Introduction to TGS Year 1

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來自 University of Virginia 的課程

Financial Accounting Fundamentals

367 個評分

University of Virginia

Financial Accounting Fundamentals

367 個評分

This course will teach you the tools you'll need to understand the fundamentals of financial accounting. Concise videos, the financial records of a small business, and "your turn" activities guide you through the three most commonly used financial statements: the Balance Sheet, the Income Statement, and the Statement of Cash Flows. Beyond recording transactions, you'll learn how to prepare these financial statements, and read and analyze them to draw basic conclusions about a company's financial health. By the end of this course, you will be able to: - Use journal entries to record transactions - Prepare and use t-accounts to summarize transactions recorded during an accounting period - Describe the three most commonly used financial statements and how they fit together - Prepare these financial statements based on transactions recorded during an accounting period - Draw basic conclusions about a company's financial health

從本節課中

Introduction to Recording Transactions

After learning about the Balance Sheet, we’re ready to move on to using journal entries to record transactions, then t-accounts to summarize transactions recorded during an accounting period. We’ll apply those tools to record transactions for a fictional startup company, The Garden Spot, during its first year of operations (TGS Year 1). As we go along, we’ll also evaluate the effect of transactions on the balance sheet equation to ensure it remains balanced.

Introduction to Recording Transactions1:27

T-Accounts: A Tutorial4:06

Journal Entries: A Tutorial3:47

Recording Transactions: Example 15:32

Recording Transactions: Example 24:50

Recording Transactions: Example 36:10

Recording Transactions: Your Turn10:42

Introduction to TGS Year 15:42

TGS Year 1: Transaction 16:05

TGS Year 1: Transaction 24:35

TGS Year 1: Transaction 32:30

TGS Year 1: Transaction 41:50

TGS Year 1: Transaction 5 and a Summary3:58

與講師見面

Luann J. Lynch
Almand R. Coleman Professor of Business Administration
Darden School of Business

Let's start with a simple case, The Garden Spot.

It's about the first year of operations of this small company that has recently

been started by Mary Jo.

This is where we get to the fun stuff.

This is accounting in action.

We're going to spend a lot of time doing a lot of work.

But we're going to see the rewards of all of the work that we've put in

when we get to the end of the year, and can sit back and

reflect, as a manager, on what happened in this company during its first year.

This case is on the course site, so if you haven't read it, take a few minutes,

download it, read through it before going forward.

Just to review what happened in The Garden Spot.

Mary Jo started The Garden Spot on January 1st.

She's now reached the end of the year, and she needs to record transactions

to capture the effective things that happened in the business during the year.

After she's done that, she will prepare financial statements for the year,

an income statement, a balance sheet, a statement of cash flow.

Then she can sit back, reflect on them, think about how the first year went,

how well she did, and what she'd like to do differently moving forward.

Recall the financial statement framework that we've introduced.

Let's apply that to The Garden Spot.

On January 1st, Mary Jo, as the manager and

owner of The Garden Spot, did several things.

She issued stock, the company issued stock to Mary Jo and

her husband Josh, in exchange for cash.

The company obtained a loan to get some additional financing.

It bought some equipment, it bought a truck, so it could be ready to go.

Throughout the year, the company purchased inventory.

Inventory of plants and shrubs and things like that to sell to its customers.

It sold that inventory to its customers, it incurred some operating

costs/operating expenses, and it made a payment on that initial loan.

All of these things are transactions that Mary Jo needs to record in the books.

Then at December 31st, she's ready to prepare the financial statements after

she's recorded these transactions.

But before she can do so, she'll just need to make a few

adjustments to a few accounts before she prepares those statements.

These adjustments will be things we need to do because of accrual accounting.

They usually result as the passage of time.

An example is recording the cost of using equipment by recording it an expense.

Don't worry about that now, we'll get to it, we'll learn how to do that.

After she's done that, she'll be able to start preparing financial statements.

She'll prepare a balance sheet for the end of the year.

That will be her snapshot about the financial position of the company

on December 31st.

She'll see her assets, her liabilities, her equity accounts.

She'll be able to take stock of her financial position.

Of course, she could prepare a balance sheet at the beginning of January 1st

before anything had happened.

But balance sheet wouldn't show any assets or wouldn't show any liabilities, and

it wouldn't show any owners' equity.

But that's only because this is her first year of operation, and that beginning

balance sheet would be constructed before any actions had been taken by the company.

Then Mary Jo will prepare an income statement, that will show the revenues and

the expenses and consequently the net income or net earnings of the company.

It will capture the results of the operations over that 12 month period,

over that first year.

And she will also prepare a statement of cash flow, so

that she can asses the change in her cash balance from the beginning of the year,

which was zero, to the end of the year.

To see how things went there.

Now remember, these two financial statements, the income statement and

the statement of cash flow, provide two very important video-like understanding

of what transpired between the beginning of the year and the end of the year.

The income statement will help Mary Jo understand

how her retained earnings balance changed

from the beginning of the year until December 31st at the end of the year.

She'll take her beginning retained earnings balance,

she'll add in the earnings that she generated during the year.

If she pays out any dividends to her owners, then she would subtract that, and

she'll arrive at her ending retained earnings balance.

That statement of cash flow also will give her an important understanding of

the change in a balance sheet account.

It will outline the change in cash in the organization and

help her understand how she went from the very beginning cash balance,

at the beginning of the year, to the cash balance at the end of the year.

And understand what transpired to make that change happen.

So this framework is one where we can think of as a help to Mary Jo,

as she starts to prepare her financial statements.

She'll record her transactions, prepare the statements

then she'll have the set of statements that we can look at in the framework.

And we can sit back, reflect, assess how it went that first year and

help Mary Jo think about what to do next.

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