u

IT

II
\,

\,

PURPOSES OF ACCOUNTING AND THE

FUNDAMENTALS OF THE DOUBLEENTRY SYSTEM
!

II

PART 2. ADJUSTAMENTS ANALYSIS, WORK SHEET, FINANCIAL STATEMENTS,

ADJUSTING AND CLOSING ENTRIES, AND POST-CLOSING TRIAL
BALANCE.

TOPIC 1. READING

OWNER'S
EQU~TY

Accounting performs several important

tasks:
1. Recording daily business transactions in
a signi flcant manner and in terms of mono
ey.
2. Classifying the recorded information.
3. Summarizing the recorded and classified
inlormation.
4. Reporting the summarized information.
5. Interpreting and analyzing the reported information
Therefore, accounting miiY be definert,
in an elementary way, as the systematic pro
cess of recording, classifying, ~ummarizlng,
interpreting, and analyzing financial informa
tion for decision making and for future refe
rence, regarding the economic activity of an
organization .
The accounting process is based upon
tile following five fundamental elements:
ASSETS
LIABILITIES

1,1
I

Assets accounts
I

Increases

I
I
I

Decreases

Everything of value a
firm owns.
The debts owed by a
firm.

= Liabilities

REVENUES
EXPENSES

The economic rights

or equities of the owner or owners in the
assets of a business.
The products of the
business.
The cost incurred to
produce revenues.

The relationship between the fundamen

tal elements is shown by the accounting
equation :
Assets = Liabiliti,''l + Owner's Equ ity
+ Reven ues - Expens8s.
The everyday business transactions are
analyzed. Their effc", .. are rec ord ed as increa
ses or decreases in the five elements men
tioned above.
Because the accounting process is ba
sed on the fundam ental elements, which
constitute th e variables o f th e accoun ting
equation, til e entry made for each transaction is composed of two parts : one or more
debits and one or more credits.
This du ality gave rise to the name of "doub leentry system."
The increa es and decreases in ttl e elements are related to th e equat ion as follows:

+ Owner's equity + Revenue dccounts Decreases

In creases

Expenses accounts
Increases : Decreases
I
I

The left side of an account Is called DEBIT and the right side is called CREDIT
Therefore, DEBITS are entries recorded
in the DEBIT side and CREDITS are those recorded in the CREDIT side.
Even though the fundamental elements
change con sta ntly, as a result of the everyday
business transactions, \he equality of the ba
sic equation always holds.
TOPIC 2. ANALYSIS
A.

GRAMMAR STRUCTURES
Accounting performs . ..
Recording, c lassifying, summarizing, reporting, interpreting, analyzing . . . (ge-

B.

runds used as infinitives and as nouns)

Accounting may be defined ...
AccoUnting is based ...
A firm owhs ...
owed by .. .
, The cost Incurred ...
The relationship is shown .. .
Transactions are analyzed .. .
effects are recorded .. .
The entry is composed .. .
The increases and decreases are related ...
The left side is called . ..
Debits are entries re corded ...
The elements change ...
The equality o f the equation holds . ..

EXPRESSIONS
decision making
even though

C_

toma de decisiones
aun cuando

VOCABULARY

A) WORDS OTHER THAN VERBS

above
assets
business
constantly
credit
daily
debts
debit
decreases
duality
each
eflect
entry
equality
equity

arriba
activo
negocio, comercio, asuhto
constantemente
haber, abono, credito
diario, cotidiano
deudas
debe, cargo
dlsminuciones
duaiidad
cada
efecto
asiento, partida
iguaidad
equidad
~tQS.

nn'8n 'leT\)
firm
left
liabilitie s
owner
owner's equity
regarding
relationship
revenues

fl

firma, empresa
izquierdo (a)
pasivo
propietario
capi tal
rel ativo a
relacion
entrada, in greso

I
I

derechos
vario s
lad o
tarea, labor
termi nos
por 10 tant o
operaciones
valor
manera, forma

rights
several
sid e
task
terms
therefore
transactions
value
way
B) REGULAR VERBS
PRESENT

PAST AND PAST PARTICIPLE

SPANISH MEANING

analyze
change
classi fy
compose
incur
interpret
owe
own
perform
record
relate
report
summarize

analyzed
changed
classified
composed
incurred
interpreted
owed
owned
performed
recorded
related
reported
summarized

analizar
cambiar
clasificar
com pon er, f ormar
in currir
interpretar
deber
po seer
ejecutar, realizar
regis trar
referir, relacionar
informar
resum ir, compendiar

C) IRREGULAR VERBS
PRESENT

PAST

PAST PARTICIPLE

SPANISH MEANING

hold
show

held
showed

held
shown

soslc:ner, reservar
mostrar, ex hibir

TOPIC 3. SUMMARY

Accounting performs the followin g

tasks; recording, classifying, summarizing, interpreting, and analyzing information in mo ney terms, for future reference and for decision making , regarcjing th e economic activity
of an organization.
Th e accounting process is bas ed on the
fundamental elements th ey are: assets, liabil ities, owner's equity revenue s, and expense.
The rel ation shi p between th em is shown by
.
the accounting equa ti on:

As se ts = Li ab iliti es + Own er's Equity +

Revenues - Expenses.
The eff ec ts of business transactions are
reco rd ed as increases or decreases in the fiv e
elements.
As th e accoun ting process is based on
the fund amen tal elements, and they consti tut e th e variab les of the accoun t ing
equa tio n, th e entry made fo r each transacti on is com posed o f two parts: DEBITS and
CREDITS .
In creases in the assets and expense acco unt s are recorded by debits, and de c reases
are recorded by credits .

Increases in liabilities, owner's equity

and revenue accounts are recorded~y credits
and dec reases are recorded by de~'its.
Debits are entries recorded in the left
side. Th is side is called DEBIT.

Credits are entries recorded in the right

side. This side is called CIiEDIT.
The fundamental elements change con
stantly as a result of business transactions,
but the equation must always be in balance .

TOPIC 4. EXERCISES.
A. GRAMMAR

a) Identify the subject and verb of each statement in TOPIC 1, and write them on a
piec e of paper.
b) Change the following statements as In the example. (See note below .)

sepa~ate

Ex .: Som eon e record s e ff ects . _---.:E::.:.f.:..:

fe:..:c:..:.ts::....::a:.:..re
::'-:.r.:::.
e.:::.
co
~r~d:.:::e:.:::d:...._ _ _ _ _ _ _ _ _ _ _ _ __
Someone shows the relationship .
1

Someone calls it. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Something relates th e increases and decreases.
Something composes the entry . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Something bases the accounting process.
Someone analyzes the transactions . _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ __ _ __ _ _
Note: This voice is used whenever the performer or producer of the action is unknown. Ex.: Tran
sactions are analyzed . (Someone does it, but we do not know who.)
c) Fill in the blanks with the proper form of the verb in parentheses.
1. DEBIT _ _ _ _ _ _ the left side of an account.
(be)

2. CREDITS _ _ _ _ _ _ entries recorded in the credit side

(be)
3. A firm _ _ _ _ _ _ things of value .
(own)
4. The equality of the equation always _ _ _ __ _
(h o ld)
5. The equation _ __ ___ the relation ship of the elements .
(sh ow)
6. Ac c ountihg _ _ _ _ _ _ important tasks .
(p erform)
7. The accountant _ _ _ _ _ _ daily busine ss transac tions.
(reco rd)

10

 B. COMPREHENSION

a) Write the Spanish equivalent of the fOllowing statements.

1. ASSETS means everything of value a firm owns.

2. LIABILITIES are the debts owed by a firm.

3. OWNER'S EQUITY means the economic rights or equities of the owner in the asset of a busi
ness.

4. REVENUES are the products of the business.

5. EXPENSES are the costs incurred to produce revenues .

6. The accounting process is based upon the fundamental elements.

7. The fundamental elements constitute the variables of the accounting equation .

'I

8. The effects of business transactions are recorded as increases and decreases in the five ele
ments .

11

'38&

7 .=-o ~~~~="-'-'-~~~._
---~--.....--

-_ .

.9. The entry made of each transaction Is composed of two parts.

10. The fUndamental elements change constantly.

b) Answer the following questions in Spanish. Refer to TOPIC 3. Summary.

1. What tasks does accounting perform?

2. What is the accounting process based on?

II
I

f.,I

3. What are the fundamental elements of accounting?

,!

Ii
I,

4. What does the accounting equation show?

--------------------------------------------------------------------

/'----'

5. How are the effects of business transactions recorded?

J,.

I
6. What constitutes the fundamental elements?

,
'1
I

II

,1, I

7. What is the entry made for each transaction composed of?

' /1,11
1

II

lltll

I ,':
:I

~i

12

I,

~I"

Wbat are DEBITS?

9. What are CREDITS?

10. What are increases in assets accounts increased by?

13

UNIT

III

THE FUNDA ENTAL ELEMENTS OF ACCOUNTING

TOPIC 1. READING

'--'
ASSETS - As stated in Unit II. this term
refers to all the properties owned by a busi
ness. They are commonly classified as
current anq noncurrent.
CURRENT ASSETS - These consist of
cash and other assets or resources that are
reasonably expected to be converted into
cash , or to be sold or consumed in the operations of a business, within the accounting cycle, usually one year. Current assets include:
cash on hand or in banks
marketable securities
accounts and notes receivable
inve~tories, which include raw materials,
goods in process, and finished goods.
short-term prepayments, such as,
insurance, interests, taxes, unused
royalties, and current paid advertiSing
services not yet received
NONCURRENT ASSETS - These are
longlived assets not intended for sale, used
in the operation of a business. They may be
either tangible (Often referred to as FIXED
ASSETS or PROPERTY, PLANT, and EQUIPMENT) or intangible.
TANGIBLE ASSETS:
Land
Building
Machinery and equipment

Small tools
Furniture and Fixtures
Automotive equipment
Leaseholds and improvements
INTANGIBLE ASSETS - These are assets that do not have any physical features.
Their valu e resides in the rights or bUSiness
advantage that their possesion confers to
their owner:
Patents
Copyrights
Trademarks
Franchises
Goodwill
LIABILITIES - These are debts or other
obligations of a business that must be paid at
a definite time in the future. Liabilities will require the disbursements or utilization of the
assets of the business. They are divided into
two classifications, accorqing to the due date
of the obligations: current liabilities and noncurrent or long term liabilities.
CURRENT LIABILITIES - These include
all the obligations to be paid within a year
from the date of the statement of finaRcial
position (previously known a~ BALANCE
SHEET), such as:
Notes payable
Accounts payable
Taxes payable
Accrued liabilities (wages, interest, taxes,
rent)

15

NONCURRENT OR LONG TERM LIABILITIES - These are debts or other due obligations to be paid after the periods required for
the current liabilities. Long-term liabilities are
due more than a year from the date the statement of financial position is drawn up and
include the following:
Mortgages payable
Notes payable
Contracts payable
Bonds payable
OWNER'S EQUITY OR STOCKHOLDER'S
EQUITY (in case of a corporation). This represents the owner's economic rights or equities
in the assets of a business. The ownership
equity in a business is the residual interest in
assets after Iiabil lties have been deducted.
REVENUE - It is defined as the product
of the business organization, either the product
it delivers or the service it renders.
B_

C.

EXPRESSIONS
according to
the due date
they are expected to
be converted

TOPIC 2. ANALYSIS
A_

GRAMMAR STRUCTURES
As stated ...
This term refers .. .
Properties owned by a business.
they are classified . ..
these consist . . .
Assets not Intended for sale,
used in . . .
THEY may be .. .
Assets that do not have .. .
Their value resides .. .
Their possession confers . ..
That must be paid . ..
Liabilities will require . ..
They are divided . . .
These include .. .
After the periods required ...
It Is defined . . .
either. . .
or . ..

de acuerdo con
la fecha de vencimiento
se espera que sean convertidos

VOCABULARY

A) WORDS OTHER THAN VERBS

accounts payable
advantage
advertising
automotive
cash
copyrights
current assets
current liabilities
debts
disbursements
feature
fixed assets
franchises
furniture and fixtures
goods
goodwill

16

EXPENSE - It is defined as the cost incurred to produce revenue.

cuentas por pagar

ventaja
publicidad
automotriz
dinero en efectivo, caja
derechos de autor
activo clrculante
paslvo clrculante
deudas
desembolsos
rasgo, facci6n caracter
activo fiJo
franquicias
muebles y enseres
articulos
plusvalia

in-

t'

machinery
Improvements
Insurance
inventory
land
leaseholds
long-lived
long-term
marketable securities
noncurrent
notes payable
ownership
prepayments
properties
raw materials
resources
royalties
sale
short term
statement. of fir,ancial
position
stoykholder's equity
taxes
tools
trademarks
wages
within

maquinaria
mejoras
seguro
inventario
terreno
arrendamientos
de larga vida
a largo plaza
valores comerciales
no circulante
documentos por pagar
propiedad
pagos adelantados
propieqades
materia prima
recursos
regalias
venta
I
a corto plazo
estado de situaci6n financiera
capital (de una corporaci6n)
impuestos
herrarT] ientas
marcas comerciales
salarios
dentro de

os
B) REGULAR VERBS

PRESENT

PAST AND PAST PARTICIPLE

SPANISH MEANING

accrue
confer
consist
deduct
deliver
expect
incur
intend
receive
refer
render
represent
reside
require
use

accrued
conferred
consisted
deducted
delivered
expected
incurred
intended
received
referred
rendered
represented
resided
required
used

acumular, redituar
conferir
consistir
deducir
entregar
esperar, con tar con
incurrir
intentar
recibir
referir
rendir, prestar servicios
representar
residir
requerir, demandar
usar
17

C) IRREGULAR VERBS
PRESENT

PAST

PAST PARTICIPLE

SPANISH MEANING

draw up

drew up

drawn up

pay

paid

paid

girar, extender un
documento
pagar
,

TOPIC. 3 SUMMARY

Assets are propierties owned by a busi

ness. They are classified as c urrent and non
current.

Current assets consist of cash and other

assets that are reasonably ex~ected to be
converted into cash , within the accounting
cycle .
Noncurrent assets are long-lived assets
not intended for sale.
They are also Known as fixed assets, or
property, plant, and equipment.
Intangible assets are those that do not
have any physical features.
Liabilities are debts of a business that
must be paid at a definite time in the future .

They are divided into two classifications:

current liabilities and noncurrent or longte rm
liabilities.
CUrrent liabilities ihclude all the obliga
tions to be paid within a year from the date o f
the statement of financial position .
Noncurrent liabilities are those debts or
other obligations to be paid after the periods
required for the current liabilities.
Owner's equity or stockholder's equity
represents the owner's economic rights or
equities In the assets of a business.
Revenue is the product of the business
organization.
Expense is the cost Incurred to produce
revenue.

TOPIC 4. EXERCISES.

'I

A. GRAMMAR

I
8) Identify the subject and verb of each statement in TOPIC 1, and write them on a separate

piece of paper.
b) Complete the answers to the following questions as in the example.

Ex .: What does this term refer to?

all the properties .

It refers 10

1. What do assets consist of?

_ _ _ _ _ _ _ _ cash and other assets.
2. What does the value of intangible assets reside in?
_ _ _ _ _ _ _ _ the rights and bu siness advantag e.
3. What do liabilities include?
_ _ _ _ _ _ _ _ all the obl igation s.
4. What does owner's equity represent?
_ _ _ _ _ _ _ _ the owner's rights.
5. What will liabilities require?
_ _ _ _ _ _ _ _ the disbursements of th e assets.

"f
f

6. What do intangible ass ets conf er to the owner?

_ _ _ _ _ _ _ _ the rights or business advantage.

7. What may noncurrent assets be?

_ _ _ _ _ _ _ _ tangible or Intangible .
c)

Change the following statements as in tile example.

It is done
Ex.: Someone does it
Someone classifies it. _____________________________

s:
11

a-

:>f

Someone
Someone
Someone
Someone

divides tl1em. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
draws it up. _____________________________
includes tl1em _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
knows them _ _ _ _ _ _ _ _ _ _ _ _ __ __ _ _ _ _ _ _ _ _ _ _ __

Someone refers them to _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

or
js

B_ COMPREHENSION
ty
or

ss

a)

Write the Spanish equivalent of the following statements.

1_ As stated in Unit II, tile term, assets, refers to the properties of a business .

ce

2. Ass ets are classified as current and noncurrent.

3. Current assets consist of cash and other assets.

ate
4. Noncurrent asse ts are long-lived assets not intended for sale.

5. Noncurrent assets may be tangible and intangible.

6. Intangible assets do not have any physical features .

7. Their value resides in the rights and advantages they confer to the owner.

19

..

~.

8. Liabilities are debts of a business that must be paid at a definite time In the future.

9. Liabilities are divided into two classifications.

10. Revenue is defined as the product of the business organization .

b) Write in Spanish the definitions of the following terms, refer to TOPIC 3. SUMMARY.

Assets

Current assets

Noncurrent assets

Intangible assets

Liabilities

CUrrent liabilities

Long-term liabilities

Owner's equity

UNIT IV
THE ACCOUNTING Cy'CLE
PART 1. JOURNALIZING, POSTING, AND THE TRIAL BALANCE

TOPIC 1. READING

As mentioned in Unit II, business trans

actions affect the fundamental elements as
increases and decreases, through the ac
counts established for each one of them .
The recording, classifying, and summariz
ing of business , transactions fOllow a pro
cess during the fiscal period, known as the
"acco unting cycle."
JOURNALIZING - This is the first step
of the cycle and it consists of recording daily
business transactions in a chronological or
der, after they have been completely analyzed
in terms of debits and credits, so as to show
the effect of each transaction on the ac
counts. This is made in a book known as a
JOURNAL. This word comes from the French
word jour meaning day.
As the initial record of each transaction
is entered in a journal, this book is often
called a book of ORIGINAL ENTRY. However,
in business practice, a single journal 10 r~"
cord all the transactions is seldom used .
When numerous transactions of common '
characteristics occur, special journals can be
deSigned, according to the nature of the busi'
ness and for the accountant's convenl~nce,
these are:
GENERAL JOURNAL - To re co rd the
opening entry, the adjusting, c losing, and reo
versing entries, and unusual and non repetitive
transactions .
CASH RECEIPTS JOURNAL - For all
transactions involving receipts of cash .
}

CASH PAYM ENTS JOURNAL (OR

CHECK REGISTER) - For all transactions in
volving payments of cash.
PURCHASES JOURNAL (or VOUCHER
REGISTER) - For all purchases of merchan
dise, supplies, etc., on credit. (See Fig. IV 4.)
SALES JOURNAL For sales
rnerchandiqe on credit. (See Fig . IV 5.)

of

COMBINATION JOURNAL - For record

ing all types of transactions . This is prob
ably the most efficient type of journal. It is
sometimes called a combined cash journal if
it has special debit and c redit columns for the
cash account, because Lr,:s account is frequently affected by business transactions.
(See Fig . IV-q.)
POSTING - This is the next step in the
cycle. After the transactions hi,ive been entered in the journals, the informal ion is transferred to individual accounts in the ledger.
Each account contains stored information
concerning a particular kind of asset, liability,
owner's equity, revenue, or expense . The list
of the accounts in an ?ccountinQ system is
called CHART OF ACCOUNTS .
The basic form of the ledger account is
the same as that of the "T" account, the left
side being for debits and the right side for
credi ts .
The process of tranferring the information to the ledger is called POSTING .
All en trie s recorded in the journals must
be posted to the ledger, whi ch is called the

23

..

MI"

." --------------------------------~~

GENERAL JOURNAL
DJITE

19Feb.

3
4
5
7
8

9
11

. ..
.
...
.
Aeets. Pay./Jay Hatlcls . .. .
Karen Shultz, Capital .
. .
.. .. .
Utilities Expense
I
Ca., h . . .
..
Equipment
. .. .
Aeets. Pay./Jay HaneL, .
. .
Ca., h .
.
.
.
Aeels. Ree./Grcgg McAndrew
.
. . .. . .
Tools
.
. .
Cash.
.
.
Aeels. Ree./Gregg McAndrew.
.
Sale., . .
.. .
,.
Cash. . .
.. .
.
.
Sale.,
.. .
I.
Aeeis. Pay./Jay IJaneb
. . .
. . .. .
Equipment.
.
Karen Slwliz, Capital
..
.
Ca~h .
... .. ,
.
C(/.~II

. .

Tools

14 A eels. Pay./Jay lTanel"

Cash. . .
Fig. IV1

.
POST.
REF.

JlCCOUNT TITLE
JlND EXPLJlNATION

...

Ii

DEBIT

CREDIT

1,500 00
2,500 00
600 00
3,400 00

45 00
45 00
450 00
450 00
550 00
550 00

75 00
700 ~O

75 00
700 00

955 100
955 00
35 100
400 ~O

340 ~O

.. . .

3500
400 00
340 00

General Journal.

CASH RECEIPTS JOURNAL

"- ... N ... nON

Cowl, Bnlonrc . . .. . . . . .
3 Marcy C..ry . Caplrnl . .
6~~
.
.. ...
8 Acc". Rec./G<!org< Yeoman, .
13 ~"', . . . . . . . . . . . . .

--

15 Ace!:!. R,c./'\lUlio Shopp.

r...... 1.....,.,.. ~
- --..

. -...,.

$8,400 .

... MOUN'

. ..

Acldlr/ohal'",,,.'me"' ..
Ca," ,ol~, for week . . .
IIpce lued on account . .

Co.h .al l or ",eek . .

RM'~iocd

on account .

f>r ....It

"...,.,.,...
-- ~
................

('.."j, .....
C>tI~

Fill . IV2

Cash Receipts Journal.

,

24

CASH PAYMENTS JOURNAL

19Au,.

DPL .... ATto.

A CC OUNT 0 ,.,110

OAT.

~..,,~

... .

A ug'U' rent .
Ou Clceo ... ,., .
Voided
..

~ ,401';". Puy./ Vownwwn Mtuic .

16
18 O.lJioe EquJprrw:nl
IS Clumge } 'Uu.tl .
,
31 Suwna Puyr"-'",

JI Adt:dtl.'"g .rpeu..e
M4wdlan.emu E.tptfn.e
31 Morey CaM:Y. Dra,ol,lC .
3 1 C h C...IIt.

..

..

NlJlo (uu""g mac"'~

UUlbUuI fund
Aug.... ' 28 pllyroll
) jleplenl.h ".tty .
woh fv ..d . . .
WWwlruwul .

.....

~'T.

20/
202
203
204
20S
206- 209
210

511
21l

2JJ

t
Fig. IY3

AIIOUMr.

SH

~fHl 00
400 DO
-00
'40 00
3S 00
1,200 00
2000

515
302

800 00

101

3.3f)S 00

132
103
US

1000
',JIl5 00

"lo,a' pOY"'~'" . . . . .

. .

.....

CM.e.:

Cash Payments Journal.

Accounts Payable
Subsidiary Ledger
PURCHAS.jf JOURNAL

Dowlilown Music

,.vole.

2,000

OATil

720-.-1,800 ___

'Tappun Corportltion

~,.II

pj'.....
'3

400'
152

Viceroy, In c.

31

"/WIlI,...

..

~l'JIly

DvwrIWWfI

Mu.1c

TupP"" ~'JKlr(ljjOIl
Vlu ru~. I.te . .
J'~I'I4 ' S"MJI!I
lupPUli Corpur<ljJ C)1I

480'
To tal credit. poated, $11,325

".,..

OAT.

/lSIJT lUIs
8 ... 10/10

....""A

I'S78 10//3

JO/1 8

2/ /0. 0/3.
n/EOM
1/10, ,1/30
2/10, >l/JO

10/21 2/10, 11/30

POOl 10/25

1/10, 11/30

...... OUN'

(
(
(

T2.~
,.ooo~
,oo~

{
{

I ,,,",,

P",dhUU J~"" /AQC I" I'u y. Cr~lU

5Ot/UJ

'so:

"

/S!~
5,35000

~
Gl"neral Ledger

Purchases

POIT,

, .. MM'

00.

Phelps Supply

... "COUIIT C OITIIO

5, 352

Accounts Pa!!.able

501

I
Fig. IY-4

211
5,352

Purchases Journal.

25

SALES JOURNAL
N
OJ

....n

:*-

IN'tOOCC

;1 102

lvL

T..... S

AceOUHT D rnD

100.

Village Notes

..

..

. .

..

..

.....

..,ST.
,

2/10, n/30

"CCOUNT'I

....UlS TAX

... C&I'Y .... l .

~AYA.U

OOIT

CiliUM,.

1,6Dq IX

"

SAUS

C"_DfT

I
I

1,600~1

iI

II

sale. on credit without sal tax.

General Ledger

Accounts Receivable

Sales

111

401

1,~00 1

1,~OO

SUb.I~lary Ledger
Vi4Gge Notes
1,600 1
Flg,I VS

COMelNATION JOURH.AL

/ ,~

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.... ,, Ic..;._
,.,.. . ..........

P-

,...
,I
'I

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r "'.

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Sales journal.

..

n!c...... f .......
End Il1 pa9.

..

m .

.ee~

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C:_Dff j

19""::'

..........

,........

::a1lDfT

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c....,.

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' 0

3 jAI&Cirwy .w~ha";
4 ! ~ Electronia_'nooO.c. lIfo
.
J I Rico Corp.-Inoote. <l1L-\; ,4/ 1); '!/W, " / 30
, Lind.wy (; You"(_/nOOliol 1-40: 1/20, ,./ 30
J Pw. Rrt ond AUow./ Rk:o Corp.-C\I.1301
.
): ;Sto.. eq..,.,./ Diablo Steel-Ino. 8Ur.. (415); ,,/ 30

-. .--..- 1
I

.-tpril.

FCH th. Month of

-,I

soot .

134/ ,

I -.

(
(
(

,,

9000

"'';,1
I "!"P"

Poet. r.t. numbar. and check m.' ....

.r. ent.red when Indlvldu.1 amount.
r. posted, and d h for amounts

1,11. 110

.,

1,!IOOO

Oeneral
columna

not poeted or not po.. lad Indtvldually.

Fig. IV6

Combination Journal

/O J

ail ~

II :
I

45,00

/'

-~
-~~
t --~~I-~~.
/ -~
I ~-~~~
Ho ,1

. /;00""1 ... 00

'.00''''''/

[
SgeC181 column

GENERAL LEDGER. However, when greater

detail is needed for particular accounts includ
ed in the general ledger, SUBSIDIARY LED
GERS are se t up. The details of these ledgers
support the main or CONTROLLING ac
counts. Thus, the totals of the subsidiary led
gers should agree with the corresponding
controlling accounts in the genera l ledgers.
Examples of this situation are: accounts reo
ceivable, voucherf? payable, plant and equip

ment, and capital stOCk controlling accounts,

which are supported by subsidiary ledgers.
TRIAL BALANCE - In order to prove the
accuracy of the recording and posting pro
cess, a TRIAL BALANCE is taken. This is a list
of the ledger accounts and their debit and ere
dit ba lances. The total of debit balances must
equal the total of credit balances. (See Figs.
IV1 to IV5.)

TOPIC 2. ANALYSIS

A.

GRAMMAR STRUCTURES

As mentioned ...
transactions affect. ..
the accounts established .. .
The recording, classifying ... follow
it consists
, of. ..
They hav,e been completely analyzed ...
This is fnade ...
This word comes ...
I t is entered ...
This is often called ...
A single journal is seldom used ...
When transactions occur. . .
special journals can be designed ...
For transactions involving ...
For recording ...
I t is sometimes called ...
This account is frequently affected ...
Transactions have been entered .. .
The information is transferred .. .
Each account contains ...
The list of accounts is called .. .
The process of transferring .. .
All entries must be posted .. .
A greater detail is needed .. '.
SUBSIDIARY LEDGERS are set up ...
The details support ...
Tile totals should agree ...
Which are supported ...
a TRIAL BALANCE is taken ...
total must equal. ..
B.

EXPRESSIONS
so as to
it is the same as that
in order to

a fin de
es el mismo que
a fin de

27

C.

VOCABULARY

r
A) WORDS OTHER THAN VERBS
accuracy
adjusting entry
balance
cash payments journal
cash receipts journal
chart of accounts
closing entry
combination journal
combined cash journal
detail
during
general journal
general ledger
ledger
main
merchandise
nature
often
opening entry
payment
posting
purchases
purchases journal
receipts
reversing entry
sales
sales journal
seldom
single
step
subsidiary ledgers
supplies
trial balance
vouchers payable
vouchers register

exactitud, precision
aslento de aJuste
balanza, balance , saldo
dlarlo de egresos de caja
diarlo de Ingresos de caja
calalogo de cuenlas
asiento de cierre
dlario comblnado
diario de caja combinado
detalle
durante
diario general
mayor general
mayor
principal
mercancfas
naturaleza
a menudo
asiento de apertura
pago
pase al mayor
compras
dlario de compras
recibos, cobranzas
aslento inverso
ventas
diario de ventas
rara vez
LJnico, sofo
paso, peldano
mayores subsidiarios
articulos, provisiones
balanza de comprobacion
do cumentos por pagar
registro de documen tos

B) REGULAR VERBS.
PRESENT

PAST AND PAST PARTICIPLE

SPANISH MEANING

affect
agree
call
concern
design
enter
equal

affected
agreed
called
concerned
designed
entered
equaled

afectar
concordar
!lamar, denominar
concernir
dlsenar
asentar, dar entrada
igualar

28

follow
need
occur
post
prove

followed
needed
occured
posted
proved

se gu i r

necesitar
acontecer
pasar al mayor
probar, comprobar

C) IRREGULAR VERBS
PRESENT

PAST

can
come
mean
must

could
came
meant

TOPIC 3. SUMMARY

Business transactions affect the fyndamental elements, as increases and decreases

through their corresponding accounts.
The accounting process, carried out
within the fiscal periods iSi known as the "accounting cycle."
Journalizing is the first step of the accounting cycle . It consists of recording everYday business transactions in a chronological
order in a book called a "journal," This book is
also known as the book of original entry. In
business practice the following journals are
used:
general journal
cash receipts journal
cash payments journal (or check register)
purchases journal (or voucher register)
sales journal
combination journal
The combination journal is probably the

PAST PARTICIPLE

SPANISH MEANING

come
rneant

poder
venir
significar
deber

most efficient type of journal. It is sometirnes

called "combined cash journal."
Posting is the second step in the cycle.
It is the act of transferring the information entered in the journals to the ledger.
The ledger is a collection of accounts.
The basic torm of the ledger account is the
same as that of the "r' account. The I ist of
accounts is known as CHART OF ACCOUNTS.
In business practice a general ledger is
used, to which all entries recorded in the jour.
nal must be posted.
There are also subsidiary ledgers that
support the main or controlling accounts in
the general ledger. These ledgers are set up
to support the following accounts: Accounts
Receivable, Vouchers Payable, Plant and
Equipment, and Capital Stock.
The trial balance is taken to prove the accuracy of the journalizing and posting process . It is a list of the ledger accounts together with their debit or credit balances,
which totals must equal.

TOPIC 4. EXERCISES
A. GRAMMAR

a) Identify the subject and verb of each statement in TOPIC 1, and write them on a separate
piece of paper.
b) Fill In the blanks with: sometimef'!. seldom! fr~quently,
according to the sense of the sentence.
1. f'o. cash account is ______ affected in bUSiness practice.
2. The general Journal is

used to record all the transactions.

29

'~-'~"'",""I."''''''-''''-''''''''''''''''''''''':''''---'''''''-'''''----''

3. Subsidiary ledgers are _ _ _ _ _ _ used.

4. Combination journal is _ _ _ _ _ _ called a combined cash journal.
5. A cash payments journal is _ _ _ _ _ called check register.
c) Fill in the blanks with can, must, or should .
(can
(must, should

= ability or power)

= obligation or necessity)

1. Business transactions _ _ _ _ _ be journalized in a chronological order.

4
2. Special journals _ _ _ _ _ _ be designed In business practice.
3. Debit and credit balances in the ledger _ _ _ __ agree .

4. Subsidiary ledgers _ _ _ _ __ be used when necessary.

5. The accountant _ _ _ _ _ _ deSign an accounting system.
6. Journal entries _ _ _ _ _ be posted to the ledger.
7. A trial balance _ _____ be taken to prove the accuracy of the recording and postin g
procedure .
a) Change the following sentences from the active to tha passive, as In the examples.
Ex .: they have analyzed the transactions .

----------~---

They have prepared the information . The information has been prepared

They have posted the journal entries. _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ __

They have recorded the transactions . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
They have prepared the trial balance . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

They have proved the accuracy of the ledger. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

They have summarized the information . _ _ _ _ _ _ _ _ _ _ _ _ _-;-_ _ _ _ _ __
9

B. COMPREHENSION.

a) Write the Spanish eqUivalent of the following sentences .

1. Jornalizing consists of recording the dally business transactions after th ey h ~l.Ve bee n analyzed .
, ,

30

10

2. In busin ess

practice a single journal is seldom used.

3. When numerous transactions of common characteristics occur, special journals can be de

signed .

4. A combination journal is sometimes called combined cash journal.

5. After the transaction s have been entered in the journals, the information is transferred to the
ledger.

6. The totals of the subsidiary ledgers should agree with their controlling
ral ledger.

account~

in the gene

7. All entries recorded in the journals must be posted to the ledger.

8. The total of debit balances must equal th~ total of credit balances.

9. The basic form of the ledger account is the same as that of the "T" account.

d.

10. The trial balance is a list of the ledger accounts and their debits and credit balances.

31

 '"

b)

Answer the following questions in SpaniSh. Refer to TOPIC 3. SUMMARY. '

1. What Is the accounting process known as?

2. What is journalizing? t:xplain.

3. How many journals are there? Mention them.

4. What is probably the most efficient type of Journal?

5. What is the second step in the accounting cycle?

6. What Is posting? Explain.

7. What is a ledger?

8. What journal entries must be posted to the ledger?

9. What are subsidiary ledgers set up for?

10. What is a trial balance? Explain.

32

UNITV
THE ACCOUNTING CYCLE
PART 2. ADJUSTEMENTS ANALYSIS, WORK SHEET, FINANCIAL STATEMENTS,
ADJUSTING AND CLOSING ENTRIES, AND POSTCLOSING TRIAL !3ALANCE.

TOPIC 1. READING

The trial balance is usually taken when

the fiscal period comes to an end. It .shOVIS
the balances of the assets, liabilities, owner's
equity, revenue , and expense accounts at t~at
time .
ADJUSTMENTS ANALYSIS - The next
ste p in the cycle consists of obtaining anq
analyzing information from the trial balance,
for adjusting certain account balances, as
well as determining the entries required to be
recorded thereby . The adjustments serve tre
purpose of recognizing deferred costs and reo
venues which were not recorded in ordinary
dail.y routine and which at the beginning of
the period were considered to be part of assets or liabilities and at the time of closing
operations became expenses or revenue.
Examples: office supplies used, rent expense,
expired insurance, depreciation expense,' tax
expense, interest expense, salary expense,
and Interest earned.
WORK SHEET - This is a form, which
constitutes a valuable tool for accountants,
on which the information for the preparation
of statements is organized. It contains the
following columns: account title, account
number, and five two-column sections Intendeel for trial balance, adjustment~, adjusted
trial balance, earnings statement (income statement), and statement of financial position (balance sheet). (See Fig. V-1.) to prepare the work
sheet the next procedure is followed:

1. The Information contained ill the trial balance is emptied or transferred into the
trial balance section.
2. The information gathered for adjustments
Is shown in the adjustments section in
terms of debits and credits. I
3. The adjusted trial balance s~ction is prepared by adding or dedu~ting the amounts
In the trial balance and adjustment sections. Items that do not require adjusting
are extended to the adjusted trial balance
section as they are shown in the trial balance section .
4. After totaling tre adjusted trial balance,
the work sheet is completed by classifying
an extending each item to either the earnings statement section or the statement
of financial position section.
FII';IANCIAL STATEMENTS - Once the
work sheet has been completed the financial
statements are prepared from the information
contained in the respective columns of the
work sheet.
EARNING STATEMENT or IN COME
STATEME/IIT.- The purpose of this statement is to report upon the profitability of a
business enterprise for a given period of time .
It Is taken, of course, from the earnings statement section. The illustration of an earnings
statement (Fig. V-2) will show you the classification of the expenses incurred during a fis cal period.
STATEMENT OF FINANCIAL POSITION. -

This is prepared using the information in the

33

..........Mei . .
"/li,,w,tl

IIf1lu,'
U'", .....T I

-. ... AI.".
,.. .,.

... cef

.CC.V.., f"L.

.,
,

.."
.
...
..
..
to

to

.
..
..."
"

I,

to

."
..""

to

."

....
....
..

C""'"

0 '

"'
III
III

"'
121
IJI

..

~vl,"","'

IJ.
133

3.'"

7.'"

tI.

.00

...
m

...'"

"'''''''- .

''''PO'''''''on
''' ...
"u..a.n~ "d"mII (I"" .4.1;"",.
"'rcA~ DfK'Otl"' ..

AdWf"'u,,., UpntM .

..

5U

$/'

'"
$/'
$/,

HillCd'~IW'OU' S~

rO!f",ll TI'UftI F.rpm"'!

s"lnria~

..

5"

Svppl'", &,-w
(hill,l,. E.tpnuoe

' 1,800

51.
51'

..

...

ftO
140

'"-

...

'liI,lJI
/,100

(.)

~OO

'00

..

..-....

'1,600

'0

,.,,.

100

100

/20

110

110

,.

Ih) 40

',8"-

~
8',111

.-.

~, 711

... ...

50
14

'0

~8.1l/

"
"
to

to

H ,71l

1t,8JS
II J(M

"-'('"

E~

(,)5

5.1,"18

55,405

$.\405

J,5!

~p

Worksheet.
ILLUSTRATION 2.3

JANE'S, INC.
Earnings Statement
For the Year Ended [)(:cembec 31, 1979

SI45,OOO

Sale.'! ...... . ......... . . .. .... . ...... . ... . ... ........ .

E~pen.es:

Salaries .. ...... . . ..... .. .. ... .. ... . ... . .......... S75,OOO

5,000
AdvertIsing ..... . . ........ ................ ... . . .. .. .
Utilities . .... . . ... . . . . . .. . ... . ........... . ... . .... .
8.000
Rent ............ . ............. , ..... . . .. . . .. ... 12,000
6,000
Payroll taxel e~pen .e .... . . .. . . . . .. ... . ... .. ...
In.urAnce . ......... , . . .... , , .... ' ....... . . ...
2.000
9,000
RUfllJlleo . , ... .. . .... ..... ... . . . ... . , . . , . ,
4,000
~fecl.tlon-~"lpment. .. . ............ ........ . , .
~tioo---.xttati ..... _ . . . .
. . , _...... _ .. _ 1.,Im
1.JlQIt
~. .

..
.. " .. _. . .... , ..... _....
. ... .... _.. __ ....... .. .. __ _
1n.."DO: 1:uIS .................... .. .. ...... ..
Tot&l~ .. ............. ...... .. . : .. ..... .. .

~tk ~

\!

~l

Net

Eamin~

........ . ..... .. ...... ...... .. .. ..... .. ..

129,000
S 16,000

"

Closing Entries

34

Fig. V2

.....
....
to

14'

E~

"

IPS

~.oo

1<)

to

40

/9,

'0

'0

It

It

'0

11.800

'0

100

I ,too

100

' ,800
'0

14,000
19.111

11.000

'.-"

~~
Fig. V1

,..

100

I
Ne"~ .

.oo

360

"

100

'0

"

5.500

"0

1IiI.1J1

')00

1,700

.00
JOO

14,000

,0<
5IJ

sl.01'f .owI ~
OdiwryF~ .

c..Jt

lovul'O"Cf' &ptruc

501
50.
50J

1.800

'"-

ft'

Scrk. "dv"... nJ A'''_~

DllCo",,'

MOO

,' ..boo..

,,
,
..,
'.'" ....
....
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....
.."
..
,...
....

11,000

,.....
".,.

So... . . . . . . .

300

',700

'.'"

Cft.OIT

tI,400

u.
' ..00

$.500

..'~

300

'.'"

1,7(}()

til

.~k.

~,400

I.boo

... L .....e ......,

Oil."

3$
3.' "

11,000

12,000

.01

'31
301
JO.
J ..
'01
'0'
'OJ

,., ,.

(I.,

350

Af'iC'O',""

Fei! ,"C. TlJu. rtf'l'

FICA To.n ray.b/,
,C;''''e 1rtC. TOlff!1l " ... y,
F","ol lrnempl. Tu" r(JY.
S''''e lrnempl. Tuf" roy,
Sctlorid ro,-hk
Alfff'~tI~t roy"bw
Morey C....-y. CttpHoI .
M(lP'CY c.""Y, Oro"""1 '
,~ Sum,"." . . .

C...."

3.
3S
3,1)00

Iff,IIOO

....."'.

S'orclroorn F..qvi"...,." ,
hxr .... r"Y(lbk

""'.1""" ,
Silk. nun ''''yah''

00-

"'00

1O,'

'"I''''''Ury

B"ilrli"~

..-

n.,.......'

ntlAt. .... UK.

JO

rr"Y CII
Gllff"l!" ,... ,wI
A.m,,,"" "I'('('il''''''~
"rr'{'h""tllJ(
,"",oirl ,,."',""'
f',. HaM
... nd

OJ'

CII.O'l'

-.--

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AO,IV.n.

"'OJv.~.n.

OW

, .'it.""II"
,

,
,.

L L ..... e

"

, e",,.,

'ftiv....
..

Earning' Statement.

c
f

ir

,
res pective section of the work sheet. Assets
are classified as current , noncurrent, and in'
tangible. The counter balancing portion of the
statement is generally subdivided into current
liabilities, noncurrent or longterm liabilities,
and owner's equity or stockholqer's equity.
(See Fig. V3)
ADJUSTING ENTRIES -r- The next ~tep
consists of journalizing and posting the aq
justlng entries.
CLOSING ENTRIES - The next step con
sists of journalizing and posting the closing
entries. This serve:; the purpose of closing out
all the earnings statement accounts and reo
corqing net earnings in the corresponding ca
pltal account. The following explanation
corresponds to the four closing entries of a
fiscal period in sole proprietorship account
ing:
It closes out all the cost and expense ac
counts as a debit to Expense and Revenue
Summary account.

1:

2. It closes out all the revenue accoun,ts as a

credit to E:xpense and Revenue Summary
account.
.
3. It closes out the net e~Hnings remaining in
the Expense and Revenue Summary ac
count, as a credit to the Drawing account.
4.lt is the transference of the balance of the
Drawing account to tre owner's capital account. (See Fig. V4)
After the clOSing entries are posted, all
the cost, expense, and revenue accounts are
ruled off and closed . The assets, liabilities,
and owner's equity accounts are balanced and
ruled, and the new balances must be brought
down for the new fiscal period.
POSTCLOSING TRIAL BALANCE - In
order to prove the accuracy of the ledger, af
ter having posted closing entries and balanced and ruled ail the accounts, the postclosing trial balance is taken .

ILLUSTRATION 2.4

JANE'S, INC.
Statement oC FinAncial POIltion
Deccmb 31, 1979
A.uel.l

Current AMeta;
Ca.!b .. .. . . . . . . ..... . . . . .. .... . .
Supplies on hand .. ...... . .......... ..
Unexpired iruurance .. ........ .. ...... .

Property, Plant and Equipment;

Equipment. ... .. ........ .. ........ . $40,000
Less: Allowance for depreciation....
4.000
Fixtures .... .. _. . . . . .. . . . . . . .. .. . . . .. $20,000
Less: Allow&DC<; Cor dep=iation . . ..
2,000
Total AMeta ......... . ..... . . .
Fig. V3

$ 7,000
3,000
2,000

$12,000

$36,000

LlabUitle. and StockholderJ' equity

Current Liabilities ;
Accounts payable. . . . . . . . . . . .. . . .. .. . . . . . . .. . . .. S 2,000
Notes payable . . . . ... . ....... . ........ .. .' . ... '"
10,000
Accrued salaries payable . . . . .. . . . . .. .. .. .. .. .. . . .
3,000
4,000
Federal income taxes payable:.. . . . . . . . . . . . . . . . . . .
Accrued interest payable . . . . . . . . . . . . .. . . . . . . .. .. .
1,000

S20,<XXl

Stockholders' Equity :
Capital stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $30,<XXl
54,000
$66.000

==-

RetaintXi earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16,(X)()

Total Liabilities and Stockholders' Equity . .. . - -

Statement 01 Financial Position.

35

46.000
S66,<XXl

CLOSING ENTRIES
EXPENSE ACCOUNTS
Debit
balances

REVENUE ACCOUNTS

Credited
to close

Debited to
close

Credit
balances

I I

EXPENSE ANd J=tEVI:NUE SUMMARY

Debited with
expense account
'---balances
Debited for nel
earnings for
the period

CreOited with
revenue account
balances

RETAINEb EARNINGS

Source :A Survey of Basic Accounting .

Salmonson, Hermanson Edwards.
Richard D. Irwin, Inc.
Homewoods, iii , 1977, page 42

Debited for
dividends (if
any)

Beginning
balance
Credited with - - - - '
net earnings
Flo. V4

TOPIC 2. ANALYSIS
A.

GRAMMAR STRUCTURES
The trial balance is usually taken ...
It comes to .. .
It shows ...
It consis ts of obtaining ...
For adjusting ...
Entries required to be recorded .. .
Th ey se rve . . .
Whi c h were not recorded .. .

B.

asi como
deslinadas, dedicadas a
par supuesto

~0CA8\J~~'f

A) WORDS OTHER THAN VERBS

adjustment
adjus ted trial balan c e
amounts
balance sheet

36

They were considered ...

They became ...
Which constitutes . . .
It Is organized ...
They are intended ...
It is followed .. .
It is emptied .. .
It has been completed . . .
It will show ...
The expenses incurred .. .
It closes oul . ..
After having posted ...

EXPRESSIONS
as well as
intended for
o f course

c..

Scheme of clos ing entries

ajuste
balanza de saldos ajustados
cantidades
balance general

g
j(

a
o
p

re
re
re
ru
S

to

business enterprise

counterbalancing
deferred costs
depreciation
drawing account
earnings
E)arnings ~tatement
expense and revenue summary
Income statement
items
office supplies
post-closing trial balance
procedure
profitability
proprietorship
rent
sole
statement
work sheet

emprf:!X1 COmf:fC\al

compensacion, equilibrio
costos dlferidos
depreciaci6n
cuenta personal
ganancias
e:;tado d~ (perdidas y) ganancias
, . ,.- ,. . . " sumarlb de gastos e ingresos
estado de ingresos
partidas
utiles de oficina
balanza post-cierre
procedimiento
productividad
capital
renta
unico, solo
estado
hoja de trabajo

B) REGULAR VERBS
PRESENT

PAST AND PAST PARTICIPLE

add
close out
complete
consider
determine
discuss
earn
empty
extend
gather
journalize
obtain
organize
prepare
recognize
remain
report
rule
serve
total

added
closed out
completed
considered
determined
discussed
earned
emptied
extended
gathered
journalized
obtained
organized
prepared
recognized
remained
reported
ruled
served
totaled

SPANISH MEANING
sumar, adicionar
liquidar
complet!lr
considerar
determinar
comentar, discutir
ganar (dinero)
vaciar
extender
recoger, inferir
asentar en el diario
obtener
organizar
preparar
reconocer
quedar, sobrar
informar, relatar
rayar
servir
totalizar

C) IRREGULAR VERBS

PRESENT

PAST

PAST PARTICIPLE

SPANISH MEANING

bring
bring down
get to

brought
brought down
got to

brought
brought down
got, gotten to

traer
bajar, prolongar
alcanzar, lIegar

37

_~I:::""

_________________ 'It""'''i._'''''''...;........+,i""...., .........-.-,.

-TOPIC 3. SUMMARY

The trial balance is usually taken when

the cycle comes to an end. It shows the balances of the ledger accounts at that time.
It is necessary to make an analysis of
certain accounts that need to be adjusted, as
well as to determine the entries required to be
recorded in order to accomplish those adjust
ments . The adjustments serve the purpose of
recognizing deferred costs and revenues and
recording accrued expenses and revenues,
which were not recorded in the ordinary daily
roUtin e, and which at the beginning of the pe
riod were considered as part of assets or liabll
ities and at the time of closing operations be
came expenses or revenue.
In order to organize the inform~tion for
1e preparation of statements, accduntants
use a form called a work sheet. This is a work-

6.

ing tool used to clas'sify accounts , to make

adjUstments, to compute the earnings, and to
get the necessary informatidri for preparing
the earnings statement and the statement of
financial position.
The next step is journalizirlg the adjust
ing and closing entries and posting them to
the ledger. "
After posting is made, all the ledger accouhts are balanced and ruled . All the tempo
rary expense and revenue accounts are closed and double ruled. The assets and liabilities accounts, as well as owher's equity ac
counts, show new balances to start the new
fiscal period .
Alter having posted Ihe adjusting and
closing entries, and balanced and ruled the
remaining accouhts, the post-closing trial bal
ance Is taken in order to prove the accuracy
of the ledger.

7.

8.

TOPIC 4. EXERCISES

A_ GRAMMAR
a) Identify the subject and verb of each statement and underlihe the complement. Refer to
TOPIC 1.
b) Use gerunds after of, for before, after, by as in the EXAMPLE.

B_ t
Ex.: The trial balance is taken before analyzing adjustment.
(analyze)

1. The first step in the cycle consists of _ _ _ __

the dairy business transactions in the

1.

(record)
journal.
2. The second step consists of ______ the journal entries to the ledger.
(pos t)

2.

3. The post-closing trial balance is taken after _______ closing entries.

(post)
4. The adjusted trial balance is taken by _ _ __ _
(add)

and

_~____

the amounts in the

(deduct)

trial balance and adjUStments sections .

5. The new balances are brought down after _ _ _ _ __ and _ _ _ _ _ _ the accounts. ,
,
(balance)
(rule)

3. 1
I

The work sheel is elaborated before

.~_ _ _ _

the statements.

(prepare)
ring
t of
JstI to
ac-

7. The earnings statement is accomplished for ______ the earnings of a business .

(compute)

8_ The adjustments serve the purpose of ______ deferred costs an revenues.

(recognize)

po-

osbilacew
nd
he
,al -

c)

Change thfl following sentences from the active to the passive as in the examples.

Ex.: They follow a procedure .

They followed a procedure .

A procedure is followed

A procedure was followed

They organize the information . _________________________

ICY

They posted one closing entry . _ _ _ _ _________________ _ _ __

They empty the trial balance .
They computed net earning .
10

They recorded the transaction . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

B_ COMPREHENSION

a) Write the Spanish equivalent of the following statements.

1e

1. The trial balance is usually tak en when the fiscal period comes to an end.

2. The adjustments serve th e purpose of re cognizing the deferred costs and revenues and recording accrued expenses and revenues .

3_ The work sheet is a form which cons titutes a valuable tool tor accountants.

39

._ _ _ _ _ __ _.___._

_ _ _ _ _ _ _ _.......
.6=

..

-. 4. The information contained in the trial balance is emptied or transferred Into the trial balance section.

5. The information gathered for adjustements is shown In the adjustments section, In terms of debits
and credits .

6. Items that do not require adjusting are extended to the adjusted trial balance section as they
are shown in the trial balance section .

7. On c e the work sheet has been completed the financial statements are prepared.

8. After totaling the adjusted trial balance, the work sheet Is completed.

9. After th e closing entries are posted, ail the cost, expense, and revenue accounts are ruled off
and c losed.

10. The purpose of the earnings statement is to report upon the profitability of a business enterprise for
a gi ven period.

40

b) Answer the following questions ill Spanish. Refer to TOPIC 3. SUMMARY.

1. When is the trial balance usually taken?

2. What does the trial balance show?

3. What is it necessary to do with certain accounts?

4. What purpose do adjustments serve?

5. What do accountants use to organize the information for the preparation of statements?

6. What is the work sheet for? Mention the activities involved .

7. What are the financial statements?

8. What is the next step after preparing the financial statements?

9. What accounts are closed out and double rUled?

10. What is the post-closing trial palqnce taken for?

41

IT

HISTORIC BACKGRO UNrJ OF ACCOUNTING

( "I,
TOPIC 1. READING

tr
\

It,
1
\

Man, since early times , has struggled to

satisfy his requirements for makln~ a liv.lng .
Litte by little, the se requirements ~ecarne
greater, and the interchange of ,goods among
individuals was necessary. I, j.
As a result of this, trading ,began to appear. Simultaneously, numerical . records of
some kind began to arise, too.l, .1.
Evidences of the above 'statem ent are
the discoveries made by archeologists, such as
bri cks inscribed in c uneiform characters in Babylon, detailed accounts for farms and states,
in Greece and Rome and the l,trib4teroll of
Moctezuma:in pre-Columbiaf'\ North Ameri ca. This roll gave an account/li n a, pictorial
way , of beadwork, feather work,'weapons , and
food, which constituted the tribute of other
Mexican nations to Moctezuma . .
Nevertheless, these and many similar rec ords are not accounting records in the modern sense . Accounting, from the modern accountants point of view, really began with th e
developm en t of the commercial reRublics of
Italy.
" (' 1'1\ 1\.
.
Massari of Genoa, in 1340,' wa,s the' first
to keep dou ble entry bool(s, t/lls . ln~o,rJnatio n
being contained in Edward Pe,ragollq's book
Origin and Evolution of Double' Bookkeeping.
However, the first printed ! text, containing accounting and in c luding the doubl e
entry system, known to exist is that of Luca
Pacioli (1445-1514), Summa ete ' Arithmetica,
Geomt;tria, Proportione e Proportionalitat e

Pac ioli was a true representative of the scientific culture at the tim e of the Italian Renaissance. He taught at monasteries, universities,
and royal courts, and he wrote the book in
1494.
_
_
Some centuries later, in 1776, the industrial revolution arose beginning in Great
Britain . A series of Inventions in a large number of industri es took place. It then became
necessary to improve accounting tecniques
and systems and establ ish new ones.
At present, changes in political and economic organizations based upon th e interests
and needs of society, have given rise to an important increase in technology.
So far as accounting is concerned, a
new system of data processing, based on ac
counting principles and accomplished by
means of electronic computers, has been
used in recent years. " Data" is a synonym for
"information" and "processing" is a synonym
for " handling" .
Nowadays, a great number of institutions of various types use this syst em.
TOPIC 2_ ANALYSIS
A.

GRAMMAR STRUCTURES
Man has struggled . . .
The int erch ange was .. .
Trading began to appear .. .
Rec ords began to arise . . .
Eviden ces are . . .
Made by Archelogists . ..
This roll gave an account. ..
1

....
Which constituted . ..
these are not. ..
Text containing and in c luding ...
He taught. ..
B.

EXPRESSIONS
for making a living
known to ex is t
little by little
so far as acco untin g is
concerned.
to give rise to

C.

A series of inventions took place

Changes . . . have given . . .
based on .. .
It has been used .. .

para ganarse la vida

que se sabe exist/eron
poco a poco
por 10 que respe c ta a
contab/lidad
dar origen a

VOCABULARY

A) WORDS OTHER THAN VERBS

acco unts
accou nting
bead work
bricks
cent ury
courts
data processing
detailed
development
doubleentry
J ear ly
es tates
farms
fea th er work
food
greate r
however
in c rea se
interchange
needs
~ nevertheless
prin cip les
records
renai ssa nce
require ment s
roya l
stateme nt
time s
trading
tributeroll
weapons
2

cuentas

conta~iI/dad

bisuteria
ladrillos, losas .
s/glo
cortes
procesamiento de datos
detallado
desarrollo
partida doble
prim/t/vo, temprano '
bienes, propledades
granjas, haciendas
trabajo en plumas
alimento, com/da
mas grande, mayor
no obstante
aumento, incremento
int ercambio
necesidades
sin embargo
principios
reg istros
renaclmiento
'requisitos, necesidades
real
aseveraci6n , plant ea mlento
ti empo s
come rcio
. li sla de tributos
armas

~a) REGULAR VERBS

. ill
PRESENT

i:\ccQmplish
appear
base
constitute
contain
establish
improve
include
Inscribe
satisfy
struggle

PAST AND PAST PARTICIPLE

SPANISH MEANING

accomplished
appeared
baseq
constituted
contained
established
improved
included
inscribed
satisfied
struggled

efectuar, cumplir
aparecer, mostrarse
basar, fundar
constituir
contener
establecer, crear
mejorar, perfeccionar
incluir
grabar
satisfacer, saciar
luchar, esforzarse

C) IRREGULAR VERBS
PRESENT

PAST

PAST PARTICIPLE

SPANISH MEANING

arise
be (am, is, are)
become
give
have
keep
know
make '
take place
teach
write

arose
was, were
became
gave
had
kept
knew
made
took place
taught
wrote

arisen
been
become
given
had
kept
known
made
taken place
taught
written

surgir, subir
ser 0 estar
lIegar a ser, volverse
dar
haber 0 tener
Ilevar libros, guardar
saber, conocer
hacer, elaborar
suceder, ocurrir
ensei'lar
escribir

TOPIC 3. SUMMARY
I

Man, since early times, has struggled to

make a living. The interchange of goods
among individuals was necessary.
Trading began to appear, and at the same
time, numerical records began to arise.
Old numerical records were discovered
by archeologists in different places .
Accounting, in the modern sense, began
w th the gevelopment of the commercial republics in Italy.

The first printed book containing account

ing and including the double-E:ntry system was
written by Luca Pacioli.
After the industrial revolution arose, it
was necessary to improve accounting techniques and systems and to establish new ones.
Changes in political and economic organizations have given rise to an increase in
technology.
Nowadays a great number of institutions
use the data processing system , accomplished
by means of electronic computers , which will
be discussed in UNIT XIV .

,......__________...._____... _____._ ""'""f"""""..,.",...,."..

~

......_

I!!t"!I_m!'l~.."..._

...._ . _

TOPIC 4. EXERCISES.

I I

A. GRAMMAR
a) Identify the subject and verb of each statement In TOPIC 1, and write, them on a separate
piece of paper.
b) Fill the blanks with is, isn't, are, aren ' t, was, acco rding to the sense of the statement.
.

1.
2.
3.
4.
5.

. '

The interchange _ _ _ _ _ _ necessary in early times .

Numerical records of Babylon
accounting records in the moderns sense.
Accounting records
necessary in Institutions.
Data processing
a system.
The doubleentry system
new.

cJ Fill in the blanks with the proper ten se of the verb in parentheses according to the time
expression.
'---' 1. Trading ______ to appear many years ago.
(begin)
2. The industrial revolution ______ in 1776.
(arise)
3. Man ______ to make a living since early times .
(struggle)
4. Pacioli ______ to teach at royal courts in 1490.
(use)
5. He ______ his book Summa in 1494 .
(write)
6. Changes in economic organ izations
rise to changes In technology.
(give)
7. A series of inventions
'place in the eighteenth century.
(take)
B. COMPREHENSION .

1. Man, since early times, has struggled for satisfying this reqUirements for making a livihg q

2. The interchange of goods among individuals was necessary . .

3. As a result o f this , trading began to appear.

4. Evidences ot the above statements are di scoveries made by arch eo logis ts.

,5.

Nevertheless, these and manv similar records are not accounting records in the modern
sense.

,.

tJ,.The first printed text, containing accounting and including the double-e ntry system is that of
;., Luca Pacioli.

7. He used to teach at monasteries, univer s ities, and royal courts, and he wrote his book in
1494.

8. A series of inventions in a large number of industries took place.

9. Changes in political and economic organizations have given rise to an important increase in
technology .

10. A new system of data processing has been used in recent years .

b) Answer the following questions in Spanish. Reter to TOPIC 3. Summary.

1_ What has man done since early times?

2. What was necessary among individuals?

3. What began to appear?

-------

I'

4. What began to arise, at the same time?

5. What was discovered by archeologists?

6. When did accounting, in its modern sense begin?

7. What did Luca Pacioli write?

8. What was it necessary to do after the industrial revolution arose?

9. What have changes in political and economic organizations given rise to?

10. What system do a great number of modern institutions use?

GLOSSA Y

"A"
able
above
abroad
accompany
accomplish
accomplishment
account
accounting
ac(;ounts payable
accounts rece ivable
qCCOU n tant
accrue
accuracy
accurate
aChieve
achievement
acquire
acronym
act
actual
actually
add
addition
adjusted tri al balance
adjustment
adjusting entry
advance
advantage
advertising
advice
aqvocate
affect
agains t
agg regate

- capaz, apto, be able poder

- arriba de, susodicho, precilado
- en el extranjero, fuera del pais
- acompanar, concomitar
- efectuar, cumplir
- realizacion, ejecucion
- cuenta
- contabilidad
- cuenlas por pagar
- cuentas por cobrar
- contador
- acumularse, redituarse
- exactitud, precision
- exacto, preciso
- lograr, lIevar a cabo, reali zar
- logro, ejecucion, reali zac ion
- adquirir
- acr6nimo
- obrar, actuar, acto, disposicion
- real, verdadero, existente
- real mente, verdaderarnente
- sumar, adicionar
- sLima
- balanza de saldos ajustados
- ajuste, adap tacion
- asiento de ajuste
- avanzar, avance
- ventaja
- propaganda, publicidad
- cons ejo, aviso, noticia
- de fender: abogar por
- afe ctar
- contra, en contra
- agregado , unido, agregar, juntar
123

_
_

agree
agreement
aim
allocation
allocative
allow
alone
always
among
amount
analysis
analyze
ancient
appear
appl ication
apply
appraise
approach
arise, arose, arisen
assets
assign
associate
attain
attempt
automotive
availability
available
avoid
awareness

estar de acuerdo, coincidit

acuerdo, convenlo
asplrar a, pretender, mira, prop6slto
asignaci6n, distribucl6n
distributivo
permltir, conceder
solo
siempre
entre, en medio de
cantidad
analisls
analizar
anti guo, vetusto
parecer, presentarse
aplicaci6n, uso, solicitud
aplicar, dar
valorar, estimar
acceso, acercamiento
surgir, subir
acti vo
asignar
asociar, asociarse
lograr, alcanzar
intentar, probar
automotriz
disponibilidad
disponible, accesible
evitar
co noclmiento, conciencia de un hecho

"8"
balance
balance of payments
balance of trade
balance sheet
bar-code scanner
base
be, was, were been
be able
be willing
bead work
becom e, became, becom e
beforehand
beginner
beginning
behal f
behave
behavior
beliefs
124

- balance, balanza, saldo

- balanza de pagos
- balanza comercial
- balance general
- rastreador de caracteres
- basar, fundar, apoyar
- ser 0 estar
- poder
- es tar dispuesto
- bisuteria
- volverse, Ilegar a se r
- cie antemano
- principian te
- principio
- favor, on behalf, a favor
- comportarse
- comportamiento, conducta
- c reenc ias, convencimien to

belong
benefits
bE)sides
better
between
bind, bound, bound
blending
board of directors
brand
bricks
bring down
broader
budget
build, built, buill
building
burden
business enterprise
buy, bought, bought
buyer

pertenecer
beneficios, servicios
ademas, tam bien
mejor
en medio, entre dos
atar, juntar, unir
mezcla
consejo directivo
marca
ladrillos, losas
bajar, prolongar
mas amplio, mas ancho
presupuesto, presupuestar
construir, edificar
edificio
carga, peso
empresa comercial
comprar
comprador

Ilamar, nombrar, gritar

poder, lata
bienes de capital
perforadora de tarjetas
lectora de tarjetas
Ilevar a cabo, realizar
dinero en efectivo, caja
dinero a la mano, disponible
diario de egresos de caja
diario de ingresos de caja
causa, causar
siglo, centuria
alguno, cierto
cambio, cambiar
cedula, titulo, estatuir
catalogo de cuentas
barato
registro de cheques
verificar, comprobar
elecci6n
tarea domestica, faena
clasificar
de dependientes, relativo al trabajo de oficinas
empleados de oficina, dependientes
cercano
saldar, liquidar
asiento de cierre
preparar, aleccionar

"C'!
call
can
capital goods
card-punch
card-reader
carry out
cash
cash on hand
cash payments journal
cash receipts journal
cause
century
certain
change
charter
chart of accounts
cheap
check register
check up
choice
chore
classify
clerical
clerks
close
close out
closing entry
coach

125

.'
-,-

code
combined cash journal
come, came, come
command
commodities
comparative advantage
compete
compiler
complexity
compose
computer
concern
confer
consent
constantly
constitute
consume
consumption
contain
content
cou nter-balanc i ng
continuum
convert
copartnership
copyright
counsel
course
courts
cover
create
credit
currency
current
customs

codlflcar
diario de caJa comblnado
vehir
dar 6rdenes
artlculos de consumo
ventaja comparatlva
competir
recopilador
complejidad
componer
computadora
concernir, Importar
conferir
consentlmlento, consentlr
constantemente
Constltuir
consumlr
consumo
cohtener
contenido
contrapeso, equilibrio
continuo
convertir
compania, asociacion
derechos de autor
consejo, determinacion, aconsejar
curso
tribunales, juzgados
cubrir
crear
credito, haber, abonar, acreedor
moneda corriente
circulante
costumbres, usanzas, aduanas

"0"
daily
data processi ng
deal, dealt, dealt
death
debit
debt
decrease
deeper
deferred costs
degree
delegate
deliver
demand and supply
126

- d iari o, cotidiano
- procesamiento de datos
- tnltar, traficar
- muerte
- debe, cargo, cargar, deudor
- cleuda
- disminuir
- mas profundo
- gastos diferidos
- grado
- de legar
- entregar
- demanda y oferta

design
designate
desire
develop
developing countries
development
device
devote
differ
disability
disbursements
discounts
disk
disposal
double-entry
drawing account
draw up
duality
during

ae iii c, Qi;lOl cJ
OIsei'lar, inventar
designar
desao, dS80ur
desarrollar
paises en desarrollo
desarrollo
aparato, dispositivo
dedicar
diferir
impotencia, incapacidad
desembolsos
descuentos
disco
disposicion
partida doble
cuenta personal
extender un giro, tirar hacia arriba
dualidad
durante

"E"
each
early
earn
earnings
earnings statements
economics
economists
effort
either
employ
employee
employment
empty
encourage
end
enterprise
entity
entrepreneur
entry
equality
equitable
equity

-- cada, todo
- primitivo, temprano
- ganar (dinero)
- ganancias
- es tado de perdidas y ganancias
- economia
- economistas
- esfuerzo
- uno u otro
- dar empleo, emplear
- empleado
- empleo
- vacio, vaciar
- alentar, animar
- final, terminar
- empresa
- entidad
- empresario
- asiento, entrada
- igualdad
- equitativo
- equidad, diferencia entre el valor de una propiedad y la cantidad que se debe establecer
- establecer.
- aprecio, estima, estimar
- bienes, raices
- evaluar

establish
esteem
estates
evaluate

127

_ _ iIi_ _ _ __ _ __

.- - --

,.-

_
_
_
_
_
-

even
evolve
exceed
exchange
exchange rate
expand
expect
expenditures
expense
expense and revenue sumary account
explain
extent

llano, liso aun

evolucionar, desarrollarse
exceder
cambio, intercambio
tipo de cambio
expanderse, extenderse
esperar, con tar con
gastos, desembolsos
ga5to, coste
cuenta sumaria de gastos e ingresos
explicar
extension

" F"
- cara, faz
- hecho, realidad
- fabrica
- granjas
_ trabajo en plumas
_ caracteristicas, rasgos
- retroalimentar
- tinanciero
_ descubrir, encontrar
- firma, compaf'lla
_ ajustar, encajar, acomodar
- fiJo
...:.. activo fijo
- flotar
- flujo del comercio
- enfocar, concentrarse
- seguir
- siguiente
- alimento
- extranjero, exterior
- lucrativo
_ enmarcar, encuadrar
_ sistema, forma (de gobierno)
- franqulcias
- empresa libre
-- Ilbertad
- fun cio n, fun c iona r
- fon dos
-' su rtl r, su pi i r
- mueble s y enseres

face
fact
factory
farms
feather-work
features
feed back
financial
find , found, found
firm
fit
fixed
fixed assets
float
flow of trade
focus
follow
following
food
foreign
for-p rofit
fram e
framework
franchi ses
fr ee en terprise
freedom
fun ction
funds
furnish
furniture and fixtures

"G"
gain
gap
gather
128

_ ganancia, beneficio
- vacio, laguna
- reunir, recoger

general journal
generate
get, got, got (ten)
get to
give, gave, given
goal
goods
good will
grant
greater
grievance
grow, grew, grown
growth
guide

diario general
generar
obtener, adquirir
lIegar, ir a
dar
meta, fin, objeto
mercancias
plusvalia
conceder, permitir
mas grande, mayor
injusticia, agravio, of ens a
crecer
crecimiento
guia, guiar, dirigir

handle
hardware

heading
hear, heard, heard
help
hierarchy
high
hold, held , held
holder
hole
hope
Ilousehold
however

manipular, manejar
nombre que se Ie da al equipo fisico de un sistema de procesamiento
encabezado
oir, oir decir
ayuda, ayudar
jerarquia
alto, elevado
coger, tener, sostener
tenedor, poseedor
agujero, orificio
esperanza, esperar
casa, familia
sin embargo

imagen
utensilio, poner en ejecuci6n
arancel
imponer
mejorar, perfeccionar
mejoras
incluir
ingreso, renta
estado de ingresos
aumentar, incrementar
rendimientos crecientes a escala
incurrir
desigualdad
inmadurez
elemento de entrada

"H"

"I"

image
implement
import tariff
impose
improve
improvements
include
income
income statement
increase
increasing returns to scale
incur
inequality
immaturity
input

129

inscribe
intend
interchange
interprete
intersect
inventory
investment
investor
involve
Isolate
issue
item

inscrib ir, grabar

intentar
intercamblo, intercambiar
inte rpret ar
intersecar
inventario
inversion
inverslonista
involucrar
ais lar
expedir, arrojar, emitir
partida, deta lle, rengl on

empleo, tarea
dlario
asentar en el d ia rio

guardar"lIevar libros
componentes claves
genero, clase
conocer, saber

tierra, terreno
posterior, mas reciente
ley
gular, dirigir
dlreccion, jefatura, autoridad
aprender
arrendamlento
mayor
Izquierdo
menos
nivel
responsable, obligado
obllgaciones a pagar, pasivo
biblioteca
asimismo, tambien
limite, limitar
organizaci on de la li nea (de una empresa)
lista
pres tamos

"J"
job
journal
journalize

UK"
keep , kept, kept
key components
kind
know , knew, known

"l"

land
latter
law
lead , led , led
lead ership
learn
leasehold
ledger
left
less
level
liable
liabilities
library
likewise
limit
line organization
list
loans
130

machine
machinery
main
mainframe
mainly
maintain
maintenance
major
make up
manage
man agement
managerial
manor
market
marketable securities
marketing
marketing mix
match
mature
maturity
matter
may, might
mean, meant, meant
meaning
means of production
measure
medi tate
meet
meeting
member
merchandise
message
mid-sized
misfortune
mixed-economy
morale
most
motivate
move
must

de larga vida
de largo alcance
perder
perdida
inferior, mas bajo
suerte

maqulna
maquinaria
principal, de mayor importancia
unidad central de procesamiento
principal mente
sostener, guardar, mantener
mantenimiento
principal, mayor en importancia
componer
manipular, manejar, dirigir
gobierno, dlrecci6n, administracl6n
dlrectivo, admlnistrativo
feudo
mercado
valores comerciales
mercadotecnia, mercado
mixtura de mercadotecnia
Igualar, equiparar
maduro
madurez, vencimiento
materia, asunto '
poder, tener facultad 0 permlso
slgnlflcar
significado
medlos de producci6n
medlda
medltar
encontrarse con, lIenar requisitos
sesi6n, asamblea
mlembro
mercancia
mensaje
de tamano medlano
Infortunlo, desgracia
economia mlxta
estado de animo, espirltu
10 mas, los mas
motivar
moyerse
deber, tener que

131

"N"
nature
need
needs
network
nevertheless
next
noncurrent
not-for-proflt
notes payable
nowadays
number

_
-

naturaleza
necesltar
necesidades
cadena de trabajo, sistema
sin embargo
pr6xlmo, siguiente
no circulante, fijo
no lucratlvo
documentos por pagar
hoy en dla
numero, cantidad

_
-

obtener
ocurrir, suceder
oficiales, funcionarios
utlles de oficina
a menudo
el mas viejo
una vez
asiento de apertura
operar
ordenado
organlzar
producto, elemento de salida
vencer, superar
deber, adeudar
propio, poseer
propietario
capital
propiedad

"0"
obtain
occur
officers
office supplies
often
oldest
once
opening entry
operate
orderly
organize
output
overcome
owe
own
owner
owner's equity
ownership

"P"
pace
package
parties
partners
partnership
patterns
pay, paid, paid
payments
perform
performance
phase
piece

132

,_
_
-

paso, marcha
paquete, empaquetar
partidos, partes
socios
, sociedad de personas, compai'lia
modelos . muestras, palrones
pagar
pagos
ejecu\ar, realizar
ejecuci6n , realizacibn
aspecto, fase
pieza, pedazo

plac e
plus
policy
post
post-closing trial balance
posting
power
prepare
prepayments
prevail
principles
printer
procedure
process
produ ce
prof it
pro fitability
prof itable
promote
promotion
prompt
property
propri etorship
prove
provi de
prov ision
publish
punch
purchase
purpose
put, put, put

lugar, colocar
mas
politica
pasar al mayor
balanza post cierre
pase al mayor
poder
preparar, elaborar
pagos hechos por anticipado
prevalecer
principios
impresor
procedimiento
proceso
producir
utilidad , ganancia
productividad
productivo
promover
promocion
pronto, lis to, expedito
propledad
capital
comprobar, demostrar
proveer, proporcionar
medida, disposicion, provision
publicar
perforar
comprar
proposito
poner

rapldo
completamente

recorrer, fluctuar
tasa, tarifa
racional
materias primas
leer
darse cuenta
razon
recibo
recibir
reciente

"a"
quick
quit e

UR"
range
rate
rational
raw materials
read, read, read
realize
reason
receipt
receiv e
rec ent

133

.:..-

recognize
record
reduce
refer
reflect
regarding
regardless
regulations
relate
relationship
remain
remark
renaissance
render
rent
repair
report
request
require
requirement
research
reside
resources
restrict
retailers
retained
retirement
revenue
reversing entries
review
rise, rose, risen
risks
role
royal
royalties
rule

reconocer
registro, registrar
reduclr
referlr
reflejar
relallvo a
sin hacer caso de
reglamento
referlr
relacl6n
quedar, res tar
observacl6n, nota
renaclmlento
rendlr, prestar
renta, rentar
reparaclon, reparar
reportar
solicitar
necesltar, requerir
requisito
Investigacion
resldir
recursos
restrlngir
comerciantes de menudeo
retenidos
retlro
renta, Ingreso
asientos invertidos
repaso, repasar
subir, elevar
riesgos
papel
real
regalias
regia , gobierno

causa, motivo, fin

venta
dlario de ventas
vendedor
mismo
satisfacer
declr
escaso
escasez
plan, programa
seguro, asegurar

"S"
sake
sale
sales journal
salesman
same
satisfy
say, said, said
scarce
scarcity
s c he<j IJ4.e
secure
134

s.ecurities
seek, sought. sought
seem
seldom
self-actualization
self-control
sell, sOld. sold
seller
sense
serve
set
set up
several
share
shareholder
shop
shorten
short-range
short term
show
side
sight
since
single
ski lis
slowly
small
software

,-

sole
solve
sort
spend, spent, spent
staff
stage
state
statement
statement of financial position
step
stockstockholder
stockholder's equity
storage
stripcard
strive, strove, striven
strong
struggle
student-oriented
submit

,-

val ores
bus car. esfoaarse par
pcuecer
lara vez
autorrealizaci6n
autocontrol
vender
vendedor
percibir
servir
juego, serie
erigir, instituir
varios
. compartir
accionista
tienda, taller
acortar, encoger
de corto alcance
a plaza corto I
mostrar
lado
vista
desde
unico, solo
habilidades, destrezas
lentamente
pequei'lo
nombre que se Ie da a un conjunto de programas,
procedimientos y documentos que se asocian con
la operaci6n de un sistema ',procesamiento
solo, unico
'
resolver
clase, especie, genero
gas tar, pasar el tiempo
personal, proveer de personal
etapa
manifestar, enunciar
aseveraci6n
balance general
paso
abasto, acci6n
accionista
capital en acciones
almacenamiento, almacenaje
tarjetas con faja
esforzarse
fuerte
lucha, luchar
orjentado hacia el estudiante
someter, referir

135

_______ .:l1li.

subsidiary ledgers
success
successful
sue
summarize
supplies
support
surplus
surprising
syntactic

- mayores subsidiarios
- exlto
- exitoso
- demandar, entablar juicio
- resumlr
- suministro, provision
- sostener, aguantar
- excedente, superavit
- sorprendente
- slntactlco

"T"
-

tactical
take, took, taken
take place
tape
task
taste
taxes
tell, told, told
terms
therefore
think, thought, thought
though
thoughtful
through
thus .
together
toil
tools
toward
trade
trademark
train
t ransac tion
transfer
trea t
trial balance
tribute-roll
truthful

tactico
tamar
realizarse, tener lugar
clnta
tarea
gusto
implJestos
declr, relatar, contar
termlnos, condiciones
par 10 tanto
pensar
aun, aunque
precavido, considerado
a traves de
asl, de esta manera
junto
trabajo , faena
herramlentas
hacia
comercio
marca comercial
entrenar, adiestrar
operacion
transrerir
tratar
balanza de comprobacion
lista de tributos
veraz, verdadero

"U"
undertake
understand ,' ~nderstood,

unemploymei!t
unstable
unusual
13R

understood

- emprender, int entar

- comprender. en enoe r
- desemp\eo
- inestable
- no usual

Up041

- , .11 '

use
useless
usually

- ,

1I~"',

inu!ll
usual mente

valioso
valor
variados
vehiculo
vistas
respuesta con voz
registro de comprobantes
documentos por pagar

salarios
desear, querer, deseo, demanda
que salisface demandas, deseos
almacenaje
desperdicio
manera, modo
armas
bienestar
cualquiera
en vista de que
comerciante al por mayor
dispuesto
dentro de
trabajo, trabajar
hoja de trabajo
falta de merito 0 de valor
escribir

WiU

"V"
valuable
value
varied
vehicle
views
voice-response
voucher register
vouchers payable

"w"

'~

wages
want
want-satisfying
warehousing
waste
way
weapons
welfare
whatever
whereas
wholesaler
willing
within
work
work sheet
worthlessness
write. wrote, written

137