ISH3F3 Accounting System and Finance Management

BusinessTransaction and Financial Report

Muhardi Saputra.
Information System Department
2019
Learning Objective

Analyze the effects of business transactions on the accounting

1 equation.

Describe the four financial statements and how they are

2 prepared
Transaction Analysis
Illustration: Are the following events recorded in the accounting
records?
Discuss product
Purchase
Event design with Pay rent
computer
potential customer

Criterion Is the financial position (assets. liabilities. or owner’s

equity) of the company changed?

Record/
Don’t Record
Transaction Identification

Not
NO. Activity Transaction
Transaction
1. Computer Purchasing √
2. Discussion product design with client √
3. Pay rent √
4. Employee Recruitment √
5. Customer Response by phone √
6. Employee Payment Salaries √
7. Purchasing furniture by credits √
8. Goods Ordering √
9. Pay tax √
10. Apply for credit to Bank Mandiri √
Transaction Analysis
TRANSACTION 1. INVESTMENT BY OWNER Said Jamil decides to start
a smartphone app development company which he names Softbyte. On
September 1. 2018. he invests IDR 15.000.000 cash in the business. This
transaction results in an equal increase in assets and owner’s equity.

Assets = Liabilities + Owner's Equity

Trans- Accounts Accounts Owner's Owner's
Cash + + Supplies +Equipment = + + + Rev. - Exp.
action Receivable Payable Capital Drawings

1. +15.000 +15.000
 TRANSACTION 2. PURCHASE OF EQUIPMENT FOR CASH Softbyte
Inc. purchases computer equipment for IDR 7.000 cash.
Illustration 1-8

Assets = Liabilities + Owner's Equity

Trans- Accounts Accounts Owner's Owner's
Cash + + Supplies +Equipment = + + + Rev. - Exp.
action Receivable Payable Capital Drawings

1. +15.000 +15.000
2. -7.000 +7.000
3. +1.600 +1.600
4. +1.200 +1.200
5. +250 -250
6. +1.500 +2.000 +3.500
7. -1.700 -600
-900
-200
8. -250 -250
9. +600 -600
10. -1.300 -1.300
$8.050 + $1.400 + $1.600 + $7.000 = $1.600 + $15.000 + $4.700 - $1.950 - $1.300
LO 4
 TRANSACTION 3. PURCHASE OF SUPPLIES ON CREDIT Softbyte Inc.
purchases for IDR 1.600 headsets and other accessories expected to last
several months. The supplier allows Softbyte to pay this bill in October.
Illustration 1-8 Assets = Liabilities + Owner's Equity
Trans- Accounts Accounts Owner's Owner's
Cash + + Supplies +Equipment = + + + Rev. - Exp.
action Receivable Payable Capital Drawings

1. +15.000 +15.000
2. -7.000 +7.000
3. +1.600 +1.600
4. +1.200 +1.200
5. +250 -250
6. +1.500 +2.000 +3.500
7. -1.700 -600
-900
-200
8. -250 -250
9. +600 -600
10. -1.300 -1.300
$8.050 + $1.400 + $1.600 + $7.000 = $1.600 + $15.000 + $4.700 - $1.950 - $1.300
LO 4
 TRANSACTION 4. SERVICES PERFORMED FOR CASH Softbyte Inc.
receives IDR 1.200 cash from customers for app development services it
has performed. Illustration 1-8

Assets = Liabilities + Owner's Equity

Trans- Accounts Accounts Owner's Owner's
Cash + + Supplies +Equipment = + + + Rev. - Exp.
action Receivable Payable Capital Drawings

1. +15.000 +15.000
2. -7.000 +7.000
3. +1.600 +1.600
4. +1.200 +1.200
5. +250 -250
6. +1.500 +2.000 +3.500
7. -1.700 -600
-900
-200
8. -250 -250
9. +600 -600
10. -1.300 -1.300
$8.050 + $1.400 + $1.600 + $7.000 = $1.600 + $15.000 + $4.700 - $1.950 - $1.300
LO 4
 TRANSACTION 5. PURCHASE OF ADVERTISING ON CREDIT Softbyte
Inc. receives a bill for IDR 250 from the Daily News for advertising on its
online website but postpones payment until a later date. Illustration 1-8

Assets = Liabilities + Owner's Equity

Trans- Accounts Accounts Owner's Owner's
Cash + + Supplies +Equipment = + + + Rev. - Exp.
action Receivable Payable Capital Drawings

1. +15.000 +15.000
2. -7.000 +7.000
3. +1.600 +1.600
4. +1.200 +1.200
5. +250 -250
6. +1.500 +2.000 +3.500
7. -1.700 -600
-900
-200
8. -250 -250
9. +600 -600
10. -1.300 -1.300
$8.050 + $1.400 + $1.600 + $7.000 = $1.600 + $15.000 + $4.700 - $1.950 - $1.300
LO 4
 TRANSACTION 6. SERVICES PERFORMED FOR CASH AND CREDIT.
Softbyte performs IDR 3.500 of services. The company receives cash of
IDR1.500 from customers. and it bills the balance of IDR 2.000 on account.
Illustration 1-8 Assets = Liabilities + Owner's Equity
Trans- Accounts Accounts Owner's Owner's
Cash + + Supplies +Equipment = + + + Rev. - Exp.
action Receivable Payable Capital Drawings

1. +15.000 +15.000
2. -7.000 +7.000
3. +1.600 +1.600
4. +1.200 +1.200
5. +250 -250
6. +1.500 +2.000 +3.500
7. -1.700 -600
-900
-200
8. -250 -250
9. +600 -600
10. -1.300 -1.300
$8.050 + $1.400 + $1.600 + $7.000 = $1.600 + $15.000 + $4.700 - $1.950 - $1.300
LO 4
 TRANSACTION 7. PAYMENT OF EXPENSES Softbyte Inc. pays the
following expenses in cash for September: office rent IDR 600. salaries
and wages of employees IDR 900. and utilities IDR 200. Illustration 1-8

Assets = Liabilities + Owner's Equity

Trans- Accounts Accounts Owner's Owner's
Cash + + Supplies +Equipment = + + + Rev. - Exp.
action Receivable Payable Capital Drawings

1. +15.000 +15.000
2. -7.000 +7.000
3. +1.600 +1.600
4. +1.200 +1.200
5. +250 -250
6. +1.500 +2.000 +3.500
7. -1.700 -600
-900
-200
8. -250 -250
9. +600 -600
10. -1.300 -1.300
$8.050 + $1.400 + $1.600 + $7.000 = $1.600 + $15.000 + $4.700 - $1.950 - $1.300
LO 4
 TRANSACTION 8. PAYMENT OF ACCOUNTS PAYABLE Softbyte Inc.
pays its IDR 250 Daily News bill in cash. The company previously (in
Transaction 5) recorded the bill as an increase in Accounts Payable.
Illustration 1-8 Assets = Liabilities + Owner's Equity
Trans- Accounts Accounts Owner's Owner's
Cash + + Supplies +Equipment = + + + Rev. - Exp.
action Receivable Payable Capital Drawings

1. +15.000 +15.000
2. -7.000 +7.000
3. +1.600 +1.600
4. +1.200 +1.200
5. +250 -250
6. +1.500 +2.000 +3.500
7. -1.700 -600
-900
-200
8. -250 -250
9. +600 -600
10. -1.300 -1.300
$8.050 + $1.400 + $1.600 + $7.000 = $1.600 + $15.000 + $4.700 - $1.950 - $1.300
LO 4
 TRANSACTION 9. RECEIPT OF CASH ON ACCOUNT Softbyte Inc.
receives IDR 600 in cash from customers who had been billed for
services (in Transaction 6). Illustration 1-8

Assets = Liabilities + Owner's Equity

Trans- Accounts Accounts Owner's Owner's
Cash + + Supplies +Equipment = + + + Rev. - Exp.
action Receivable Payable Capital Drawings

1. +15.000 +15.000
2. -7.000 +7.000
3. +1.600 +1.600
4. +1.200 +1.200
5. +250 -250
6. +1.500 +2.000 +3.500
7. -1.700 -600
-900
-200
8. -250 -250
9. +600 -600
10. -1.300 -1.300
$8.050 + $1.400 + $1.600 + $7.000 = $1.600 + $15.000 + $4.700 - $1.950 - $1.300
LO 4
 TRANSACTION 10. WITHDRAWAL OF CASH BY OWNER Said Jamil
withdraws IDR 1.300 in cash in cash from the business for his personal use.
Illustration 1-8
Assets = Liabilities + Owner's Equity
Trans- Accounts Accounts Owner's Owner's
Cash + + Supplies +Equipment = + + + Rev. - Exp.
action Receivable Payable Capital Drawings

1. +15.000 +15.000
2. -7.000 +7.000
3. +1.600 +1.600
4. +1.200 +1.200
5. +250 -250
6. +1.500 +2.000 +3.500
7. -1.700 -600
-900
-200
8. -250 -250
9. +600 -600
10. -1.300 -1.300
IDR 8.050 + IDR1.400 + IDR1.600 + IDR 7.000 = IDR 1.600 + IDR15.000 - IDR1.300 + IDR4.700 - IDR1.950

IDR 18.050 IDR 18.050 LO 4

Summary Transaction

1. Each transaction is analyzed in terms of its effect on:

a. The three components of the basic accounting
equation.

b. Specific of items within each component.

2. The two sides of the equation must always be equal.
Financial Reports

Companies prepare four financial statements :

Owner’s
Income Statement of
Equity Balance Sheet
Statement Cash Flows
Statement
Financial Reports
No Financial Statement
1 Income Statement (Laporan
laba rugi)
2 Statement of Owner’s Equity
(Laporan Ekuitas Pemilik)
3 Balance Sheet (Laporan
Posisi Keuangan)
4 Statement of Cash Flow
(Laporan Arus Kas)
Explanation
Ringkasan dari pendapatan dan beban untuk suaru
periode waktu tertentu. seperti satu bulan atau
satu tahun
Ringkasan perubahan dalam ekuitas pemilik yang
terjadi selama periode waktu tertentu. seperti satu
bulan atau satu tahun
Daftar Aset. liabilitas. dan ekuitas pemilik pada
waktu tertentu. biasanya pada tanggal terakhir dari
bulan atau tahun tertentu
Ringkasan dari penerimaan dan pembayaran kas
untuk periode waktu tertentu. seperti satu bulan
atau satu tahun
Income Statement

◆ Reports the revenues and expenses for a specific

period of time.

◆ Lists revenues first. followed by expenses.

◆ Shows net income (or net loss).

◆ Does not include
investment and
withdrawal transactions
between the owner and
the business in
measuring net income.
Income Statement
Case Study:
Pendapatan dan beban Cisadane Travel service pada akhir Current year 30 April 2018
dicatat sebagai berikut :

Service Revenue IDR 263.200.000

Other Expense IDR 12.950.000
Office Expense IDR 63.000.000
Salary Expense IDR 131.700.000

Buatlah income Statement untuk tahun berjalan pada 30 April 2018.

Income Statement
Answer:

Cisadane Travel Service.

Income Statement
For the Current Year April 30. 2018
Service Revenue Rp 263.200.000
Expenses:
Salary Expense Rp 131.700.000
Office Expense 63.000.000
Other Expense 12.950.000
Total Expenses ( 207.650.000)
Nett Profit Rp 55.550.000
Owner’s Equity Statement

◆ Reports the changes in owner’s equity for a specific

period of time.

◆ The time period is the same as that covered by the

income statement.
Owner’s Equity Statement

• Menggunakan data dari Cisadane Travel Service. Buatlah Owner’s Equity

Statement for Current year April 30, 2018
• Adam Sarbini melakukan investasi tambahan sebesar IDR 50.000.000 selama
tahun berjalan dan melakukan drawing (Prive) sebesar IDR 30.000.000 untuk
keperluan pribadi.
• Diketahui bahwa Total Asset Adam Sarbini adalah sebesar IDR 80.000.000
pada 1 mei 2018
Owner’s Equity Statement
Answer:

Cisadane Travel Service.

Owner’s Equity Statement
For the Current Year April 30, 2018
Total Asset Adam Sarbini Rp 80.000.000
May 1, 2018
Increase Assets Rp 50.000.000
Net Profit 55.550.000
Total (+) Rp 105.550.000
Drawing (-) (30.000.000)
Increase for Owner’s Equity 75.550.000
Owner’s Equity Rp 155.550.000
Balance Sheet

◆ Reports the assets. liabilities. and owner's equity at a

specific date.

◆ Lists assets at the top. followed by liabilities and owner’s

equity.

◆ Total assets must equal total liabilities and owner's

equity.

◆ Is a snapshot of the company’s financial condition at a

specific moment in time (usually the month-end or year-
end).
Balance Sheet

Menggunakan data dari Cisadane Travel Service. Buatlah balance Sheet

Statement for Current year April 30, 2018

Account Payable IDR 12.200.000

Account Receivable IDR 31.350.000
Cash IDR 53.050.000
Land IDR 80.000.000
Equipment IDR 3.350.000
Balance Sheet
Answer:

Cisadane Travel Service.

Balance Sheet Statement
For the Current Year April 30, 2018
Assets Liability
Cash Rp 53.050.000 Account Payable Rp 12.200.000
Accout Receivable 31.350.000
Equipment 3.350.000 Owner’s Equity
Land 80.000.000 Owner Equity Statement 155.550.000
Total Asset Rp 167.750.000 Total Liabilities and Owner Rp 167.750.000
Equity
Statement of Cash Flows

◆ Information on the cash receipts and payments for a

specific period of time.

◆ Answers the following:

► Where did cash come from?

► What was cash used for?

► What was the change in the

cash balance?
Statement of Cash Flows

Summary of Cash Flow for Cisadane Travel Service for end year April 30. 2018
is

Cash Receivable
Cash from Customer IDR 251.000.000
Cash form investment by user IDR 50.000.000
Cash Payable
Cash for Expense IDR 210.000.000
Cash for Land IDR 80.000.000
Cash for drawing IDR 30.000.000

Cash Balance on May 1. 2018 is Rp 72.050.000. Create a Statement of cash

Flow s Cisadane Travel Service for end year April 3.0, 2018
Statement of Cash Flows
Cisadane Travel Service.
Cash Flow Statement
For the End Year April 30, 2018
Cash from Operational
Cash from customer Rp 251.000.000
Cash to Expense (210.000.000)
Net Cash Flow from Operational Rp 41.000.000
Cash from Investment activity
Payment for land (IDR 80.000.000)
Cash from Funding Activity
Cash Investment Rp 30.000.000
Drawing / Prive (30.000.000)
Net Cash flow from funding 20.000.000
Cash Decrease in current year (Rp 19.000.000)
Cash Balance on May 1, 2018 72.050.000
Cash Balance on April 30, 2018 Rp 53.050.000
Financial Statement Items

Presented below is selected information related to Flanagan Company at

December 31, 2018. Flanagan reports financial information monthly.
Equipment $10,000 Utilities Expense $ 4,000
Cash 8,000 Accounts Receivable 9,000
Service Revenue 36,000 Salaries and Wages Expense 7,000
Rent Expense 11,000 Notes Payable 16,500
Accounts Payable 2,000
(a) Determine the total assets of at December 31, 2018.
(b) Determine the net income reported for December, 2018.
(c) Determine the owner’s equity at December 31, 2018.
Financial Statement Items
Presented below is selected information related to Flanagan Company at
December 31, 2018. Flanagan reports financial information monthly.
Equipment $10,000 Utilities Expense $ 4,000
Cash 8,000 Accounts Receivable 9,000
Service Revenue 36,000 Salaries and Wages Expense 7,000
Rent Expense 11,000 Notes Payable 16,500
Accounts Payable 2,000

(a) Determine the total assets of at December 31, 2018.

The total assets are $27,000. comprised of
• Cash $8,000.
• Accounts Receivable $9,000. and
• Equipment $10,000.
Financial Statement Items
Presented below is selected information related to Flanagan Company at December 31.
2017. Flanagan reports financial information monthly.
Equipment $10,000 Utilities Expense $ 4,000
Cash 8,000 Accounts Receivable 9,000
Service Revenue 36,000 Salaries and Wages Expense 7,000
Rent Expense 11,000 Notes Payable 16,500
Accounts Payable 2,000

(b) Determine the net income reported for December 2018.

Revenues
Service Revenue $36,000
Expenses
Rent Expenses $ 11,000
Salaries and Wage Expense 7,000
Utilities Expenses 4,000
Total Expenses $ 22,000
Net Income $ 14,000
Financial Statement Items
Presented below is selected information related to Flanagan Company at December 31.
2017. Flanagan reports financial information monthly.
Equipment $10,000 Utilities Expense $ 4,000
Cash 8,000 Accounts Receivable 9,000
Service Revenue 36,000 Salaries and Wages Expense 7,000
Rent Expense 11,000 Notes Payable 16,500
Accounts Payable 2,000

(c) Determine the owner’s equity at December 31. 2018.

Total Assests ( as computed in (a)) $ 27,000

Less : Liabilities
Notes Payable $ 16,500
Account Payable 2,000 18,500
Owner’s Equity $ 8,500
Ratio of Liabilities to Owner’s
Equity

𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑅𝑎𝑡𝑖𝑜 𝑜𝑓 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 𝑡𝑜 𝑜𝑤𝑛𝑒𝑟 ′ 𝑠 𝐸𝑞𝑢𝑖𝑡𝑦 =
𝑇𝑜𝑡𝑎𝑙 𝑂𝑤𝑛𝑒𝑟′𝑠 𝐸𝑞𝑢𝑖𝑡𝑦

Case Study:
Presented below the position of the last Financial Statement (in Billion Rupiah’s)
from PT Ace Hardware Indonesia and PT Fast Food Indonesia (KFC):

Current Year Last Year

Ace Hardware Indonesia
Total Liabities Rp 682,4 Rp 638,7
Total Owner’s Equity 3.048,7 2.628,8
KFC Indonesia
Total Liabities Rp 1.354,6 Rp 1.195,6
Total Owner’s Equity 1.223,2 1.114,9
Ratio of Liabilities to Owner’s
Equity
Current Year Last Year
Ace Hardware Indonesia
Ratio of Liabilities to Owner’s 0,22 0,24
Equity (Rp 682,4 / Rp 3.048,7) (Rp 638,7 / Rp 2.628,8)
KFC Indonesia
Total Liabities 1,11 1,07
Total Owner’s Equity (Rp 1.354,6 / Rp 1.223,2) (Rp 1.195,6 / Rp 1.114,9)

• Hak kreditor terhadap asset perusahaan adalah lebih prioritas dibandingkan hak
pemegang saham atau pemilik
• Semakin rendah rasio liabilitas terhadap total ekuitas, semakin baik kemampuan
bertahan perusahaan dalam kondisi bisnis yang buruk dan semakin baik
kemampuannya dalam membayar kreditor.
 Merci bien
ありがとう
Matur Nuwun
Hatur Nuhun
Obrigado
Dank
Thanks
Matur se Kelangkong

Syukron
Kheili Mamnun
ευχαριστίες
Danke
Grazias
谢谢
Terima Kasih

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