This lesson details the importance of cash management and how to carefully document cash transactions. You’ll also learn about payroll accounting, different types of deposits, proper check writing, and how to reconcile a bank statement with the checking account.
- Prepare and balance cash receipts journals and cash disbursements journals.
- Open a business checking account.
- Deposit to and withdraw from the business checking account.
- Reconcile all cash and checking account activities.
- Compute and prepare employer-withheld payroll taxes.
This lesson will enhance your knowledge of accounting systems. You’ll learn about accrual accounting and how it differs from accounting for cash. You’ll also discover the critical role that an accurate inventory system plays in a business’s success or failure and the two major systems used with inventory.
- Calculate accrued interest and record adjustments for interest revenue.
- Apply and compare the three methods for determining the value of the merchandise in inventory.
- Enter transactions in the cash receipts journal, and post entries to the general ledger.
- Discuss accrual accounting.
- Define inventory accounting, and discuss the two major inventory systems.
- Determine the cost of merchandise percentage, estimated cost of ending inventory, total monthly sales, estimated gross profit, cost of sales, and estimated end-of-month inventory balance.
This lesson will allow you to apply what you know about ledgers and accounts to the wholesale industry. You'll discover some new items that are more strictly related to the wholesale industry — like cash discounts, trade discounts, and sales allowances. You'll also take a look at promissory notes.
- Compute the balance on sales invoices.
- Enter purchase invoice transactions in the purchase invoice register and the accounts payable ledger.
- Compute the interest on notes payable.
- Enter sales invoice transactions in the sales register and the accounts receivable ledger.
- Compute the balance on purchase invoices.
Additional Course Materials:
Workbooks Four, Five and Six
Supplement: How to Read an Income Statement and a Balance Sheet