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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
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
Builders Supply
issuance of note
Debit-Accounts Receivable $200,000.00 (because they are increasing their asset account)
Credit-Inventory $200,000.00 (because they are decreasing their asset account)
payment of note
Debit - cash $184,000.00 (because they are increasing their asset account)
Debit - Discounts taken by customers $16,000.00 (or some such account, they are recording discounts that their customers take.)
Credit - Accounts Receivable $200,000.00 (because they are decreasing their asset account)
Gem Lighting
receipt of note
Debit-Cash $200,000.00 (they are increasing their asset account)
Credit-Accounts Payable (Note Payable) $200,000.00 (they are increasing their liability account
payment of note
debit-Accounts Payable $200,000.00 (they are decreasing a liability account)
Credit-Cash $184,000.00 (they are decreasing their asset account)
Credit - Purchase Discounts taken (or some such account) $16,000.00 (they are recording discounts that they have taken for paying early)
Hope this helps!
I am in totally agreement wth you T&P!! :D Thanks! I pretty much had it to the same affect...but this is what the answer is that we were given...
Ex. 11–2
a.
1.Merchandise Inventory 196,000 (debit)
Interest Expense 4,000 (debit)
Notes Payable 200,000 (credit)
2.Notes Payable 200,000 (debit)
Cash 200,000 (credit)
b.
1.Notes Receivable 200,000 (debit)
Sales 196,000 (credit)
Interest Revenue 4,000 (credit)
2.Cash 200,000 (debit)
Notes Receivable 200,000 (credit)
The 196,000 instead of the 184,000 is because it is pro-rated 200,000 x .08 x (90/360) Don't ask me where the 360 instead of 365 comes from...another accounting phenomenom! lol I was so confused b/c my teacher has stuff backwards it looks like. The company who issued the note should have a accts. receivable, not payable! What a goofy professory I have :rolleyes:
Thanks a million though! And thanks for the T account refresher! I remember that from Acc 1 and it is a big help!!! :D This is slowly starting to make some sort of sense to me
Deb is right. That is what I would do.
Hey Deb we can be freaks together. I love accounting too.
Um...yeah....I agree......everything that she said....yeah...um....right on Debbie! :D :oQuote:
Originally posted by mina'smomma
Deb is right. That is what I would do.
Quote:
This is slowly starting to make some sort of sense to me
Don't you mean "cents"????:D
I just did it quick and didn't think of the proration part of it, but unless your question is actually a little different that what you wrote here, it doesn't say 8% per year, so there was no way for me to know that....but you should have been told that if you were to get the problem done correctly! But the 360 is another accounting phenomenom....to make things easier.....yeah, right! :D
And yes, I think your professor has it backwards. When you said that was the answer you were given, I was totally confused too until I read through the whole thing and realized it was just backwards. Way to confuse the students prof! ;) :D
Glad you basically had it right though and it was just the goofy answer from the prof that had you confused. See, you know more than you thought you knew! :D
I rewrote the question exactly....I think maybe the proration thing is just assumed throughout the book (??) I did it your way the first time too...then looked at the answer, back through the book and found the 90/360 stuff.
This one question is only the beginning of the absurdities of my prof! I wouldn't have time to explain then all if I had a year...and we've only been in class for 1/2 the semester.
You've been a lifesaver though, T&P! :D Everything is really starting to make a lot of sense now. I'm going to go back and start from the beginning of the chapter and work step by step...with the right information this time. Sorry to distract you from work today...hope the boss didn't catch ya! ;)
No problem, glad I could help. :D
And unfortunately I know exactly what you mean about goofy professors - I've had a few of my own lately. In my last class I actually lost my 4.0 GPA because the professor was an idiot and the text was no better. We were basically left to our own resources to learn the material, and it was extremely difficult stuff that even some of the experienced programmers in the class had difficulty with. By the end of class I was just happy to pass with an 83%. Why do we pay good money for this crap? :rolleyes:
We get to rate the class and the professor towards the end of the class. Everyone in that class really let the school have it - about the prof & the text. Didn't help my grade any but hopefully they will improve the class so others can actually learn something from it.
Do you get to rate the classes you take? Like I say, it didn't help my grade but I sure felt better after giving them a piece of my mind! :D
I hated math but was really good in accounting back in high school. Then, I missed three days and it went downhill from there. I couldn't get caught up and barely passed.
I can't help myself... I keep coming back to this thread like watchign a bad car accident... and I have NO CLUE what all this stuff is that is being said! looks impressive though. :o
Did the prof write the book?Quote:
Originally posted by Tubby & Peanut's Mom
... I actually lost my 4.0 GPA because the professor was an idiot and the text was no better.
That's always been an irk of mine. Not only are we paying the prof to teach us, we supplement his/her salary by having to buy his/her textbook, too. And, since s/he wrote the book, of course s/he knows the material inside and out which makes the tests MEGA hard. *sigh*
If I didn't work at a financial firm, my head would be spinnin' too! :D
How 'bout some cost basis questions? Those are fun! lol
> joins the "freaks" :o <
I can't believe that you all are trying to pad the "One Million Post"
Contest with math problems...
Drop in something spicy.....
The Bunny Ranch in Nevada has a 200,000 dollar a month operating budget....
See, SPICE AND MATH at the same time!!!;)
------------------------------------------
I forgot to finish the problem.
If the gals at the ranch sit on their assets, no money can be made!!!!!!
Freaks??? Damn straight!;)
lol...if I would have known we had some accounting buffs on this site, I would have let you guys help me all along!
P&T - Yes, we do get to rate the class...and they are def. going to get a piece of my mind. I think I am going to go to the Acc. head about this lady...I went to the library to study for the test I needed to take today (which is where I was when I asked this questions). My campus is about an hour away, so it isn't something I like to do for the heck of it...I was preparing to take the test....went to take it and found out.....SHE NEVER SENT THE TESTS TO THE TESTING CENTER!!!! :mad: :mad: :mad:
No one can contact her, she doesn't return emails, phone calls, etc. She will not give us her office hours....and the list goes on. If this was a regular ed class, then it would be easier, but it is an internet class and we depend on her to be available through the net. :rolleyes: Some people! Luckily, no one teaching at my school is experienced enough to write a text book, or else I wouldn't buy one.
Sorry for yet again, another rant...I think I need to change schools! lol
Do that, and do it now. We did that with this last guy too, but it was already towards the end of week 6 in an 8 week class, so it didn't help much. The professors have their requirments too, like you mention how they're supposed to be accessible and return emails and such, and if they're not doing that the school needs to know. I know when we contact student services they immediately hopped on the problem for us.Quote:
Originally posted by shutterbug0303
I think I am going to go to the Acc. head about this lady
Good luck.
Zippy, the thing I've noticed with my classes is that so many of the professors are from another country originally. Not that I'm prejudiced or anything, but there is a communication barrier. They get the basic points across but somethings they say just don't come out quite right and we're left to interpret the best we can, which sometimes isn't the right interpretation and we get our scores docked for it. :(
Richard, back when I was in high school - before computers, us math and science whizzes were the ones considered geeks since there were no computer geeks yet. ;)