BAT4M: Accounting Cycle

1) Welcome

My name is Mr. Bourgase and I will be teaching this class until Mr. Tulumello returns. I can be reached at brock.bourgase@tdsb.on.ca. First, we need to talk about where the course is and what information has been covered. We can review any question that you would like.

2) Accounting in the News

Rihanna: I Was Bankrupt Because of My Stupid Accountant

• Original article written by TMZ on February 12th 2014 and available at http://www.tmz.com/2014/02/12/rihanna-lawsuit-accountant-bankrupt/

Rihanna says her accountant made so many boneheaded decisions that he blew her fortune and she was "effectively bankrupt" by the end of 2009.

The singer claims in new legal docs she had $11 MILLION in cash at the beginning of 2009. Rihanna says the accountant was not on the ball and she was horrified to learn at the end of the year she had $2 million left. To make matters worse, her expenses doubled, which left her on a financial cliff.

As for how Rihanna blew through $9 million in one year ... she says her accountant gave her the green light to buy a house priced between $7 and 7 1/2 million. So she took his advice. She ultimately sold the house for a $2 million LOSS.

She also claims her 2009 tour -- Last Girl on Earth Tour -- was losing money but the accountant never gave her the heads up.

The legal docs were filed in connection with a lawsuit Rihanna filed against her accountant, claiming gross mismanagement. BTW ... Rihanna has rebounded nicely. Her net worth is now estimated at $43 mil.

3) Activity

Record the activities for Ken's Barber Shop and update the General Journal and T-Accounts in the spreadsheet file. Verify your work by updating the Trial Balance. Save the spreadsheet file on your home drive.

Instructions

• Instructions: https://drive.google.com/file/d/0BzT-yqq3ik8hZnlUdHNta1p6aDQ/
• Spreadsheet: https://drive.google.com/file/d/0BzT-yqq3ik8hM1d4MTNTU0FYYUU/

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4) Background Information

General Journal

T-Accounts

Homework

You have been reviewing Chapters 1 & 2. Write a list of concepts that you want to review or questions that you have and email it (list 3 to 5 things). We need to balance reviewing what has been covered with moving forward in the course. If you want your questions to be anonymous, you can hand in the list on paper next class.