Task Team of FUNdaMENTAL aCCOUNtIng School of Business. Sun Yat-sen University Less ote Lesson 3: Analyzing and Recording Accounting Transactions Learning objectives 1. Provide the students with a background of the accounting process to better understand the numbers on the financial statements Define the economic transactions and events that are included into our accounting iderations 3. Learn about the fundamental accounting system and its components 4. Understand the basic accounting equation and illustrate it with some examples of transactions and their impacts on the accounting Equation Students major in accounting: 3 hours Others. 3 hours Teaching contents: What should we take into our consideration when we deal with the business activities as accountants? The exchanges of economic consideration between two parties shall be clearly defined Transactions-external economic exchanges (or external transactions) occur between the ization and an outside party On January 1, 2005, Hanlin Bookstore sold 100 accounting textbooks to a class of accounting students at University X Events-internal transactions occur within the organization On June 30, 2005, Hanlin Bookstore depreciate its fixed assets(those major furniture in the store) by the amount of 2, 000 RMB Accounts and their functions Accounts(also called general ledger accounts) are sub-classifications of accounting elements(e.g sh is a sub-classification of assets). Each entity must create a custom list that adequately describes the items represented. Accounts are usually assigned account numbers in addition to titles. Typically, similar accounts are grouped together numerically in the order they will appearTask Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University Lesson notes Lesson 3: Analyzing and Recording Accounting Transactions Learning objectives 1. Provide the students with a background of the accounting process to better understand the numbers on the financial statements 2. Define the economic transactions and events that are included into our accounting considerations 3. Learn about the fundamental accounting system and its components 4. Understand the basic accounting equation and illustrate it with some examples of transactions and their impacts on the accounting Equation. Teaching hours Students major in accounting: 3 hours Others: 3 hours Teaching contents: What should we take into our consideration when we deal with the business activities as accountants? The exchanges of economic consideration between two parties shall be clearly defined: Transactions-external economic exchanges (or external transactions) occur between the organization and an outside party. On January 1, 2005, Hanlin Bookstore sold 100 accounting textbooks to a class of accounting students at University X. Events-internal transactions occur within the organization. On June 30, 2005, Hanlin Bookstore depreciate its fixed assets (those major furniture in the store) by the amount of 2,000 RMB. Accounts and Their Functions Accounts (also called general ledger accounts) are sub-classifications of accounting elements (e.g., cash is a sub-classification of assets). Each entity must create a custom list that adequately describes the items represented. Accounts are usually assigned account numbers in addition to titles. Typically, similar accounts are grouped together numerically in the order they will appear