财务会计概念与应用英文版Lectu课件

财务会计概念与应用英文版Lectu(2)本课件PPT仅供大家学习使用学习完请自行删除，谢谢！本课件PPT仅供大家学习使用学习完请自行删除，谢谢！本课件PPT仅供大家学习使用学习完请自行删除，谢谢！本课件PPT仅供大家学习使用学习完请自行删除，谢谢！PeriodicReportingFiscalYear12-monthaccountingperiod.CalendarYearWhenanentityclosesitsbooksonDecember31.BeginningofYearEndofYearAccrualAccountingWhatdowedowhentransactionsspanmorethanoneperiod?AccrualAccounting!Revenuesandexpensesarerecordedastheyareearnedandincurred,notnecessarilywhencashisreceivedorpaid.Bettermeasuresafirm’sperformancethandoescashflowdata.RevenueRecognitionRecognizerevenuewhen:Theearningprocessissubstantiallycomplete.Cashhaseitherbeencollectedorcollectionisreasonablyassured.1.2.TheMatchingPrincipleAllcostsandexpensesincurredingeneratingrevenuesmustberecognizedinthesamereportingperiodastherelatedrevenues.Ifrevenuesarerecognized.Relatedcostsandexpensesshouldberecognized.Example:Accrual-vs.Cash-BasisAccountingBondConsultingReportedIncomefor2021During2021,BondConsultingbilleditsclientfor$48,000.OnDecember31,2021,ithadreceived$41,000,withtheremaining$7,000tobereceivedin2021.Totalexpensesduring2021were$31,000with$3,000ofthesecostsnotyetpaidatDecember31.Determinenetincomeunderbothmethods.Accrual-BasisAccountingRevenuesearned $48,000Expensesincurred31,000Income $17,000Cash-BasisAccountingCashreceipts $41,000Cashdisbursement 28,000Income $13,000AdjustingEntriesEntriesrequiredattheendofeachaccountingperiodtoadjusttheaccountstotheirproperamounts.Unrecordedreceivables.Unrecordedliabilities.Prepaidexpenses.Unearnedrevenues.Eachadjustingentryinvolvesatleastoneincomestatementaccountandonebalancesheetaccount.PrecisionManagementearnsrentrevenueof$500in2021butwillnotreceivethepaymentuntilJanuary10,2021.Anadjustmentwillbeneeded.Whatistheadjustingentry?Example:UnrecordedReceivablesOriginalentry none noneCorrectbalances 500 500RentReceivableRentRevenue12/31/09RentReceivable 500 RentRevenue 500Originalentry none noneCorrectbalances 1,000 1,000ProtegeInc.isassessedpropertytaxesof$1,000for2021,butwillnotmakethispaymentuntilJanuary5,2021.Anadjustmentwillbeneeded.Whatistheadjustingentry?PropertyTaxExpensePropertyTaxPayableExample:UnrecordedLiabilities12/31/09PropertyTaxExpense1,000 PropertyTaxPayable1,000Example:PrepaidExpenses12/31/09RentExpense 1,800 PrepaidRent 1,800RentExpensePrepaidRentOriginalentry3,600 3,600 Adjustingentry 1,800 1,800Correctbalances1,800 1,800CashOnJuly1,2021,ApexInc.pays$3,600foroneyear’srentinadvance(coveringJuly1,2021,toJune30,2021).OnDecember31,2021,anadjustmentwillbeneeded.Whatistheadjustingentry?UnearnedRentRentRevenueOriginalentry 3,600 3,600Adjustingentry 1,800 1,800Correctbalances1,800 1,800

Example:UnearnedRevenues12/31/09UnearnedRent1,800 RentRevenue 1,800OnJuly1,2021,DahlHouseCo.received$3,600foroneyear’srentinadvance(coveringJuly1,2021,toJune30,2021).OnDecember31,2021,anadjustmentwillbeneeded.Whatistheadjustingentry?CashPreparingFinancialStatementsFourstepprocessusingthetrialbalance:Identifyallrevenueandexpenseaccountsandpreparetheincomestatement.Computenetincome.Computetheendingretainedearningsbalance.Prepareabalancesheetusingthebalancesheetaccountsandtheendingretainedearningsbalancecomputedfromstep3.TheNotesandtheAuditNotesListassumptionsandmethodsusedinpreparingthefinancialstatements.Givemoredetailaboutspecificitems.Augmentthesummarizednumericalinformation.TheAuditCheckfinancialstatementsforconformitywithGAAP.ReviewAdjustments,sampleselectedaccounts,andreviewaccountingsystems.Attachesauditreportanddistributesitwiththefinancialstatements.Realvs.NominalAccountsRealAccountsPermanentNotclosedatyearend.BalanceSheetaccountsBalancesarecarriedforwardtonextperiod.NominalAccountsTemporaryClosed(broughttoazerobalance)atyearend.IncomeStatementaccountsanddividendsBalanceareNOTcarriedforwardtonextperiod.TheClosingProcessTheClosingProcessRecordentriesthatreduceallnominalaccountstoazerobalanceattheendoftheaccountingperiod.Nominalaccountsareclosedtoretainedearnings.RevenuesBal.xxxxxxBeg.Bal.xxxRetained

Earnings

RevenuesExpensesBal.xxxExpensesxxxClosingEntriesStep1:Closeallrevenueaccountsbydebitingthem.Step2:Closeallexpenseaccountsbycreditingthem.Step3:Thedifferencebetweenrevenuesandexpenses(netincome)shouldbecreditedtoretainedearnings.Revenues.......................XXX CostofGoodsSold......... XXX OtherExpenses............ XXX RetainedEarnings.......... XXXDividendsNominalaccountbutNOTanexpense.Distributiontoshareholders.Closedbycreditingdividendsanddebitingretainedearnings(reducesretainedearnings).Whendividendsarefirstdeclared:

Dividends.......................XXX DividendsPayable.......... XXXWhendividendsarepaid:DividendsPayable................XXX Cash...................... XXXToclosedividendsatyearend:RetainedEarnings................XXX Dividends................. XXXPreparingaPost-Closing

TrialBalanceListofallrealaccounts.Acheckofwhethertotaldebitsequaltotalcreditsforallrealaccountspriortobeginningnewaccountingcycle.

RodmanIndustriesInc.