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  • Lectures 104
  • Contents Video: 9 hours
    Other: 18 mins
  • Skill Level Beginner Level
  • Languages English
  • Includes Lifetime access
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About This Course

Published 6/2014 English

Course Description

This is an introductory financial accounting course that covers all the financial accounting concepts offered in an introductory financial accounting course at university or college. We begin with an understanding of how the accountant presents the Income Statement and Balance sheet. Then we learn how to record business transactions using Debits and Credits. There are two practice sets of accounting records where you will learn how to keep the books for a service company and again fora merchandise company. The accounting records will be in an excel file that is part of material of this course. We will be continually uploading more problems with video solutions for you to practice.

Learn and Master the Financial Accounting Process.

  • Understand that accounting is the language of business.
  • Know business terminology (biz speak).
  • Understand the difference between a corporation and a single proprietorship.
  • Know the three forms of business - service company, merchandise company and a manufacturer.
  • Understand an Income Statement and how to prepare one.
  • Understand a Balance Sheet and how to prepare one.
  • Know how to analyse and record business transactions
  • Learn how to use debits and credits to record business transactions.
  • Know how to use the accounting journal and ledger,
  • Complete a set of accounting records for a service business using excel spreadsheets.
  • Complete a set of accounting records for a merchandise company using excel spreadsheets.
  • Understand LIFO and FIFO.
  • Understand how to use the accounting system for Internal Control.
  • Understand the different methods of depreciation.

This course is unique in that it contains a number of excel projects on using a set of accounting records first for a service company and then a merchandise company. There are practice midterm and final exams with marking keys that highlight where an exam marker will award you marks.

If you can get an "A" on the midterm and final exams in this course - you'll get an A from your accounting prof.

What are the requirements?

  • The excel spreadsheet files will be provided.

What am I going to get from this course?

  • Identify the accounting principles and the role of accounting in sustainable business organizations
  • Prepare financial statements using spreadsheets and interpret its content in order to articulate its role in the decision making process for internal and external users
  • Measure and record balance sheet and income statement elements in organizations
  • Apply analytical tools such as Ratio Analysis and critical thinking techniques to specialized business problems
  • Examine the system of internal control applicable to major financial elements
  • Be able to get an "A" in your college or University Introductory Financial Accounting course.
  • Be well prepared to take a more advanced accounting course.
  • Be able to keep accounting records for a service company and a merchandise company.
  • Know how to use excel in recording business transactions.
  • Complete two case studies where you keep the accounting records - one for a service company and one for a merchandise company. Using excel you record journal entries, summarize in the ledger, take a trial balance, do adjusting entries and present an income statement and balance sheet for each company.

What is the target audience?

  • College and university business students
  • Secondary school students taking a bookkeeping or accounting course in high school.
  • Entrepreneurs who want a good understanding of basic accounting.

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: Know how to talk like Business People - Learn Accounting
14:42

This lecture is an overview of accounting. The terms used by the accounting profession are the terms used by all business people hence accounting is referred to as "The Language of Business".

This lecture introduces you to the three different forms that a business can be and pros and cons of each. Also the three types of businesses are introduced. 

01:00

Learn the three forms of businesses by playing this game

06:12

There are many business terms you will learn throughout this course.

00:51

This the accounting concepts put into games.

Article

Learn Accounting terms by playing this gamein a game

Test Your Understanding - Level A (knowledge)
03:38
Showme Problem #1 - Match these Phrases
03:13
Showme Problem #2 - Accounting Classifications
03:20
Showme Problem #3 - Classifying Business Accounts
08:32
01:43

Download this link play the game and learn the different account classifications

Test Your Understanding - Level B (Application)
Preview
02:50
Section 2: Know how to present the Income Statement and Balance Sheet
15:37

In this lecture we are introduced to the income statement and the statement of retained earnings. I would like you to think of the income statement as a report from the company on their operations for a particular period of time.

Some new terms

Profitability is the ability to generate income. Solvency is the ability to pay debts as they become due.

The financial statement that reflects a company’s profitability is the income statement.

The statement of retained earnings shows the change in retained earnings between the beginning and end of a period (e.g. a month or a year).

The balance sheet reflects a company’s solvency and financial position

00:42

Learn the different accounts in the income statement and retained earnings statement

Learn the Balance Sheet Accounts
01:10
Test Your Understanding - Section #2 - Level A (knowledge)
03:52
08:27

On June 1, Vincent Service Co. was started with an initial investment in the company of $22,100 cash. Here are the assets and liabilities of the company at June 30, and the revenues and expenses for the month of June, its first month of operations:

Cash $ 4,600 Notes payable $12,000

Accounts receivable 4,000 Accounts payable 500

Service revenue 7,500 Supplies expense 1,000

Supplies 2,400 Maintenance and repairs expense 600

Advertising expense 400 Utilities expense 300

Equipment 26,000 Salaries and wages expense 1,400

In June, the company issued no additional stock, but paid dividends of $1,400.

Instructions

(a) Prepare an income statement and a retained earnings statement for the month of

June and a balance sheet as at June 30, 2012.

05:03

Fedexpress Delivery was started on May 1 with an investment of $45,000 cash. Following are the assets and liabilities of the company on May 31, 2012, and the revenues and expenses for the month of May, its first month of operations.

Accounts receivable $ 6,200 Notes payable $28,000

Service revenue 10,400 Salaries and wages expense 2,000

Advertising expense 800 Equipment 56,000

Accounts payable 2,400 Maintenance and repairs expense 2,900

Cash 15,800 Insurance expense 400

No additional common stock was issued in May, but a dividend of $1,700 in cash was paid.

Instructions

(a) Prepare an income statement and a retained earnings statement for the month of

May and a balance sheet at May 31,

01:44

Learn the different account classifications in a Classified Balance sheet

Showme Problem #3 - Simpson Classified balance Sheet
08:13
Showme Problem Problem #4 - Kellogg
00:16
08:00

This lecture is an example of a typical exam question on the preparation of financial statements. Download Whitton Corporation and do it as an exam question - that is present the financial statements in good form starting with the income statement. Then look at the examiner's marking key and mark yourself. Then view the showme that demonstrates the way I would mark it.






Test Your Understanding - Section #2 - Level B - Application)
03:01
Test your understanding - MC Questions
31 questions
Section 3: Know how to Analyze a Business Transaction
14:33
Understand business transactions and how to record the effect of each transaction on the balance sheet equation
Test Your Understanding - Section 3 - Level A (Knowledge)
00:40
Showme Problem #1 - Omera Travel
05:12
Showme Problem #2 - Jarvis Consulting
14:30
Test Your Understanding - Section 3-Level B (Applications)
00:38
Section 4: Know how to use Debits and Credits in accounting
09:05

In section 2 I illustrated the income statement, statement of retained earnings and balance sheet. These statements are the end products of the financial accounting process.

The raw data of accounting are the business transactions.

You learned how to record transactions as increases or decreases in the assets, liabilities, and stockholders' equity items of the accounting equation. This procedure showed you how various transactions affected the accounting equation.

An account is a part of the accounting system used to classify and summarize the increases, decreases, and balances of each asset, liability, stockholders' equity item, dividend, revenue, and expense.

To illustrate recording the increases and decreases in an account, texts use the T-account, which looks like a capital letter T. The name of the account, such as Cash, appears across the top of the T. We record increases on one side of the vertical line of the T and decreases on the other side.

Test Your Understanding - Section 4 - Level A (Knowledge)
00:36
Showme Problem -Classifying Business transactions
08:32
Test Your Understanding - Section 4 - Level B (Application)
00:35
Section 5: Know how to Journalize Business Transactions
Topic #1 - Recording Business Transactions in the Journal
05:41
Test Your Understanding - Section 5 -Level A - (knowledge)
02:54
02:52

ANALYZING TRANSACTIONS WITH DEBITS AND CREDITS

ACE Place

Selected transactions for Ace Place, an interior decorator corporation, in its first month of

business, are as follows.

1. Issued stock to investors for $15,000 in cash.

2. Purchased used car for $10,000 cash for use in business.

3. Purchased supplies on account for $300.

4. Billed customers $3,700 for services performed.

5. Paid $200 cash for advertising start of the business.

6. Received $1,100 cash from customers billed in transaction (4).

7. Paid creditor $300 cash on account.

8. Paid dividends of $400 cash to stockholders.

Instructions

Prepare the debit–credit journal entry for each transaction.

03:35

This information relates to Wilson Real Estate Agency.

Oct. 1 Stockholders invest $30,000 in exchange for common stock of the corporation.

2 Hires an administrative assistant at an annual salary of $36,000.

3 Buys office furniture for $3,800, on account.

6 Sells a house and lot for M.E. Petty; commissions due from Petty, $10,800

(not paid by Petty at this time).

10 Receives cash of $140 as commission for acting as rental agent renting an

apartment.

27 Pays $700 on account for the office furniture purchased on October 3.

30 Pays the administrative assistant $3,000 in salary for October.

Instructions

Prepare the debit–credit journal entries for each transaction.

04:00

The May transactions of ABC Corporation were as follows.

May 4 Paid $700 due for supplies previously purchased on account.

7 Performed advisory services on account for $6,800.

8 Purchased supplies for $850 on account.

9 Purchased equipment for $1,000 in cash.

17 Paid employees $530 in cash.

22 Received bill for equipment repairs of $900.

29 Paid $1,200 for 12 months of insurance policy. Coverage begins June 1.

Instructions

Prepare the debit–credit journal entries for each transaction.

Showme Problem #4 - Clean Sweep
08:05
Showme #5 - Clear View Miniature Golf
05:41
Test Your Understanding Section 5 - Level B (Application)
03:20
Test your understanding on Concepts in Chapter 2
28 questions
Section 6: Know how to post to the Ledger
Topic # 1 - Posting to the General Ledger
05:42
Test Your Understanding - Section 6 -Level A - (Knowledge)
03:54
05:57

Redix Finance Company, which provides financial advisory services, engaged in the

following transactions during May 2010:

May 1 Received 300,000 cash for shares of capital stock issued when company was organized.

2 The company borrowed 40,000 from the bank on a note.

7 The company bought 182,400 of computer equipment for cash.

11 Cash received for services performed to date was 15,200.

14 Services performed for a customer who agreed to pay within a month were 10,000.

15 Employee wages were paid, 13,200.

19 The company paid 14,000 on the note to the bank.

31 Interest paid to the bank for May was 140.

31 The customer of May 14 paid 3,200 of the amount owed to the company.

31 An order was received from a customer for services to be rendered next week, which will be billed at 12,000.

Journalize the above transactions and post to the following accounts in the ledger. Cash, Accounts

Receivable, Equipment, Notes Payable, Capital Stock, Service Revenue, Salary Expense, Interest expense

Showme Problem 1 B - Post Redix journal entries
05:10
08:04

Sutherland Oasis was started on April 1 by David Sutherland. These selected events and transactions occurred during April.

Apr. 1 Stockholders invested $70,000 cash in the business in exchange for common stock.

4 Purchased land costing $50,000 for cash.

8 Purchased advertising in local newspaper for $1,200 on account.

11 Paid salaries to employees $2,700.

12 Hired park manager at a salary of $3,600 per month, effective May 1.

13 Paid $7,200 for a 1-year insurance policy.

17 Paid $600 cash dividends.

20 Received $6,000 in cash from customers for admission fees.

25 Sold 100 coupon books for $90 each. Each book contains ten coupons that entitle the holder to one admission to the park. (Hint: The revenue is not earned until the coupons are used.)

30 Received $7,900 in cash from customers for admission fees.

30 Paid $400 of the balance owed for the advertising purchased on account on April 8.

The company uses the following accounts: Cash, Prepaid Insurance, Land, Accounts Payable,

Unearned Service Revenue, Common Stock, Dividends, Service Revenue, Advertising Expense,

and Salaries and Wages Expense.

-Test Your Understanding Section 6 - Level B ( Application)
03:37
Section 7: Know how to Adjust the Accounts & Complete the Accounting Cycle
06:27

Adjusting entries are journal entries made at the end of an accounting period or at any time financial statements are to be prepared to bring about a proper matching of revenues and expenses.

Adjusting entries fall into two broad classes: deferred (meaning to postpone or delay) items and accrued (meaning to grow or accumulate) items. Deferred items consist of adjusting entries involving data previously recorded in accounts. These entries involve the transfer of data already recorded in asset and liability accounts to expense and revenue accounts, respectively. Accrued items consist of adjusting entries relating to activity on which no data have been previously recorded in the accounts.

Test your understanding Questions on need for Adjusting Entries
20 questions
06:26

The matching principle requires that expenses incurred in producing revenues be deducted from the revenues they generated during the accounting period. The matching principle is one of the underlying principles of accounting. This matching of expenses and revenues is necessary for the income statement to present an accurate picture of the profitability of a business.

Adjusting entries reflect unrecorded economic activity that has taken place but has not yet been recorded. Why has the company not recorded this activity by the end of the period? One reason is that it is more convenient and economical to wait until the end of the period to record the activity. A second reason is that no source document concerning that activity has yet come to the accountant’s attention.

04:41

Try this problem on adjusting entries

04:26

Try this problem on adjusting entries

05:53

The work sheet is a columnar sheet of paper or a computer spreadsheet on which accountants summarize information needed to make the adjusting and closing entries and to prepare the financial statements. Usually, they save these work sheets to document the end-of-period entries. A work sheet is only an accounting tool and not part of the formal accounting records. Therefore, work sheets may vary in format; some are prepared in pencil so that errors can be corrected easily. Other work sheets are prepared on personal computers with spreadsheet software. Accountants prepare work sheets each time financial statements are needed—monthly, quarterly, or at the end of the accounting year.

05:40

In Section 2, you learned that revenue, expense, and dividends accounts are nominal (temporary) accounts that are merely subclassifications of a real (permanent) account, Retained Earnings. You also learned that we prepare financial statements for certain accounting periods. The closing process transfers (1) the balances in the revenue and expense accounts to a clearing account called Income Summary and then to Retained Earnings and (2) the balance in the Dividends account to the Retained Earnings account. The closing process reduces revenue, expense, and Dividends account balances to zero so they are ready to receive data for the next accounting period.

Accountants may perform the closing process monthly or annually. The Income Summary account is a clearing account used only at the end of an accounting period to summarize revenues and expenses for the period.

After this video I would like you to follow through with me a demonstration problem - Lopez Delivery. In the demo I will demonstrate the accounting cycle.

First print off the Demo problem, journal sheet and T accounts and try and journalise the transactions post to the T and come up with a trial balance. Then go through the videos Step1, Step 2&3 and Step 4 &5.

Test your understanding on the Accounting Cycle
8 questions
Section 8: Fraser's Golf Academy Practice set of Accounting Records
13:47

An introduction to a business that requires someone to keep the accounting records. Download the case and the excel spreadsheet. Try the case on your own then watch the videos.

12:43

In Part 2 your journalise and post to the ledger and take atrial balance.

14:48

In Part 3 you complete the worksheet and prepare financial statements

Comprehensive Demonstration problem using excel spreadsheets
3 pages
Test your understanding on adjusting and closing
8 questions
Section 9: Midterm Exams for you to practice
10:50

This is a one hour exam on material covered so far in this course.

7 pages

This is a typical 2 hour midterm exam in an Introductory Financial Accounting course. Print if off and complete it to the best of your ability. Then check the solution.

05:14

This is one midterm exam with video solution and marking key.This is question 1 on presentation of financial statements. Download the exam and try on your own - then watch the video and mark your own paper.

One hour midterm exam with solutions for questions 2 to 5
09:52
Section 10: Know some Accounting Theory
03:37

Accounting theory is "a set of basic concepts and assumptions and related principles that explain and guide the accountant's actions in identifying, measuring, and communicating economic information".

Understanding the theory behind the accounting process, however, helps one make decisions in diverse accounting situations. Accounting theory provides a logical framework for accounting practice.

Test your understanding on Accounting Theory
6 questions
Section 11: Know How to Record the Transactions of a Merchandiser
03:27

In this section of the course we look at recording the business transactions of a merchandising company. Merchandisers sell goods. Goods can be returned or discounted - unlike services.

You are introduced to some new accounts such as sales, sales returns and allowances, sales discounts, cost of goods sold, inventory, perpetual inventory system, periodic inventory system and gross profit.

05:02

Download the problem Office Depot and try it before viewing the video

08:33

In this section of the course we look at recording the business transactions of a merchandising company. Merchandisers sell goods. Goods can be returned or discounted - unlike services.

You are introduced to some new accounts such as sales, sales returns and allowances, sales discounts, cost of goods sold, inventory, perpetual inventory system, periodic inventory system and gross profit.

Test Your Understanding - Level A ( Knowledge Questions)
03:48
Introduction to showme problems 1,2 &3
00:29
03:06

Practice merchandise transactions by pausing the video and try it yourself.

06:23

Lancaster Warehouse distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of its customers. During the month of July, the following merchandising transactions occurred.

July 1 Purchased suitcases on account for $2,700 from Jarvis Manufacturers, terms 2/15, n/30.

3 Sold suitcases on account to Simpson for $2,900. The cost of the merchandise sold was $1,800.

9 Paid Jarvis Manufacturers in full.

12 Received payment in full from Simpson.

17 Sold suitcases on account to Skaith for $2,000. The cost of the merchandise sold was $1,200.

18 Purchased suitcases on account for $2,200 (including freight) from

Steamer Manufacturers, terms 1/10, n/30.

20 Received $300 credit for suitcases returned to Steamer Manufacturers.

21 Received payment in full from Skaith.

22 Sold suitcases on account to Wiseman Co. for $3,120. The cost of the merchandise sold was $1,800.

30 `Paid Steamer Manufacturers in full.

31 ` Granted Wiseman Co. $310 credit for suitcases returned costing $170.

Instructions

Journalize the transactions for the month of July

07:39

Recording Merchandize Transactions

Murray Hardware Store completed the following merchandising transactions in the month of May.

May 1 Purchased merchandise on account from Whitton Wholesale Supply for

$8,000, terms 1/10, n/30.

2 Sold merchandise on account for $4,400, terms 2/10, n/30. The cost of the merchandise sold was $3,300.

5 Received credit from Whitton Wholesale Supply for merchandise returned $200.

9 Received collections in full, less discounts, from customers billed on May 2.

10 Paid Whitton Wholesale Supply in full, less discount.

11 Purchased supplies for cash $900.

12 Purchased merchandise for cash $3,100.

15 Received $230 refund for return of poor-quality merchandise from supplier on cash purchase.

17 Purchased merchandise from Wright Distributors for $2,500, terms 2/10, n/30.

19 Paid freight on May 17 purchase $250.

24 Sold merchandise for cash $5,500. The cost of the merchandise sold was $4,100.

25 Purchased merchandise from Fasteners Inc. for $800, terms 3/10, n/30.

27 Paid Wright Distributors in full, less discount.

29 Made refunds to cash customers for returned merchandise $124. The returned merchandise had cost $90.

31 Sold merchandise on account for $1,280, terms n/30. The cost of the merchandise sold was $830.

Journalize the above transactions.

Showme Problem #5 Kennedy
00:54
Showme Problem #6 - Curtain Co
00:29
Showme Problem #7 - White Oaks
00:37
Test Your Understanding on Merchadise journal entries - Level b ( Application)
05:17
Section 12: Know how to Present a Multi Step Income Statement
06:52

Cost of goods sold is the cost to the seller of the goods sold to customers. For a merchandising company, the cost of goods sold can be relatively large. All merchandising companies have a quantity of goods on hand called merchandise inventory to sell to customers. Merchandise inventory (or inventory) is the quantity of goods available for sale at any given time. Cost of goods sold is determined by computing the cost of (1) the beginning inventory, (2) the net cost of goods purchased, and (3) the ending inventory

05:42

A classified income statement divides both revenues and expenses into operating and non-operating items. The statement also separates operating expenses into selling and administrative expenses. A classified income statement is also called a multiple-step income statement.

A classified income statement has the following four major sections:

  • 1) Operating revenues.
  • 2) Cost of goods sold.
  • 3) Operating expenses.
  • 4) Non-operating revenues and expenses (other revenues and other expenses).
  • The classified income statement shows important relationships that help in analyzing how well the company is performing. For example, by deducting cost of goods sold from operating revenues, you can determine by what amount sales revenues exceed the cost of items being sold. If this margin, called gross margin, is lower than desired, a company may need to increase its selling prices and/or decrease its cost of goods sold. The classified income statement subdivides operating expenses into selling and administrative expenses. Thus, statement users can see how much expense is incurred in selling the product and how much in administering the business.

    01:48

    Learn how to prepare a multi step income statement

    01:48

    Another lecture on preparing a multi stepp income statement.

    Showme Problem # 1- Dykstra
    00:27
    03:27

    The adjusted trial balance of Gertz Company included the following selected accounts:

    Debit Credit

    Sales $575,000

    Sales Returns and Allowances $ 50,000

    Sales Discounts 9,500

    Cost of Goods Sold 347,000

    Freight-out 2,000

    Advertising Expense 15,000

    Interest Expense 19,000

    Store Salaries Expense 74,000

    Utilities Expense 18,000

    Depreciation Expense 3,500

    Instructions

    1. Use the above information to prepare a multiple-step income statement for the year ended December 31, 2007.

    11:28

    Practice journalizing entries for a merchandiser.

    01:55

    Material that will be tested on the final exam.

    Section 13: Tom's Pro Golf Shop - Practice set for a merchandise co.
    13:08

    Learn how to record journal entries for a merchandise company

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    Instructor Biography

    Dr. John Mclellan, Accounting Professor

    I am a Professor of Accounting with over thirty-five years experience teaching accounting to college students, undergraduate and MBA university students as well as CMA candidates seeking to earn their Professional Certified Management Accountant Designation.

    I achieved my Certified Management Accountant Designation 40 years ago. With that I then earned my Masters of Business Administration degree and later a PHD in accounting.

    I have developed and will continue to develop a number of courses in both Financial Accounting and Management Accounting for you - a college or university student (or even a secondary student) to help you to achieve the best result in your undergraduate accounting course. If you get an "A" from me I guarantee you will get an "A" from your accounting prof.

    For Graduate students, I have a course to prepare those of you who do not have a business degree for the Masters of Business Administration. Also I have a course at the masters level called Managerial Accounting.

    For CMA Candidates, I have courses to prepare you to successfully pass their Certified Management Accounting Exams offered by Institute of Management Accountants.


    Dr. John

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