Accounting

Download Accounting, 6th Edition, 1-26 (Charles T. Horngren Series in by Charles T. Horngren, Walter T. Harrison, Linda S. Bamber PDF

By Charles T. Horngren, Walter T. Harrison, Linda S. Bamber

ISBN-10: 0131435965

ISBN-13: 9780131435964

This publication introduces readers to the entire key monetary and administration accounting suggestions. It motivates inexperienced persons through familiarizing them with the accounting concerns dealing with businesses comparable to aim, Nantucket Nectars, Teva, Oracle, and numerous businesses doing e-Business. clients can determine their realizing of bankruptcy issues with “CyberCoach” and “Starter workout” good points, “Working It Out” difficulties, and special “Concept Links.” for people getting ready for a profession in accounting.

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Additional resources for Accounting, 6th Edition, 1-26 (Charles T. Horngren Series in Accounting)

Sample text

In particular, the bookkeeper knew that the balance sheet should balance, so he plugged in the owner’s equity amount needed to achieve this balance. The owner’s equity amount, however, is not correct. All other amounts are accurate, but some are out of place. (Obj. 2, 3, 5) (Obj. 5) 1. Total assets $88,000 38 Chapter 1 Epson Printing Co. Balance Sheet Month Ended July 31, 20X3 Assets Cash . . . . . . . . . $ 12,000 Office supplies. . . . . 1,000 Land . . . . . . . . . 44,000 Salary expense.

Kitchen equipment expense . . . . . . . . . . . . . . . . Computer expense . . . . . . . . . . . . . . . . . . . . Total expenses . . . . . . . . . . . . . . . . . . . . . Net income. . . . . . . . . . . . . . . . . . . . . . . . . $300,000 200,000 500,000 $200,000 150,000 50,000 10,000 2,000 412,000 $ 88,000 Apply Your Knowledge 39 1. Suppose you are the Campbells’ banker, and they have given you this income statement.

The Account, the Ledger, and the Journal The basic summary device of accounting is the account. This is the detailed record of all the changes that have occurred in a particular asset, liability, or owner’s equity during a period. As we saw in Chapter 1, business transactions— such as buying and selling—cause the changes. Accountants record transactions first in a journal. The journal is the chronological record of the transactions. Accountants then copy (post) the data to the accounts in a record called the ledger.

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