Alpha Teach Yourself Accounting In 24 Hours

Carol Costa and C. Wesley Addison, CPA Alpha Teach Yourself Accounting in A Pearson Education Company 24 hours Alpha Teach Yourself Accounting in 24 Hours Copyright  2001 by Carol Costa and C. Wesley Addison, CPA All rights reserved. No part of this book shall be reproduced, stored in a retrieval system, or transmitted by any means, electronic, mechanical, photocopying, recording, or otherwise, without written permission from the publisher. No patent liability is assumed with respect to the use of the information contained herein. Although every precaution has been taken in the preparation of this book, the publisher and authors assume no responsibility for errors or omissions. Neither is any liability assumed for damages resulting from the use of information contained herein. For information, address Pearson Education, Inc., 201 West 103rd Street, Indianapolis, IN 46290. International Standard Book Number: 0-02-864158-2 Library of Congress Catalog Card Number: 2001088753 Printed in the United States of America 02 01 00 Mike Sanders DEVELOPMENT EDITOR Nancy D. Warner PRODUCTION EDITOR Billy Fields COPY EDITOR Krista Hansing INDEXER Amy Lawrance PRODUCTION Angela Calvert John Etchison Mary Hunt Gloria Schurick COVER DESIGNER First printing: 2001 03 ACQUISITIONS EDITOR 4 3 2 1 Note: This publication contains the opinions and ideas of its authors. It is intended to provide helpful and informative material on the subject matter covered. It is sold with the understanding that the authors and publisher are not engaged in rendering professional services in the book. If the reader requires personal assistance or advice, a competent professional should be consulted. The authors and publisher specifically disclaim any responsibility for any liability, loss, or risk, personal or otherwise, which is incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this book. Trademarks All terms mentioned in this book that are known to be or are suspected of being trademarks or service marks have been appropriately capitalized. Pearson Education cannot attest to the accuracy of this information. Use of a term in this book should not be regarded as affecting the validity of any trademark or service mark. Alan Clements BOOK DESIGNER Gary Adair PUBLISHER Marie Butler-Knight PRODUCT MANAGER Phil Kitchel MANAGING EDITOR Jennifer Chisholm Overview Introduction xiii PART I The Chart of Accounts, How it Relates to the General Ledger and the Financial Statements HOUR 1 The Chart of Accounts/Balance Sheet Accounts 1 3 HOUR 2 Profit and Loss Statement Accounts 15 HOUR 3 Chart of Accounts Becomes the General Ledger 25 HOUR 4 Depreciable Assets, Prepaid Expenses, and Other Accounts HOUR 5 Organization and Proper Accounting Procedures PART II Daily Business Transactions 39 51 63 HOUR 6 Daily Sales Transactions 65 HOUR 7 Cost of Sales or Services 79 HOUR 8 Discounts, Allowances, and Other Adjustments 93 HOUR 9 Cash Disbursements 107 HOUR