Accounting Principles
Accounting Equation
Presented by Indra Sulistiana
BASIC ACCOUNTING
EQUATION
STUDY OBJECTIVE 6
Assets = Liabilities + Owners Equity
ASSETS AS A BUILDING
BLOCK
Assets are resources owned by a
business.
They are used in carrying out such
activities as production, consumption
and exchange.
ASSETS SEBAGAI
PONDASI DASAR
Assets adalah sumber daya yang
dimiliki bisnis.
Sumber daya yang digunakan untuk
aktivitas produksi, konsumsi, dan
pertukaran.
LIABILITIES AS A
BUILDING BLOCK
Liabilities
are creditor claims against assets
are existing debts and obligations
LIABILITIES SEBAGAI
PONDASI DASAR
Liabilities
adalah klaim kreditor terhadap asset
adalah utang dan kewajiban yang ada
OWNERS EQUITY AS A
BUILDING BLOCK
Owners Equity = total assets minus
total liabilities. (A - L = O.E.)
Owners Equity represents the
ownership claim to total assets.
Subdivisions of Owners Equity:
1 Capital or Investments by Owner (+)
2 Drawing (-)
3 Revenues (+)
4 Expenses (-)
MODAL PEMILIK SEBAGAI
PONDASI DASAR
Modal Pemilik = total harta minus
total utang. (H - U = M.P.)
Modal Pemilik mewakili klaim
pemilik terhadap harta.
Subdivisi Modal Pemilik:
1 Modal or Investasi oleh Pemilik (+)
2 Penarikan (-)
3 Pendapatan (+)
4 Beban-beban (-)
INVESTMENTS BY OWNERS AS
A BUILDING BLOCK
Investments
are the assets the owner puts in
the business
increase owners equity
INVESTASI OLEH PEMILIK
SEBAGAI PONDASI DASAR
Investasi
harta yang diberikan pemilik
untuk bisnis
meningkatkan modal pemilik
DRAWINGS AS A BUILDING
BLOCK
Drawings
are withdrawals of cash or other
assets by the owner for personal
use
decrease owners equity
PENARIKAN SEBAGAI
PONDASI DASAR
Penarikan
adalah penarikan tunai atau harta
lain oleh pemilik untuk keperluan
pribadi
menurunkan modal pemilik
REVENUES AS A
BUILDING BLOCK
Revenues
gross increases in owners equity from
business activities entered into for the
purpose of earning income
may result from sale of merchandise,
services, rental of property, or lending
money
usually result in an increase in an asset
PENDAPATAN
SEBAGAI PONDASI
DASAR
Pendapatan
peningkatan kotor dalam modal pemilik
dari aktivitas bisnis yang dimasukkan
untuk tujuan mendapatkan pendapatan
bisa dihasilkan dari penjualan barang,
jasa, penyewaan properti, atau
meminjamkan uang
biasanya meningkatkan harta
EXPENSES AS A
BUILDING BLOCK
Expenses
decreases in owners equity that result from
operating the business
cost of assets consumed or services used in the
process of earning revenue
examples: utility expense, rent expense, supplies
expense, and tax expense
BEBAN SEBAGAI
PONDASI DASAR
Beban
menurunkan modal pemilik disebabkan operasi
bisnis
konsumsi biaya harta atau jasa yang dipakai
dalam proses menghasilkan pendapatan
contoh: beban utilitas, beban sewa, beban
supplies, dan beban pajak
INCREASES AND
DECREASES IN OWNERS
EQUITY
INCREASES DECREASES
Investments Withdrawals
by Owner Owners by Owner
Equity
Revenues Expenses
TRANSACTION
IDENTIFICATION PROCESS
STUDY OBJECTIVE
TRANSACTION ANALYSIS
TRANSACTION 1
Ray Neal decides to open a
computer programming service.
On September 1, he invests
$15,000 cash in the business,
which he names Softbyte.
Softbyte
TRANSACTION ANALYSIS
TRANSACTION 1 SOLUTION
Assets = Liabilities + Owners Equity
Cash R. Neal, Capital
+ 15,000 Investment + 15,000
$15,000 = $15,000
There
Thereisisan
anincrease
increasein
inthe
theasset
assetCash,
Cash,
$15,000,
$15,000,and
andananequal
equalincrease
increaseininthe
theowners
owners
equity,
equity,R.
[Link],
Neal,Capital,
Capital,$15,000.
$15,000.
TRANSACTION
ANALYSIS TRANSACTION 2
Softbyte purchases computer
equipment for $7,000 cash.
TRANSACTION ANALYSIS
TRANSACTION 2 SOLUTION
Assets = Liabilities + Owners Equity
Cash + Equipment = + R. Neal, Capital
Old
$15,000 = $15,000
(2) - 7,000 + 7,000______________________________
New
$ 8,000 + $7,000 = $15,000
Cash is decreased by $7,000 and the asset
Equipment is increased by $7,000.
TRANSACTION ANALYSIS
TRANSACTION 3
Softbyte purchases supplies expected to last
for several months for $1,600 from Acme
Supply Company.
Acme agrees to allow Softbyte to pay this bill
next month, in October.
This transaction is referred to as a purchase
on account or a credit purchase.
Acme Supply
Company
Softbyte
TRANSACTION ANALYSIS
TRANSACTION 3 SOLUTION
Assets = Liabilities + Owners Equity
Cash + Supplies + Equip. = Accts. Pay. + R. Neal, Capital
Old $8,000 + $7,000 = $15,000
(3) _____ + $1,600 _______ + $1,600 ________
New $8,000 + $1,600 + $7,000 = + $1,600 + $15,000
$16,600 $16,600
The
Theasset
assetSupplies
Suppliesisisincreased
increasedby
by$1,600,
$1,600,
and
andthe
theliability
liabilityAccounts
AccountsPayable
Payableisis
increased
increasedbybythe
thesame
sameamount.
amount.
TRANSACTION ANALYSIS
TRANSACTION 4
Softbyte receives $1,200 cash from
customers for programming services it has
provided.
This transaction represents the Softbytes
principal revenue-producing activity.
Softbyte
TRANSACTION ANALYSIS
TRANSACTION 4 SOLUTION
Assets = Liabilities + Owners Equity
Cash + Supplies + Equip. = Accts. Pay. + R. Neal, Capital
Old $8,000 + $1,600 + $7,000 = $1,600 + $15,000
(4) + 1,200 _____ _____ _______________ + 1,200
New $9,200 + $1,600 + $7,000 = $1,600 $16,200
$17,800 $17,800
Cash
Cashisisincreased
increasedbyby$1,200
$1,200and
andR.
[Link],
Neal,
Capital
Capitalisisincreased
increasedby
by$1,200.
$1,200.
TRANSACTION ANALYSIS
TRANSACTION 5
Softbyte receives a bill for $250
from the Daily News for advertising
but postpones payment of the bill
until a later date.
Softbyte Bill
Daily News
TRANSACTION ANALYSIS
TRANSACTION 5 SOLUTION
Assets = Liabilities + Owners Equity
Cash + Supplies + Equip. = Accts. Pay. + R. Neal, Capital
Old $9,200 + $1,600 + $7,000 = $1,600 + $16,200
(5) ___Advertising Expense__ + 250 _- 250
New $9,200 + $1,600 + $7,000 = $1,850 + $15,950
$17,800 $17,800
Accounts
AccountsPayable
Payableisisincreased
increasedby
by$250
$250and
andR.
R.
Neal,
Neal,Capital
Capitalisisdecreased
decreasedbyby$250.
$250.
TRANSACTION ANALYSIS
TRANSACTION 6
Softbyte provides $3,500 of
programming services for customers.
Cash of $1,500 is received from
customers, and the balance of $2,000 is
billed on account.
Softbyte
Bill
TRANSACTION ANALYSIS
TRANSACTION 6 SOLUTION
Assets = Liabilities + Owners Equity
Cash + Accts. Rec. + Supplies + Equip. = Accts. Pay. + R. Neal, Capital
Old
$ 9,200 + $1,600 + $7,000 = $1,850 + $15,950
(6)
+ 1,500 + 2,000 + 3,500
New
$10,700 + $2,000 + $1,600 + $7,000 = $1,850 + $19,450
$21,300 $21,300
Cash
Cashisisincreased
increasedby
by$1,500;
$1,500;Accounts
AccountsReceivable
Receivableisisincreased
increased
by
by$2,000,
$2,000,and
andR.
[Link],
Neal,Capital
Capitalisisincreased
increasedby
by$3,500.
$3,500.
TRANSACTION ANALYSIS
TRANSACTION 7
Expenses paid in cash for September
are store rent, $600; employees
salaries, $900; and utilities, $200.
$600
Softbyte
$900
$200
TRANSACTION ANALYSIS
TRANSACTION 7 SOLUTION
Assets = Liabilities + Owners Equity
Cash + Accts. Rec. + Supplies + Equip. = Accts. Pay. + R. Neal, Capital
Old
$10,700 + $2,000 + $1,600 + $7,000 = $1,850 + $19,450
(7)
- 1,700 Rent Expense - 600
Salaries Expense - 900
Utilities Expense - 200
New
$ 9,000 + $2,000 + $1,600 + $7,000 = $1,850 + $17,750
$19,600 $19,600
Cash
Cashisisdecreased
decreasedby
by$1,700
$1,700and
andR.
[Link],
Neal,Capital
Capitalisisdecreased
decreased
by
bythe
thesame
sameamount.
amount.
TRANSACTION ANALYSIS
TRANSACTION 8
Softbyte pays its $250
Daily News advertising bill
in cash.
Softbyte
Daily News
TRANSACTION ANALYSIS
TRANSACTION 8 SOLUTION
Assets = Liabilities + Owners Equity
Cash + Accts. Rec. + Supplies + Equip. = Accts. Pay. + R. Neal, Capital
Old
$9,000 + $2,000 + $1,600 + $7,000 = $1,850 + $17,750
(8)- 250 - 250 .
New
$8,750 + $2,000 + $1,600 + $7,000 = $1,600 + $17,750
$19,350 $19,350
Both
BothCashCashand
andAccounts
AccountsPayable
Payableare
aredecreased
decreasedby
by
$250.
$250. Since
Sincethe
theexpense
expensewas
waspreviously
previouslyrecorded,
recorded,
ititisisnot
notrecorded
recordednow.
now.
TRANSACTION ANALYSIS
TRANSACTION 9
The sum of $600 in cash is
received from customers who have
previously been billed for services
(in Transaction 6).
Softbyte
TRANSACTION ANALYSIS
TRANSACTION 9 SOLUTION
Assets = Liabilities + Owners Equity
Cash + Accts. Rec. + Supplies + Equip. = Accts. Pay. + R. Neal, Capital
Old
$8,750 + $2,000 + $1,600 + $7,000 = $1,600 + $17,750
(9) + 600 - 600 .
New
$9,350 + $1,400 + $1,600 + $7,000 = $1,600 + $17,750
$19,350 $19,350
Cash
Cashisisincreased
increasedbyby$600
$600and
andAccounts
AccountsReceivable
Receivableisis
decreased
decreasedby bythe
thesame
sameamount.
amount. R.
[Link],
Neal,Capital
Capitalisisnot
not
increased
increasedbecause
becausethe
therevenue
revenuewas
wasalready
alreadyrecorded.
recorded.
TRANSACTION ANALYSIS
TRANSACTION 10
Ray Neal withdraws
$1,300 in cash from the
business for his personal
use.
$1,300
Softbyte
TRANSACTION ANALYSIS
TRANSACTION 10 SOLUTION
Assets = Liabilities + Owners Equity
Cash + Accts. Rec. + Supplies + Equip = Accts. Pay. + R. Neal, Capital
Old
$9,350 + $1,400 + $1,600 + $7,000 = $1,600 + $17,750
(10)
- 1,300 Drawing - 1,300
New
$8,050 + $1,400 + $1,600 + $7,000 = $1,600 + $16,450
$18,050 $18,050
Cash is decreased by $1,300 and R. Neal, Capital is
decreased by the same amount. This is not an
expense, but rather a withdrawal of owners equity.
REVIEW
KLASIFIKASIKAN POS-POS DI BAWAH INI DENGAN (1) ASSETS, (2)
LIABILITIES, (3) OWNERS EQUITY:
REVENUES
EQUIPMENT
WAGES EXPENSE
LAND
ACCOUNTS PAYABLE
CASH
CAPITAL
PREPAID RENT
UNEARNED FEES
VEHICLE
ACCOUNTS RECEIVABLE
REVIEW
KLASIFIKASIKAN POS-POS DI BAWAH INI DENGAN (1) ASSETS, (2)
LIABILITIES, (3) OWNERS EQUITY:
REVENUES OWNERS EQUITY
EQUIPMENT ASSETS
WAGES EXPENSE OWNERS EQUITY
LAND ASSETS
ACCOUNTS PAYABLE LIABILITIES
CASH ASSETS
CAPITAL OWNERS EQUITY
PREPAID RENT ASSETS
UNEARNED FEES LIABILITIES
VEHICLE ASSETS
ACCOUNTS RECEIVABLE ASSETS
FINANCIAL STATEMENTS
STUDY OBJECTIVE 8
Four financial statements are prepared from the
summarized accounting data:
Income Statement
revenues and expenses and resulting net income or net loss for
a specific period of time
Owners Equity Statement
changes in owners equity for a specific period of time
Balance Sheet
assets, liabilities, and owners equity at a specific date
Statement of Cash Flows
cash inflows (receipts) and outflows (payments) for a specific
period of time
FINANCIAL STATEMENTS AND THEIR INTERRELATIONSHIPS
SOFTBYTE, INC.
Income Statement
For the Month Ended September 30, 2005
Revenues
Service revenue $ 4,700
Expenses
Salaries expense $ 900
Rent expense 600
Advertising expense 250
Utilities expense 200
Total expenses 1,950
Net income $ 2,750
Net income of $2,750 shown on the income statement is added to the
beginning balance of owners capital in the owners equity statement.
FINANCIAL STATEMENTS AND
THEIR INTERRELATIONSHIPS
SOFTBYTE, INC.
Owners Equity Statement
For the Month Ended September 30, 2005
Retained earnings, September 1, 2005 $ -0-
Add: Investments $ 15,000
Net income 2,750 17,750
17,750
Less: Drawings 1,300
Retained earnings, September 30, 2005 $16,450
Net income of $2,750 carried forward from the income statement to the
owners equity statement. The owners capital of $16,450 at the end of the
reporting period is shown as the final total of the owners equity column of the
Summary of Transactions (Illustration 1-8).
FINANCIAL STATEMENTS AND
THEIR INTERRELATIONSHIPS
SOFTBYTE, INC.
Balance Sheet
September 30, 2005
Assets
Cash $ 8,050
Accounts receivable 1,400
Supplies 1,600
Equipment 7,000
Total assets $ 18,050
Liabilities and Owners Equity
Liabilities
Accounts payable $ 1,600
Owners equity
R. Neal, capital 16,450
Total liabilities and owners equity $ 18,050
Owners capital of $16,450 at the end of the reporting period shown
in the owners equity statement is shown on the balance sheet.
FINANCIAL STATEMENTS AND
THEIR INTERRELATIONSHIPS
SOFTBYTE, INC.
Balance Sheet
September 30, 2005
Assets
Cash $ 8,050
Accounts receivable 1,400
Supplies 1,600
Equipment 7,000
Total assets $ 18,050
Liabilities and Owners Equity
Liabilities
Accounts payable $ 1,600
Owners equity
R. Neal, capital 16,450
Total liabilities and owners equity $ 18,050
Cash of $8,050 on the balance sheet is reported on the statement of cash flows.
FINANCIAL STATEMENTS AND
THEIR INTERRELATIONSHIPS
SOFTBYTE, INC.
Statement of Cash Flows
For the Month Ended September 30, 2005
Cash flows from operating activities
Cash receipts from revenues $ 3,300
Cash payments for expenses (1,950)
Net cash provided by operating activities 1,350
Cash flows from investing activities
Purchase of equipment (7,000)
Cash flows from financing activities
Sale of common stock $ 15,000
Payment of cash dividends (1,300)
Net cash provided by financing activities 13,700
Net increase in cash 8,050
Cash at the beginning of the period 0
Cash at the end of the period $ 8,050
Cash of $8,050 on the balance sheet and statement of cash flows is shown as the
final total of the cash column of the Summary of Transactions (Illustration 1-8).
EXERCISE:
KELLY CAMARILLO MENDIRIKAN DAN MENJALANKAN JASA BINATU
CAMARILLO DRY CLEANERS. SAAT INI, IA MENYEWA GEDUNG DAN
PERALATANNYA SAMBIL MENUNGGU PERLUASAN FASILITAS BARU MEREKA.
PEKERJAAN DRY CLEANING MEREKA DIKERJAKAN OLEH PERUSAHAAN LAIN
DENGAN HARGA DISTRIBUTOR. AKTIVA DAN KEWAJIBAN PERUSAHAAN PADA
TANGGAL 1 NOVEMBER TAHUN BERJALAN ADALAH SEBAGAI BERIKUT: CASH,
$5.400; ACCOUNT RECEIVABLE, $18.750; SUPPLIES, $1.560; LAND, $35.000;
ACCOUNT PAYABLE, $5.880. TRANSAKSI USAHA SELAMA BULAN NOVEMBER
ADALAH:
A. DIBAYAR SEWA UNTUK BULAN BERJALAN, $2.450.
B. DIKIRIM TAGIHAN KEPADA PELANGGAN ATAS PENJUALAN SECARA
KREDIT, $7.150.
C. DIBAYAR UTANG USAHA KEPADA KREDITOR, $1.680.
D. DIBELI PERLENGKAPAN SECARA KREDIT, $840.
E. DITERIMA KAS DARI HASIL PENJUALAN TUNAI KEPADA PELANGGAN,
$14.600.
F. DITERIMA FAKTUR BULANAN UNTUK BEBAN DRY CLEANING SELAMA
BULAN NOVEMBER (AKAN DIBAYAR TANGGAL 10 DESEMBER), $7.400.
G. DIBAYAR: BEBAN UPAH, $1.800; BEBAN TRUK, $725; BEBAN UTILITAS, $510;
BEBAN RUPA-RUPA, $190.
H. DITENTUKAN BAHWA PERLENGKAPAN YANG TERSISA PADA AKHIR BULAN
ADALAH $1.350; OLEH KARENA ITU, BEBAN PERLENGKAPAN SELAMA
BULAN BERJALAN ADALAH SEBESAR $1.050.
SUMMARY
Cara mendebit dan kredit
Accounting equation (PERSAMAAN AKT)
Assets = liabilities + owners equity
DEBIT KREDIT
Assets + expenses + drawing = liabilities + owners equity + revenues
(+) Debit; (-) credit (+) credit; (-) debit
ATAU :
ACCOUNTS PLUS (+) MINUS (-) NORMAL
ASSETS DEBIT CREDIT DEBIT
LIABILITIES CREDIT DEBIT CREDIT
OWNER'S EQUITY CREDIT DEBIT CREDIT
WITHDRAWEL/DRAWING DEBIT CREDIT DEBIT
REVENUES CREDIT DEBIT CREDIT
EXPENSES DEBIT CREDIT DEBIT
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