BUS 1050 1nd Edition Lecture 18Outline of Last Lecture I. Accounting and Marketing Outline of Current Lecture II. PacioliIII. Accounting SystemCurrent LecturePacioliThe Accounting SystemThe basis of business is accounting.Inputs: accounting documents, sales, purchasing, shipping, payroll, bank, travel records, entertainment records.Processing: Entries are made into journals: Recording. The effects of these journals entries are transferred or posted into ledgers: Classifying.All accounts are summarizedOutput: financial statements, income balance sheet, outside reportsReceipts-> Memo-> Journals (Bookkeeper)-> Payables, Receivables, real estate, exportation.-> Ledger-> Balance,Income Statement (P+L, Profit and Loss),Cash Flow Statement.Assets = Liabilities + EquityRevenue – Cost of Goods-Expenses= Net Profit Assets Liabilities Owners EquityThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Accounts ReceivableInventoryInvestmentsEquipment LandBuildingsMotor VehiclesGoodwillCashAccounts PayableNotes PayableBonds PayableTaxes PayableCapital StockRetained EarningsRevenues Cost of Goods Sold ExpensesSales RevenueRental RevenueCommissions RevenueRoyalty RevenueCost of buying goodsCost of storing goodsWagesRent RepairsTravelinsuranceUtilitiesEntertainmentStorageInterestDonationsLicensesFeesSuppliesAdvertisingTaxesClassifications of Assets -Current Asset (cash inventory) -Fixed Asset (Land, equipment) -Intangible (Other: Intellectual property)Bonds: IOUFor organizations, equity value is determined by: Retained earnings, price
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