; and machine hours in Department C3C.     Department A1A Department B2B Department C3C Direct labor hours   90,000 DLH   80,000 DLH   72,000 DLH Machine hours   54,000 MH   32,000 MH   54,000 MH Manufacturing overhead costs $ 540,000   $ 160,000   $ 216,000  
accounts recievable – unbilled
debit – the left side of a standard account
additional paid-in capital – the amount over par value

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