Alpha Teach Yourself - Accounting in 24 Hours

petty cash funds, 202-207tax payments, 200-201TemporaryDistributionaccount postings,207Cash in Checkingaccounts, 6, 67Cash in Savingsaccounts, 6Cash on Handaccounts, 6Cash Receipts Journals,181cash/credit trans-actions, 188-189current month andyear-to-date finan-cial data, 181-188posting cash receiptsand sales to theGeneral Ledger, 190cash sales, 65-69combining cash andcredit sales, 72-74combining cash andcredit sales inAccountsReceivable, 74-76Charts of Accounts, 3-5assets, 9how the Chart ofAccounts becomesthe General Ledger,25-35checking accounts, 107-110checks, payroll, 150-152, 158Common Stockaccounts, 11computersaccounting softwareprograms, 279-280customizing, 282setup process, 281-282converting frommanual to comput-erized systems, 283-284cost of sales accounts,17-18Freight Charges, 18Other Costs, 18Purchase Discounts,18Purchase Returns andAllowances, 18Purchases, 17Credit Cards Payableaccounts, 10credit sales, 70-73combining cash andcredit sales, 72-74combining cash andcredit sales inAccountsReceivable, 74-76creditscredit accounts(General Ledger),28-30posting to GeneralLedger, 30-35current assets, 6current month financialdata, 181-188Customer Accounts,end-of-year process,273-275customer statements,195-196Ddaily sales transactionscash sales, 65-69combining cash andcredit sales, 72-74combining cash andcredit sales inAccountsReceivable, 74-76credit sales, 70-73debitsdebit accounts(General Ledger),28-30posting to GeneralLedger, 30-35deposits, payroll taxes,161-164336Cash Disbursements Journals

Deposits in Transit, 225depreciable assets, 7-9depreciation, 39-45Depreciation Expenseaccounts, 20disbursements, GeneralLedger postings, 115-118discountspurchases, 98sales, 93-95Drawing accounts, 11Dues and Subscriptionsaccounts, 20EEINs (EmployerIdentificationNumbers), 135-136employeesEmployee ExpenseAccounts, 211-214employee ledgers,167-168government requireddocumentation, 137I-9 forms, 138W-4 forms, 137W-5 forms, 138hiring, 136-137payrollcalculating payrollchecks, 150-152,158postings, 157-161taxes, 262-267wage types and payperiods, 138-143Employer IdentificationNumbers (EINs), 135-136end-of-year processCustomer Accounts,273-275General Ledger, 271-273taxes, 2611099 reports, 267-268employee W-2reports, 262-267transitioning to nextyear’s business, 275-276Vendor Accounts,275Equipment accounts, 8,20Equity accounts, 11-13Capital, 11Common Stock, 11Drawing, 11Retained Earnings,11expense accounts, 18,21-23Advertising, 19AmortizationExpenses, 20Auto Expenses, 19Bank ServiceCharges, 20DepreciationExpense, 20Dues andSubscriptions, 20Employee ExpenseAccounts, 211-214Equipment Rental,20General Expenses, 19Income Taxes, 21InsuranceEmployee Group,20General, 20Officers Life, 20Interest Expenses, 20Legal andAccounting, 20Meals, 21MiscellaneousExpenses, 20Office Expenses, 20Other Taxes, 21Payroll Taxes, 21Penalties, 21Postage, 20Rent Expenses, 21Repairs andMaintenance, 21Salaries and Wages,19Supplies, 21Telephone, 21expense accounts337

Travel, 21Utilities, 20expensesgeneral, 113-115prepaid, 43-48Ffederal tax regulations,165Federal Tax reports941 Forms, 168, 170Unemployment Taxreports, 268Federal Withholdingtaxes, 147-149FIFO (first in, first out),85filesmanaging, 58-60organizing, 56-58financial statementsBalance Sheets, 5-6,245-247Assets accounts, 6-9Equity accounts,11-13Liabilitiesaccounts, 9-10utilizing as manag-ing tools, 249evolution process,238-239Profit & LossStatements, 15-16,253cost of salesaccounts, 17-18customizingincome state-ments, 257-258expense accounts,18-23formatting,239-240income accounts,16-17issuing, 253-256utilizing, 256fiscal years, 26Form 940 worksheets,268Form 940EZ worksheets,268Freight Chargesaccounts, 18Furniture and Fixturesaccounts, 8GGeneral Expensesaccounts, 19, 113-115General Journal Entries,225General Ledger, 4-5account setup, 25-26accounting periods,26-27adding accounts, 45-46debit and creditaccounts, 28-30eliminating accounts,47-48end-of-year process,271-273how the Chart ofAccounts becomesthe General Ledger,25-35opening entries, 27-28postingsbank accountadjustments,226-230cash receipts andsales, 190debits and credits,30-35disbursements,115-118payroll, 217-218reviewing accountsTrial Balancereports, 233-238Gross Profit, 17-18338expense accounts

H-Ihiring employees, 136-137I-9 forms, 138Income accounts, 16Income Taxesaccounts, 21Interest Income, 16Other Income, 16Sale of Fixed Assets,17Sale of Goods orServices, 16Sales Discounts, 16Sales Returns andAllowances, 16Insurance accountsEmployee Groupaccounts, 20General accounts, 20Officers Lifeaccounts, 20interestcalculations andadjustments, 99-102Interest Expenseaccounts, 20Interest Incomeaccounts, 16inventoryadditions and sub-tractions, 80-86control methodsperpetual inven-tory, 85specific identifica-tion, 84-85FIFO (first in, firstout), 85Inventory accounts,6-7LIFO (last in, firstout), 85J-KjournalsCash DisbursementsJournals, 199balancing accrualaccounts,199-200petty cash funds,202-207tax payments, 200-201TemporaryDistributionaccount postings,207Cash ReceiptsJournals, 181cash/credit trans-actions, 188-189current month andyear-to-datefinancial data,181-188posting cashreceipts and salesto the GeneralLedger, 190General JournalEntries, 225Payroll Journals, 211LLand accounts, 7last in, first out (LIFO),85LeaseholdImprovementsaccounts, 8ledgersemployee, 167-168general, 4-5account setup, 25-26accounting peri-ods, 26-27adding accounts,45-46bank reconcilia-tion postings,226-230cash receipts andsales postings,190debit and creditaccounts, 28-30eliminatingaccounts, 47-48ledgers339

end-of-yearprocess, 271-273how the Chart ofAccountsbecomes theGeneral Ledger,25-35opening entries,27-28payroll postings,217-218posting debits andcredits, 30-35reviewingaccounts,233-238Legal and Accountingaccounts, 20Liabilities accounts, 9Accounts Payable, 9Accrued Expenses, 10Accrued PayrollTaxes, 10Credit Cards Payable,10Loans Payable, 10long-term versusshort-term liabili-ties, 9-10Sales Tax Collected,10LIFO (last in, first out),85Loans Payable accounts,10long-term assets, 6long-term liabilities, 9-10MMeals accounts, 21Medicare taxes, 146-147Miscellaneous Expenseaccounts, 20N-ONet Profit, 18Office Expenseaccounts, 20opening entries(General Ledger), 27-28Operating accounts, 51-54Organization Costsaccounts, 8organization methods(files), 56-60Other Assets accounts,9Other Costs accounts,18Other Income accounts,16Other Taxes accounts,21P-Qpay periods, 138-143paymentstaxes, 126-131, 200-201vendor accounts,124-126payrollcalculating payrollchecks, 150-152,158Payroll Journals, 211Payroll Taxesaccounts, 21posting to theGeneral Ledger,217-218postings, 157-161tax deposits, 161-164taxes, 135-136W-2 reports, 262-267utilizing payroll services, 214-217penalties, tax, 164Penalties accounts, 21perpetual inventory systems, 85personal tax returns,268-269petty cash funds, 202-207point of sales, 65Postage accounts, 20340ledgers

postingsGeneral Ledger, 30-35bank accountadjustments,226-230cash receipts andsales, 190disbursements,115-118payroll, 217-218payroll, 157-161TemporaryDistributionaccount, 207prepaid expenses, 43-48profitsgross, 17-18net, 18Profit & LossStatements, 15-16, 253cost of sales accounts,17-18Freight Charges,18Other Costs, 18PurchaseDiscounts, 18Purchase Returnsand Allowances,18Purchases, 17expense accounts, 18,21-23Advertising, 19AmortizationExpenses, 20Auto Expenses, 19Bank ServiceCharges, 20DepreciationExpenses, 20Dues andSubscriptions, 20Equipment Rental,20General Expenses,19Income Taxes, 21Insurance, 20Interest Expenses,20Legal andAccounting, 20Meals, 21MiscellaneousExpenses, 20Office Expenses,20Other Taxes, 21Payroll Taxes, 21Penalties, 21Postage, 20Rent Expenses, 21Repairs andMaintenance, 21Salaries andWages, 19Supplies, 21Telephone, 21Travel, 21Utilities, 20formatting, 239-240income accounts, 16customizingincome state-ments, 257-258Interest Income,16Other Income, 16Sale of FixedAssets, 17Sale of Goods orServices, 16Sales Discounts,16Sales Returns andAllowances, 16issuing, 253-256utilizing, 256purchases, 79-80discounts, 98PurchaseDiscountsaccounts, 18Purchases accounts,17refunds andallowances, 99Purchase Returnsand Allowancesaccounts, 18purchases341

Rreconciliationsbank accounts, 221-225vendor accounts,124-126recordsretention timeframes, 123-124storing, 123what to keep, 121-123refunds, 99Rent Expense accounts,21Repairs andMaintenanceaccounts, 21reportsend-of-year, 261-268taxesFederal Taxreports, 168-170,268Sales Tax reports,126-131UnemploymentTax reports, 173-176, 268Trial Balance, 233-238Retained Earningsaccounts, 11retainers, 74returns (sales), 95-97SSalaries and Wagesaccounts, 19Sale of Fixed Assetsaccounts, 17Sale of Goods orServices accounts, 16salesdiscounts, 93-95returns andallowances, 95-97taxesSales Tax reports,126-131transactionscash sales, 65-69combining cashand credit sales,72-74combining cashand credit salesin AccountsReceivable,74-76credit sales, 70-73Sales Discountsaccounts, 16Sales of Goods orServices accounts, 67Sales Returns andAllowances accounts,16Sales Tax Collectedaccounts, 10, 67services, payroll, 214-217sheets, balance, 5-6assets, 9Assets accounts, 6-9Equity accounts, 11-13Liabilities accounts,9-10short-term liabilities, 9-10small business taxes,176-177Social Security taxes,145-146software programs, 279-280converting frommanual to comput-erized systems, 283-284customizing, 282setup process, 281-282specific identification,84-85State taxesregulations, 165reports, 170-173Withholding taxes,149-150statementscustomer, 195-196financialBalance Sheets, 5-13, 245-249342reconciliations

evolution process,238-239Profit & LossStatements,239-240, 253-258storing records, 123subtracting inventory,80-86supplies, 54-56Supplies accounts, 21systems, accounting(converting from man-ual to computerizedsystems), 283-284Ttaxesend-of-year reports,2611099 reports, 267-268employee W-2reports, 262-267federal and state reg-ulations, 165Federal Tax reports941 Forms, 168-170FederalUnemploymentreports, 268FederalWithholdings, 147-149Medicare, 146-147paying, 126-131, 200-201payroll, 135-136payroll taxdeposits, 161-164W-2 reports, 262-267penalties, avoiding,164personal and businesstax returns, 268-269sales tax reports, 126-131small businesses, 176-177Social Security, 145-146State Tax reports,170-173State Withholdings,149-150unemployment,152-154reports, 173-176Telephone accounts, 21Temporary Distributionaccounts, 207Travel accounts, 21Trial Balance reports,187-188, 233-238Uunemployment taxes,152-154, 173-176Utilities accounts, 20VVehicles accounts, 8Vendor accounts1099 reports, 267-268end-of-year process,275reconciling and pay-ing, 124-126Viale, David, Basics ofInventory Management:From Warehouse toDistribution, 86W-ZW-2 reports, 262-267W-4 forms, 137W-5 forms, 138wages (employee), 138-143year-to-date financialdata, 181-184, 187-188year-to-date financial data343