Accounting Study Guide by AccountingInfo.com
|U.S. GAAP Codification||Accounting Topics|
Accounting Journal Entries
Review and Practice Materials
|U.S. GAAP Codification, Accounting Standards ASC|
|U.S. GAAP by Topic, Accounting by Topic|
|What is a journal entry in Accounting?|
Journal entry is an entry to the journal.
Journal is a record that keeps accounting transactions in chronological order, i.e. as they occur.
Ledger is a record that keeps accounting transactions by accounts.
Account is a unit to record and summarize accounting transactions.
All accounting transactions are recorded through journal entries that show account names, amounts, and whether those accounts are recorded in debit or credit side of accounts.
|Double-Entry Recording of Accounting Transactions|
To record transactions, accounting system uses double-entry accounting.
Double-entry implies that transactions are always recorded using two sides, debit and credit.
Debit refers to the left-hand side and credit refers to the right-hand side of the journal entry or account.
The sum of debit side amounts should equal to the sum of credit side amounts.
A journal entry is called "balanced" when the sum of debit side amounts equals to the sum of credit side amounts.
This form looks like a letter "T", so it is called a T-account.
T-account is a convenient form to analyze accounts, because it shows both debit and credit sides of the account.
|Examples of Journal Entries|
Transaction 1: Company A sold its products at $120 and received the full amount in cash.
[Journal entry to record transaction 1]
|Examples of Journal Entries|
Transaction 2: Company A purchased supplies and paid $50 in cash.
[Journal entry to record transaction 2]
|Debits and Credits of Accounts|
|Normal Balances of Accounts|
Accounts have normal balances on the side where the increases in such accounts are recorded.
Asset accounts have normal balances on debit side.
Expense accounts have normal balances on debit side.
Liability accounts have normal balances on credit side.
Equity accounts have normal balances on credit side.
Revenue accounts have normal balances on credit side.
In the financial statements, accounts are reported on the sides where they have normal balances.
|More Examples of Accounting Journal Entries|
|Adjusting Journal Entries: Review and Examples|
Accounting for General Users:
CPA and Accounting Profession
Accounting is an information system.
Users of accounting information
Financial accounting for external users
Managerial accounting for internal users
Statement of Cash Flows provides information about the cash flow of a company.
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Available for sale securities
Straight Line Depreciation
Declining Balance Method
Price of bonds payable
Discount on bonds payable
Premium on bonds payable
Amortization of discount and premium
Early extinguishment of debts
|U.S. GAAP by Codification Topic|
105 GAAP History
205 Presentation of Financial Statements
205-20 Discontinued Operations
210 Balance Sheet
220 Comprehensive Income
225 Income Statement
225-20 Extraordinary and Unusual Items
230 Statement of Cash Flows
250 Accounting Changes and Error Corrections
260 Earnings per Share
270 Interim Reporting
310 Impairment of a Loan
320 Investment Securities
320 Other-Than-Temporary Impairments, FSP FAS 115-2
320-10-05 Overview of Investments in Other Entities
320-10-35 Reclassification of Investments in Securities
323-10 Equity Method Investments
323-30 Investments in Partnerships and Joint Ventures
325-20 Cost Method Investments
340-20 Capitalized Advertising Costs
350-30 Intangibles Other than Goodwill
350-40 Internal-Use Software
350-50 Website Development Costs
360 Property, Plant and Equipment
360-20 Real Estate Sales
410 Asset Retirement and Environmental Obligations
420 Exit or Disposal Cost Obligations
450-20 Loss Contingencies
450-30 Gain Contingencies
480 Redeemable Financial Instruments
505-20 Stock Dividends, Stock Splits
505-30 Treasury Stock
605 SEC Staff Accounting Bulletin, Topic 13
605-25 Revenue Recognition - Multiple Element Arrangements
715-30 Defined Benefit Plans - Pension
718 Share-Based Payment
730 Research and Development
730-20 Research and Development Arrangements
805 Business Combinations
810 Noncontrolling Interests
810 Consolidation of Variable Interest Entities, SFAS 167
815 Derivatives and Hedging Overview
820 Fair Value Measurements
820 Fair value when the markets are not active, FSP FAS 157-4
825 Fair Value Option
830 Foreign Currency Matters
830-20 Foreign Currency Transactions
830-30 Translation of Financial Statements
835-20 Capitalization of Interest
835-30 Imputation of Interest
840-20 Operating Leases
840-30 Capital Leases
840-40 Sale-Leaseback Transactions
845 Nonmonetary Transactions
855 Subsequent Events
860-20 Sale of Financial Assets, SFAS 166
860-50 Servicing Assets and Liabilities, SFAS 156
985-20 Costs of software to be sold
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