Introductory Accounting

for Business

Akuntansi:
Sebagai sebuah proses
Suatu proses pengidentifikasian (identify), mengklasifikasikan (classify),
pengukuran (measure), mencatat (record and summarize), menginterpretasi
(interpret) dan mengkomunikasikan (report) informasi ekonomi yang
berguna dalam penilaian & pengambilan keputusan.
Sebagai sistem
Suatu sistem informasi keuangan, yang bertujuan untuk menghasilkan dan
melaporkan informasi yang relevan bagi berbagai pihak yang berkepentingan.

Wiliams, Haka, and Bettner,Financial and Managerial Accounting: the Basis for Business Decision, 14th ed.,McGraw-Hill International Edition, 2008
Kartikahadi, Sinaga, Syamsul, dan Siregar, Akuntansi Keuangan berdasarkan SAK berbasis IFRS, Buku 1,Salemba Empat, 2012

Akuntansi:
Sebagai aktivitas jasa
is a service activity, its function to provide quantitative information,
primarily financial in nature, about economic entities that is intended to be
useful in making economic decisions, in making reasoned choices among
alternative course of action
AICPA, 1970

To be good at your business, you have to know the numbers

Harold Geneen, former chairman of IT&T
Accounting and financial statements are the means for communicating the numbers
Language of Business

Kimmel, Weygandt, Kieso, Accounting: Tools for Business Decision Making, John Wiley & Sons, 20123

ACCOUNTING PROCESS & ECONOMIC ACTIVITIES

The
Accounting
Process

Economic
Activities

Actions
(decisions)

Accounting
Information

Decision
Makers

Reported Results
Of Actions
(decisions)

Wiliams, Haka, and Bettner,Financial and Managerial Accounting: the basis for business decision14th ed.,McGraw-Hill International Edition, 2008

Siklus Akuntansi (Accounting Cycle)

Identifikasi & Pengukuran

Transaksi
Buku Besar
(Ledger)

Neraca Percobaan
(Trial Balance)

Pencatatan

Penggolongan

Pengikhtisaran

(recording)

(posting)

(summarizing)

Buku Harian
(Journal)

Proses

Laporan Keuangan

Informasi Akuntansi

(Financial Statement)

(Accounting Information)

Konsekuensi Ekonomi
Komunikasi Laporan

Pengambilan Keputusan
(Decision Making)

Analisa & Interpretasi

Pengguna Laporan Keuangan

(user)

Adapted from:
S.R, Soemarso, Akuntansi, suatu pengantar, edisi ke-2, Lembaga Penerbit FEUI, 1986 (dengan penambahan)

Jenis Informasi Akuntansi

Akuntansi Keuangan
(Financial Accounting)

Describe the financial resources, obligations,

and activities of economic entity.
General purpose accounting information
External reporting

Akuntansi Manajerial
(Managerial Accounting)

Final Output of Accounting : Decisions

Specifically to assist management in operating

the business
Support managerial decision
Internal reporting

Statement of Income
(Laporan Laba Rugi)

Statement of Financial Position

(Laporan Posisi Keuangan)

Statement of Cash Flows

FINANCIAL
STATEMENTS

(Laporan Arus Kas)

Statement of Changes in Shareholders Equity

(Laporan Perubahan Ekuitas)

Notes to Financial Statements

(Catatan atas Laporan Keuangan)

Statement of Income
SEACLIFF COMPANY
Statement
of Income
Income Statement
For the year ended December 31, 2007
(In USD)

Revenue
Net Sales
Expenses
Cost of Goods Sold
Salaries expense
Supplies expense
Rent expense
Insurance expense
Depreciation expense
Miscellaneous expense
Interest expense
Income taxes
Total expenses
Net Income

900,000

530,000
92,500
34,000
47,050
14,950
28,500
26,000
24,000
28,000
825,000
75,000

2. Multi-step Income Statement

SEACLIFF COMPANY
Income Statement
Statement
of Income
For the year ended December 31, 2007
(In USD)

Net Sales

900,000

Cost of goods sold

530,000

Gross profit

370,000

Operating expenses
Selling expenses
General and administrative
Operating Income

117,000
126,000

243,000
127,000

Other Income (expenses)

Interest expense

24000

Income before income tax

103,000

Income tax expense

28,000

Net Income

75,000

Statement of Shareholders Equity

SEACLIFF COMPANY
Statement of
in Equity
of Changes
Stockholders'
Equity
For the year ended December 31, 2007
(In USD)

Common
stock
Share
capital
Retained earnings, beginning of year
Net Income
Less dividends
Retained earnings, end of year
Total
Totalstockholders'
Shareholdersequity
Equity

From Statement of Income

420,000
176,000
75,000
251,000
33,000
218,000
638,000

Statement of Financial Position

(Balance Sheet)

From
Statement of
Changes in
Equity

SEACLIFF COMPANY
Balance
Sheet Position
Statement
of Financial
For the Year Ended December 31, 2007
(In USD)
Assets
Current assets
Cash
Account receivable
Inventories
Supplies
Prepaid insurance
Total current assets

Liabilities
Shareholders
Equity
Liabilities &and
Stockholders'
Equity

Current liabilities
Account payable
Current
portion
of long-term debt
Interest
payable
Unearned revenue
Accrued expenses
Total current liabilities

38,000
117,000
180,000
40,000
15,000

25,000
24,000
48,000
15,000

390,000
Long-term liabilities

Non-current assets
Property, plant, and equipment
Land
Plant building (net)
Equipment (net)
Total property, plant, and equipment

Total Assets

112,000
200,000

Total liabilities
100,000
315,000
145,000

312,000

Stockholders' equity
Shareholders
equity
560,000

950,000

Common
stock
Share capital
Retained earnings
Totalshareholders
stockholders' equity
Total
equity
Total
stockholders'
equityequity
Totalliabilities
liabilities& and
shareholders

420,000
218,000
638,000
950,000

Statement of Cash Flows

SEACLIFF COMPANY
Statement of Cash Flows
For the year ended December 31, 2007
(In USD)
Cash flows from operating activities
Cash receipt from operating activities
Cash payment for operating activities
Net cash provided by operating activities

1,008,500
(989,500)
19,000

Cash flows from investing activities

Purchases of plant assets
Sale of office equipment
Net cash used by operating activities

(63,000)
45,000

Cash flows from financing activities

Issuance of common stock
Repayment of long-term liabilities
Payment of dividend
Net cash used by financing activities

80,000
(50,000)
(33,000)

Net increase (decrease) in cash

Cash at the beginning of the year
Cash at the end of year

(18,000)

(3,000)

Agrees
with
Statement
of
Financial
Position

(2,000)
40,000
38,000

12

Transactions (1)
Transactions are a businesss economic events recorded by
accountants.
May be external or internal.
Change the financial position of the business.
Each transaction has a dual effect on the accounting
equation.

Transactions
Question: Are the following events recorded in the accounting records?

Event

Criterion

Record/ Dont
Record

Supplies are
purchased
on account.

An employee
is hired.

Dividends are
paid to
stockholders.

Is the financial position (assets, liabilities, or

stockholders equity) of the company changed?

Transactions (Problem)
Barones Repair Shop was started on May. Prepare a tabular analysis of the
following transactions for the month of May.
1. Stockholders invested $10,000 cash to start the repair shop.

Assets
Cash
1. +10,000

Liabilities

Accounts
Accounts
+ Receivable + Equipment = Payable

Stockholders Equity

Common
+ Stock
+10,000

Investment

Transactions (Problem)
2. Purchased equipment for $5,000 cash.

Liabilities

Assets
Cash

Accounts
Accounts
+ Receivable + Equipment = Payable

1. +10,000
2. -5,000

Stockholders Equity
Common
+ Stock

+10,000
+5,000

Investment

Transactions (Problem)
3. Paid $400 cash for May office rent.

Liabilities

Assets
Cash

Accounts
Accounts
+ Receivable + Equipment = Payable

1. +10,000
2. -5,000

3.

-400

Stockholders Equity
Common
+ Stock

Retained
+ Earnings

+10,000
+5,000

-400
Expense

Transactions (Problem)
4. Received $5,100 from customers for repair service.

Liabilities

Assets
Cash

Accounts
Accounts
+ Receivable + Equipment = Payable

1. +10,000
2. -5,000

3.
4.

-400
+5,100

Stockholders Equity
Common
+ Stock

Retained
+ Earnings

+10,000
+5,000

-400
+5,100
Revenue

Transactions (Problem)
5. Paid dividends of $1,000 cash.

Liabilities

Assets
Cash

Accounts
Accounts
+ Receivable + Equipment = Payable

1. +10,000
2. -5,000

3.
4.

Stockholders Equity
Common
+ Stock

Retained
+ Earnings

+10,000
+5,000

-400
+5,100

-400
+5,100

5. -1,000

-1,000

Transactions (Problem)
6. Paid part-time employee salaries of $2,000.

Liabilities

Assets
Cash

Accounts
Accounts
+ Receivable + Equipment = Payable

1. +10,000
2. -5,000

3.
4.

Stockholders Equity
Retained
Common
+ Stock
+ Earnings

+10,000
+5,000

-400
+5,100

-400
+5,100

5. -1,000
6. -2,000

-1,000
-2,000
Expense

Transactions (Problem)
7. Incurred $250 of advertising costs, on account.

Liabilities

Assets
Cash

Accounts
Accounts
+ Receivable + Equipment = Payable

1. +10,000
2. -5,000

3.
4.

Stockholders Equity
Common
+ Stock

Retained
+ Earnings

+10,000
+5,000

-400
+5,100

-400
+5,100

5. -1,000
6. -2,000

-1,000
-2,000

7.

+250

-250
Expense

Transactions (Problem)
8. Provided repair services on account to customers $750.
Liabilities

Assets
Cash

Accounts
Accounts
+ Receivable + Equipment = Payable

1. +10,000

Common
+ Stock

Retained
+ Earnings

+10,000

2. -5,000

3.
4.

Stockholders Equity

+5,000

-400
+5,100

-400
+5,100

5. -1,000
6. -2,000

-1,000
-2,000

7.
8.

+250
+750

-250
+750
Revenue

Transactions (Problem)
9. Collected $120 cash for services previously billed.

Liabilities

Assets
Cash

Accounts
Accounts
+ Receivable + Equipment = Payable

Stockholders Equity
Common
+ Stock

1. +10,000

+10,000

2. -5,000

3.
4.

Retained
+ Earnings

+5,000

-400
+5,100

-400
+5,100

5. -1,000
6. -2,000

-1,000
-2,000

7.
8.
9.

+250

-250
+750

+750
+120
6,820 +

-120
630 +

5,000 =

250 +

10,000 +

2,200

Financial Statements
Income Statement
Reports the revenues and
expenses for a specific period of
time.

Barones Repair Shop

Statement of Income
For the Month Ended May 31, 2007
Revenues:
5,850

4
8

2,000

Rent expense

400

Advertising expense

250

Service revenue

Expenses:
Salary expense

Total expenses
Net income

2,650
$

3,200

Net income revenues exceed

expenses.
Net loss expenses exceed
revenues.

Financial Statements
Statement of Changes
in Stockholders Equity

Income Statement
Barones Repair Shop

Barones Repair Shop

Statement of Income

Statement of Changes in Equity

For the Month Ended May 31, 2007

For the Month Ended May 31, 2007

Share capital

Revenues:
Service revenue

5,850

Salary expense

2,000

Rent expense

400

Advertising expense

250

Total expenses

2,650
$

3,200

Total shareholders' equity

3,2005

5 (1,000)

Less: Dividends
Retained earnings, May 31

10,000

Net income

Expenses:

Net income

Add: Retained earnings, May 1

2,200
12,200

Net income is needed to

determine the ending balance in
retained earnings.

Financial Statements
Barones Repair Shop

Statement indicates the reasons

why retained earnings has
increased or decreased during
the period.

Statement of Changes in Equity

For the Month Ended May 31, 2007
Share Capital
Add: Retained earnings, May 1

$
$

Net income

Total shareholders' equity

3,200

5 Less: Dividends
Retained earnings, May 31

10,000

(1,000)
$

2,200
12,200

Financial Statements
Balance Sheet

6,820

1
2
3
4
5
6
9

630

5,000

Barones Repair Shop

Statement of Financial Position
May 31, 2007
Assets
Cash

Accounts receivable
Equipment
Total assets

$ 12,450
$

250 7

Stockholders' Equity
Common stock

10,000

Retained earnings

2,200

Total liab. & equity

$ 12,450

Barones Repair Shop

Statement of Changes in Equity
For the Month Ended May 31, 2007
Share capital
Add: Retained earnings, May 1

Total shareholders' equity

3,200

5 Less: Dividends
Retained earnings, May 31

10,000

Net income

Liabilities
Accounts payable

Statement of Changes
in Stockholders Equity

(1,000)
$

2,200
12,200

The ending balance in retained

earnings is needed in preparing the
balance sheet.

Financial Statements
Balance Sheet

6,820

1
2
3
4
5
6
9

630

5,000

Barones Repair Shop

Statement of Financial Position
May 31, 2007
Assets
Cash

Accounts receivable
Equipment
Total assets

$ 12,450

Liabilities
Accounts payable

250

Common stock

10,000

Retained earnings

2,200

Shareholders' Equity

Total liab. & equity

$ 12,450

Reports the assets, liabilities,

and stockholders equity at a
specific date.
Assets listed at the top, followed
by liabilities and stockholders
equity.
Total assets must equal total
liabilities and stockholders
equity.

Financial Statements
Statement of Cash Flows

Balance Sheet
Barones Repair Shop
Statement of Financial Position
May 31, 2007
$

Accounts receivable
Total assets

6,820
630

Equipment

5,000
$ 12,450

Liabilities
Accounts payable

Statement of Cash Flows

For the Month Ended May 31, 2007

Assets
Cash

Barones Repair Shop

250

Stockholders' Equity

Cash flow from Operations

Cash receipts from customers
Cash paid for expenses
Cash provided by operations

4 9

5,220
3
(2,400)
2,820

Cash flow from Investing

Purchase of equipment

(5,000)

Cash flow from Financing

Investment by owners
Drawings by owners
Cash provided by financing

10,000 5
(1,000)
9,000

Common stock

10,000

Retained earnings

2,200

Net increase in cash

6,820

$ 12,450

Cash balance, May 1

Total liab. & equity

Cash balance, May 31

$ 6,820

Persamaan Akuntansi (Accounting Equation)

Two Views of the Same Business

Luca Pacioli (1445 - 1517)

Aset
(Assets)

- Economic Entity
- Accrual Basis
- Dual Aspect debit & credit

Liabilitas
(Liabilities)

Ekuitas
(Shareholders Equity)

Saldo Normal (Normal Balance)

DEBIT (Dr)

Aset

CREDIT (Cr)

(Aktiva/Assets)
Kas (cash)
Piutang usaha
(account receivables)
Perlengkapan (supplies)
Biaya dibayar dimuka
(Prepaid expenses)
Tanah (land)
Bangunan (building)
Mesin (equipment)
Kendaraan (equipment)
- Akumulasi penyusutan
(accumulated depreciation)

Liabilitas

(Kewajiban/Liabilities)
Hutang usaha (account payable)
Porsi lancar dari hutang jangka panjang
(Current portion of long-term debt)
Pendapatan diterima dimuka
(unearned revenue)
Biaya yang masih harus dibayar
(accrued expenses)
Hutang bank (bank loan)

Ekuitas
(Shareholders Equity)
Modal disetor (share capital)
Laba ditahan (retained
Earnings)
- Penarikan (withdrawal)
(Net Income selalu
Meningkatkan
Owners Equity)

KERANGKA DASAR AKUNTANSI

Orientation: User Needs

Objective :
Financial information for decision
Qualitative Characteristics:
Understandability
Relevance (materiality)
Reliability
Comparability
Assumptions
Entity
Going concern
Periodicity
Monetary unit
Accrual basis

Elements:
Assets
Liabilities
Equities
Expenses
Income

Principles:
Measurement
Revenue recognition
Matching
Capital maintenance

Constraints:
Timeliness
Cost vs. Benefit
Balance between
qualitative characteristics

Adapted from:
Kartikahadi, Sinaga, Syamsul, dan Siregar, Akuntansi Keuangan berdasarkan SAK berbasis IFRS, Buku 1,Salemba Empat, 2012
Wiecek and Young, IFRS Primer, John Wiley & Sons, 2010

Accounting Concept
Assumptions

Principles

Constraints

Description

Economic entity

Pemisahan entitas dalam pelaporan keuangan

Going-concern

Perusahaan memiliki umur yang tidak terbatas (indefinite

life), tidak dilikuidasi.

Periodicity

Umur/kinerja perusahaan diklasifikasikan secara periodik

Monetary unit

Satuan mata uang sebagai alat ukur.

Accrual basis

Pencatatan atas kejadian yang berdampak pada

sumberdaya/kewajiban perusahaan, tidak semata-mata
karena penerimaan/pemasukan kas.

Measurement

Historical cost, fair value

Revenue Recognition

Pendapatan diakui apabila manfaat ekonomi telah terjadi

dan dapat diukur dengan andal.

Matching Principle

Biaya diakui dengan pendapatan yang dihasilkan pada

periode yang sama.

Capital maintenance

Laba diperoleh jika nilai uang/kapasitas produksi fisik pada

akhir periode melebihi awal periode.

Timeliness

Tepat waktu, tidak terlambat.

Cost - Benefit

Biaya menghasilkan informasi tidak lebih besar dari manfaat

yang diperoleh.

Balance between qualitative

characteristics

Pertimbangan yang objektif dan bijak dalam menghasilkan

informasi yang wajar dan tidak memihak.

Adapted from:
Kartikahadi, Sinaga, Syamsul, dan Siregar, Akuntansi Keuangan berdasarkan SAK berbasis IFRS, Buku 1,Salemba Empat, 2012
Wiecek and Young, IFRS Primer, John Wiley & Sons, 2010

Qualities of Accounting Information

No. Quality

Description

1.

Understandability
(dapat dipahami)

Pembaca memahami isi laporan.

2.

Relevance (relevan)

Informasi mempengaruhi pengambilan keputusan.

Predictive value: membantu memprediksi masa depan
Confirmatory value: menegaskan peristiwa masa lalu dan masa kini.

3.

Reliability (keandalan)

Faithful representation: penyajian yang jujur

Substance over form: mengutamakan substansi
Neutrality: tidak memihak
Prudence: pertimbangan sehat, kehati-hatian.
Completeness: lengkap, dapat dipertanggungjawabkan

4.

Comparability
(dapat dibandingkan)

Antar periode; antar entitas

Adapted from:
Kartikahadi, Sinaga, Syamsul, dan Siregar, Akuntansi Keuangan berdasarkan SAK berbasis IFRS, Buku 1,Salemba Empat, 2012
Wiecek and Young, IFRS Primer, John Wiley & Sons, 2010