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,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,单击此处编辑母版标题样式,密码：,accounting,邮箱：,gbxx2013,Chapter 3,Accounting Cycle,Learning Objectives,Understand the concept of accounting cycle, learn to talk about its roles,Understand 7 steps of accounting cycle, and compare them with accounting practice in China.,Understand the concept of account and its parts in application.,Understand the basic function of journal and its types,Learn to make entries for adjusting,Learn to balance accounts,Key words, phrases and special terms,Entry,分录,Make an or accounting entry,Closing entry,结账分录,Contra entry,抵销分录,Adjusting entry,调整分录,Entry price,入账价格,Entry document,记账凭证,Key words, phrases and special terms,Journalize,登记日记账,dn()laz,Journal,日记账，序时账,Journal entry,日记账分录,Cash journal,现金日记账,Post,过账,Ledger accounts,分类账,led,总帐，分户总帐；,Account,账户,An account is a record based on the items of accounting elements, representing an increase or a decrease and the result of those items.,Trial balance,试算平衡表,tral,试验；审讯；努力,Steps in the accounting cycle,1,、,Analyze transactions from source documents,2,、,Record by entries,3,、,Post to accounts,4,、,Adjusting entries,5,、,Journalizing and posting closing entries,6,、,Prepare trial balance,7,、,Prepare financial statements,Steps of,The accounting cycle,1.Analyze Transactions,2.Journalize,3.Post,6.Prepare Financial Statements,5.Close,4.Adjust,Source,Documents,Journal Entry,Ledger accounts,Trial Balance,Income statement,Accounts,Balance Sheet,Income Statement,etc,Understand how double-entry,accounting works,The mechanics of double-entry accounting are such that every transaction is recorded in the,debit,side of one or more accounts and in the,credit,side of one or more accounts with equal debits and credits.,double-entry bookkeeping (or system),single-entry bookkeeping (or system),The Double-Entry Accounting,Debit,（,Dr.,）,n.,借,借方,借记,Debit card,借记卡,Debit balance,借方余额,v.,计入借方,借计,Debit an account,计入借方账,Credit,（,Cr.,）,n.,贷,贷方,贷记,Credit card,贷记卡,Credit,贷方余额,v.,计入贷方,贷计,Credit an account,计入贷方账,Double-Entry Accounting,“ Double-entry accounting is based on a simple concept: each party in a business transaction will receive something and give something in return. In terms, what is received is a debit and what,bookkeeping,is given is a credit. The T account is a representation of a scale or balance.”,Scale or Balance,Receive,DEBIT,Give,CREDIT,T account,Left Side,Receive,DEBIT,Right Side,Give,CREDIT,Accounting equation,Assets = Liabilities + Owners equity,Assets - Liabilities = Owners equity,Net assets = Owners equity,Rules of Double-Entry Accounting,1.Each transaction affects at least two accounts.,These accounts contains at least one account debited,and at least one account credited.,2. Total debits must equal total credits.,T-account,T-account,: a simplest form of an account, used to help illustrate the effect of transaction.,Account name,Debit,(left side),Credit,(right side),Rules of debits &credits,The type of account determines the side in which increases and decreases are recorded.,Increases and Decreases in the Accounts,Accounting,Equation:,Assets,=,Liabilities,+,Owners,Equity,Rules of,Debit and,Credit:,Debit,+,Debit,Debit,Credit,Credit,+,Credit,+,Debits,Credits,Revenue accounts,Decrease (-)Increase (+),Expense accounts,Increase (+)Decrease (-),Income Statement Accounts,Record transactions,in the journal,Recording Phase,Step 1,Analyzing,business,documents,Step 3,Posting to,ledger,accounts,Step 2,Journalizing,transactions,Special journal,General journal,General ledger,(Control account),Subsidiary ledger,What is a journal?,It is a record of each business transaction in a,chronological,order,krnldk()l,，依时间前后排列而记载的,.,Steps of journalizing:,Identify transaction from source documents.,Specify accounts affected.,Apply debit/credit rules.,Record transaction with description.,Verify that total debits equal total credits,Journal classification,General journal-,-to record all kinds of transactions,Special journal,-to record a certain kind of transactions,Classification of Ledgers,Ledgers are created on the basis of the,item of financial statements,.,General ledger accounts,总分类帐帐户,It contains all of the balance sheet and income statement accounts.,Subsidiary ledger accounts,明细分类帐,A record created to record the individual items relating to a single general ledger account.,Post from the journal,to the ledger,What is posting?,Posting is the process that debits and credits are,transferred,from the journal to the ledger accounts.,In the process, each amount in the debit column of the journal is posted by entering it on the debit side of an ledger account, and each amount in the credit column of the journal is posted by entering it on the credit side of an ledger account.,Post. Ref,.,JOURNAL,Date,Description,Debit,Credit,Page 2,1,2,3,4,Dec.31,2005,Prepaid Insurance2 400 00,Cash2 400 00,Paid premium on two-year,policy.,Dec. 1Net Solutions paid a,premium,（,primm,，保险费）,of $2,400 for a comprehensive insurance policy covering two years.,Post. Ref,.,JOURNAL,Date,Description,Debit,Credit,Page 2,1,2,3,4,Dec.1,2005,Prepaid Insurance2 400 00,Cash2 400 00,ACCOUNT,Prepaid Insurance,ACCOUNT NO.,15,Balance,Debit,Credit,Date,Debit,Credit,Item,Post. Ref.,2 400 00,2 400 00,Dec.1,2005,Paid premium on two-year,policy.,Post. Ref.,JOURNAL,Date,Description,Debit,Credit,Page 2,1,2,3,4,Dec.1,2005,Prepaid Insurance2 400 00,Cash2 400 00,ACCOUNT,Prepaid Insurance,ACCOUNT NO.,15,Balance,Debit,Credit,Date,Debit,Credit,Item,Post. Ref.,2 400 00,2 400 00,Dec.1,2005,2,15,Paid premium on two-year,policy.,Post. Ref.,JOURNAL,Date,Description,Debit,Credit,Page 2,1,2,3,4,Dec.1,2005,Prepaid Insurance2 400 00,Cash2 400 00,Paid premium on two-year,policy.,15,ACCOUNT,Cash,ACCOUNT NO.,11,Balance,Debit,Credit,Date,Debit,Credit,Item,Post. Ref.,2 000 00,5 900 00,Nov.30,2005,2,Dec. 1,2 400 00,3 500 00,Post. Ref.,JOURNAL,Date,Description,Debit,Credit,Page 2,1,2,3,4,Dec.1,2005,Prepaid Insurance2 400 00,Cash2 400 00,Paid premium on two-year,policy.,15,ACCOUNT,Cash,ACCOUNT NO.,11,Balance,Debit,Credit,Date,Debit,Credit,Item,Post. Ref.,2 000 00,5 900 00,Nov.30,2005,2,2 400 00,3 500 00,Dec. 1,11,2,End-of-period Adjusting Entries,Why should adjusting entries be made?,Types of adjusting entries,Accrued,（,krud,，应计的）,Revenues or Accrued Assets,Accrued Expenses or Accrued Liabilities,Unearned Revenues or Deferred Revenues,Prepaid Expenses,1. Apportioning Recorded Costs,摊销已记录的成本,Assume that a business paid $3600 on Jan1 for one years rent in advance.,Prepaid Rent 3600,Cash 3600,At the end of Jan31,$300 had expired or been used up during the period.,Rent Expense 300,Prepaid Rent 300,2. Apportioning Recorded Revenue,摊销已记录的收入,Assume a monthly magazine publisher collected in advance $4800 from customers for 6 months fees on July 1,Cash 4800,Unearned Subscription Revenue 4800,sbskrp()n,n.,捐献；订阅；订金；签署,At the end of July31,1/6 of the publishers obligation is fulfilled after magazines are supplied to the subscribers.,Unearned Subscription Revenue 800,Subscription Revenue 800,3. Accruing Unrecorded Expenses,应计未记录的费用,Suppose AJ CO. borrowed $100 000 on Dec 31,2004. The loan is for 1 year with interest at 9%.As of Jan 31,2005, AJ has had the benefit of loan for one month and it owes $750,($100 000*9%/12),Interest Expense 750,Accrued Interest Payable 750,4. Accruing Unrecorded Revenue,应计未记录的收入,Suppose DR CO. has completed 2/3 of service work on May 31. The total amount to be received will be $6000 when the work is complete.,Accounts Receivable 4000 (6000*2/3),Accrued Service Revenue 4000,Do adjusting entries go directly to the relative ledger accounts?,Prepare a trial balance,Trial Balance,What is a trial balance?,A two-column schedule,listing the names and balances,of all the accounts in the order in which they appear in the general ledger, the debit balances are listed in the left-hand column and the credit balances in the right-hand column. The total of the two column should,agree,.,Format of a trial balance,NetSolutions,Trial Balance,December 31, 2005,Cash2 065 00,Accounts Receivable2 220 00,Supplies2 000 00,Prepaid Insurance2 400 00,Land20 000 00,Office Equipment1 800 00,Accounts Payable900 00,Unearned Rent360 00,Chris Clark, Capital25 000 00,Chris Clark, Drawing4 000 00,Fees Earned16 340 00,Wages Expense4 275 00,Rent Expense1 600 00,Utilities Expense985 00,Supplies Expense800 00,Miscellaneous Expense455 00,42 600 0042 600 00,NetSolutions,Trial Balance,December 31, 2005,Cash2 065 00,Accounts Receivable2 220 00,Supplies2 000 00,Prepaid Insurance2 400 00,Land20 000 00,Office Equipment1 800 00,Accounts Payable900 00,Unearned Rent360 00,Chris Clark, Capital25 000 00,Chris Clark, Drawing4 000 00,Fees Earned16 340 00,Wages Expense4 275 00,Rent Expense1 600 00,Utilities Expense985 00,Supplies Expense800 00,Miscellaneous Expense455 00,42 600 0042 600 00,Balance Sheet Items,NetSolutions,Trial Balance,December 31, 2005,Cash2 065 00,Accounts Receivable2 220 00,Supplies2 000 00,Prepaid Insurance2 400 00,Land20 000 00,Office Equipment1 800 00,Accounts Payable900 00,Unearned Rent360 00,Chris Clark, Capital25 000 00,Chris Clark, Drawing4 000 00,Fees Earned16 340 00,Wages Expense4 275 00,Rent Expense1 600 00,Utilities Expense985 00,Supplies Expense800 00,Miscellaneous Expense455 00,42 600 0042 600 00,Statement of Owners Equity Item,NetSolutions,Trial Balance,December 31, 2005,Cash2 065 00,Accounts Receivable2 220 00,Supplies2 000 00,Prepaid Insurance2 400 00,Land20 000 00,Office Equipment1 800 00,Accounts Payable900 00,Unearned Rent360 00,Chris Clark, Capital25 000 00,Chris Clark, Drawing4 000 00,Fees Earned16 340 00,Wages Expense4 275 00,Rent Expense1 600 00,Utilities Expense985 00,Supplies Expense800 00,Miscellaneous Expense455 00,42 600 0042 600 00,Income Statement Items,Can the trial balance reveal all errors?,Errors,1. Failure to record a transaction or to post a transaction.,2. Recording the same erroneous,rns,adj.,错误的；不正确的,amount for both the debit and the credit parts of a transaction.,3. Recording the same transaction more than once.,4. Posting a part of a transaction correctly as a debit or credit but to the wrong account.,5. Posting in the wrong column.,Errors that will not cause the trial balance to be unequal:,Work Sheet,工作底稿,Work sheet includes,unadjusted trial balance,adjusting entries,adjusted trial balance, and,income statemen,t and,balance shee,t (with a Dr. column and a Cr. column each).,4-,48,表：十四栏式工作底稿,Closing Entries,结账分录,Classification of accounts,Balance sheet accounts-,Permanent ( real )accounts,Income statement accounts-,Temporary (nominal) accounts,Close sth to sth =Transfer sth to sth,转移，转账,The aim of making closing entries,Prepare financial statements,Income Statement,Statement of Cash Flows,Statement of Owners Equity,Beginning Balance Sheet,Ending Balance Sheet,Period of Time,Point inTime,Point inTime,Income Statement,Statement of Owners Equity,C. Taylor, Capital 12/1/07,-,$,Net income for December,3,470,Plus: Investments by Owner,30,000,33,470,Less: Owner Withdrawals,200,C. Taylor, Capital, 12/31/07,33,270,$,Statement of Owners Equity,For the Month Ended December 31, 2007,FASTFORWARD,Balance Sheet,Case for Discussion,In order for all accounts to look the same, and to simultaneously make sure that the accounting equation stays in balance with double-entry bookkeeping, the debit and credit system was,devised,（设计，发明）,. Luca Pacioli first described it in 1494, and the basic system is so sound and efficient, we still use it today. Tradition aside, we would not still be using this ancient system if it did not work extremely well and efficiently. One could set up a system with pluses and minuses, but it would not be as efficient at generating the data needed for financial statements while making sure that the accounting equation was still in balance. One is more likely to make mistakes in entering data with plus and minus signs, although this is a secondary concern to theissues of uniformity and efficiency.,Why use debits and credits rather than pluses andminuses?,The End,
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