会计英语课件ch2-accounting-cycle

Chapter2AccountingCycleUnit1AccountingEquationanddouble-entryAccountingUnit2BasicsofAccountingCycleUnit3JournalsUnit4LedgersUnit5AdjustingProceduresUnit6ClosingProcessUnit7TrialBalance2TheaccountingequationBusinesstransactionsalwaysaffectatleasttwoelementsintheaccountingequation.Theaccountingequationis:Assets=Liabilities+EquityAfteratransactionisrecorded,theaccountingequationmustbeinbalance.•(1)Recording(2)Reporting(BasicStepsofAccountingProcessing)•ExampleontextbookTheaccountingequationUsingofanaccountIncreasesarerecordedononesideoftheT-account,anddecreasesarerecordedontheotherside.Thebalanceisthedifferencebetweenthedebitandcreditentriesintheaccount.4LeftorDebitSideRightorCreditSideTitleofAccountT-accountanddebit&credit5Theentiregroupofaccountsiskepttogetherinanaccountingrecordcalledaledger.CashAccountsPayableJillJones,CapitalAccountsareindividualrecordsshowingincreasesanddecreases.……AccountsandLedger6Eachaccountisassignedauniquenumberinthecompany’schartofaccounts.Commonlyusedassetaccountsinclude:CashAccountsreceivableEquipmentBuildingsLand……AccountsandLedger7Commonlyusedliabilityaccountsinclude:AccountspayableNotespayableSalariesorWagespayableCommonlyusedequityaccountsinclude:Owner’scapitalOwner’swithdrawalsRevenuesExpenses……AccountsandLedger8A=L+OEASSETSDebitforIncreaseCreditforDecreaseEQUITIESDebitforDecreaseCreditforIncreaseLIABILITIESDebitforDecreaseCreditforIncreaseDebitsandcreditsaffectaccountsasfollows:DebitandCreditRules…9A=L+OEDebitbalancesCreditbalances=Inthedouble-entryaccountingsystem,everytransactionisrecordedbyequaldollaramountsofdebitsandcredits.DebitandCreditRules…10TheStepsofAccountingcycleThetermaccountingcyclereferstothestepsinpreparingfinancialstatements.Theaccountingcycleincludesstandardizedproceduresthatareperformedinsequenceduringeveryaccountingperiod.SourcedocumentsRecordinJournalFinancialStatementsTransactionAnalysisPosttoLedgerUnadjustedTrialBalanceRecord&PostAdjustingEntriesAdjustedTrialBalanceCloseTemporaryAccountsPost-ClosingTrialBalanceTheAccountingProcessingCycleAccountingEnglish@201112TheJournalInanactualaccountingsystem,transactionsareinitiallyrecordedinthejournal.GENERALJOURNALDateAccountTitlesandExplanationDebitCredit2001May1Cash8,000JillJones,Capital8,000Ownerinvestedcashinthebusiness.AccountingEnglish@201113PostingJournalEntriestotheLedgerAccountsGENERALJOURNALDateAccountTitlesandExplanationDebitCredit2001May1Cash8,000JillJones,Capital8,000Ownerinvestedcashinthebusiness.GeneralLedgerCashDateDebitCreditBalance2001May18,0008,000AccountingEnglish@201114PostingJournalEntriestotheLedgerAccountsGENERALJOURNALDateAccountTitlesandExplanationDebitCredit2001May1Cash8,000JillJones,Capital8,000Ownerinvestedcashinthebusiness.GeneralLedgerJillJones,CapitalDateDebitCreditBalance2001May18,0008,00015LedgerAccountsAfterPostingGeneralLedgerCashDateDebitCreditBalance2001May18,0008,00022,5005,500Thisledgerformatisreferredtoasarunningbalance(asopposedtosimpleTaccounts).AccountingEnglish@201116JJ'sLawnCareServiceUnadjustedTrialBalanceMay31,2001Cash3,925$Accountsreceivable75Tools&equipment2,650Truck15,000Notespayable13,000$Accountspayable150JillJones,capital8,000JillJones,drawing200Salesrevenue750Gasolineexpense50Total21,900$21,900$AllbalancesaretakenfromtheledgeraccountsonMay31.Provesequalityofdebitsandcredits.TrialbalanceAdjustingEntriesAttheendoftheperiod,sometransactionsoreventsremainunrecorded.Becauseofthis,severalaccountsintheledgerneedadjustmentsbeforetheirbalancesappearinthefinancialstatements.18AccrualandcashbasisaccountingAccrualaccountingrequiresadjustmentsforprepaid,unearned,andaccrueditems;therefore,itreportsrevenueswhenearnedandexpenseswhenincurred.Cashbasisaccountingdoesnotmakeadjustments;revenuesarerecordedwhencashisreceivedandexpensesarerecordedwhencashispaid.Thecashbasisofaccountingisnotgenerallyaccepted.19PrepaidExpensesAccruedExpensesUnearnedRevenueAccruedRevenueTypesofAdjustmentsAssetExpenseUnadjustedBalanceCreditAdjustmentDebitAdjustmentPrepaidExpensesToday,Iwillpayformyfirst6months’rent.PrepaidExpensesItemspaidforinadvanceofreceivingtheirbenefitsPrepaidExpensesOnDecember1,2004,ScottCompanypaid$12,000tocoverrentforDecember2004throughMay2005.Let’slookattheadjustingjournalentryneededonDecember31,2004.Page30DateDescriptionPost.Ref.DebitCreditGENERALJOURNALPage30DateDescriptionPost.Ref.DebitCreditDec.31RentExpense2,000PrepaidRent2,000GENERALJOURNAL$12,000÷6months=$2,000permonthPrepaidExpensesOnDecember1,2004,ScottCompanypaid$12,000tocoverrentforDecember2004throughMay2005.Let’slookattheadjustingjournalentryneededonDecember31,2004.Afterposting,theaccountslooklikethis:PrepaidRentRentExpense12/1$12,00012/31$2,00012/31$2,000PrepaidExpensesBal.$10,000Depreciationistheprocessofcomputingexpensebyallocatingthecostofplantandequipmentovertheirexpectedusefullives.Straight-LineDepreciationExpense=AssetCost-SalvageValueUsefulLifeDepreciationOnJanuary1,2004,Monroe,Inc.purchasedthefollowingoilpumpingequipment:Let’srecorddepreciationexpensefortheyearendedDecember