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 Discussion 1


As the full-time bookkeeper, your job is to make sure all transactions are recorded properly. If there is an error, each correction needs the reason for the change and the effect on each account, whether it is an increase or decrease.


1.    What are some examples of transactions that would need to be recorded or journalized?


2.    Can you provide an example of a transaction and the journal entry from either Chapter 2 of our textbook or from your current employer?


3.    Why is it important to accurately record the transaction you selected?


4.    Can you think of any events that where no entry would be recorded?


5.    Suppose, a co-worker has recorded a cash receipt twice and wants you to record a correcting entry that will reverse the mistakes. The correcting entry will record a credit to the Cash account and a debit to the Sales account. Your co-worker has offered to buy you dinner for fixing this mistake.


6.    What should you investigate before making a decision about the correcting entry? What is happening to the Cash account? Would you accept a dinner offer from your co-worker for fixing the mistake?






Discussion 2


Based on your review of Chapter 3, describe an adjusting journal entry that is needed at the end of an accounting period.


Why are adjusting entries important and how do they contribute to accurate financial reporting?


Accrual accounting is required under U.S. GAAP. One of the main principles of accrual accounting is the Matching Principle, also known as the Revenue Recognition Principle and the Expense Recognition Principle. Consult are liable resource online and in your own words, explain the difference between accrual basis accounting and cash basis accounting. How does this relate to the Matching Principle?

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