Contents
Part
1
Accounting
for a Service Business Organized
as a Proprietorship
1
CHAPTER
Starting a Proprietorship: Changes That Affect the
Accounting Equation 4
1-1 Accounting in Action 6
1-2 How Business Activities Change the Accounting
Equation 10
1-3 How Transactions Change Owner's Equity in an
Accounting Equation 18
2
CHAPTER
Analyzing Transactions into Debit and Credit
Parts 30
2-1 Using T Accounts 32
2-2 Analyzing How Transactions Affect Accounts 36
2-3 Analyzing How Transactions Affect Owner's Equity
Accounts 43
3
CHAPTER
Journalizing Transactions 56
3-1 Recording Transactions and the General
Journal 58
3-2 Transactions Affecting Prepaid Insurance and
Supplies 65
3-3 Transactions Affecting Owner's Equity and Asset
Accounts 70
3-4 Starting a New Journal Page 76
4
CHAPTER
Posting to a General Ledger 90
4-1 Using Accounts and Preparing and Maintaining a Chart
of Accounts 92
4-2 Posting from a General Journal to a General Ledger and
Proving Cash 98
4-3 Journalizing Correcting Entries and Correcting Posting
Errors 109
5
CHAPTER
Cash Control Systems 120
5-1
5-2
5-3
5-4
Checking Accounts 122
Bank Reconciliation 129
Dishonored Checks and Electronic Banking 135
Petty Cash 140
Reinforcement Activity 1—Part A
An Accounting Cycle for a Proprietorship: Journalizing and
Posting Transactions 153
6
CHAPTER
Work Sheet and Adjusting Entries for a Service
Business 156
6-1 Creating a Work Sheet 158
6-2 Planning Adjusting Entries on a Work Sheet 163
Contents
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