The Accounting Cycle

There are a cycle of procedures performed, transactions recorded , and statements prepared every accounting period (typically monthly). At the end of the period, the cycle continues around again.

Over the next several entries I will discuss some parts of the accounting cycle in greater detail. In my next blog post, I intend to discuss the process of journalization.
--Sincerely, Trevor Stasik.

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To return to initial post in my Accounting Review Guide, click HERE.

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Accounting Cycle, Journalizing, Accounting, Process

Basic Accounting Equation

Today I will continue with my review of basic accounting. There is an essential equation in accounting which forms the foundation for the entire system. This equation states that the sum of Liabilities and Owners' Equity equals the sum of Assets. This equation is the bridge between accounts and explains why a double-entry accounting system is necessary. For every entry made to a debit, an equal amount must be applied as a credit somewhere else. All Debit columns must be able to be added and have their sums equal the total of the credit columns. Also, if there is a change to an asset account, an equal change must be made to a liability or owners' equity account.

Let me give you two or three examples and hopefully this will become a little more clear for you:

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Owners invest $70,000 in company in exchange for stock.
The $70,000 is added (via debit) to the Assets. At the same time, to maintain the equality in the accounting equation, there is also $70,000 added to the Owners' Equity (via credit).

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Pay $500 in cash to pay wages.

This time there is a decrease in Assets (via credit) and an accompanying decrease (via debit) to the Owners' Equity Account.

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Receive $1,200 cash from customer for services.I think you are starting to get the idea! You had an increase in assets (via debit) when you received the money, and an equal increase in the Owners' Equity (via credit). If take a look, the accounting equation remains true and the debits equal the credits.

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Paid $2,000 cash to a vendor for new equipment.
This time you are merely exchanging one asset for another, so there is no change to the Liabilities or to the Owners' Equity.

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Declare a $6,000 dividend
In this final example, the company has made an obligation for itself which must be recorded. There is a decrease in the Owners' Equity (via debit) and a corresponding increase in the Liabilities (via Credit).

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These are just a few simple examples. There are many, many, many more possible. It is my hope that you will take the time to seek them out for yourself to learn more. Stop back to my blog again soon. Next time I will introduce and discuss the Accounting Cycle.
--------Sincerely, Trevor Stasik

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To return to initial post in my Accounting Review Guide, click HERE.

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Accounting Equation, Assets, Liabilities, Owners Equity, Debit, Credit, Financial

Debits and Credits

Debit and Credit: Two very simple words that can be mixed up if you are not careful.

Out in the non-accounting world, the word "credit" gets thrown around as a term meaning that you owe someone money, often swiped on a card or obtained through a loan. "Debit" is often used in the non-accounting world in conjunction with a "Debit Card" to mean that you want the money taken from your checking account.

However in accounting, debit means left and credit means right.

In the recording process in a double-entry accounting system, there are two columns under each account. These are the Debit and Credit columns. A normal balance for Asset Accounts and for Expense Accounts is a Debit. A normal balance for Liability Accounts, Equity Accounts, and Revenue Accounts is a Credit.

This may not make sense yet, but I will explain it more in my next entry when I discuss the basic accounting equation. Thanks for visiting.
----Sincerely, Trevor Stasik.

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To return to initial post in my Accounting Review Guide, click HERE.

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Debits, Credits, Accounting, Double-Entry Accounting System

Sneak Peek: Michael Porter's Five Forces

Five Forces, Michael Porter

Useful Accounting Terminology

Here is a list of some of the basic verbiage and terminology used in Accounting. You should familiarize yourself with these because you will see them used again later.

Event: A happening that will cause a change in assets, liabilities, or equity.

Transaction: An external event between two or more entities.

Account: An arrangement of transactions to show the effect of transactions and events on assets and equity. There should be an account for each asset, liability, expense, and for capital.

Real Accounts: Permanent accounts set up for assets, liabilities, and equity. These accounts will appear on the balance sheet.

Nominal Accounts: Temporary accounts such as revenue, expenses, and dividends. These accounts will be closed periodically.

Ledger: The book or computer file that contains all of the accounts.

Journal: The book of original entry. All transactions and events are recorded here first, and later posted from here to the ledger.

Trial Balance: A list of all open accounts in the ledger and their balances. Two types of trial balances are the "adjusted trial balance" and the "post-closing" trial balance.

Adjusting Entries: These are made at the end of an accounting period so that accurate financial statements may be prepared.

Financial Statements: Final summaries (or scorecard) of accounting data for a given period. The types of financial statements are the balance sheet, the income statement, the statement of cashflows, and the statement of retained earnings.

Closing Entries: The entries that close out the nominal accounts for the period, reducing them to zero. This is when a net income would be determined and transferred to an owners' equity account.

Stop back next entry when I discuss what Debits and Credits are.

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To return to initial post in my Accounting Review Guide, click HERE.

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Accounting, Ledger, Terminology, Journal, Accounts

Introduction To Accounting

So what is this thing called "Accounting" anyway? It's simply a series of methods and processes used to track and report the financial flow in a business.

When businesses offer goods and services in return for money, clerks and accountants post journal and ledger entries to track how and when this money comes in. They do more than just track sales. Accountants also track money that goes out of the company to pay for expenses, taxes, and other things. Any change to an asset such as depreciation will also be recorded. The accountants are often the people who make up the financial statements, which are like the scorecard for the company's growth. In most firms, accountants follow the Generally Accepted Accounting Principles in ensuring standardized and truthful financial information.
(To Learn More About GAAP, Click HERE))

Accountants and the clerks that help them, serve a very vital role in ensuring that the company's assets are properly accounted for.

Stop back next entry when I discuss some of the basic verbiage and terminology used in Accounting.

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To return to initial post in my Accounting Review Guide, click HERE.

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Accounting, GAAP, Methods and Processes, Assets

Basic Accounting Review Guide

Over the next few weeks, I will be providing a review of some basic introductory accounting. This should help you in familiarizing yourself with what accounting is, how it is used, and how to do it. This guide will be a useful refresher for those that have not used accounting in a while, but is not intended to be a complete instruction tutorial.

(Note that much of the information I am discussing in this series of posts is borrowed from "Intermediate Accounting" by Kieso, Weygant, and Warfield.)

This is an outline of topics I intend to cover over the next series of blogs. As I finish future entries, I will come back to this entry and drop in links to those posts.

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ACCOUNTING TOPICS

Introduction To Accounting

Useful Terminology

Debits & Credits

Basic Accounting Equation

The Accounting Cycle

1. Journalizing
2. Posting To The Ledger
3. Trial Balance
4. Adjusting Entries
5. Adjusted Trial Balance
6. Closing Process
7. Post Closing Trial Balance & Reversing Entries

Work Sheet

Preparing Financial Statements

1. Review Of The Elements of A Financial Statement
2. Income Statement
3. Statement of Retained Earnings
4. Balance Sheet

Ethics in Accounting

Summary of Topics Covered

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I will likely space out the posts regarding this Accounting Review with other topics in between days. I hope you will stick with me while I attempt to review the topic and teach you a bit about it. Hope to see you back here soon.
---------Sincerely, Trevor Stasik.




Accounting, Terminology, Debits, Credits, Accounting Equation, Accounting Cycle, Accounting Journal, Ledger, Trial Balance, Adjusting Entries, Closing Entries, Financial Statements, Income Statement, Balance Sheet, Retained Earnings, Ethics

International Business - Speaking the language

Español:
Estoy utilizando la nueva página de la traducción de Microsoft para escribir este texto. Esperanzadamente usted puede leerlo sin él que suena demasiado extraño. Pues el negocio internacional se convierte en menos de una tendencia y más de una manera de vida, es importante que intentamos ensanchar nuestra lingüística. Estoy incluyendo el texto para esta entrada del blog en inglés y español para subrayar este hecho.

Parte posterior de la manera en 1996, cuando estaba en High School secundaria, encontré el uso muy pequeño para un idioma extranjero. Cada clase española que senté parecía a través como una tarea. Mi carencia del interés me ha dejado con muy pocas frases que entiendo en español. Sin embargo, deseo que hubiera conservado más de la lengua. En negocio, el poder alcanzar otros mercados significa más dinero en su bolsillo. Significa que las compañías pueden vender sus productos y servicios a los individuos por todo el mundo.

Armado con este conocimiento, le imploro para explorar una nueva lengua o para volver a aprender viejo que usted ha perdido. Quisiera comunicar con la gente que habla otras idiomas sin la necesidad de un traductor. Después de que acabe la universidad y consiga un trabajo, planeo tardar la época de volver a aprender español. Es una habilidad valiosa y un aumentador de presión del curriculum vitae. Espero que usted disfrutara de este experimento lingüístico con la traducción del blog. Cáigame un comentario y dígame hola en cualquier lengua que usted sienta gusto.
-----------Sinceramente, Trevor Stasik.

English:
I’m using Microsoft’s new translation page to write this text. Hopefully you can read it without it sounding too strange. As International Business becomes less of a trend and more of a way of life, it is important that we attempt to broaden our linguistics. I am including the text for this blog entry in both English and Spanish to underscore this fact.

Way back in 1996, when I was in high school, I found very little use for a foreign language. Every Spanish class that I sat through seemed like a chore. My lack of interest has left me with very few phrases that I understand in Spanish. However, I wish I had retained more of the language. In business, being able to reach other markets means more money in your pocket. It means that companies can sell their products and services to individuals worldwide.

Armed with this knowledge, I implore you to explore a new language or re-learn an old one that you’ve lost. I would like to communicate with people that speak other languages without the need of a translator. After I finish college and get a job, I plan to take the time to re-learn Spanish. It’s a valuable skill and a resume booster. I hope you enjoyed this linguistic experiment with the blog translation. Drop me a comment and tell me hello in any language you feel like.
-----------Sincerely, Trevor Stasik.




traducción de Microsoft, negocio, international business, language

Profit Margin

Companies are in the business of making money.
While that fact is true, there is more that goes into it. Companies are looking to make more money than the cost expended in making it. After a firm sells a product or service it receives revenue. That revenue is not profit. Prior to considering it as profit, costs and expenses need to be subtracted along with things like taxes. That value at the bottom would be considered your "net income".

Simply subtracting the income from the revenue will give you the profit. However, this is not the profit margin. The profit margin is a ratio of net income to net sales revenue.This is a measure of telling how much money a company made in profit for every dollar the company made in sales. This can be useful for investors and analysts, it can be more useful tool for the decision makers inside the company. It can be a way for them to see what products or services are costing too much and if cost controls are working.

Hopefully this post has been helpful for you. Feel free to leave me a comment.
-----Sincerely, Trevor Stasik.




Financial Analysis, Profit Margin, Net Income, Sales Revenue

Book Review: Rome Inc. Light and Fun Romp

Rome Inc.: The Rise and Fall of the First Multinational Corporation
Written by Stanley Bing, this was a light, fun, and electric romp through ancient Rome. The first half of this book did a good job comparing aspects of Roman life to modern business lessons. Most of this material was glossy and has been better covered elsewhere. The most interesting discussions from the early half of the book was a short discussion about the very first "labor" strike in recorded history and a few paragraphs about Hannibal.

However, things get really interesting about halfway through the book when Mr. Bing pauses to focus on a few key individuals. The chapter about counsul Caius Marius was brutally good about a mogul who just won't die. He described Marius as "a crazy, juiced up, bombastically angry mother, and he wouldn't stay down, no matter what."

Then we came to my favorite chapter, the one about the big toga on campus Julius Caesar. Julius Caesar was more than just a pre-modern day Mogul and CEO. He was an example of how to acquire an empire and how to lose it. The book describes some of Caesar's attributes such as:

Ambition - he set a higher standard for himself. He compared himself to the great Greek CEO tyrant Alexander.

Boldness - He did what he thought needed to be done, when he wanted to do it. He didn't feel that it was always necessary to follow what was done in the past.

Planning and Strategy - Caesar followed the old Sun Tzu dictum that you should not engage in battle until you are assured victory. In the rare situation where his army was outmatched, Caesar had no problem with calling it a day. How many others would continued to waste resources on projects that are destined for failure simply to save face.

Quotable - Caesar was much like President Reagan. He was a master communicator and he could turn a phrase that could encourage all of the land.

Later in the book, there is an interesting bit about Constantine and how he transformed Rome into something more recognizable as the Roman Catholic Church. The ability for Rome and corporations to adapt and transform may be their greatest strength in lasting the ages.

If you're looking for a good time, this is a fine book to escape in for a few hours. Take it home and enjoy with a good wine or beer.

I'd rate Rome Inc. three and a half stars out of five.
Drop me a comment if you've read it and what you thought about it.
-------Sincerely, Trevor Stasik



Rome, Multinational, Stanley Bing, Book Review

Trevor Stasik, Financial Resume

I have posted my resume previously, but I thought it would be good to do a refresh and polish on it. This is my extended professional resume. I thought that I should post it again so readers have a better understanding about my background. I am currently seeking financial positions, so if you are a recruiter, please email me or drop me a comment.
(UPDATE 10/19/2008: CURRENTLY WORKING AT DELAWARE INVESTMENTS AS A SERVICE ASSOCIATE. HAVE SERIES 6 LICENSE. )
(UPDATE 3/01/09: HAVE BEEN PROMOTED TO SERVICE CONSULTANT AND HAVE BOTH SERIES 6 AND 63 NOW. NEW RESUME COMING SOON. SEE LINKED IN FOR MY CURRENT DETAILS.)

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Trevor Stasik

tstasik@temple.edu
1148 Neshaminy Valley Drive
Bensalem, PA 19020
tel: 215.833.6384


EDUCATION:
TEMPLE UNIVERSITY, Fox School of Business, Philadelphia, PA
Bachelor of Business Administration, May 2008
Primary Major: Finance
GPA: 3.75, Summa Cum Laude
Related Courses: Investing, Corporate Finance, Accounting I-III, Real Estate Investing, Managerial Economics, International Financial Management, Operations Management, Business Policies, Seminar In Financial Management, Risk Management and Insurance, Business Ethics
Second Major: Film and Media Arts

EXCELSIOR COLLEGE, (formerly known as Regents College), Albany, NY
Associates Of Applied Science, 2000
Specialization in Nuclear Technology


EXPERIENCE:
FINANCIAL MANAGEMENT ASSOCIATION, Student Organization, 2006 - Present
Vice-President of Communications, 2007
• Lead team in successfully publishing newsletters, upgrading website at www.temple-fma.org, distributing email to over 200 members, and marketing to student body.
• Created innovative new videos for use on website with FMA corporate sponsors Enterprise Rent-a-Car, SEI Investments, and Prudential Financial.
• Received the Most Valuable Member Award for FMA.
Newsletter Director, 2006

OFFICEMAX, Fairless Hills, PA (Varied full time and part time) July 2003 - Present
Print and Document Services Associate
• Coordinate reprographic, computer graphic design, and other business media services for individuals and small business clients at an office supplies retailer with $5 - 10k in weekly departmental sales.
• Work closely with clients and external vendors on business card and stationary design, operation of 8 printer/scanners, a hydraulic cutter, a folding machine, binding machine, and troubleshooting equipment repairs and maintenance.
• Placed over a thousand DHL orders manually and via computer, tracking packages, and successfully ensuring that all orders reached their proper destinations.

SELF-EMPLOYED FREELANCE FILM AND VIDEO Philadelphia, PA
Positions Include Producer, Writer, Gaffer, Grip, Production Assistant (2002 - 2003)
• Full list of contracts fulfilled available upon request. Industry, Independent, and Student.
• Wrote and Produced Short Film “Quitting Is For Losers”, shown at 2005 Coatesville, PA Film Festival.

UNITED STATES NAVY, Carl Vinson CVN-70 July 1996 - July 2002
Nuclear Electrician, Petty Officer 3rd Class
• Maintained and operated the four steam driven electric generators and four motor generators on the Aircraft Carrier Carl Vinson, which provided the power for the ship.
• Maintenance included monthly inspections, extensive log keeping, intricate repairs and laborious carbon brush changes.
• Trained and oriented up to 20 Electrician Mates on control panel operation of the generators, 4160 volt circuit breakers, backup diesel generator operations, and emergency reactor shutdown procedures.
• Monitored and maintained 16 salinity chemistry and salinity safety alarm modules including the Steam Generator High level/Low level alarms resulting in the 100% safe operation of the Nuclear Reactor.


COMPUTER SKILLS:
• Microsoft Office Suite (including MS Access)
• Microsoft Publisher
• Adobe Photoshop

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If anyone has any questions about my experiences, please send me an email.
If you have any comments about how to improve my resume, please leave me a comment so that all of my readers can benefit from your tips and advice.
Thanks for visiting. ----------Sincerely, Trevor Stasik



Trevor Stasik, Financial Professional, Resume, FinanceCarl Vinson, Nuclear Power, Business, Finance, Introduction, Nuke, Navy, Stasik EM3Electrician Series 6, Temple UniversityFMA