会计学原理 英文版 第21版 第三章 Adjusting Accounts and Preparin

3-1PowerPointAuthors:SusanCoomerGalbreath,Ph.D.,CPACharlesW.Caldwell,D.B.A.,CMAJonA.Booker,Ph.D.,CPA,CIACynthiaJ.Rooney,Ph.D.,CPACopyright©2013byTheMcGraw-HillCompanies,Inc.Allrightsreserved.AdjustingAccountsandPreparingFinancialStatementsChapter33-2TheAccountingPeriodC13-3AccountingAccrualBasisversusCashBasisAccrualBasisRevenuesarerecognizedwhenearnedandexpensesarerecognizedwhenincurred.CashBasisRevenuesarerecognizedwhencashisreceivedandexpensesarerecordedwhencashispaid.C23-4CashBasisRevenuesarerecognizedwhencashisreceivedandexpensesarerecordedwhencashispaid.AccountingAccrualBasisversusCashBasisNon-GAAPC2AccrualBasisRevenuesarerecognizedwhenearnedandexpensesarerecognizedwhenincurred.3-5AccrualBasisversusCashBasisOnDecember1,2013,FastForwardpaid$2,400cashforatwenty-fourmonthbusinessinsurancepolicy.Usingthecashbasis,theentire$2,400wouldberecognizedasinsuranceexpensein2013.Noinsuranceexpensefromthispolicywouldberecognizedin2014or2015,periodscoveredbythepolicy.C23-6AccrualBasisversusCashBasisOntheaccrualbasis,$100ofinsuranceexpenseisrecognizedin2013,$1,200in2014,and$1,100in2015.Theexpenseismatchedwiththeperiodsbenefitedbytheinsurancecoverage.C23-7Wehavedeliveredtheproducttoourcustomer,soIthinkweshouldrecordtherevenueearned.RecognizingRevenuesandExpensesC2Therevenuerecognitionprinciplestatesthatwerecognizerevenuewhentheproductorserviceisdeliveredtoourcustomer.3-8RecognizingRevenuesandExpensesTheexpenserecognition(ormatching)principleaimstorecordexpensesinthesameaccountingperiodastherevenuesthatareearnedasaresultofthoseexpenses.Thismatchingofexpenseswiththerevenuebenefitsisamajorpartoftheadjustingprocess.SummaryofExpensesRentGasolineAdvertisingSalariesUtilitiesand....$1,0005002,0003,000450....Nowthatwehaverecognizedtherevenue,let’sseewhatexpensesweincurredtogeneratethatrevenue.C23-9Anadjustingentryisrecordedtobringanassetorliabilityaccountbalancetoitsproperamount.FrameworkforAdjustmentsC33-10Hereisthecheckformy24-monthinsurancepolicy.Prepaid(Deferred)ExpensesResourcespaidforpriortoreceivingtheactualbenefits.P13-11PrepaidInsurance(a)On12/1/13,FastForwardpaid$2,400forinsurancefor2-years(24-months,December2013throughNovember2015).FastForwardrecordedtheexpenditureasPrepaidInsuranceon12/1/13.Whatadjustmentisrequired?Dec.12,400Dec.31100Bal.2,300PrepaidInsurance637Dec.31100InsuranceExpense128P13-12Supplies(b)During2013,FastForwardpurchased$9,720ofsupplies.FastForwardrecordedtheexpendituresintheassetaccount,“Supplies.”OnDecember31,2013,acountofthesuppliesindicated$8,670onhand,so$1,050ofsupplieswereusedduringDecember.Whatadjustmentisrequired?Bought9,720Dec.311,050Bal.8,670Supplies126Dec.311,050SuppliesExpense652P13-13OtherPrepaidExpenses1.Otherprepaidexpenses,suchasPrepaidRent,areaccountedforexactlyasInsuranceandSupplies.2.Weshouldnotethatsomeprepaidexpensesarebothpaidforandfullyusedupwithinasingleperiod.3.Forexample,acompanymaypaymonthlyrentonthefirstdayofeachmonth.Thispaymentcreatesaprepaidexpenseonthefirstdayofthemonththatfullyexpiresbytheendofthemonth.4.Inthesespecialcases,wecanrecordthecashpaidwithadebittotheexpenseaccountinsteadofanassetaccount.P13-14Straight-LineDepreciationExpense=AssetCost-SalvageValueUsefulLifeDepreciationDepreciationistheprocessofallocatingthecostofaplantassetoveritsusefullifeinasystematicandrationalmanner.P13-15DepreciationOnDecember1,2013,FastForwardpurchasedequipmentfor$26,000cash.Theequipmenthasanestimatedusefullifeoffouryears(48months)andFastForwardexpectstoselltheequipmentattheendofitslifefor$8,000cash.(c)Let’srecorddepreciationexpenseforthemonthendedDecember31,2013.Dec.2013DepreciationExpense=$26,000-$8,00048months=$375permonthP13-16EquipmentDepreciationExpense12/126,00012/31375AccumulatedDepreciation12/31375DepreciationP1Contraassetaccount3-17FastForwardPartialBalanceSheetAtDecember31,2013AssetsCash.Equipment26,000$Less:accumulateddeprec.(375)25,625..TotalAssetsEquipmentisshownnetofaccumulateddepreciation.$DepreciationP13-18Unearned(Deferred)RevenuesWewillapplythiscashyougaveustowardsyourtotalconsultingfees.Cashreceivedinadvanceofprovidingproductsorservices.P13-19Unearned(Deferred)RevenuesOnDecember26,2013,FastForwardagreestoprovideconsultingservicestoaclientforafixedfeeof$3,000for60days.Onthisdate,theclientpaystheentireconsultingfeeinadvance.FastForwardmakesthefollowingentry:Dec.263,000UnearnedRevenueP13-20Unearned(Deferred)Revenues(d)OnDecember31,FastForwardearns5-daysofconsultingfees.Eachdaythatpassesresultsinconsultingfeesof$50($3,000÷60),soFastForwardearned($50×5days)$250.Dec31250Dec263,000Bal2,750UnearnedRevenueDec.31250ConsultingRevenueP13-21We’reaboutone-halfdonewiththisjobandwanttobepaidforourwork!Costsincurredinaperiodthatarebothunpaidandunrecorded.AccruedExpensesP13-22FastForward’semployeeearns$70perdayandispaideverytwoweeksonFriday.Year-end,12/31/13,fallsonaWednesday.Thelastpaydayof2013isFriday,12/26/13.From12/26untilyear-endisthreeworkingdays.Theemployeehasearned$210forMondaythroughWednesday.HewillnotbepaiduntilFriday1/9/14.AccruedSalariesExpensesP13-23Dec.12700Dec.26700De