上海海事外国会计选读课件cha.ppt

Chapter 4,Completing the Accounting Cycle,1. Accounting Cycle Financial Statements Adjusting and Closing Entries Fiscal Year,Contents,Accounting Cycle 会计循环,The process that begins with analyzing and journalizing transactions and ends with summarizing and reporting these transactions is called the accounting cycle. The most important output of the accounting cycle is the financial statements,Seven Basic Steps of the Accounting Cycle,1. Transactions are analyzed and recorded in the journal. 2. Transactions are posted to the ledger. 3. A trial balance is prepared, adjustment data are assembled, and an optional work sheet is completed. 4. Financial statements are prepared. 5. Adjusting entries are journalized and posted. 6. Closing entries are journalized and posted. 7. A post-closing trial balance is prepared.,Classified Balance Sheet,Classified Balance Sheet: A balance sheet that groups the accounts into subcategories to help readers quickly gain a perspective on the companys financial position Assets: grouped into current assets and long-term assets Liabilities: grouped into current liabilities and long-term liabilities,Classification of Assets,Current Assets 流动资产:Cash plus assets that are expected to be converted to cash or sold or consumed during the next 12 months or within the normal operating cycle of longer than a year Monetary assets: Assets that have a fixed monetary exchange value and are not affected by a change in the price level. Cash Account receivable Note receivable Nonmonetary assets Inventory Prepaid expenses Long-term Assets/Long-lived Assets 长期资产: Resources that are held for an extended time Land, building, equipment, natural resources, and patents.,Classification of Liabilities,Current Liabilities 流动负债:Liabilities that fall due within the coming year or within the normal operation cycle if longer than a year Note payable Accounts payable Unearned rent revenue Wages payable Interest payable Income taxes payable Long-term Liabilities 长期负债: Obligations that fall due beyond one year from the balance sheet date Long-term debt,Formats of Balance Sheets,Account format（账户式） Asset at the left Report format(报告式） Asset on the top,Income Statement,Single-step income statement 单步式 It groups all revenues together and then lists and deducts all expenses together without drawing any intermediate subtotals Multiple-step income statement 多步式 It contains one or more subtotals that highlight significant relationships,Adjusting entries are recorded in the journal at the end of the accounting period.,Adjusting and Closing Entries,Close entries,Closing entries / Closing process 关账 Closing process is a process that final entries at the end of an accounting period to transfer the income and expenses items to the balance sheet accounts. The Income Summary 利润汇总账户 account is used only for the closing process. The Income Summary is debited for a companys revenues, and is credited for a companys expenses. The entries that transfer the balances of revenues and that of the expenses are called closing entries 结账分录 The revenue and expense account balances are “reset“ to zero and the net income (net loss) generated during the period increases (decreases) retained income.,Adjusting and Closing Entries,Real accounts 实账户 the accounts: asset, liability, reserve and capital - whose balances are not canceled out at the end of an accounting period, but are carried over to the next period. These accounts appear on the post-closing trial balance and the statement of condition (balance sheet). Also called permanent accounts. Temporary accounts / nominal accounts 虚账户 Accounts which are concerned with revenue and expenses, such as sales, purchases, etc,Adjusting and Closing Entries,Temporary accounts should be closed at the end of the period.,OWNERS CAPITAL,The Closing Process,Income Summary,OWNERS CAPITAL,Income Summary,The Income Summary account does not appear on the financial statements.,Adjusting and Closing Entries,Rent Revenue,Bal. 120,Income Summary,Note: The balances shown are adjusted balances before closing. The following sequence demonstrates the closing process.,The Closing Process,Rent Revenue,Bal. 120,Income Summary,Debit each revenue account for the amount of its balance, and credit Income Summary for the total revenue.,16,840,120,16,960,The Closing Process,Step 1,Income Summary,Debit Income Summary for the total expenses and credit each expense account for its balance.,16,960,9,775,The Closing Process,Step 2,Income Summary,Debit Income Summary for the amount of its balance (in this case, the net income) and credit the capital account.,16,960,9,775,7,205,7,205,The Closing Process,Step 3,Income Summary,Debit the capital account for the balance of the drawing account, and credit drawing for the same amount.,16,960,9,775,7,205,7,205,4,000,4,000,The Closing Process,Step 4,Income Summary,16,960,9,775,7,205,7,205,4,000,4,000,Close Revenues,Close Expenses,Close Income Summary,Close Drawing,9,775,7,205,7,205,4,000,4,000,Review of the Closing Process,Close Entries,Fees Earned 16840 Rent Revenue 120 Income Summary 16960 Income Summary 9755 Wages Expense 4525 Rent Expense 1600 Depreciation Expense 50 Utilities Expense 985 Supplies Expense 2040 Insurance Expense 100 Miscellaneous Expense 455 Income Summary 7205 Chris Clark, Capital 7025 Chris Clark, capital 4000 Chris Clark, Drawing 4000,After the closing entries are posted, all of the temporary accounts have zero balances.,Post-closing Trial Balance,NetSolutions Post-Closing Trial Balance December 31, 2005,Cash 2 065 00 Accounts Receivable 2 720 00 Supplies 760 00 Prepaid Insurance 2 300 00 Land 20 000 00 Office Equipment 1 800 00 Accumulated Depreciation 50 00 Accounts Payable 900 00 Wages Payable 250 00 Unearned Rent 240 00 Chris Clark, Capital 28 205 00 29 645 00 29 645 00,Manual Accounting Cycle,1. Transactions are analyzed and recorded in journal.,Documents,Journal,2. Transactions are posted from journal to ledger.,Journal,Ledger,3. Trial balance is prepared, adjustment data is organized, work sheet is completed.,4. Finan