《Introduction to Accounting》课件-unit 章节章节6

Unit6Assets—CurrentAssetsⅠⅠ.DefinitionofCurrentAssetsⅡ.CurrentAssetsAccounts2AssetsDefinition:Assetsareeconomicresourcesthataremeasurableinmonetarytermsandownedorcontrolledbyanenterpriseforthepurposeofmakingprofits.Recognitioncondition:Anassetisrecognizedonthebalancesheetwhen①itisprobablethatthefutureeconomicbenefitswillflowtotheenterpriseand②theassethasacostorvaluethatcanbereliablymeasured.3Ⅰ.DefinitionofCurrentAssetsCurrentassetsareassetsthatareexpectedtobeconvertedtocash,soldorconsumedwithin12monthsorwithinthebusiness’snormaloperatingcycleiflongerthanayear.Currentassetsshouldincludecash,short-terminvestment,receivable,prepaymentandinventory.4Currentassetsonthebalancesheetrepresentacompany'sliquidity.Themorecashandshort-terminvestmentsonhand,thelowerafirm'sriskoffailurebecausemanagementcanusethemoneytocarryitselfthroughtoughperiods.

5Ⅱ.CurrentAssetsAccounts1.Assets101Cash102AccountsReceivable103NotesReceivable104OfficeSupplies105Equipment106Inventory107PrepaidInsurance108Land109AccumulatedDepreciation110IntangibleAssets61.CashContent

Cashincludescoins,papermoney,checks,moneyorders,andmoneyindeposit.PlaceOnbalancesheet,cashislistedfirstamongthecurrentassets,becauseitisthemostcurrentandliquidofallassets.AmountCashandcashequivalentsareaccountedforaccordingtotheactualamountofreceiptandpayment.7CashandCashEquivalentsCashandCashEquivalentsistheamountofmoneythecompanyhasinbankaccounts,savingsbonds,certificatesofdeposit,andmoneymarketfunds.Ittellsyouhowmuchmoneyisavailabletothebusinessimmediately.8Cashisavitalfactorintheoperationoabusiness,sincemanybusinesstransactioninvolvecash.Cashismostsubjecttotheftandfraud.So,strictcontrolovercashshouldbeappliedinabusiness.Therearesomecaseswherecashonthebalancesheetisn'tnecessarilyagoodthing.Themoral:

Youprobablywon'tbeabletotellifacompanyisweakbasedoncashalone;theamountofdebtisfarmoreimportant.9ExampleCingularcompanyconductedthefollowingtransactions:(1)Invested$500,000inthebusiness.(2)Purchasedsuppliesandequipmentfor$100,000.(3)PerformedserviceforstateCorporationandreceived$20,000amonthlater.10Solution(1)Dr.Cash500,000Cr.Paid-inCapital500,000(2)Dr.SuppliesandEquipment100,000Cr.Cash100,000(3)Dr.AccountsReceivable20,000Cr.ServiceRevenue20,000Dr.Cash20,000Cr.AccountsReceivable20,000112.Short-termInvestmentsWhenthereisidlefunds,thiscashwillbeinvestedinshort-termmarketablesecuritiessuchasbondsandstocksinordertoearninterest,dividendorcapitalgain.Thisisoutsidethenormalbusinessoperation.Short-terminvestmentsrefertoinvestmentinmarketablesecuritieswithcertainfacevalue,whichcanberealizedatanytimeandwillbeheldlessthanayear.12ContentBondsorstocksPlaceShort-termInvestmentsisplacedaftercashandbeforeNotesReceivableAmountItshallbeaccountedforathistoricalcostasobtainedandwillbeshownatbookvalueinaccountingstatement.13(1)AccountsUsedShort-terminvestment----BondsInterestReceivableInvestmentIncomeShort-terminvestment-------StocksDividendReceivableInvestmentIncomeBondsStocks14(2)CalculationShort-termMarketableSecurities

1)PurchasesofMarketableSecuritiesBondsStocksTheactualpaymentshouldberecordedatthecostofinvestmentincludingpurchaseprice,broker’sfee,handlingchargeetc.Dr.Short-termInvestment----Bonds100,000Cr.Cash100,000Dr.Short-termInvestment----Stocks100,000Cr.Cash100,000151)PurchasesofMarketableSecuritiesDr.Short-termInvestment----Bonds60,000InterestReceivable2,000Cr.Cash62,000

TJMaxbought$60,000facevalue10%businessbondissuedonJanuary1maturinginoneyear.InterestpayableisonJuly1andDecember31.TJpurchaseditonMay1.InterestwasreceivedonJuly1.Dr.Cash3,000Cr.InterestReceivable2,000InvestmentIncome-Bonds1,000Bonds16TJMaxpurchased2,000sharesfromBigLot.Themarketvaluewas$55pershare,whichincludeddividendof$10,000havingbeendeclaredbutnotyetrealized.Dr.Short-termInvestment----Stocks110,000DividendReceivable10,000Cr.Cash120,0001)PurchasesofMarketableSecuritiesStocks17Income:interestincome,unrealizedcapitalgainBonds2)IncomeofMarketableSecuritiesDr.InterestReceivable10,000Cr.InvestmentIncome10,000InterestIncome182)IncomeofMarketableSecuritiesStocksIncome:Dividend,UnrealizedcapitalgainDr.DividendReceivable10,000Cr.InvestmentIncome10,000Dividend19Dr.Cash(actualreceivedprice)Cr.Short-termInvestment----StocksDividendReceivableInvestmentIncome(Bal.)3)CalculationofRevenuesfromsaleofSecuritiesStocksBondsDr.Cash(actualreceivedprice)Cr.Short-termInvestment----BondsInterestReceivableInvestmentIncome(Bal.)20Example:Marshallsheld1,000ofTJMaxsharescosting$30,600.Thelatterdeclared$4parvaluedividendwhichwasnotrealizedyet.1.Sharesweretransferredatthepriceof$40parvalueandthedeclareddividendhadbeenrecorded.

Dr.Cash40,000Cr.Short-termInvestment----Stocks30,600DividendReceivable4,000InvestmentIncome5,4002.Sharesweretransferredatthepriceof$30parvalueandthedeclareddividendhadnotbeenrecorded.

Dr.Cash30,000InvestmentIncome600Cr.Short-termInvestment----Stocks30,60021SummaryⅠ.DefinitionofCurrentAssetsⅡ.CurrentAssetsAccounts1.Cash2.Short-termInvestments22MoneyorderAmoneyorderisapaymentorderforapre-specifiedamountofmoney.Becauseitisrequiredthatthefundsbeprepaidfortheamountshownonit,itisamoretrustedmethodofpaymentthanapersonalcheck.汇票（BillofExchange/PostalOrder/Draft）是由出票人签发的，要求付款人在见票时或在一定期限内，向收款人或持票人无条件支付一定款项的票据。汇票是国际结算中使用最广泛的一种信用工具.23CashequivalentsCashequivalentsareassetsthatarereadilyconvertibleintocash,suchasmoneymarketholdings,short-termgovernmentbondsorTreasurybills,marketablesecuritiesandcommercialpaper.Cashequivalentsaredistinguishedfromotherinvestmentsthroughtheirshort-termexistence;theymaturewithin3monthswhereasshort-terminvestmentsare12monthsorless,andlong-terminvestmentsareanyinvestmentsthatmatureinexcessof12months.Anotherimportantconditionacashequivalentneedstosatisfyisthattheinvestmentshouldhaveinsignificantriskofch