---
title: "ACCT 101, Session 2: Bookkeeping, accruals, and adjusting"
author: 
  - name: Dr. Richard M. Crowley
    email: rcrowley@smu.edu.sg
    affiliation: https://rmc.link/
title-slide-attributes:
  data-background-video: "../Backgrounds/title.mp4"
  data-background-video-loop: "true"
  data-background-size: stretch
format:
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    controls: true
    transition: slide
    background-transition: fade
    transition-speed: default
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    height: 864
    logo: ../Logos/logo2.png
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    chalkboard:
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revealjs-plugins:
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execute:
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editor: source
---

# Front matter {data-background-video="../Backgrounds/section.mp4" data-background-video-loop="true"}


<!--# Note that the downlit and xml2 pacakges are required to compile -->
<!--# Installed extensions include `attribution`, `qrcode`, and `material-icons` -->

```{r helpers, echo=FALSE, warning=FALSE, message=F}
library(knitr)
library(kableExtra)

#' Pretty formatted HTML tables
#' 
#' @param df The dataframe to format as a table
#' @param names Names to use for columns if not using the df column names. Vector
#' @param highlight_cols Columns to highlight. Default is c(1) for highlighting the first row. Use c() to remove.
#' @param highlight_rows Rows to highlight. Default is c() to not highlight any rows.
#' @param color_rows Rows to highlight in color. Default is c() to not highlight any rows.
#' @param highlight_end_rows Rows to highlight. Uses a reverse indexing where 1 is the last row, 2 is second to last, etc.
#' @param full Use to span the full width of a slide. FALSE by default.
#' @param fixed_header Whether the first row should be treated as a header row. TRUE by default.
html_df <- function(df, names=NULL, highlight_cols=c(1), highlight_rows=c(), color_rows=c(), highlight_end_rows=c(), full=F, fixed_header=T) {
  if(!length(names)) {
    names=colnames(df)
  }
  kbl(df,"html", col.names = names, align = c("l",rep('c',length(cols)-1))) %>%
    kable_paper(c("striped","hover"), full_width=full, fixed_thead=F, html_font = "\"Source Sans Pro\", Helvetica, sans-serif") %>%
    {if(length(highlight_cols)) column_spec(., highlight_cols,bold=T, background = "#ffffff99") else .} %>%
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    {if(length(highlight_end_rows)) row_spec(., nrow(df) + 1 - highlight_end_rows,bold=T, background = "#ffffff99") else .}
}

library(tidyverse)
```

<!--# List packages here that are not being correctly highlighted -->
<!--# The usual cause is calling the library from a echo=FALSE cell -->

```{r}
#| include: false
options(downlit.attached = c("knitr", "kableExtra", "tidyverse"))
```

<!-- "reveal_plugins:..." and "chalkboard:" are handled by prep.py -->
```{r setup, include=FALSE}
library(reticulate)  # To use python in R Markdown
# Python to use is specified in the .Renviron file
```

## Front matter {data-background="../Backgrounds/default.jpg"}

- Homework 1 due next week
    - Available on eLearn
    - Submit on eLearn
- Covers topics from today's session

## Learning objectives {data-background="../Backgrounds/default.jpg"}

:::: {.columns}

::: {.column width="50%"}
![](../Course_Diagrams/ACCT_101_course_map_2.png){width="450px" fig-align="center"}
:::

::: {.column width="50%"}

- Bookkeeping (Chapter 2)
    1. Understand how accounting works
    2. Record transactions in the journal
    3. Construct a trial balance
- Accruals and Adjustments (Chapter 3)
    1. Relate accrual accounting and cash flows
    2. Apply the revenue and matching principals
    3. Adjust accounts


:::

::::




# Debits and credits {data-background-video="../Backgrounds/section.mp4" data-background-video-loop="true"}

## History: Before double entry {data-background="../Backgrounds/books.jpg"}

:::: {.columns}

::: {.column width="50%"}

- 8500 BCE: Shaped clay tokens represent commodities
- 200 BCE: Arabic numerals (except **0**)
- 600 CE: **0** developed
- 800 CE: 10-digit numerals spread throughout Europe

![](../Figures/bulla1.png){width="200px" fig-align="center"}

:::

::: {.column width="50%"}

![](../Figures/bulla2.png){width="340px" fig-align="center"}

[http://www.schoyencollection.com/](http://www.schoyencollection.com/mathematics-collection/pre-literate-counting/bulla-envelope-ms-4631)

:::

::::


::: {.attribution}

This slide is based on a history lecture by Dr. Pierre Liang at Carnegie Mellon from October 2017

:::

## History: Double entry {data-background="../Backgrounds/books.jpg"}

:::: {.columns}

::: {.column width="50%"}

- 1400s CE: First evidence of *double entry* accounting in Italy
- 1494 CE Italian monk and scholar Luca Pacioli publishes first text on *double entry* bookkeeping
    - [Summa de Arithmetica, Geometria, Proportioni et Propotionalita](https://books.google.com.sg/books/about/Summa_de_Arithmetica_geometria_proportio.html?id=iqgPe49fhrsC&redir_esc=y)

![](../Figures/pacioli.jpg){width="280px" fig-align="center"}



:::

::: {.column width="50%"}

![](../Figures/summa.jpg){width="280px" fig-align="center"}

:::

::::


::: {.attribution}

This slide is based on a history lecture by Dr. Pierre Liang at Carnegie Mellon from October 2017

:::

## History: Journal entries {data-background="../Backgrounds/books.jpg"}

:::: {.columns}

::: {.column width="50%"}
<img src="../Figures/Littleton_1928-JE_type_1.png" width="600px" style="margin:0px">
<img src="../Figures/Littleton_1928-JE_type_2.png" width="300px" style="margin:0px">

:::

::: {.column width="50%"}

<img src="../Figures/Littleton_1928-JE_type_3.png" width="600px" style="margin:0px">
<img src="../Figures/Littleton_1928-JE_religious_2.png" width="600px" style="margin:0px">

:::

::::

> Images from Littleton 1928 TAR.

## History: Journal entry evolution {data-background="../Backgrounds/books.jpg"}

![](../Figures/Littleton_1928-English_JE_Evolution.png){width="450px" fig-align="center"}

> Shakespeare likely did this sort of work for the British Navy!  (Source: <a href="https://jstor.org/stable/2490385">Reynolds 1974 JAR</a>)



## History: Impact {data-background="../Backgrounds/books.jpg"}

<blockquote><p style="text-indent:0px; font-size:85%">The Principles of Book-keeping by Double Entry constitute a theory which is mathematically by no means uninteresting: it is in fact like Euclid's theory of ratios an absolutely perfect one, and it is only its extreme simplicity which prevents it from being as interesting as it would otherwise be.<br>-- Arthur Cayley, FRS, The Principles of Book-keeping by Double Entry, 1894.</p></blockquote>

<blockquote><p style="text-indent:0px; font-size:85%">Bookkeeping has become a real technology instead of a simple clerical routine, and in addition there has grown up a profession of accounting which reaches quite beyond bookkeeping.<br>-- A. C. Littleton, The Evolution of the Journal Entry, 1928.</p></blockquote>

## ← Debit | Credit → 

:::: {.columns}

::: {.column width="50%" style="font-size:2em"}
*Debits*  
on  
the  
*left*
:::

::: {.column width="50%" style="font-size:2em"}
*Credits*  
on  
the  
*right*
:::

::::

> Memorize this!

> This is double entry accounting

## Debits and credits {data-background="../Backgrounds/default.jpg"}

:::: {.columns}

::: {.column width="50%"}

**Debits (DR)**

- Increase assets
- Decrease liabilities
- Decrease equity
    - Decrease revenue
    - Increase expenses

:::

::: {.column width="50%"}

**Credits (CR)**

- Decrease assets
- Increase liabilities
- Increase equity
    - Increase revenue
    - Decrease expenses

:::

::::


> The side of an account that increases its balance is called the account's *normal balance*

> Debits **always** equal credits for a transaction

## Representing accounts: T-accounts {data-background="../Backgrounds/reference.jpg"}

![](../Diagrams/Taccount.png){width="1200px" fig-align="center"}


## Normal balances {data-background="../Backgrounds/reference.jpg"}

![](../Diagrams/DRCR.png){width="550px" fig-align="center"}


## Review: Debits & credits {data-background="../Backgrounds/review.jpg"}

1. Where do debits go?
2. Where do credits go?
3. What do debits equal?
4. What do credits equal?

## Review: Debits & credits {data-background="../Backgrounds/answer.jpg" class="default exclude"}

1. Where do debits go?
    - <span class="fragment">Left!</span>
2. Where do credits go?
    - <span class="fragment">Right!</span>
3. What do debits equal?
    - <span class="fragment">Credits!</span>
4. What do credits equal?
    - <span class="fragment">Debits!</span>

## Why does this all matter? {data-background="../Backgrounds/default.jpg"}

$$
\begin{align*}
  A = L + E\qquad &A,L,E \in (-\infty,\infty)\\
  DR = CR\qquad &DR,CR > 0
\end{align*}
$$

- Both of these equations inherently require that *at least* two changes per transaction
    - For the top equation, the changes must either:
        - Affect both sides in the same direction, or
        - Cancel out within one side
    - For the bottom equation, the change must have a debit and a credit
- As these hold at the smallest element of the system, they aggregate up to hold for any amount of transactions
    - I.e., for a whole company or any subset thereof

> Now we have a robust way to check for mistakes anywhere in our accounting system -- just check each equation!

# Bookkeeping {data-background-video="../Backgrounds/section.mp4" data-background-video-loop="true"}

## Accounts {data-background="../Backgrounds/ledger.jpg"}

:::: {.columns}

::: {.column width="50%"}

- Assets: Cash, A/R, inventory, equipment, ...
- Liabilities: A/P, debt, expenses payable, ...
- Equities: Expenses, revenue, capital, ret. earnings, ...
- *Chart of Accounts*
    - Granularly documents all accounts the firm has

:::

::: {.column width="50%"}

![](../Figures/SAP_Accounts.png){width="450px" fig-align="center"}
:::

::::



## Source documents {data-background="../Backgrounds/ledger.jpg"}

:::: {.columns}

::: {.column width="50%"}
- The paper trail
- Establishes amounts
- Confirms a traction occurred or was contracted
- Allows for analyzing and verifying at the transaction level
    - Needed for auditing!

:::

::: {.column width="50%"}

![](../Figures/bill_of_laiding.jpg){width="380px" fig-align="center"}

Bill of laiding, 1852

Heinz Museum

:::

::::

## General journal {data-background="../Backgrounds/ledger.jpg"}

:::: {.columns}

::: {.column width="50%"}

- Where everything is recorded first
    - Everything
    - Every little transaction
- Specifies the accounts, values, and document for each transaction
    - We will skip references
    - We will be doing journal entries through session 9
- Always *list debits first*

:::

::: {.column width="50%"}

![](../Figures/Journal.jpg){width="500px" fig-align="center"}

:::

::::

> DR = CR for *each entry*

## Constructing journal entries {data-background="../Backgrounds/reference.jpg"}

![](../Diagrams/Journal_entry.png){width="900px" fig-align="center"}


## Constructing journal entries {data-background="../Backgrounds/group.jpg"}

1. Get the in class activity spreadsheet
    - Session_2_Activity.xlsx
2. We'll go through the first three transactions together
    - Journal entries
3. Journal (i.e., right out journal entries for) the next 11 transactions with your group in the <span style="color:blue">blue tab</span> of the spreadsheet
    - We'll do the rest of the activity throughout the class today

## General ledger {data-background="../Backgrounds/ledger.jpg"}

- An aggregation of all the accounts
- Shows all account balances
- Includes details of each account
- T-accounts sufficient for this course

![](../Diagrams/General_ledger.png){width="800px" style="margin:0px" fig-align="center"}

## Trial balance {data-background="../Backgrounds/ledger.jpg"}

:::: {.columns}

::: {.column width="50%"}

- Shows all account balances just like the general ledger
    - Make sure they add up!
- Use it to verify **DR = CR**
- Use it to verify the **accounting equation**
- Usually prepared at the end of a period
- Can prepare income statement and balance sheet from it

:::

::: {.column width="50%"}

![](../Figures/trial.png){width="400px" fig-align="center"}

:::

::::

> DR = CR for totals

## Constructing the trial balance {data-background="../Backgrounds/reference.jpg"}

![](../Diagrams/Ledger_post.png){width="900px" fig-align="center"}

## Limits of the trial balance {data-background="../Backgrounds/default.jpg"}

- Can't catch:
    - Unrecorded transactions
        - Because there's no trace of them
    - Wrong amounts in transactions that balance in the journal
        - Everything still balances
    - Wrong accounts of the same type used in the journal
        - Everything still balances
        - $A = L + E$ holds

## What you can catch {data-background="../Backgrounds/reference.jpg"}
- Let the *Out of balance* (OOB) amount be: 
    - $OOB = Assets - Liabilities - Equity$
- If OOB / 2 is an integer
    - DR and CR in a transaction may be flipped
        - Ex.: Recorded a cash sale as a CR to cash and a CR to revenue
            - Should be a DR to cash and a CR to revenue
- If OOB / 9 is an integer, there may be a:
    - Slide error (multiplied by 10 or divided by 10):
        - Ex.: Recorded 5,400 instead of 54,000
    - Transposition error (flipped the first 2 digits)
        - Ex.: Recorded 45,000 instead of 54,000

## T-accounts and the trial balance {data-background="../Backgrounds/group.jpg"}

1. Return to the in class activity
2. We'll do the first one as a class
3. Finish the rest of the activity with your group
    - Do the two <span style="color:green">green tabs</span>

# Accruals vs. cash {data-background-video="../Backgrounds/section.mp4" data-background-video-loop="true"}

## Cash basis accounting {data-background="../Backgrounds/coins.jpg"}

- Records cash only transactions
- Used by small companies
- $Profit = Cash~in - Cash~out$

**PROBLEM**

- This ignores underlying economic activity
    - If we make a sale on credit, that doesn't add to profit
    - If we put an expense on credit, it doesn't lower profit

## Accrual accounting {data-background="../Backgrounds/default.jpg"}

- Records impact of transactions *as they occur*
- Required per IAS1, "Presentation of Financial Statements"
- Revenue recorded when it is *"more likely than not"*
- Expenses recorded as *incurred*
- Profit = Revenue - Expenses

**PROBLEM**

- Profit may not be indicative of cashflows
    - This is a concern for lenders
        - If there's no cash, profit doesn't matter, as the company will go bankrupt

## Accrual transaction examples {data-background="../Backgrounds/default.jpg"}

```{r , echo=FALSE, warning=FALSE}
options(knitr.table.format = "html") 
text <- data.frame(
  Cash = c("Cash sale","Borrowing money","Paying expenses such as wages and rent","Receiving cash from interest earned","Paying off loans","Receiving cash from shares issued"),
  noncash = c("Sales on account (A/R)","Inventory purchases on account (A/P)","Expenses incurred but not yet paid","Depreciation expense","Usage of prepaid expenses (rent, utilities, etc.)","Revenue from long-term projects with up-front cash collection")
)
html_df(text, highlight_cols = c(), names=c("Cash Transactions","Noncash Transactions"))
```

## Periodicity {data-background="../Backgrounds/hourglass.jpg"}

:::: {.columns}

::: {.column width="50%"}

- Divides time into *artificial* segments to understand a firm's changes over time
    + Fiscal year, fiscal quarter
    + Citigroup: Jan 1 - Dec 31
    + Microsoft: Jul 1 - Jun 30
    + Walt Disney 
        * 2023: Oct 2 - Sept 30
        * 2022: Oct 3 - Oct 1
        * 2021: Oct 3 - Oct 2
        * 2020: Sept 29 - Oct 2

:::

::: {.column width="50%"}

![](../Figures/Citi.png){height="80px" fig-align="center"}

![](../Figures/Microsoft.png){height="80px" fig-align="center"}

![](../Figures/Walt_Disney.png){height="80px" fig-align="center"}

:::

::::


> Don't focus on this too much for this class

## Revenue recognition principal {data-background="../Backgrounds/hourglass.jpg"}

- Recognize revenue in the **period** it was earned
    - This may not be when cash is received
- Goods revenue recorded when it is *more likely than not*
- Service revenue recorded at the percentage complete
    - If 50% of the work is finished, record 50% of the revenue
    - If 20% of the work is finished, record 20% of the revenue

> This will lead to a lot of tricky accounting, but mostly around period ends

## Recognizing revenue {data-background="../Backgrounds/hourglass.jpg"}

- Record revenue when:
    - Revenue can be measured *reliably*
    - Economic benefits are *more likely than not*
- For goods, you also need to:
    - Transfer any *significant risks* to buyer
        - If we are shipping [FOB destination], wait until received
        - If they handle shipping [FOB shipping point], wait until picked up for delivery
    - Have no continuing managerial involvement (*to an extent*)
    - Be able to *reliably* measure all costs incurred from the transaction
- For services, you also need to be able to *reliably* measure:
    - The stage of completion
    - The costs incurred to date and costs to finish

## Expense recognition {data-background="../Backgrounds/playing-cards.jpg"}

- Recognize expenses **only** when an asset is used up
    - Asset purchase $\ne$ expense
    - Can record partial usage
- Formally, expenses are recognized when:
    1) Obligations are incurred, such as when services have been received
    2) Obligations are offset against recognized revenues (matching principle)
    
> Matching principal: Expenses are recorded in the same period as the related revenue

- E.g., even if we aren't given an electricity bill that neatly aligns with our fiscal year end, we need to record the portion of the next one associated with the ending fiscal year

## Expense matching {data-background="../Backgrounds/playing-cards.jpg"}

:::: {.columns}

::: {.column width="50%"}

- 3 ways to match
- Directly
    - The expense is easy to track
        - Ex.: Inventory
- Indirectly (over a period)
    - The asset has a long life or is difficult to track
        - Ex.: Buildings
- With acquisition
    - Simultaneous usage and acquisition
        - Ex.: Utilities, rent, labor
    - Often *prepaid expenses*

:::

::: {.column width="50%"}

![](../Figures/box.png){height="200px" fig-align="center"}

![](../Figures/factory.png){height="200px" fig-align="center"}

![](../Figures/lamp.png){height="200px" fig-align="center"}

:::

::::


## When should we record... {data-background="../Backgrounds/review.jpg"}

<ol>
<li style="margin-bottom:1.5em"> A sale we are shipping at our expense
<li style="margin-bottom:1.5em"> A sale we are shipping at the buyer's expense
<li style="margin-bottom:1.5em"> Revenue for a week long consulting project paid for up front
<li style="margin-bottom:1.5em"> Electricity usage
<li style="margin-bottom:1.5em"> Building usage (our building)
<li style="margin-bottom:1.5em"> Sale of inventory for revenue
</ol>

## When should we record... {data-background="../Backgrounds/answer.jpg" class="default exclude"}

1. A sale we are shipping at our expense
    - <span class="fragment">Once the product reaches the buyer</span>
2. A sale we are shipping at the buyer's expense
    - <span class="fragment">Once we ship the product</span>
3. Revenue for a week long consulting project paid for up front
    - <span class="fragment">Once the project is finished</span>
4. Electricity usage
    - <span class="fragment">When billed or at period end (matching principle)</span>
5. Building usage (our building)
    - <span class="fragment">At period end (matching principle)</span>
6. Sale of inventory for revenue
    - <span class="fragment">At the time the revenue is recognized</span>

# Adjustments {data-background-video="../Backgrounds/section.mp4" data-background-video-loop="true"}

## Why do we need to adjust? {data-background="../Backgrounds/default.jpg"}

- The matching principle
    - Everything needs to be matched at period end
- Do before balance sheet and income statement
    - Adjustments will go to the trial balance once we record them
    - We call this an *Adjusted trial balance*
- Why not do this continuously?
    - Too costly -- some accounts continuously change
    - Investors only see period-end statements anyway

> We'll only do this at period end

## What do we need to adjust? {data-background="../Backgrounds/default.jpg"}

:::: {.columns}

::: {.column width="50%"}

- Adjustments needed to:
    - Asset values
        - Prepaid expenses
        - Inventory, supplies, etc.
        - Noncurrent assets
    - Liabilities
        - Payables we have yet to recognize
        - Unearned revenues
- Balanced by:
    - Revenues
    - Expenses

:::

::: {.column width="50%"}

- **All** adjustments affect:
    - 1 B/S account
        - Assets
        - Liabilities
        - Equity excluding revenues/expenses
    - 1 I/S account
        - Revenue or expense
- **NEVER** affects cash

:::

::::

## Adjusting entry types {data-background="../Backgrounds/default.jpg"}

- *Deferral*
    + Adjust for prepaid expense (some used)
    + Adjust for unearned revenue (some may be earned)
- *Depreciation*
    + Some long term assets have been used up
- *Accrual*
    + Record an expense in advance

## Deferral {data-background="../Backgrounds/default.jpg"}

- Adjustment for cash paid or received in advance
    - Expense or revenue has yet to occur
    - We *defer* some of it to the next period

![](../Diagrams/JE_2-1.png){width="800px" fig-align="center" .lightbox}

![](../Diagrams/JE_2-2.png){width="800px" fig-align="center" .lightbox}



## Depreciation {data-background="../Backgrounds/default.jpg"}

- Adjustment for allocating the cost of *Property, Plant and Equipment* (PP&E) over its useful life
- Record to *accumulated depreciation*
- Asset's book value is asset account minus accumulated depreciation
- Depreciate to *salvage value*
    - What you expect to get when it is used up

![](../Diagrams/JE_2-3.png){width="800px" fig-align="center" .lightbox}

## Depreciation methods {data-background="../Backgrounds/default.jpg"}

:::: {.columns}

::: {.column width="50%"}

- Straight line
    - Same amount each period
    - If $N$ periods, $S$ salvage value, $H$ historical cost:
        - $(H-S)/N$ per period
- Units of activity
    - Expense based on units produced
    - Good if capacity is known and tracked
- Declining balance
    - More depreciation early on, less later

:::

::: {.column width="50%"}

![](../Figures/desktop.png){width="180px" fig-align="center"}

![](../Figures/machine.png){width="180px" fig-align="center"}

![](../Figures/rolls_royce.png){width="180px" fig-align="center"}

:::

::::


## Accrual {data-background="../Backgrounds/default.jpg"}

- Accrued expense: debit expense, credit liability

![](../Diagrams/JE_2-4.png){width="800px" fig-align="center" .lightbox}

- Accrued revenue: debit asset, credit revenue

![](../Diagrams/JE_2-5.png){width="800px" fig-align="center" .lightbox}

## Overall effects {data-background="../Backgrounds/reference.jpg"}

<!-- Windows issue -->

```{r , echo=FALSE, warning=FALSE}
options(knitr.table.format = "html") 
text <- data.frame(
  def = c("Deferal: prepaid expense","Deferal: unearned revenue","Depreciation","Accrual: accrued expense","Accrual: accrued revenue"),
  asset = c("↓","","↓","","↑"),
  liability = c("","↓","","↑",""),
  expense = c("↑","","↑","↑",""),
  revenue = c("","↑","","","↑")
)
html_df(text, highlight_cols = c(1), names=c("Type","Asset (↑=DR)","Liability (↑=CR)","Expense (↑=DR)","Revenue (↑=CR)"))
```


<!--
       &nbsp;   Asset (↑=Dr)    Liability (↑=Cr)    Expense (↑=Dr)    Revenue (↑=Cr)              
-------------  --------------  ------------------  ----------------  ----------------
  Def: PP Exp        ↓                                ↑
  Def: UE Rev                       ↓                                 ↑
 Depreciation        ↓                                ↑
 Acc: Acc Exp                       ↑                 ↑
 Acc: Acc Rev        ↑                                                ↑
-->

## Adjusting entries {data-background="../Backgrounds/group.jpg"}

1. Return to the in class activity
2. 4 adjusting entries to add in
3. Do the three <span style="background-color:yellow">yellow tabs</span>

# Closing the books {data-background-video="../Backgrounds/section.mp4" data-background-video-loop="true"}

## Closing the books {data-background="../Backgrounds/default.jpg"}

- Reset all temporary accounts to **0**
    - All revenues
    - All expenses
    - Dividends
- Record a credit to temporary accounts with debit balances
    - Expenses, losses, dividends
- Record a debit to temporary accounts with credit balance
    - Revenues, gains
- Helps to track income through each period
    - Since all income-related accounts start each period with 0 balance

## Reset temporary accounts at period end {data-background="../Backgrounds/reference.jpg"}

- We close the accounts into *retained earnings* directly
    - Or close into *income summary*, and then close that into retained earnings
- Debit Revenue, Credit Retained earnings
- Debit Retained earnings, Credit Expense
- Debit Retained earnings, Credit Dividends

![](../Diagrams/JE_2-6.png){width="800px" fig-align="center" .lightbox}

## Closing entry {data-background="../Backgrounds/group.jpg"}

1. Return to the in class activity
2. 1 closing entry to add in
3. Do the two <span style="color:red">red tabs</span>






# End matter {data-background-video="../Backgrounds/section.mp4" data-background-video-loop="true"}

## Wrap up {data-background="../Backgrounds/ending.jpg"}

- For next week
    1) Recap the reading for this week
    2) Read the pages for next week
        - Capital Structure (Chapter 10)
        - Accounting Statements (Chapter 3, Part B)
    3) Homework to *turn in next week*
        - Available on eLearn
        - Submit on eLearn
    4) Practice on eLearn
        - Practice on journal entries
        - Automatic feedback provided
- Survey on the class session at [rmc.link/101survey2](https://docs.google.com/forms/d/e/1FAIpQLSdzyohx5MTN40nrDxCWRfuyapH7b1N6NG6MQqV6-lMMNT9z2Q/viewform?usp=sf_link)

## Packages used for these slides {data-background="../Backgrounds/code.jpg"}

- `{kableExtra}`
- `{knitr}`
- `{revealjs}`




## References {data-background="../Backgrounds/books.jpg" .never .small visibility="hidden"}

## Custom code {data-background="../Backgrounds/code.jpg" .never .small visibility="hidden"}


## NOTES {class="never" visibility="hidden"}


The expense recognition and expense matching slides are rather odd still
