Friday, September 4, 2009

Hitting the semester running

Lisa showed up to class increasing our enrollment to 9 in all. Everyone else showed up for the second class in a row. Guess I didn't scare anyone away yet.

As always, I can't tell if anyone likes the class. Accounting may only be an interesting subject to me.

Finished off Chapter 1 by looking at simple financial statements. Tackled chapter 2 and assigned homework.

Chapter 2 introduces many fundamental accounting principals. Main ideas from lecuture include the accounting flow, double entry accounting (debits and credits), "T" accounts and the Chart of accounts.

The accounting flow is as follows:
  1. Transaction occurs
  2. Source document is generated (reciept or invoice)
  3. Transaction is recorded (journalized)
  4. Journalized transaction is posted to the ledger
  5. All ledger accounts are summarized in the trial balance.

The next concept is something that is dear to any accountants heart, Debits and Credits. Below is the model that we will use to help us journalize any transaction.

Also inherent in the model is the normal balances for each account. Normal balances are debits for assets and expenses, Credit for liabilities, owner equity, and revenue. We will do about a thousand transactions using this model and it will become second nature.

I assigned a bunch of homework. We will get through maybe half (if we are lucky) on Tuesday. Less if we are not. Don't get overwhelmed by the homework load. We will go over the questions in class. Hopefully by next Thursday these questions will be a piece of cake.

I hope to change the girly music soon to appeal to our male contingent. Haven't gotten to it yet. Although I'm kind of a girl when it comes to music and movies. I have 5 younger sisters so have seen my share of Grease, Dirty Dancing, etc.

Homework:

Read chapter 2

E2-17
E2-20
E2-22
E2-23
P2-27A
P2-28A
P2-29A
P2-31A
P2-32A
P2-33A
P2-34A
P2-35A

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