Chapter 4 Accounts（课件）-《实用会计英语》同步教学（大连理工大学出版社）

Accounts CHAPTER 4 4-1 2 2 Accounts All the business transactions should be sorted out and classified. To record the transactions in the accounts can make financial statements and other reports prepared quickly and easily. 4-1 An account is the basic storage unit for accounting data. Accounts An accounting system has separate accounts for each asset, each liability, and each component of owner’s equity, including revenues and expenses. 4-1 Accounts Different types of businesses will have different accounts. Manufacturing business Accounts for its various manufacturing costs to report the cost of goods sold A retailer Accounts for the purchase of its stock merchandise 4-1 Accounts To be able to find an account in the ledger easily and to identify accounts, an accountant often numbers them. In most cases, a three-digit system is used in a business. 4-1 In a three-digit system, the first digit refers to the major financial statement classifications. Accounts 1 Assets 2 Liability 3 Owner’s equity 4 Revenues 5 Expenses 4-1 Accounts Now, let’s look at an example of George Ross Photocopy Company … 4-1 Assets Cash (at Bank) Notes Receivable Accounts Receivable Photocopy Fees Receivable Photocopy Supplies Office Supplies Prepaid Rent Prepaid Insurance Land Building Accumulated depreciation, Building Photocopy Equipment 111 112 113 114 115 116 117 118 141 142 143 144 Liabilities Notes Payable Accounts Payable Unearned Photocopy Fees Wages Payable Mortgage Payable   Owner’s Equity George Ross, Capital George Ross, Withdrawals Income Summary Revenues Photocopy Fees Earned 211 212 213 214 221     311 312 313 411 Chart of Accounts for George Ross Photocopy 4-1 Accumulated depreciation, Photocopy Equipment Office Equipment Accumulated Depreciation, Office Equipment 145 146   147 Expenses Office Salary Expense Utility Expense Telephone Expense Rent Expense Insurance Expense Photocopy Supplies Expense Office