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View Full Version : Basic Accounting study guide necklace w/ pattern (longish)


auntiem
01-12-2012, 11:52 PM
So when I was “studying” for my final I made this necklace for one of the people in my study group. Those of you who have taken Basic Accounting may be able to interpret it without the breakdown (also please check my work please to make sure it is right). If you are taking beginning accounting or know someone who is, this necklace actually helped me visualize the info and helped me study for the test. It is easy to make too!
What you will need:
Beading wire, necklace clasp of your choice, needle nose pliers, and the following beads:
6 clear beads (to use as spacers) the pack of letter beads also has enough heart beads to use those if you want
A package of letter beads (usually found in the kid’s craft section)
6 small green beads
6 small red beads
4 green beads
4 blue beads
5 gold/yellow beads
6 red beads
1 peach or purple bead (or similar rainbow type color)
3 small silver beads
Here is the break-down:
The order of financials: Income Statement (IS) (green bead), Statement of Owner’s Equity (SOE) (blue bead), Balance Sheet (BAL) (gold bead)
The Equation: Assets = Liabilities + Owner’s Equity (Capital, Withdrawals, Revenue, Expenses)
I have a small green bead on the side (debit or credit) that is the normal balance for each account and a small red one for the other side. Then I have a colored bead to show which account is on which financial. At the end of the list of accounts I have CE – closing entries signified by a red bead to show which accounts get closing entries. *
Then FIFO (first in first out) and LIFO (last in first out) and five colored beads so you can slide then in the right order to remind you how to do each method of inventory accounting.


*Full translation and (pattern): (spacer bead); (IS) Income Statement (green bead); (SOE) Statement of Owner’s Equity (blue bead); (BAL) Balance Sheet (gold bead); (spacer bead); (A) Assets (small green bead on debit side – the natural balance side for this account) (gold bead – this account is on the balance sheet); (two silver beads) =; (L) Liabilities (small green bead on credit side / natural balance) (gold bead – on balance sheet); (silver bead) +; (OE) Owners Equity; (spacer bead); which includes { (C) Capital (small green bead on credit side / natural balance) (blue bead – on Statement of Owner’s Equity, gold bead – on Balance Sheet, red bead – gets a closing entry); (W) Withdrawals / Drawings (small green bead on debit side / natural balance) (blue bead – on Statement of Owner’s Equity, red bead – gets a closing entry); (R) Revenue / Sales / Fees Earned (small green bead on credit side / natural balance) (green bead – on Income Statement, red bead – gets a closing entry); (E) Expenses (small green bead on debit side / natural balance)(green bead – on Income Statement, red bead – gets a closing entry)}; (spacer bead); (CE) Closing Entry (red bead); (FIFO) First In First Out (red, gold, peach, green, blue beads) (LIFO) Last In First Out – so to remember how to do it - if it is FIFO you think of it in this order – red, gold, peach, green, blue, if it is LIFO you think of it in reverse (blue, green, peach, gold, red). Ta Da!