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It's that time again...Tax season is upon us! But, this isn't about accountants and taxes...
It's about SCHOOL!!! I am in accounting 2 right now and am thorougly confused! The problem is, I'm an online student with no teacher direction...just a list of things to work on, then the test. I've been sitting in front of this book for 2 days straight and I'm still stuck on the first problem!! GGRRR!!! :mad: :mad:
Sorry for the rant! :o I hate school!!! lol :p
Ick, I hated my Accounting and Finance classes. Its weird because I love math and was always taking very, very advanced math and statistics classes. But when it came to accounting, I wanted to lose my lunch!
Which is why I hire an accountant every year, and dropped my college accounting course after the second class! :D :p
I don't envy the position you are in!
Quote:
Originally posted by catnapper
....dropped my college accounting course after the second class! :D :p
I don't envy the position you are in!
Considering that scenario right now as I am only a few steps away from the registar's office....... :o
In the mean time....if I "debit" something, it is "added" to the account, and if I "credit" something, it is "subtracted" from the account?!?! Or do I have those backwards?!?!
How did I even get through accounting 1 ?!?!? :rolleyes:
What is the problem maybe I can help. I have a degree in accounting.Quote:
Originally posted by shutterbug0303
It's that time again...Tax season is upon us! But, this isn't about accountants and taxes...
It's about SCHOOL!!! I am in accounting 2 right now and am thorougly confused! The problem is, I'm an online student with no teacher direction...just a list of things to work on, then the test. I've been sitting in front of this book for 2 days straight and I'm still stuck on the first problem!! GGRRR!!! :mad: :mad:
Sorry for the rant! :o I hate school!!! lol :p
You have them backwards sweetie... This is how I remembered it. If I swiped my debit card at the store I am subtracting money from my account.Quote:
Originally posted by shutterbug0303
Considering that scenario right now as I am only a few steps away from the registar's office....... :o
In the mean time....if I "debit" something, it is "added" to the account, and if I "credit" something, it is "subtracted" from the account?!?! Or do I have those backwards?!?!
How did I even get through accounting 1 ?!?!? :rolleyes:
To make you even more confused.....
It depends on if you are working with an asset account, or a liability ar capital account.
An easy way to think of it is asset is a good thing - a plus - so debits are plusses - you're increasing the asset account with a debit making the balance bigger.
Credit accounts are bad things - a negative - so debits are minuses to them - you're decreasing a liability with a debit.
On the other hand, if you have an asset account that you want to decrease, you would credit that account. The value of the asset is decreased by a credit.
And conversely, on a liability account, a credit would increase the amount of the liability account.
I learned accounting long before computers (my first accounting class was in 1977!) and we learned the old fashioned way with T accounts. Do you know what a T account is? If not, here's a simple explanation:
Asset Account
Debit|Credit
+ + |- -
+ + |- -
Liability/Capital Account
Debit|Credit
- - -|+ + +
- - -|+ + +
The T's do not line up too well here, but draw a T on a piece of paper and insert what I've typed here.
DO NOT use the bank as an example. All that ever did was confuse me. They do it different than you would think because to them your account is a liability whereas to you it's an asset, so forget how the bank does it.
So, to figure out if a debit or a credit is a plus or minus, determine which account you are dealing with Asset or Liability. T accounts are a wonderful thing in helping you to visualize what is going on. For every debit there must be a credit.....well...I could go on and on.....
Let me know if this helps or if you still have questions. The boss just walked in, but I can sneak a reply in now and then.
T&P's Mom,
<head spinning>
:D :DQuote:
Originally posted by Samantha Puppy
T&P's Mom,
<head spinning>
Not me, I love this stuff! :D Yeah, my friends in high school thought I was weird too. I always got 99's and 100's on the accounting exams. :o
<looking around...>
Freak!
<runs away>
;) :D
You and me both......I have to work closely with the Accounting Group here at work and when they need to "splain" things I always tell them to talk to me like I am a 2-yr old. :D :rolleyes:Quote:
Originally posted by Samantha Puppy
T&P's Mom,
<head spinning>
Runs with you! :DQuote:
Originally posted by Samantha Puppy
<looking around...>
Freak!
<runs away>
;) :D
that is a very good advise! the debit/credit terms in this case are for the bank's terms not yours - so it's the other way around.Quote:
Originally posted by Tubby & Peanut's Mom
DO NOT use the bank as an example. All that ever did was confuse me. They do it different than you would think because to them your account is a liability whereas to you it's an asset, so forget how the bank does it.
:DQuote:
Originally posted by Samantha Puppy
<looking around...>
Freak!
<runs away>
;) :D
Yep, got a lot of that in high school too. :D
Slick, I know exactly how you feel. We deal with a company here that is called "Profit Planners" and they deal with our defined benefit plan (retirement account). They are actuarials (whatever that is) and I've already told them they need to talk to me like a 5th grader, but they just don't get it. Some people are so into trying to make themselves sound impressive that they don't care if no one understands. It's the "Baffle them with BS" theory - and I hate people like that! If you need me to talk to you like a 5th grader, I'll do it. Trying to impress you with fancy language is getting neither of us anywhere.....but some people just don't get that.
Sorry.....all off topic....I know.....:o
I'm sorry I got distracted and didn't check this thread sooner...I am learning a lot from PT! :D Thanks guys!!! :D
Let me post this one problem and I promise I'll leave everyone alone and try to learn it myself. :D :p Maybe an explanation of one will help with the rest...
Chapter is about current liabilities....
Builders Supply issues a 90-day note for $200,000 to Gem Lighting Co. for merchandise inventory. Gem Lighting Co discounts the note at 8%
a. Journalize Builder's Supply's entries to record:
1. the issuance of the note
2. the payment of the note at maturity
b. Journalize Gem Lightning Co's entries to record:
1. the receipt of the note
2. the receipt fo the payment of the note at maturity