AccountingBasics英语会计基础教学课件.ppt(不含音视频素材)

1、AMonday11:3041-203BMonday15:3019-G006CWednesday12:3019-2043DThursday9:3019-G006EThursday12:3019-2085FFriday12:3019-G007Dont forget yourDont forget yourPASS Session!PASS Session!http:/www.uow.edu.au/student/services/pass In Autumn 2011, students who regularly* attended PASS scored 11 marks higher on

2、average than non-attending students. Students who did not attend PASS were also 5 times as likely to fail.Chapter 3: Adjusting the accountsWeek 32BEFORE WE START.DAX = CILDIVIDENDSASSETSEXPENSESCAPITAL(EQUITY)INCOMELIABILITIESC = CREDITD = DEBITNormal balance of these accounts is a debit. To increas

3、e balance debit again, to decrease credit out of the account.Normal balance of these accounts is a credit. To increase balance credit again, to decrease debit out of the account.Before we start4DRD+A+X=C+I+LCRoWhat is the normal balance ofnAccounts receivable?nAccounts payable?nMachinery?nTax expens

4、e?nDividends/Drawings?nShare capital?nRetained earnings?nSales revenue?Before we startoLast week we looked at transactions analysis, journal entries and general ledger accountsElena Lee example5BasicanalysisDebit-creditanalysisTransaction1 October, office rent for October is paid in cash, $1800The e

5、xpense Rent is increased $1800 because the payment pertains only to the current month; the asset Cash is decreased $1800Debits increase expenses: debit Rent Expense $1800Credits decrease assets: credit Cash $1800Before we start6Journal entryPostingDebit-creditanalysisDebits increase expenses: debit

6、Rent Expense $1800Credits decrease assets: credit Cash $1800Oct 1 Rent Expense 601 1800 Cash 101 1800 (Paid October rent) Cash 101 Oct 1 800 Rent Expense 601Oct 1 1800This week7 Accrual versus cash basis of accountingRevenue recognition criteriaExpense recognition criteriaTypes of adjusting entriesP

7、repaymentsAccrualsAdjusted trial balanceWorksheetsFinancial statements from worksheetsAccrual versus cash basis of accountingCash-based accountingCash-based accountingAccrual-based accountingAccrual-based accounting8Revenue recognised when the cash is received or paid.Expenses recognised when the ca

8、sh is received or paidRevenue recognised when goods and services are providedExpenses recognised when assets are consumed or liabilities incurredCash versus accrual basis9Accrual basis Income example: assume Penny received $20,000 in cash for sales during 2011 and charged clients $2,400 which was to

9、 be paid in the following year. How much revenue should Penny record for 2011?Revenue for 2010 would be $22,400Why?Sales Cash $20,000Sales Accounts receivable $ 2,400Total sales for 2011$22,400Cash versus accrual basis10Accrual basis Expenses example: Pennys phone bill for March was $400 but she doe

10、snt receive the bill until April. When should Penny record the telephone expense?The $400 is still a March expense because this is the period in which the expense was incurred. The actual cash wont go out until April, but the expense is still a March expense.Why do we need adjusting entries?11Its a

11、timing issue and related to the period assumption. Because sometimes transactions effect two or more accounting periods we need to make sure income and expenses are recorded in the correct period We need to make sure that asset and liability balances are accurately reflected at the end of the accoun

12、ting periodAdjusting entries occur afterafter the transactions have been recorded and posted, but beforebefore the financial statements are preparedTypes of adjusting entries 12PREPAYMENTSPrepaid expensesCosts/expenses paid for before they are consumed, e.g. rent in advanceInitially recorded as asse

13、tsassets and charged to expenses in subsequent periods as they are consumedUnearned revenuesRevenue which has been received but not yet earned, e.g. concert tickets, magazine subscriptionsInitially recorded as liabilitiesliabilities and recognised as revenue in subsequent periods as the revenue is e

14、arnedTypes of adjusting entries13ACCRUALSAccrued expensesCosts/expenses incurred but not yet paid fore.g Wages earned by employees but not yet paid at the end of the accounting period. Electricity bills, phone bills that havent come in the mail even though they are part of the expenses of the accoun

15、ting period.Accrued revenuesRevenue which has been earned but not yet received in cashe.g Sales commissions earned but not yet paidInterest accumulated but not yet receivedAdjusting entries14One side of the adjusting journal entry affects an account reported in the income statement (ie revenue or ex

16、pense) and the other side of the entry affects an account recorded in the balance sheet (asset or liability)The cash account is nevernever adjusted because the cash flow occurs before or after the reporting dateAn example: Bazinga Inc15Bazinga Inc is a comic book store in Pasadena, California. It is

17、 owned and managed by four friends: Sheldon, Leonard, Howard, and Raj. The Trial Balance as at June 2010 for the company, before adjusting entries are made, is shown on the following slide16An example: Bazinga Inc, year end infoWhen doing adjusting entries, you will need to determine what informatio

18、n is available at the end of the accounting period so that you can calculate the correct balances for assets and liability accounts and determine the amounts to be included as revenue and expenses. In ACCY901, this type of information will be given to you.(a) Supplies on hand at the end of the perio

19、d were $8,000 (b) The useful life of shop fittings was 5 years and the residual value is $5,000. (c) A three year insurance policy was purchased on 1 July 2009. (d) The business employs one sales assistant who is paid $1,000 for a five day working week and is paid every Friday. Balance day is a Wedn

20、esday. (e) Comic books worth $3,500 were sent to a collector with an invoice on 29 June 2010. (f) The subscription revenue recorded in the unearned revenue account were for a two-year period, therefore half of this money was earned at year end 17(a) Supplies on hand at the end of the period were $8,

21、000 Type of adjusting entry prepayment cost paid for before consumedIn the unadjusted trial balance, supplies at the beginning of the period were $12,500Therefore, an adjusting entry is required to reduce the balancereduce the balance to $8,000DateDescriptionDebitCredita30/6Supplies expense Supplies

22、(to reduce supplies account to $8000)(b) The useful life of shop fittings was 5 years and the residual value is $5,000. Type of adjusting entry prepayment depreciationAdjusting entry for depreciation expenseAnnual depreciation expense = (cost residual value)/estimated useful lifeAnnual depreciation

23、expense = ($15,000-$5,000)/5 yearsDateDescriptionDebitCreditb30/06Dep exp fittings Accum dep fittings(to record dep expense for the year)(c) A three year insurance policy was purchased on 1 July 2009. Type of adjusting entry prepayment prepaid expenseInsurance policy purchased at the beginning of th

24、e current year. Valid for three years. Adjusting entry records expiration of policy over this period. DateDescriptionDebitCreditc30/06Insurance expense Prepaid insurance(to record insurance expense for the year)(d) The business employs one sales assistant who is paid $1,000 for a five day working we

25、ek and is paid every Friday. Balance day is a Wednesday. Type of adjusting entry accrual unrecorded expensesWork out: how much is paid per day AND how many days fall between date of last pay and balance date.DateDescriptionDebitCreditd30/06Salary expense Salaries payable(to record salaries owed but

26、not yet paid)(e) Comic books worth $3,500 were sent to a collector with an invoice on 29 June 2010.Type of adjusting entry accrual unrecorded revenueAdjusting entry for unrecorded revenueDateDescriptionDebitCredite30/06 (to record revenue earned but not yet received)(f) The subscription revenue reco

27、rded in the unearned revenue account were for a two-year period, therefore half of this money was earned at year endType of adjusting entry deferral unearned revenueAdjusting entry for unearned revenue now earnedDateDescriptionDebitCreditf30/06 (to record unearned revenue earned during the year)An e

28、xample: Bazinga Inc24Once adjusting entries are posted to ledger accounts, new totals are calculated and an adjusted trial balance is takenAfter the adjusting process is completed, the adjusted trial balance is used to prepare the financial statementsWe will use worksheets to help us with this proce

29、ssUsing a worksheet25Why use a worksheet?It helps to compile the information necessary for the preparation of the financial statementsThe balances of ledger accounts appear in one locationThe affect of adjustments can be viewed easily and corrected if necessaryBecause the adjusted trial balance is e

30、asily visible, the worksheet can simplify the preparation of financial statementsWhat does a worksheet look like?26An example: Bazinga Inc27Once the adjustments are entered, the adjusted balances are extended to the appropriate columns in the adjusted trial balance.Expenses debit columnRevenue credi

31、t columnAssets and dividends/drawings debit columnsLiabilities, equity, contra assets credit columns28An example: Bazinga Inc29Finally, the amounts in the adjusted trial balance are entered in the income statement and balance sheet columns. Expenses = debit column of income statementRevenue = credit

32、 column of income statementAssets and dividends/drawings = debit column of balance sheetLiabilities, equity, contra assets = credit column of balance sheetThese columns are then used to prepare the financial statements30Income statement from worksheet31Statement of changes in equity32Retained earnin

33、gs, beginning21,500 Add: net profit24,150 45,650 Less: dividends - Retained earnings, 30 June 201045,650 Bazinga IncStatement of Changes in Equityfor the year ended 30 June 2010Balance sheet from worksheet33Chapter 4: Completion of the accounting cycleWeek 334Closing entriesTo make the accounts read

34、y for the next accounting period, the books must be closed. Understand the difference betweenTemporary (or nominal) accountsPermanent (or real) accountsTemporary accounts include all the income statement accounts and dividend/drawing accounts that are useful for one period only (to determine profit

35、for the year). These accounts are closedare closed at the end of the year.Permanent accounts include all balance sheet accounts and relate to one or more accounting periods. These accounts are not closed.are not closed. 35Preparing closing entriesClosing entries Formally transfer profit or loss and

36、owners drawings or dividends to owners capitalProduce a zero balance in each temporary accountProfit and Loss SummaryThis is another temporary account which is used to help with the closing processThis account is also closed (example coming!)36The closing process1 Close revenue accounts to Profit an

37、d Loss Summary2 Close expenses accounts to Profit and Loss Summary37(Individual)RevenueProfit and LossSummary(Individual)Expenses12The closing process continued3 Close Profit & Loss Summary to Retained earnings38Profit and LossSummaryRetained earnings3The closing process continued4 Close Dividends t

38、o Retained earnings39Retained earningsDividends4Closing Entries Illustrated: Bazinga Inc40 GENERAL JOURNAL J3Date Account titles and explanations Ref. Debit Credit2010June 30 Sales Revenue 32 250 Profit & Loss Summary 32 250 (To close income account) 30 Profit & Loss Summary 8 100 Supplies Expense 4

39、 500 Depreciation Expense - fittings 2 000 Insurance Expense 1 000 Salaries Expense 600 (To close expense accounts) 30 Profit & Loss Summary 24 150 Retained earnings 24 150 (To close Profit and Loss Summary account and transfer profit to Retained Earnings) IF THERE HAD BEEN A DIVIDEND PAID 30 Retain

40、ed earnings 500 Dividends 500 (To close dividends and recognise decrease in retained earnings)1234Post closing entriesTemporary accountsAll will have zero balances after posting the closing entriesAll revenue and expense accounts are totalled, balanced and double-ruledRetained earnings Balance repre

41、sents total retained earnings at end of accounting periodNo entries are journalised and posted to retained earnings during the yearPermanent accounts Not closed (assets, liabilities, equity)41Preparing a post-closing trial balanceA post-closing trial balance is a list of all permanent accounts and t

42、heir balances after closing entries are journalised and postedThe purpose of the post-closing trial balance is to prove the equality of the permanent accounts that are carried forward to the next accounting period42Preparing a post-closing trial balance continued43SUMMARY OF THE ACCOUNTING CYCLE1.An

43、alyse business transactions2.Journalise the transactions3.Post to ledger accounts4.Prepare a trial balance5.Journalise and post adjusting entries: prepayments/accruals6.Prepare an adjusted trial balance7.Prepare financial statementsIncome statementStatement of changes in equityStatement of financial position8.Journalise and post closing entries9.Prepare a post-closing trial balance44