会计学专业英语课件

AccountingEnglish

YangYaxi1WhydoyoutakethecourseofAccountingEnglish?WhatarethelearningobjectivesofAccountingEnglish?IsAccountingEnglishdifficult?2SuggestionsforstudyPreviewingthetextisveryimportant.《AnEnglish–ChineseDictionaryofAccounting》，《英汉双解财会词典》，外语教学与研究出版社，[英]P.H.Collin,AdrianJoliffe编，张炜等译，2002年9月第1版3CHAPTER1ACCOUNTING:THEBASISFORDECISIONS4LearningObjectivesExplainthedefinitionofaccounting;Understandthebasicfunctionofaccounting;Ascertaintheusersofaccountinginformationandknowwhytheyneedtheinformation;Understandthetypesofaccountinginformation;Haveageneralideaoftheprofessionalfieldsofaccountingandtheirduties.Learntheaccountingtermsinthischapterandusetheminthetranslationtask.5Accounting会计（学）Accountant会计师BeanCounter数豆子的人Differentexpressionsabout“企业”inEnglishBusinessEnterpriseFirm

CompanyCorporation6DefinitionofAccountingAccountingisaninformationsystemdesignedtorecord,classifyandsummarizesystematicallysignificantfinancialandothereconomicinformationaboutbusinessfirms,andanalysesandinterpretsitsresults,withmonetaryunitasitsmaincriterion.

7Accounting:InformationforDecisionMakingTheprimaryobjectiveofaccountingtoprovideinformationthatisusefulformakingdecisions.8UsersofAccountingInformation9ExternalusersInternal

usersUsersofAccountingInformation10InternalusersofaccountinginformationQuestion:Howtodefineinternalusersofaccountinginformation?Whoareinternalusersofaccountinginformation?Whichdecisionsmadebythemanagement？11InternalusersofaccountinginformationOwe欠债Owetosb.欠某人的债Meet=payoff偿还Mature=beduev.到期Maturityn.到期Inventory=stock存货Expense费用Revenue收入Earnings=profits利润Plant工厂，植物，机器设备12InternalusersofaccountinginformationQuestion:Whichdecisionsaretobemadebyinternalusersexceptformanagement?13ExternalusersofaccountinginformationQuestion:Howtodefineexternalusersofaccountinginformation?Whoareexternalusersofaccountinginformation?Couldtheaccountantprovideaccountinginformationtomeettheneedsofdiverseusers?Whoarethetwoprimaryexternalusersofaccountinginformation?14Externalusersofaccountinginformation课后自学P7第1段Question:Whichdecisionsaretobemadebyexternalusers?15ObjectiveofExternalFinancialReportingWhatistheobjectiveofexternalfinancialreporting?Operationperformance经营成果Financialposition财务状况Cashflow现金流Returnofinvestment投资回收Returnoninvestment投资回报课后自学P8第2和第4段练习：P13Exercises116TypesofaccountinginformationFinancialAccountingManagementAccountingTaxAccounting17FinancialAccountingFinancialaccountinginformationdescribesthefinancialposition(财务状况),resultofoperation(经营成果),andcashflow(现金流)ofaneconomicentity.Question:Whousethefinancialaccountinginformation?Incometaxreturns纳税申报Prepareincometaxreturns编制纳税申报General-purposeaccountinginformation通用会计信息18ManagementAccountingQuestion:What’sthepurposeofmanagementaccounting?课后自学P5第5段19TaxAccountingQuestion:Whatfunctionsdoestaxaccountingencompass?Confirmto/with与…相一致Minimizethetaxburden使税负最小化20ProfessionFields

ofAccountingprivateaccountingpublicaccounting

accountingforgovernments

andnonprofitorganizations21PublicAccountingCPA(CertifiedPublicAccountants)CPAfirm普华永道(PriceWaterhouseCoopers，PwC)安永(Ernst&Young，E&Y)毕马威(KPMG)德勤(DeloitteToucheTohmatsu，DTT)安达信(ArthurAndersen)(已倒闭)Enron

22ACCA(AssociationofCharteredCertificatedAccountants)AICPA(AmericanInstituteofCPA)

CICPA(ChineseInstituteofCPA)practicingmembersnon-practicingmembersAuditing审计，审计学AuditInternal/externalauditingAuditor23TheprimaryservicesofferedbyCPAAuditingIncometaxservicesManagementadvisory(consultancyorconsulting)services24PrivateAccountingManagementaccountants管理会计师TheInstituteofManagementAccountants（美国管理会计师协会

，简称IMA）CertifiedManagementAccountant(美国注册管理会计师，简称CMA)Controller总会计师，会计主管Treasurer财务主管CFOWhataretheresponsibilitiesofaccountantsattheprivatebusiness?25TheresponsibilitiesofaccountantsattheprivatebusinessRecordingtransactionsandpreparingfinancialstatementsDesignofaccountingsystemCostaccountingInternalcontrolandauditing26AccountingforGovernmentsandNonprofitOrganizations27AccountingEthicAccountantshaveasignificantresponsibilitytothepublic.Why?Ethicsarebeliefsthatdistinguishrightfromwrong.Theyareacceptedstandardsofgoodandbadbehavior.Manyprofessionalorganizationhavecodesofethicsorprofessionalconductthatdirecttheactivitiesoftheirmembers.AICPA’sCodeofProfessionalConductChineseCertifiedPublicAccountantsCodeofProfessionalEthics28Questions

1.Whatisaccounting?2.Whatarethethreetypesofaccountinginformation?3.What’sthedifferencebetweenaccountingandbookkeeping?4.Howdoaccountantsperformtheirwork?29Questions5.Definetheinternalandexternalusersofaccountinginformation.6.Identifyatleastfivetypesofmanagerswhoareinternalusersofaccountinginformation.7.Explainhowdoeseachgroupofinformationusersapplyaccountinginformation.30Questions8.Whatarethethreebroadareasinthefieldsofaccounting?9.Whataretheirdifference?10.Whyareprofessionalethicscrucialinaccounting?11.Whatarethethreeformsofbusinessorganizations?31CHAPTER2THEORETICALFRAMEWORKUNDERLIYINGFINANCIALACCOUNTING32LearningObjectivesKnowtheconceptualframeworkforfinancialreportingKnowthequalitativecharacteristicsofaccountinginformationDescribetheelementsoffinancialstatementsUnderstandthebasicassumptionsandthebasicprinciplesofaccounting

Learntheaccountingtermsinthischapterandusetheminthetranslationtask.33AccountingtheoryWhatdoesaccountingtheoryconsistof?Wheredotheycomefrom?34NatureofaTheoreticalFramework

(ConceptualFramework)35DefinitionofaConceptualFrameworkTheconceptualframeworkisacoherentsystemofinterrelatedobjectivesandfundamentalsthatisexpectedtoleadtoconsistentstandardsandthatprescribesthenature,function,andlimitsoffinancialaccountingandreporting.（SFACNO.2）36EnhancetheunderstandabilityandcomparabilityoffinancialreportingSolvethenewandemergingpracticalproblemsContributetothedevelopmentandapplicationofaccountingstandards

RolesofaConceptualFramework37美国财务会计准则委员会(FASB)发布的系列概念公告是迄今为止最完整、最系统的概念框架研究成果。38

FinancialAccountingStandardsBoard(FASB，美国财务会计准则委员会)—Aprivate,not-for-profitorganization.TheFASBfollowsdueprocess（充分程序）rulesandseekspublicinputatvariouspointsinGAAPdevelopmentthrough“ExposureDrafts”（征求意见稿

）.

SecuritiesandExchangeCommission(SEC，美国证券交易委员会)–ThefederalagencythathasauthoritytodetermineGAAPforpubliccompanieswhosestockistradedonStockExchange.Inessence,theSEChasacquiesced（默许）itsroletotoestablishGAAPtotheFASB.

39CurrentStandardSetting–FASB

Establishedin1973.SupportedbytheFinancialAccountingFoundation（财务会计基金

）.Sevenfull-time,independentvotingmembersservingfor10years.MembersnotrequiredtobeCPAs.40Statementoffinancialaccountingconcepts,SFAC,财务会计概念公告Statementoffinancialaccountingstandards,SFASs,财务会计准则公告InterpretationoftheSFASs,财务会计准则解释41美国财务会计概念公告一览表SFACNo.1ObjectivesofFinancialReportingbyBusinessEnterpriseSFACNo.2QualitativeCharacteristicsofAccountingInformationSFACNo.3ElementsofFinancialStatementsofBusinessEnterprise（被SFACNo.6取代）SFACNo.4ObjectivesofFinancialReportingbyNonbusinessOrganizationSFACNo.5

RecognitionandMeasurementinFinancialStatementofBusinessEnterpriseSFACNo.6ElementsofFinancialStatements（取代SFACNo.3和部分修订SFACNo.62）SFACNo.7UsingCashFlowInformationandPresentValueinAccountingMeasurements（对SFACNo.5第67段进行修订）4243Itisexpectedtoservethepublicinterestbyprovidingstructureanddirectiontofinancialaccountingandreportingtofacilitatetheprovisionofevenhandedfinancialandrelatedinformationthatisusefulinassistingcapitalandothermarketstofunctionefficientlyinallocatingscarceresourcesintheeconomy.44InternationalAccountingStandardsBoard(IASB,国际会计准则理事会

)

FormerisInternationalAccountingStandardsCommittee(IASC,国际会计准则委员会)，

establishedin1973tonarrowtherangeofdifferencesinaccountingstandards.IAS(InternationalAccountingStandards)ReorganizedintoIASBin2001.IFRS

(InternationalFinancialReportingStandards)45ThenewIASCstructure

IFRSFoundation(IFRS基金会)

IASBIFRICInternationalFinancialReportingInterpretationsCommittee（国际财务报告解释委员会）46FrameworkforthePreparationandPresentationofFinancialStatementsItwasapprovedbytheIASCinApril1989forpublicationinJuly1989,andadoptedbytheIASBinApril2001.47ObjectivesoffinancialreportingBuildingblocksfortheconceptualframeworkQualitativecharacteristicsofaccountinginformationandelementsoffinancialstatementsabridgebetweenthefirstlevelandthesecondlevelRecognitionandMeasurementConceptsRecognition确认Measurement计量Accountingassumptions会计假设Accountingprinciples会计原则Constraints制约因素Structureofconceptualframework48FirstLevel:BasicObjectives49SecondLevel:FundamentalConcepts50SecondLevel:FundamentalConceptsQualitativeCharacteristicsofAccountingInformationFigure2-2inP16Hierarchy等级制度Pervasive普遍的Threshold门槛、起点、开端Criterion评判的标准、尺度51RelevanceTobeuseful,informationmustberelevanttothedecision-makingneedsofusers.Informationhasthequalityofrelevancewhenitinfluencestheeconomicdecisionsofusersbyhelpingthemevaluatepast,presentorfutureeventsorconfirming,orcorrecting,theirpastevaluations.52ElementsofFinancialStatements(SFACNo.6)AssetsAssets这个词表示资产时一定要用复数形式，即词尾要有“s”。如果不用复数形式，就成为“宝物，天赋、技能”的意思。

LiabilitiesEquityRevenueExpensesGainsLosses53ElementsofFinancialStatements(FrameworkforthePreparationandPresentationofFinancialStatements,IASB)AssetsLiabilitiesEquityIncomeExpenses54我国的企业会计准则——基本准则对会计要素的规定AssetsLiabilitiesOwner’sequityRevenuesExpensesProfit55ThirdLevel:RecognitionandMeasurementConceptsBasicassumptionsBasicprinciplesConstraints56Basicassumptions57Eacheconomicorganizationisanaccountingentityandmustbekeptseparateanddistinctfromitsowners,creditors,andotherentities.AccountingEntityAssumption

58Thebusinesswillremaininoperationintheforeseeablefuture.

GoingConcernAssumption59Alltransactionsshouldbemeasuredinmoneyform.Itimpliesthestable-money-unitassumption.Itmakestheinformationreliable&comparable.

MoneyUnitAssumption60Thelifeofbusinessshouldbedividedintoshortonesofequallength.Itmakesiteasiertomakefinancialstatementsandsatisfiestheaccountinginformationusersneedofknowingthecurrentconditionsofthebusiness.

PeriodicityAssumption61Questions:1.

()arethepreconditionsofidentifying,measuring,recordingandreportingeconomictransactions.2.()assumptionimpliesthelifeofbusinessshouldbedividedintoshortones.3.()assumesthebusinesswillcontinueforaquitelongtime.624.()limitstheeconomicdataintheaccountingsystemtodatarelateddirectlytotheactivitiesofthebusiness.5.()requiresthatmoneybeusedasthebasicmeasuringunit.Infact,italsoimpliesthe()assumption.63Accrual–basisprincipleimpliesthatrevenueandexpensesarerecordedwhentheyoccursbutnotwhencashisreceivedorpaid.Accrual–basis

Principle64Allgoodsandservicespurchasedbyanenterprisearerecordedatacquisitioncostandappearonfinancialstatementatcost.HistoricalCostPrinciple65Historicalcost历史成本Replacementcost重置成本Netrealizablevalue可变现净值Currentvalue现值Fairvalue公允价值Accountingmeasurementbasesmainlycomprise:66RealizationprincipleUndertherealizationprinciple,revenuesshouldberecognizedatthetimegoodsaresoldorservicesarerendered.67MatchingprincipleUnderthematchingprinciple,revenueforaperiodismatchedwiththeexpensesincurredingeneratingtherevenue.68FulldisclosureprincipleFinancialstatementsandtheiraccompanyingnotesshouldcontainallrelevantinformationareaderneedstounderstandthefinancialconditionandperformanceofabusiness.

69Cost–benefitrelationshipMaterialityConservatismConstraints70Cost–benefitrelationshipAccountantsshouldweighthebenefitderivedfromtheinformationagainstthecostofprovidingthatinformation.

Thebenefitsshouldexceedthecosts.71MaterialityTheword“materiality”referstotherelativeimportanceofanitem.Accountantsshouldconsidertherelativeimportanceofanytransactions.72ConservatismAccountantsshouldbeconservativeinchoosingtheonethathastheleastfavorableimpactonnetincomewhentherearetwoormorealternativeaccountingmethods.

73Questions:1.()impliesaccountantsshouldbeconservativeinchoosingtheonethathastheleastfavorableimpactonnetincomewhentherearetwoormorealternativeaccountingmethods.2.Under(),revenuesshouldberecognizedatthetimegoodsaresoldorservicesarerendered.

743.Under(),whenthebusinessprovidesaservice,makesasale,orincursanexpense,theaccountantmustenteritintothejournal,whetherornotcashhasbeenreceivedorpaid.

4.()requiresfinancialstatementshouldofferadequateinformation.75Case

ChinaSecurityRegulatoryCommission(CSRC)requiresthelistedcompaniesdisclosetheirannualreportswithin4monthsaftertheenddateofeachaccountingperiod.Astudentmajorinaccounting,argued,“Nowadays,timelinessisavitalcharacteristicofinformation.Informationprovided4monthslaterisuselessbecausethesituationhavechangedgreatly.”Doyouagreeornot?Why?76TheAccountingRegulationSysteminChinaAccountingLawNPCMinistryofFinanceAccountingStandardsforBusinessEnterpriseSpecificStandardsBasicStandardEnterpriseAccountingSystemApplyingGuideofAccountingStandards77BasicStandardConceptsFrameworkofFinancialAccounting(CF)Function:Conductformulatingspecificstandards78我国的企业会计基本准则Generalprovisions总则Qualitativerequirementsofaccountinginformation会计信息质量要求Assets资产Liabilities负债Owner’sequity所有者权益Revenues收入Expenses费用Profit利润Accountingmeasurement会计计量Financialreports财务会计报告Supplementaryprovision附则79SpecificStandardsGenerallyAccepted

AccountingPrinciples(GAAP)Function:Guidelinestogoverntheconductofaccountants80

SecuritiesandExchangeCommission(SEC，美国证券交易委员会)–ThefederalagencythathasauthoritytodetermineGAAPforpubliccompanieswhosestockistradedonStockExchange.Inessence,theSEChasacquiesced（默许）itsroletotoestablishGAAPtotheFASB. FinancialAccountingStandardsBoard(FASB，美国财务会计准则委员会)—Aprivate,not-for-profitorganization.TheFASBfollowsdueprocess（充分程序）rulesandseekspublicinputatvariouspointsinGAAPdevelopmentthrough“ExposureDrafts”.81EarlyStandardSettingEvolutionofStandard-SettingProcess1938-1959:CommitteeonAccountingProcedures(CAP)会计程序委员会1959-1973:AccountingPrinciplesBoard(APB)会计原则委员会AccountingResearchBulletinsandOpinions《会计研究公告与意见》82CurrentStandardSetting–FASB

Establishedin1973.SupportedbytheFinancialAccountingFoundation（财务会计基金

）.Sevenfull-time,independentvotingmembersservingfor10years.MembersnotrequiredtobeCPAs.83Statementoffinancialaccountingconcepts,SFAC,财务会计概念公告Statementoffinancialaccountingstandards,SFASs,财务会计准则公告InterpretationoftheSFASs,财务会计准则解释84FASB’sStandard-SettingProcess

Identificationofproblem.Thetaskforce(专题研究组

).Researchandanalysis.Discussionmemorandum(讨论备忘录

).Publicresponse.Exposuredraft(征求意见稿

).Publicresponse.Statementissued.85InternationalAccountingStandardsBoard(IASB,国际会计准则理事会

)

FormerisInternationalAccountingStandardsCommittee(IASC,国际会计准则委员会)，

establishedin1973tonarrowtherangeofdifferencesinaccountingstandards.IAS(InternationalAccountingStandards)ReorganizedintoIASBin2001.IFRS

(InternationalFinancialReportingStandards)86ThenewIASCstructure

IFRSFoundation(IFRS基金会)

IASBIFRIC（国际财务报告解释委员会）87Questions

1.Theaccountingelementsinclude(),(),(),(),()and().2.Netincomeisthe()ofrevenueoverexpensesfortheaccountingperiod.3.Whatexamplescanyoutellotherstudentstohelpthemunderstandwhatanaccountingentityis?88Game:haveaguessEachstudentshouldgiveanexampleofthequalitativecharacteristicsofaccountinginformation,basicassumptions,thebasicprinciplesorconstrainsofaccountingbutdon’tsaytheanswer.Thentherestoftheclasscanguess.89CHAPTER3ACCOUNTINGCYCLE90LearningObjectivesUnderstandthedefinitionofaccountingcycle;Haveageneralideaofthecompleteaccountingprocess;Understandtherulesofdouble-entryaccounting;Learntheaccountingtermsinthischapterandusetheminthetranslationtask.91DefinitionofaccountingcycleThesequenceofaccountingproceduresusedtorecord,classify,andsummarizeaccountinginformationinfinancialreportsatregularintervalsandtheproceduresmustberepeatedinthesameorderduringeachaccountingperiod.92Keywords,phrasesandspecialtermsEntry分录MakeanoraccountingentryClosingentry结账分录Contraentry抵销分录Adjustingentry调整分录Entryprice入账价格Entrydocument记账凭证93Keywords,phrasesandspecialtermsJournalize登记日记账Journal日记账，序时账Journalentry日记账分录Cashjournal现金日记账Post过账Ledgeraccounts分类账Account账户Anaccountisarecordbasedontheitemsofaccountingelements,representinganincreaseoradecreaseandtheresultofthoseitems.Trialbalance试算平衡表94Stepsof

Theaccountingcycle1.AnalyzeTransactions2.Journalize3.Post6.PrepareFinancialStatements5.Close4.AdjustSourceDocumentsJournalEntryLedgeraccountsTrialBalanceIncomestatement

AccountsBalanceSheetIncomeStatementetc95Understandhowdouble-entryaccountingworks96Themechanicsofdouble-entryaccountingaresuchthateverytransactionisrecordedinthedebitsideofoneormoreaccountsandinthecreditsideofoneormoreaccountswithequaldebitsandcredits.double-entrybookkeeping(orsystem)Single-entryaccountingmeansthateverytransactionisrecordedbyonlyoneentry.Itdoesnotincludethecompleteresultsofeachtransaction.single-entrybookkeeping(orsystem)TheDouble-EntryAccounting97Debit（Dr.）n.借,借方,借记Debitcard借记卡Debitbalance借方余额v.计入借方,借计Debitanaccount计入借方账Credit（Cr.）n.贷,贷方,贷记Creditcard贷记卡Credit贷方余额v.计入贷方,贷计Creditanaccount计入贷方账98HistoryofDouble-entryAccountingThedouble-entrysystemhasbeenusedincommerceforover500years.AlthoughLucaPacioli,afifteenth-centurymonk,isoftengivencreditforhavingdevelopedthesysteminhis1494book,SummadeArithmetica,Geometria,ProportionietProportionalita,heactuallyonlydescribedanaccountingpracticethatwasalreadybeingusedincommerceinItaly.Pacioli’struecontributiontomodernaccountingliesinthefactthathisbookwaswidelyreadthroughouttheItaliantradingempire,andsotheaccountingmethodhewroteaboutwasintroducedtomanywithinarelativelyshortperiodoftime.Double-entryaccountingseemstobeapracticethatsimplyevolvedovertimeasthebestwayofkeepingtrackoffinancialactivity.Ithasretainedthisstatusthroughmajorchangesineconomicactivityandtechnology.99Double-EntryAccounting“Double-entryaccountingisbasedonasimpleconcept:eachpartyinabusinesstransactionwillreceivesomethingandgivesomethinginreturn.Inbookkeepingterms,whatisreceivedisadebitandwhatisgivenisacredit.TheTaccountisarepresentationofascaleorbalance.”LucaPacioliDeveloperofDouble-EntryAccountingScaleorBalanceReceiveDEBITGiveCREDITTaccountLeftSideReceiveDEBITRightSideGiveCREDIT100Accountingequation

Assets=Liabilities+Owner’sequityAssets-Liabilities=Owner’sequityNetassets=

Owner’sequity

101RulesofDouble-EntryAccounting1.Eachtransactionaffectsatleasttwoaccounts.Theseaccountscontainsatleastoneaccountdebitedandatleastoneaccountcredited.2.Totaldebitsmustequaltotalcredits.102T-accountT-account:asimplestformofanaccount,usedtohelpillustratetheeffectoftransaction.AccountnameDebit(leftside)Credit(rightside)103Rulesofdebits&creditsThetypeofaccountdeterminesthesideinwhichincreasesanddecreasesarerecorded.104Rulesofdebits&creditsActivity:Pleaseexplainhowtorecordincreasesanddecreasesindifferenttypeofaccounts.105IncreasesandDecreasesintheAccountsAccountingEquation:Assets=Liabilities+Owners’EquityRulesofDebitandCredit:Debit+Debit–Debit–Credit–Credit+Credit+106DebitsCreditsRevenueaccounts…… Decrease(-) Increase(+)Expenseaccounts…… Increase(+) Decrease(-)IncomeStatementAccounts107Recordtransactionsinthejournal108Whatisajournal?Itisarecordofeachbusinesstransactioninachronologicalorder.Stepsofjournalizing:Identifytransactionfromsourcedocuments.Specifyaccountsaffected.Applydebit/creditrules.Recordtransactionwithdescription.VerifythattotaldebitsequaltotalcreditsJournalformatP30:exhibit3-1109JournalclassificationGeneraljournaltorecordallkindsoftransactionsSpecialjournaltorecordacertainkindoftransactions110Postfromthejournaltotheledger111Whatisposting?Postingistheprocessthatdebitsandcreditsaretransferredfromthejournaltotheledgeraccounts.Intheprocess,eachamountinthedebitcolumnofthejournalispostedbyenteringitonthedebitsideofanledgeraccount,andeachamountinthecreditcolumnofthejournalispostedbyenteringitonthecreditsideofanledgeraccount.112Post.Ref.JOURNALDateDescriptionDebitCreditPage21234Dec. 312005PrepaidInsurance 240000Cash 240000Paidpremiumontwo-yearpolicy.Dec.1 NetSolutionspaidapremiumof$2,400foracomprehensiveinsurancepolicycoveringtwoyears.113Post.Ref.JOURNALDateDescriptionDebitCreditPage21234Dec. 12005PrepaidInsurance 240000Cash 240000ACCOUNTPrepaidInsuranceACCOUNTNO.15BalanceDebitCreditDateDebitCreditItemPost.Ref.240000240000Dec. 12005Paidpremiumontwo-yearpolicy.114Post.Ref.JOURNALDateDescriptionDebitCreditPage21234Dec. 12005PrepaidInsurance 240000Cash 240000ACCOUNTPrepaidInsuranceACCOUNTNO.15BalanceDebitCreditDateDebitCreditItemPost.Ref.240000240000Dec. 12005215Paidpremiumontwo-yearpolicy.115Post.Ref.JOURNALDateDescriptionDebitCreditPage21234Dec. 12005PrepaidInsurance 240000Cash 240000Paidpremiumontwo-yearpolicy.15ACCOUNTCashACCOUNTNO.11BalanceDebitCreditDateDebitCreditItemPost.Ref.200000590000Nov. 3020052Dec.1240000350000116Post.Ref.JOURNALDateDescriptionDebitCreditPage21234Dec. 12005PrepaidInsurance 240000Cash 240000Paidpremiumontwo-yearpolicy.15ACCOUNTCashACCOUNTNO.11BalanceDebitCreditDateDebitCreditItemPost.Ref.200000590000Nov. 3020052240000350000Dec.1112117ClassificationofLedgersLedgersarecreatedonthebasisoftheitemoffinancialstatements.GeneralledgeraccountsItcontainsallofthebalancesheetandincomestatementaccounts.SubsidiaryledgeraccountsArecordcreatedtorecordtheindividualitemsrelatingtoasinglegeneralledgeraccount.118Prepareatrialbalance119

TrialBalanceWhatisatrialbalance?Atwo-columnschedulelistingthenamesandbalancesofalltheaccountsintheorderinwhichtheyappearinthegeneralledger,thedebitbalancesarelistedintheleft-handcolumnandthecreditbalancesintheright-handcolumn.Thetotalofthetwocolumnshouldagree.Formatofatrialbalance120NetSolutionsTrialBalanceDecember31,2005Cash 206500 AccountsReceivable 222000Supplies 200000PrepaidInsurance 240000Land 2000000OfficeEquipment 180000AccountsPayable 90000UnearnedRent 36000ChrisClark,Capital 2500000ChrisClark,Drawing 400000FeesEarned 1634000WagesExpense 427500RentExpense 160000UtilitiesExpense 98500SuppliesExpense 80000MiscellaneousExpense 45500 4260000 4260000121NetSolutionsTrialBalanceDecember31,2005Cash 206500 AccountsReceivable 222000Supplies 200000PrepaidInsurance 240000Land 2000000OfficeEquipment 180000AccountsPayable 90000UnearnedRent 36000ChrisClark,Capital 2500000ChrisClark,Drawing 400000FeesEarned 1634000WagesExpense 427500RentExpense 160000UtilitiesExpense 98500SuppliesExpense 80000MiscellaneousExpense 45500 4260000 4260000BalanceSheetItems122NetSolutionsTrialBalanceDecember31,2005Cash 206500 AccountsReceivable 222000Supplies 200000PrepaidInsurance 240000Land 2000000OfficeEquipment 180000AccountsPayable 90000UnearnedRent 36000ChrisClark,Capital 2500000ChrisClark,Drawing 400000FeesEarned 1634000WagesExpense 427500RentExpense 160000UtilitiesExpense 98500SuppliesExpense 80000MiscellaneousExpense 45500 4260000 4260000StatementofOwner’sEquityItem123NetSolutionsTrialBalanceDecember31,2005Cash 206500 AccountsReceivable 222000Supplies 200000PrepaidInsurance 240000Land 2000000OfficeEquipment 180000AccountsPayable 90000UnearnedRent 36000ChrisClark,Capital 2500000ChrisClark,Drawing 400000FeesEarned 1634000Wages