会计英语第三章复习课件.ppt

1、密码：密码：accounting邮箱：邮箱：Chapter 3 Accounting CycleLearning Objectivesv Understand the concept of accounting cycle,learn to talk about its rolesv Understand 7 steps of accounting cycle,and compare them with accounting practice in China.v Understand the concept of account and its parts in application.v

2、Understand the basic function of journal and its typesv Learn to make entries for adjustingv Learn to balance accounts Key words,phrases and special termsvEntry 分录分录 Make an or accounting entry Closing entry 结账分录结账分录 Contra entry 抵销分录抵销分录 Adjusting entry 调整分录调整分录 Entry price 入账价格入账价格 Entry document

3、记账凭证记账凭证Key words,phrases and special termsvJournalize 登记日记账登记日记账dn()laz Journal 日记账，序时账 Journal entry 日记账分录 Cash journal 现金日记账vPost 过账过账vLedger accounts 分类账分类账led总帐，分户总帐；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 th

4、e result of those items.vTrial balance 试算平衡表试算平衡表tral试验；审讯；努力试验；审讯；努力Steps in the accounting cycle1、Analyze transactions from source documents2、Record by entries3、Post to accounts4、Adjusting entries5、Journalizing and posting closing entries6、Prepare trial balance7、Prepare financial statementsSteps o

5、f The accounting cycle1.Analyze 1.Analyze TransactionsTransactions2.Journalize2.Journalize3.Post3.Post6.Prepare Financial 6.Prepare Financial StatementsStatements5.Close 5.Close 4.Adjust4.AdjustSource DocumentsJournal Entry Ledger accountsTrial BalanceIncome statement AccountsBalance Sheet Income St

6、atementetcv 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-Ent

7、ry AccountingvDebit（Dr.）n.借借,借方借方,借记借记 Debit card 借记卡借记卡 Debit balance 借方余额借方余额v v.计入借方计入借方,借计借计 Debit an account 计入借方账计入借方账vCredit（Cr.）n.贷贷,贷方贷方,贷记贷记 Credit card 贷记卡贷记卡 Credit贷方余额贷方余额v v.计入贷方计入贷方,贷计贷计 Credit an account 计入贷方账计入贷方账“Double-entry accounting is based on a simple concept:each party in a

8、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 BalanceReceiveDEBITGiveCREDITT accountLeft SideReceiveDEBITRight SideGiveCREDITAcc

9、ounting equation vAssets=Liabilities+Owners equityvAssets-Liabilities=Owners equityvNet assets=Owners equity Rules of Double-Entry Accounting 1.Each transaction affects at least two accounts.These accounts contains at least one account debitedand at least one account credited.2.Total debits must equ

10、al total credits.:a simplest form of an account,used to help illustrate the effect of transaction.Account nameDebit(left side)Credit(right side)Rules of debits&creditsThe type of account determines the side in which increases and decreases are recorded.Increases and Decreases in the AccountsRules of

11、Debit andCredit:Debit+DebitDebitCreditCredit+Credit+DebitsCreditsRevenue accountsDecrease(-)Increase(+)Expense accountsIncrease(+)Decrease(-)Income Statement AccountsnRecording PhaseStep 1AnalyzingbusinessdocumentsStep 3Posting toledgeraccountsStep 2JournalizingtransactionsSpecial journalGeneral jou

12、rnalGeneral ledger(Control account)Subsidiary ledgerWhat is a journal?vIt is a record of each business transaction in a chronological order krnldk()l，依时间前后排列而记载的，依时间前后排列而记载的.vSteps of journalizing:Identify transaction from source documents.Specify accounts affected.Apply debit/credit rules.Record tr

13、ansaction with description.Verify that total debits equal total creditsGeneral journal-to record all kinds of transactionsSpecial journal-to record a certain kind of transactionsvLedgers are created on the basis of the item of financial statements.vGeneral ledger accounts总分类帐帐户总分类帐帐户 It contains all

14、 of the balance sheet and income statement accounts.vSubsidiary ledger accounts明细分类帐明细分类帐 A record created to record the individual items relating to a single general ledger account.vWhat is posting?Posting is the process that debits and credits are transferred from the journal to the ledger account

15、s.vIn 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.JOURNALDateDescriptionDebitCreditPage 21 2 3

16、4Dec.312005Prepaid Insurance2 400 00Cash2 400 00Paid premium on two-yearpolicy.（primm，保，保险费）险费）Post.Ref.JOURNALDateDescriptionDebitCreditPage 21 2 3 4Dec.12005Prepaid Insurance2 400 00Cash2 400 00ACCOUNTPrepaid InsuranceACCOUNT NO.15BalanceDebitCreditDateDebit CreditItemPost.Ref.2 400 002 400 00Dec.

17、12005Paid premium on two-yearpolicy.Post.Ref.JOURNALDateDescriptionDebitCreditPage 21 2 3 4Dec.12005Prepaid Insurance2 400 00Cash2 400 00ACCOUNTPrepaid InsuranceACCOUNT NO.15BalanceDebitCreditDateDebit CreditItemPost.Ref.2 400 002 400 00Dec.12005215Paid premium on two-yearpolicy.Post.Ref.JOURNALDate

18、DescriptionDebitCreditPage 21 2 3 4Dec.12005Prepaid Insurance2 400 00Cash2 400 00Paid premium on two-yearpolicy.15ACCOUNTCashACCOUNT NO.11BalanceDebitCreditDateDebit CreditItemPost.Ref.2 000 005 900 00Nov.3020052Dec.12 400 003 500 00Post.Ref.JOURNALDateDescriptionDebitCreditPage 21 2 3 4Dec.12005Pre

19、paid Insurance2 400 00Cash2 400 00Paid premium on two-yearpolicy.15ACCOUNTCashACCOUNT NO.11BalanceDebitCreditDateDebit CreditItemPost.Ref.2 000 005 900 00Nov.30200522 400 003 500 00Dec.1112 Accrued（krud，应计的），应计的）Revenues or Accrued Assets Accrued Expenses or Accrued Liabilities Unearned Revenues or

20、Deferred Revenues Prepaid Expenses1.Apportioning Recorded Costs摊销已记录的成本摊销已记录的成本vAssume that a business paid$3600 on Jan1 for one years rent in advance.Prepaid Rent 3600 Cash 3600At the end of Jan31,$300 had expired or been used up during the period.Rent Expense 300 Prepaid Rent 3002.Apportioning Rec

21、orded Revenue摊销已记录的收入摊销已记录的收入 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

22、to the subscribers.Unearned Subscription Revenue 800 Subscription Revenue 8003.Accruing Unrecorded Expenses 应计未记录的费用应计未记录的费用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

23、*9%/12)Interest Expense 750 Accrued Interest Payable 7504.Accruing Unrecorded Revenue 应计未记录的收入应计未记录的收入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 vWhat

24、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.vFormat

25、of a trial balanceNetSolutionsTrial BalanceDecember 31,2005Cash2 065 00Accounts Receivable2 220 00Supplies2 000 00Prepaid Insurance2 400 00Land20 000 00Office Equipment1 800 00Accounts Payable900 00Unearned Rent360 00Chris Clark,Capital25 000 00Chris Clark,Drawing4 000 00Fees Earned16 340 00Wages Ex

26、pense4 275 00Rent Expense1 600 00Utilities Expense985 00Supplies Expense800 00Miscellaneous Expense455 0042 600 0042 600 00NetSolutionsTrial BalanceDecember 31,2005Chris Clark,Drawing4 000 00Fees Earned16 340 00Wages Expense4 275 00Rent Expense1 600 00Utilities Expense985 00Supplies Expense800 00Mis

27、cellaneous Expense455 0042 600 0042 600 00NetSolutionsTrial BalanceDecember 31,2005Cash2 065 00Accounts Receivable2 220 00Supplies2 000 00Prepaid Insurance2 400 00Land20 000 00Office Equipment1 800 00Accounts Payable900 00Unearned Rent360 00Chris Clark,Capital25 000 00Fees Earned16 340 00Wages Expen

28、se4 275 00Rent Expense1 600 00Utilities Expense985 00Supplies Expense800 00Miscellaneous Expense455 0042 600 0042 600 00NetSolutionsTrial BalanceDecember 31,2005Cash2 065 00Accounts Receivable2 220 00Supplies2 000 00Prepaid Insurance2 400 00Land20 000 00Office Equipment1 800 00Accounts Payable900 00

29、Unearned Rent360 00Chris Clark,Capital25 000 00Chris Clark,Drawing4 000 0042 600 0042 600 001.Failure to record a transaction or to post a transaction.2.Recording the same erroneous rns adj.错误的；不正确的错误的；不正确的 amount for both the debit and the credit parts of a transaction.3.Recording the same transact

30、ion 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.vWork sheet includes unadjusted trial balance,adjusting entries,adjusted trial balance,and income statement and balance sheet(with a Dr.column and a Cr.column ea

31、ch).4-48表：十四栏式工作底稿表：十四栏式工作底稿vClassification of accounts Balance sheet accounts-Permanent(real)accounts Income statement accounts-Temporary (nominal)accounts vClose sth to sth=Transfer sth to sth 转移，转账转移，转账vThe aim of making closing entriesIncome StatementStatement of Cash FlowsStatement of Owners Eq

32、uityBeginning Balance SheetEnding Balance SheetPeriod of TimePoint inTimePoint inTimeIncome StatementRevenues:Consulting revenue5,800$Rental revenue300 Total revenues6,100$Expenses:Rent expense1,000 Salaries expense1,400 Utilities expense230 Total expenses2,630 Net income3,470$For the Month Ended De

33、cember 31,2007FASTFORWARDIncome StatementStatement of Owners EquityC.Taylor,Capital 12/1/07-$Net income for December3,470 Plus:Investments by Owner30,000 33,470 Less:Owner Withdrawals200 C.Taylor,Capital,12/31/0733,270$Statement of Owners Equity For the Month Ended December 31,2007 FASTFORWARDBalanc

34、e SheetCase for Discussionv 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）（设计，发明）.Luca Pacioli first described it in 1494,and the basic system is so

35、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.v Why use debits and credits rather than pluses andminuses?The End