会计英语分录

调整分录PriorPeriodsCurrentPeriodFuturePeriodsTransactionPaidcashinadvanceofincurringexpense(createsanasset).EndofCurrentPeriodAdjustingEntryRecognizesportionofassetconsumedasexpense,andReducesbalanceofassetaccount.ConvertingAssetstoExpensesExamplesInclude:DepreciationSuppliesExpiringInsurancePoliciesConvertingAssetstoExpensesJan.1Dec.31$2,400InsurancePolicyCoveragefor12Months$200MonthlyInsuranceExpenseOnJanuary1,WebbCo.purchasedaone-yearinsurancepolicyfor$2,400.ConvertingAssetstoExpensesGENERALJOURNALDateAccountTitlesandExplanationDebitCreditJan.1UnexpiredInsurance2,400Cash2,400Purchaseaone-yearinsurancepolicy.Initially,coststhatbenefitmorethanoneaccountingperiodarerecordedasassets.ConvertingAssetstoExpensesThecostsareexpensedastheyareusedtogeneraterevenue.GENERALJOURNALDateAccountTitlesandExplanationDebitCreditMonthlyAdjustingEntryforInsuranceJan.31InsuranceExpense200UnexpiredInsurance200InsuranceexpenseforJanuary.ConvertingAssetstoExpensesInsuranceExpense1/31200UnexpiredInsurance1/12,4001/31200Bal.2,200IncomeStatementCostofassetsusedthisperiodtogeneraterevenue.BalanceSheetCostofassetsthatbenefitfutureperiods.ConvertingAssetstoExpensesDepreciationisthesystematicallocationofthecostofadepreciableassettoexpense.Depreciableassetsarephysicalobjectsthatretaintheirsizeandshapebutlosetheireconomicusefulnessovertime.TheConceptofDepreciationTheportionofanasset’sutilitythatisusedupmustbeexpensedintheperiodused.Cash(credit)FixedAsset(debit)Ondatewheninitialpaymentismade...Theasset’susefulnessispartiallyconsumedduringtheperiod.Atendofperiod...DepreciationExpense(debit)AccumulatedDepreciation(credit)TheConceptofDepreciationOnMay2,2007,JJ’sLawnCareServicepurchasedalawnmowerwithausefullifeof50monthsfor$2,500cash.Usingthestraight-linemethod,calculatethemonthlydepreciationexpense.$2,50050=$50Depreciationexpense(perperiod)=CostoftheassetEstimatedusefullifeDepreciationIsOnlyanEstimateJJ’sLawnCareServicewouldmakethefollowingadjustingentry.GENERALJOURNALDateAccountTitlesandExplanationDebitCreditMay31DepreciationExpense:Equipment50AccumulatedDepreciation:Equipment50Torecordonemonth'sdepreciation.Contra-assetDepreciationIsOnlyanEstimateJJ’s$15,000truckisdepreciatedover60monthsasfollows:GENERALJOURNALDateAccountTitlesandExplanationDebitCreditMay31DepreciationExpense:Truck250AccumulatedDepreciation:Truck250Torecordonemonth'sdepreciation.$15,00060months=$250permonthDepreciationIsOnlyanEstimateJJ'sLawnCareServicePartialBalanceSheetMay31,2001AssetsLiabilities&Owner'sEquityCash3,925$Notespayable13,000$Accountsreceivable75Accountspayable150Equipment2,500$Totalliabilities13,150$Less:Accum.depr.502,450Truck15,000$Owner'sEquityLess:Accum.depr.25014,750JillJones,capital8,125Total21,275$Accumulateddepreciationwouldappearonthebalancesheetasfollows:LearningObjectiveLO4Toprepareadjustingentriestoconvertliabilitiestorevenue.PriorPeriodsCurrentPeriodFuturePeriodsTransactionCollectcashinadvanceofearningrevenue(createsaliability).EndofCurrentPeriodAdjustingEntryRecognizesportionearnedasrevenue,andReducesbalanceofliabilityaccount.ConvertingLiabilitiestoRevenueExamplesInclude:AirlineTicketSalesSportsTeams’SalesofSeasonTicketsConvertingLiabilitiestoRevenueJan.1Dec.31$6,000RentalContractCoveragefor12Months$500MonthlyRentalRevenueOnJanuary1,WebbCo.received$6,000inadvanceforaone-yearrentalcontract.ConvertingLiabilitiestoRevenueGENERALJOURNALDateAccountTitlesandExplanationDebitCreditJan.1Cash6,000UnearnedRentalRevenue6,000Collected$6,000inadvanceforrent.Initially,revenuesthatbenefitmorethanoneaccountingperiodarerecordedasliabilities.ConvertingLiabilitiestoRevenueOvertime,therevenueisrecognizedasitisearned.GENERALJOURNALDateAccountTitlesandExplanationDebitCreditMonthlyAdjustingEntryforRentRevenueJan.31UnearnedRentalRevenue500RentalRevenue500RentalrevenueforJanuary.ConvertingLiabilitiestoRevenueRentalRevenue1/31500UnearnedRentalRevenue1/315001/16,000Bal.5,500IncomeStatementRevenueearnedthisperiod.BalanceSheetLiabilityforfutureperiods.ConvertingLiabilitiestoRevenueLearningObjectiveLO5Toprepareadjustingentriestoaccrueunpaidexpenses.PriorPeriodsCurrentPeriodFuturePeriodsTransactionPaycashinsettlementofliability.EndofCurrentPeriodAdjustingEntryRecognizesexpenseincurred,andRecordsliabilityforfuturepayment.AccruingUnpaidExpensesExamplesInclude:InterestWagesandSalariesPropertyTaxesHey,whendowegetpaid?AccruingUnpaidExpensesMonday,May29Friday,June2$3,000WagesExpenseOnMay31,WebbCo.oweswagesof$3,000.PaydayisFriday,June2.Wednesday,May31AccruingUnpaidExpensesGENERALJOURNALDateAccountTitlesandExplanationDebitCreditMay31WagesExpense3,000WagesPayable3,000Toaccruewagesowedtoemployees.Initially,anexpenseandaliabilityarerecorded.AccruingUnpaidExpensesWagesExpense5/313,000WagesPayable5/313,000IncomeStatementCostincurredthisperiodtogeneraterevenue.BalanceSheetLiabilitytobepaidinafutureperiod.AccruingUnpaidExpensesMonday,May29Friday,June2$5,000WeeklyWagesLet’slookattheentryforJune2.Wednesday,May31$2,000WagesExpense$3,000WagesExpenseAccruingUnpaidExpensesTheliabilityisextin