Mortuary Managent I

Is the language of business it provides information to the decision maker

• Analyzes
•       it did or didn't have an impact
•       (yes or no) if yes, go to #2
• Records
•       all transactions
• Classifies
•       determine what cataagory
• Summarizes
•        all like thing swill be added together
•        less will be
• Reports
•        Tangible reports
• Interprets
•        The findings

Generally Accepted Accounting Principles

A set of procedures ad guidelines were developed to make sure that everyone prepares and interprets them the same way

only record trans that apply to the entry

Sole Proprietorship: single, one owener

Partnership: agreements between 2 people or more

Corporation: business owned by stockholders

it is possible to lose everything plus personal individual From Business

Service Company: Provides a Service

Merchandise Company: Resale something

Manufacturing Company: Makes & Sells to open

it is the process

Cash, land , supplies, office equipment, buildings and other properties of value owned by a firm

Everything a company owes by Title & listed @ purchase price

The rights of Financial Claim to the assets

Everything the Company OWNS is equity

an obligation to pay that comes due in the future

Assets = Equity

if paying cash = has to be same on both sides

• Assets = Liabilities + Equity
• Equity comes after assets is paid

• ie:
• 100,000 = 10,000 + 90,000

50,000 = 5,000 + 45,000

Is done Monthly (heading & body Same)

• Balance Sheets:  BS
• Statement of owner's equity:  SOE
• Income Statement: IS

tells u the balance of the account

Heading: the company's name, the name of the statement, the period of time the statement covers (date)

Body: assets, liabilities, owners equity

Financial Position of owner

Heading:the name of the company, the name of the statement, the date

Body: the statement of owners equity summarizes the effects of revenue, expenses & withdrawals on beginning capital.

Income of the Company

Heading: the name of the company, the name of the statement, the date

Body:  Revenue, Expenses, Net Income

*when revenue totals more than expenses, the results is net income.

*When expenses total more than revenue, the results is net loss.

A=L+C-W+R-E

assets-=liabilities+capital-withdrawals+revenue-expenses

BS:  A=L+C-W

IS: R-E

SOE: C-W+R-E

•                    Title
• __________________________
•    Debit          |       Credit
• + or -            |     + or -

                     

• A    +/-
• L     -/+
• C    -/+
• W    +/-
• R    -/+
• E    +/-

• Assets                 100
• Liabilities              200
• Capital                 300
• Withdrawals         350
• Revenue              400
• Expenses             500

Book: combo of all the accounts

@ least 2 accounts will be affected

• 1. Determine which accounts are affected (ie, cash, supplies)
• 2. Determine which categories the accounts belong to. (account equation)
• 3. Determine whether the accounts increase or decrease.
• 4.What do the rules of debits and credits say?  (total debit = total credit)
• 5. What does the T account look like?

a transaction that involves more than one credit or more than one debit ...

double entry format

normal procedures that are performed over a period of time.

the accounting cycle takes place in a period of time called the accounting period.

1 month activities = most of the time

• Step 1: Transaction Happened
• Step 2: All the business's transactions are recorded in the journal or general journal.
• Once the transaction had been made the journal entry is made and his process is call Journalizing
• Step 3: Posting to the ledger
• Step 4: Preparing the Trial balance
• Step 5: Corrections

in chronological order

• 1. Debit is recorded first
• 2. Credit recorded indented 1/2 in and below the debit
• 3. Explanation recorded indented 1 in and below the credit
• 4. one line space follows the explanation
• 5. Debits must equal Credits

• 111  Cash
• 112  Accounts Receivable
• 114  Office Supplies
• 115  Prepaid Rent
• 121  Work Processing Equipment
• 122  Accumulated Depreciation, Work Processing Equipment

• 211  Accounts Payable
• 212 Salaries Payable

• 311  Captial
• 312  Withdrawals

411  Word processing Fees

• 511  Office Salaries Expense
• 512  Advertising Expense
• 513  Telephone Expense
• 514  Office Supplies Expense
• 515  Rent expense
• 516 Depreciation Expense, word processing equipment