Accounting 211
Financial and Managerial
Accounting
Teaching Assistant
Hyun Jung (JoAnn) Lee
Contents
1. Introduction
2. Review of Chapter4
3. Practice
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Introduction
1
Recitation Materials
Personal Blog : www.personal.psu.edu/hul152
Click on “ACCTG 211 Spring 2008”
“Student Information Form”  Did you Bring IT!~^^*
Office : 381A Business Building, 814-863-3796
Office Hour : 8 AM. ~ 10:00 AM on Tuesday
Email : hul152@psu.edu
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WileyPlus
Online Homework
Due Date : “Next Monday 6 PM.”
Problem : Chapter4-P2, P5, and P-8
For Registering
http://www.wiley.com/college/twomin/stu/register.html
The URL : http://edugen.wiley.com/edugen/class/cls49425/
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WileyPlus, conti.
Technical Issues
Let's follow WileyPLUS’s directions!!~
List expenses in order of magnitude
List assets in order of liquidity and liabilities in order of magnitude,
with notes payable first.
This is a minor point so Professor won't do this on the exam.
No number
Enter “0” in the table
All boxes must be filled.
Negative number
Use the negative (-) sign preceding the number.
$ and Commas(,).
Acceptable with and without dollar signs & commas
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1st Mid-term : February 13th
When : February 13th 2008, 8:15 PM to 10:00PM
Place : Posted on ANGEL & Check your Email!!~~
Section 04 : 121 Sparks
Section 11 : 111 Forum
Section 17 : 100 Thomas
Go to the appropriate room according to your section.
Anybody in the wrong room will lose 20 points on the
exam.
PSU ID, Pencils, and Calculator
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Make-up Exam
Assignments
Ask “W.G. Deng” for PERMISSION
Contact Information
Office : 350A Business Building
Phone : 863-5467
Email : wxd139@psu.edu
Office Hours : Mon & Thrs from 1pm until 3pm and by appointment.
Only one chance to take it
Makeup for the First Exam : Feb 23th on Saturday
Makeup for the Second Exam : April 5th on Saturday
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Review of Chapter4
2
Journal Entries
“Journal Entry” is the recording of the economic effects
of a particular transaction.
Debits on the LEFT!!
Credits on the RIGHT!!
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THE ACCOUNTING CYCLE
Transactions occur
Record at JOURNAL ENTRY
Posted to the GENERAL LEDGER.
ADJUSTING ENTRIES are made and posted.
Trial balance
A list of each account and its debit or credit balance
Prepared any time
Catch errors with the debit-credit part of the accounting system
Usually before and then again after adjustments
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THE ACCOUNTING CYCLE, conti
Financial statements are prepared.
Closing journal entries are recorded and posted
A post-closing trial balance may be prepared
The Goal of the Whole Process
Financial Statements that accurately reflect the financial condition
and transactions of the company
Communicating Information to Users
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Accrual Accounting
Which determines when we record financial transactions?
When they occur.
When cash is exchanged.
In Accrual Accounting, we record financial
transactions…
When they occur regardless of when cash is exchanged.
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Accrual Accounting, conti
Accruals require adjustments to the “Books”
Any revenue earned for which we have not yet been paid
EX. Sales made “on account” or Interest on money lent
Any expense that has been incurred for which we have not yet paid
EX. Purchases made “on credit” or Wages expense for employees or
Income tax expense
Deferrals require adjustments to the “Books”
A publishing company collects money for magazine
subscriptions before the magazines are actually delivered.
DEFER means to postpone.
So, we postpone recognizing the expense until we actually use the
goods or services.
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Closing Entries
All temporary accounts (income statement accounts and
distributions) are closed at the end of the accounting
period, after the statements are prepared.
Their balances are brought to ZERO, and the balancing
entry is made to the retained earnings account.
Think the relationship between Balance sheet and
Income statement
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Closing Process
Expenses
Rent
R/E
Dividends
R/E
Revenues
R/E Sales
Retained Earnings
Sales
Rent
Dividend
End of R/E
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Closing Process, conti.
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Practice!!!
3
Chapter4 : Practice A
Problem 2
Problem 4
Problem 8
2nd Homework
Due Date : “Next Monday 6 PM.”
Problem : Chapter4-P2, P5, and P-8
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Do you have any questions?
381A Business Building
814-863-3796, hul152@psu.edu
Welcome to Accounting World!!~
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