AccountingBasics英语会计基础教学.ppt

Don tforgetyourPASSSession http www uow edu au student services pass InAutumn2011 studentswhoregularly attendedPASSscored11markshigheronaveragethannon attendingstudents StudentswhodidnotattendPASSwerealso5timesaslikelytofail Chapter3 Adjustingtheaccounts Week3 2 BEFOREWESTART C CREDIT D DEBIT Normalbalanceoftheseaccountsisadebit Toincreasebalancedebitagain todecreasecreditoutoftheaccount Normalbalanceoftheseaccountsisacredit Toincreasebalancecreditagain todecreasedebitoutoftheaccount Beforewestart 4 DRD A X C I LCRWhatisthenormalbalanceof Accountsreceivable Accountspayable Machinery Taxexpense Dividends Drawings Sharecapital Retainedearnings Salesrevenue Beforewestart Lastweekwelookedattransactionsanalysis journalentriesandgeneralledgeraccounts ElenaLeeexample 5 1October officerentforOctoberispaidincash 1800 TheexpenseRentisincreased 1800becausethepaymentpertainsonlytothecurrentmonth theassetCashisdecreased 1800 Debitsincreaseexpenses debitRentExpense 1800Creditsdecreaseassets creditCash 1800 Beforewestart 6 Debitsincreaseexpenses debitRentExpense 1800Creditsdecreaseassets creditCash 1800 Thisweek 7 AccrualversuscashbasisofaccountingRevenuerecognitioncriteriaExpenserecognitioncriteriaTypesofadjustingentriesPrepaymentsAccrualsAdjustedtrialbalanceWorksheetsFinancialstatementsfromworksheets Accrualversuscashbasisofaccounting Cash basedaccounting Accrual basedaccounting 8 Revenuerecognisedwhenthecashisreceivedorpaid Expensesrecognisedwhenthecashisreceivedorpaid RevenuerecognisedwhengoodsandservicesareprovidedExpensesrecognisedwhenassetsareconsumedorliabilitiesincurred Cashversusaccrualbasis 9 AccrualbasisIncomeexample assumePennyreceived 20 000incashforsalesduring2011andchargedclients 2 400whichwastobepaidinthefollowingyear HowmuchrevenueshouldPennyrecordfor2011 Revenuefor2010wouldbe 22 400Why Sales Cash 20 000Sales Accountsreceivable 2 400Totalsalesfor2011 22 400 Cashversusaccrualbasis 10 AccrualbasisExpensesexample Penny sphonebillforMarchwas 400butshedoesn treceivethebilluntilApril WhenshouldPennyrecordthetelephoneexpense The 400isstillaMarchexpensebecausethisistheperiodinwhichtheexpensewasincurred Theactualcashwon tgooutuntilApril buttheexpenseisstillaMarchexpense Whydoweneedadjustingentries 11 It satimingissueandrelatedtotheperiodassumption BecausesometimestransactionseffecttwoormoreaccountingperiodsweneedtomakesureincomeandexpensesarerecordedinthecorrectperiodWeneedtomakesurethatassetandliabilitybalancesareaccuratelyreflectedattheendoftheaccountingperiodAdjustingentriesoccurafterthetransactionshavebeenrecordedandposted butbeforethefinancialstatementsareprepared Typesofadjustingentries 12 Typesofadjustingentries 13 Adjustingentries 14 Onesideoftheadjustingjournalentryaffectsanaccountreportedintheincomestatement ierevenueorexpense andtheothersideoftheentryaffectsanaccountrecordedinthebalancesheet assetorliability Thecashaccountisneveradjustedbecausethecashflowoccursbeforeorafterthereportingdate Anexample BazingaInc 15 BazingaIncisacomicbookstoreinPasadena California Itisownedandmanagedbyfourfriends Sheldon Leonard Howard andRaj TheTrialBalanceasatJune2010forthecompany beforeadjustingentriesaremade isshownonthefollowingslide 16 Anexample BazingaInc yearendinfo Whendoingadjustingentries youwillneedtodeterminewhatinformationisavailableattheendoftheaccountingperiodsothatyoucancalculatethecorrectbalancesforassetsandliabilityaccountsanddeterminetheamountstobeincludedasrevenueandexpenses InACCY901 thistypeofinformationwillbegiventoyou a Suppliesonhandattheendoftheperiodwere 8 000 b Theusefullifeofshopfittingswas5yearsandtheresidualvalueis 5 000 c Athreeyearinsurancepolicywaspurchasedon1July2009 d Thebusinessemploysonesalesassistantwhoispaid 1 000forafivedayworkingweekandispaideveryFriday BalancedayisaWednesday e Comicbooksworth 3 500weresenttoacollectorwithaninvoiceon29June2010 f Thesubscriptionrevenuerecordedintheunearnedrevenueaccountwereforatwo yearperiod thereforehalfofthismoneywasearnedatyearend 17 a Suppliesonhandattheendoftheperiodwere 8 000 Typeofadjustingentry prepayment costpaidforbeforeconsumedIntheunadjustedtrialbalance suppliesatthebeginningoftheperiodwere 12 500Therefore anadjustingentryisrequiredtoreducethebalanceto 8 000 b Theusefullifeofshopfittingswas5yearsandtheresidualvalueis 5 000 Typeofadjustingentry prepayment depreciationAdjustingentryfordepreciationexpense Annualdepreciationexpense cost residualvalue estimatedusefullifeAnnualdepreciationexpense 15 000 5 000 5years c Athreeyearinsurancepolicywaspurchasedon1July2009 Typeofadjustingentry prepayment prepaidexpenseInsurancepolicypurchasedatthebeginningofthecurrentyear Validforthreeyears Adjustingentryrecordsexpirationofpolicyoverthisperiod d Thebusinessemploysonesalesassistantwhoispaid 1 000forafivedayworkingweekandispaideveryFriday BalancedayisaWednesday Typeofadjustingentry accrual unrecordedexpensesWorkout howmuchispaidperdayANDhowmanydaysfallbetweendateoflastpayandbalancedate e Comicbooksworth 3 500weresenttoacollectorwithaninvoiceon29June2010 Typeofadjustingentry accrual unrecordedrevenueAdjustingentryforunrecordedrevenue f Thesubscriptionrevenuerecordedintheunearnedrevenueaccountwereforatwo yearperiod thereforehalfofthismoneywasearnedatyearend Typeofadjustingentry deferral unearnedrevenueAdjustingentryforunearnedrevenuenowearned Anexample BazingaInc 24 Onceadjustingentriesarepostedtoledgeraccounts newtotalsarecalculatedandanadjustedtrialbalanceistakenAftertheadjustingprocessiscompleted theadjustedtrialbalanceisusedtopreparethefinancialstatementsWewilluseworksheetstohelpuswiththisprocess Usingaworksheet 25 Whyuseaworksheet IthelpstocompiletheinformationnecessaryforthepreparationofthefinancialstatementsThebalancesofledgeraccountsappearinonelocationTheaffectofadjustmentscanbeviewedeasilyandcorrectedifnecessaryBecausetheadjustedtrialbalanceiseasilyvisible theworksheetcansimplifythepreparationoffinancialstatements Whatdoesaworksheetlooklike 26 Anexample BazingaInc 27 Oncetheadjustmentsareentered theadjustedbalancesareextendedtotheappropriatecolumnsintheadjustedtrialbalance Expenses debitcolumnRevenue creditcolumnAssetsanddividends drawings debitcolumnsLiabilities equity contraassets creditcolumns 28 Anexample BazingaInc 29 Finally theamountsintheadjustedtrialbalanceareenteredintheincomestatementandbalancesheetcolumns Expenses debitcolumnofincomestatementRevenue creditcolumnofincomestatementAssetsanddividends drawings debitcolumnofbalancesheetLiabilities equity contraassets creditcolumnofbalancesheetThesecolumnsarethenusedtopreparethefinancialstatements 30 Incomestatementfromworksheet 31 Statementofchangesinequity 32 Balancesheetfromworksheet 33 Chapter4 Completionoftheaccountingcycle Week3 34 Closingentries Tomaketheaccountsreadyforthenextaccountingperiod thebooksmustbeclosed UnderstandthedifferencebetweenTemporary ornominal accountsPermanent orreal accountsTemporaryaccountsincludealltheincomestatementaccountsanddividend drawingaccountsthatareusefulforoneperiodonly todetermineprofitfortheyear Theseaccountsareclosedattheendoftheyear Permanentaccountsincludeallbalancesheetaccountsandrelatetooneormoreaccountingperiods Theseaccountsarenotclosed 35 Preparingclosingentries ClosingentriesFormallytransferprofitorlossandowner sdrawingsordividendstoowner scapitalProduceazerobalanceineachtemporaryaccountProfitandLossSummaryThisisanothertemporaryaccountwhichisusedtohelpwiththeclosingprocessThisaccountisalsoclosed examplecoming 36 Theclosingprocess 1CloserevenueaccountstoProfitandLossSummary2CloseexpensesaccountstoProfitandLossSummary 37 1 2 Theclosingprocesscontinued 3CloseProfit LossSummarytoRetainedearnings 38 3 Theclosingprocesscontinued 4CloseDividendstoRetainedearnings 39 4 ClosingEntriesIllustrated BazingaInc 40 GENERALJOURNALJ3DateAccounttitlesandexplanationsRef DebitCredit2010June30SalesRevenue32250Profit LossSummary32250 Tocloseincomeaccount 30Profit LossSummary8100SuppliesExpense4500DepreciationExpense fittings2000InsuranceExpense1000SalariesExpense600 Tocloseexpenseaccounts 30Profit LossSummary24150Retainedearnings24150 TocloseProfitandLossSummaryaccountandtransferprofittoRetainedEarnings IFTHEREHADBEENADIVIDENDPAID 30Retainedearnings500Dividends500 Toclosedividendsandrecognisedecreaseinretainedearnings 1 2 3 4 Postclosingentries TemporaryaccountsAllwillhavezerobalancesafterpostingtheclosingentriesAllrevenueandexpenseaccountsaretotalled balancedanddouble ruledRetainedearningsBalancerepresentstotalretainedearningsatendofaccountingperiodNoentriesarejournalisedandpostedtoretainedearningsduringtheyearPermanentaccountsNotclosed assets liabilities equity 41 Preparingapost closingtrialbalance Apost closingtrialbalanceisalistofallpermanentaccountsandtheirbalancesafterclosingentriesarejournalisedandpostedThepurposeofthepost closingtrialbalanceistoprovetheequalityofthepermanentaccountsthatarecarriedforwardtothenextaccountingperiod 42 Preparingapost closingtrialbalancecontinued 43 SUMMARYOFTHEACCOUNTINGCYCLE AnalysebusinesstransactionsJournalisethetransactionsPosttoledgeraccountsPrepareatrialbalanceJournaliseandpostadjustingentries prepayments accrualsPrepareanadjustedtrialbalancePreparefinancialstatementsIncomestatementStatementofchangesinequityStatementoffinancialpositionJournaliseandpostclosingentriesPrepareapost closingtrialbalance 44