会计专业英语课件：chap 3-2 Adjusting and Preparing Financial Statements

1、Chap 3 Adjusting and Preparing Financial StatementsContents3.1 The need for adjustments3.2 Adjusting the accounts3.3 Adjusted trial balance and preparation of financial statements3.4 The worksheetContents3.5 Closing entries3.6 Post-closing trial balance3.7 The accounting cycle summary3.8 Classificat

2、ion of balance sheet items3.9 Practices in China3.10 Using the accounting information the current ratioAdjusting: Deferrals and Accruals 递延项目与应计项目Deferred Revenue, Deferred ExpenseAccrued Revenue, Accrued ExpenseUnearned RevenuePrepaid Expense3.5 Closing entries3.6 Post-closing trial balance3.7 The

3、accounting cycle summaryResets revenue, expense and withdrawal account balances to zero at the end of the period.Helps summarize a periods revenues and expenses in the Income Summary account.Identify accounts for closing.Record and post closing entries. Prepare post-closing trial balance.Closing Pro

4、cessTemporary AccountsRevenuesIncome SummaryExpensesWithdrawalsPermanent AccountsAssetsLiabilitiesOwners CapitalThe closing process applies only to temporary accounts.Temporary临时 and Permanent永久 AccountsLets see how the closing process works!Recording Closing EntriesClose Revenue accounts to Income

5、Summary.Close Expense accounts to Income Summary.Close Income Summary account to Owners Capital.Close Withdrawals to Owners Capital.Balances before closing.Closing ProcessClose Revenue accounts to Income Summary.Closing ProcessDr. Revenue xxx Cr. Income Summary xxxClose Expense accounts to Income Su

6、mmary.Closing ProcessThe balance in Income Summary equals net income.Dr. Income Summary xxx Cr. Expense xxxClose Income Summary to Owners Capital.Closing ProcessDr. Income Summary xxx Cr. Owners capital xxxClosing ProcessClose Withdrawals account to Owners Capital. Dr. Owners capital xxx Cr. Withdra

7、wals xxx ExamplesUsing the adjusted trial balance, lets prepare the closing entries for FastForward.Close Revenue accounts to Income Summary. Close Revenue Accounts to Income SummaryClose Expense accounts to Income Summary.Net Income Close Expense Accounts to Income Summary Close Expense Accounts to

8、 Income Summary Close Income Summary to Owners Capital.Net Income Close Expense Accounts to Income Summary Close Expense Accounts to Income Summary Close Income Summary to Owners CapitalClose Withdrawals to Owners Capital. Close Withdrawals to Owners Capital3.6 Post-Closing Trial Balance3.7 The acco

9、unting cycle summaryGeneral Journals:分录账 Journal entries总分类账General Ledger:T- AccountTrial BalanceTransactionsEnd of period AdjustmentAdjusted Trial BalanceClosing the accountsPost-closing Trial BalanceF/S3.8 Classification of balance sheet itemsLets discuss the components of a classified balance sh

10、eet.Current items are those expected to come due (both collected and owed) within the longer of one year or the companys normal operating cycle.Classified Balance Sheet3.9 Practices in China3.10 Using the accounting information the current ratioCurrent Ratio =Current AssetsCurrent Liabilities流动比率Problem3-41, Dr. Consulting fees earned 136 000 Cr. Income summary 136 0002, Dr. Income summary 30 500 Cr. Rent e