FINISH:

In-Class Exercise: Complete Problems P4-11A, P4-11B–SHOW ME

LO6

  1. Study Guide Problem 7
  2. Study Guide Review Questions 16, 17, 18, 19
  3. End of Chapter Review Questions 11, 12, 13, 14, 15
  4. Mastery Problem
  5. Challenge Problem

Learning Activities–EXTRA CREDIT

  1. In earlier chapters, you developed an idea for a business. Develop a chart of accounts for that business.
  2. Make a list of the source documents that you have for you own personal transactions and to bring samples of these documents to class.

Critical Thinking Activities–EXTRA CREDIT

  1. The chart of accounts is like any numbering system in that it is a process of grouping data in a specific way. To demonstrate this, list various numbering systems and define what type of data the system is used to organize. For example, the Dewey Decimal system is a way of organizing books in a library. Street addresses are a way of identifying specific houses on a street.
  2. Prepare a chart of accounts for a business of your own choosing or to use the chart of accounts prepared in Learning Activity 1. List two source documents that could be used as evidence of amounts shown in those accounts. Source documents are EXTREMELY important. If the business is audited, the source documents may be used to prove the numbers on the tax return.
    1. Examples:
      1. Cash – check stubs and bank statement
      2. Supplies – canceled check and receipt of payment
      3. Prepaid Insurance – canceled check and policy
      4. Vehicle – purchase agreement and title
      5. Rent Expense – canceled check and lease agreement