会计学-企业决策的基础-14版-PPT03.ppt

1、,The Accounting CycleCapturing Economic Events,Chapter3,Learning Objective,LO1,To identify the steps in the accounting cycle and discuss the role of accounting records in an organization.,The Role of Accounting Records,Establishes accountability for assets and transactions.,Keeps track of routine bu

2、siness activities.,Obtains detailed information about a particular transaction.,Evaluates efficiency and performance within company.,Maintains evidence of a companys business activities.,Learning Objective,LO2,To describe a ledger account and a ledger.,The Ledger,The entire group of accounts is kept

3、 together in an accounting record called a ledger.,Cash,Accounts Payable,Capital Stock,Accounts are individual records showing increases and decreases.,The Use of Accounts,Increases are recorded on one side of the T-account, and decreases are recorded on the other side.,Lets see how debits and credi

4、ts are recorded in the Cash account for JJs Lawn Care Service.,Debit and Credit Entries,Learning Objective,LO3,To understand how balance sheet accounts are increased and decreased.,A = L + OE,Debits and credits affect accounts as follows:,Debit and Credit Rules,Learning Objective,LO4,To explain the

5、double-entry system of accounting.,A = L + OE,Debit balances,Credit balances,=,In the double-entry accounting system, every transaction is recorded by equal dollar amounts of debits and credits.,Double Entry AccountingThe Equality of Debits and Credits,Lets record selected transactions for JJs Lawn

6、Care Service in the accounts.,May 1: Jill Jones and her family invested $8,000 in JJs Lawn Care Service and received 800 shares of stock.,May 1: Jill Jones and her family invested $8,000 in JJs Lawn Care Service and received 800 shares of stock.,May 2: JJs purchased a riding lawn mower for $2,500 ca

7、sh.,May 2: JJs purchased a riding lawn mower for $2,500 cash.,May 8: JJs purchased a $15,000 truck. JJs paid $2,000 in cash and issued a note payable for the remaining $13,000.,May 8: JJs purchased a $15,000 truck. JJs paid $2,000 in cash and issued a note payable for the remaining $13,000.,May 11:

8、JJs purchased some repair parts for $300 on account.,May 11: JJs purchased some repair parts for $300 on account.,May 18: JJs sold half of the repair parts to ABC Lawns for $150, a price equal to JJs cost. ABC Lawns agrees to pay JJs within 30 days.,May 18: JJs sold half of the repair parts to ABC L

9、awns for $150, a price equal to JJs cost. ABC Lawns agrees to pay JJs within 30 days.,Learning Objective,LO5,To explain the purpose of a journal and its relationship to the ledger.,In an actual accounting system, transactions are initially recorded in the journal.,The Journal,Posting involves copyin

10、g information from the journal to the ledger accounts.,Posting Journal Entries to the Ledger Accounts,Posting Journal Entries to the Ledger Accounts,Posting Journal Entries to the Ledger Accounts,Lets see what the cash account looks like after posting the cash portion of this transaction for JJs Law

11、n Care Service.,Posting Journal Entries to the Ledger Accounts,This ledger format is referred to as a running balance.,Ledger Accounts After Posting,T accounts are simplified versions of the ledger account that only show the debit and credit columns.,Ledger Accounts After Posting,Learning Objective,

12、LO6,To explain nature of net income, revenue, and expenses.,Net income is not an asset its an increase in owners equity from profits of the business.,A = L + OE,What is Net Income?,A = L + OE,Retained Earnings,Capital Stock,Retained Earnings,The balance in the Retained Earnings account represents th

13、e total net income of the corporation over the entire lifetime of the business, less all amounts which have been distributed to the stockholders as dividends.,The income statement summarizes the profitability of a business for a specified period of time.,The Income Statement: A Preview,Accounting Pe

14、riods,Time Period Principle To provide users of financial statements with timely information, net income is measured for relatively short accounting periods of equal length.,Revenue and Expenses,The price for goods sold and services rendered during a given accounting period.,Increases owners equity.

15、,Learning Objective,LO7,To apply the realization and matching principles in recording revenue and expenses.,The Realization Principle: When To Record Revenue,Realization Principle Revenue should be recognized at the time goods are sold and services are rendered.,The Matching Principle: When To Recor

16、d Expenses,Matching Principle Expenses should be recorded in the period in which they are used up.,Debits and Credits for Revenue and Expense,EQUITIES,Debit for Decrease,Credit for Increase,Expenses decrease owners equity.,Revenues increase owners equity.,Payments to owners decrease owners equity.,O

17、wners investments increase owners equity.,Investments by and Payments to Owners,Learning Objective,LO8,To understand how revenue and expense transactions are recorded in an accounting system.,Lets analyze the revenue and expense transactions for JJs Lawn Care Service for the month of May. We will al

18、so analyze a dividend transaction.,May 29: JJs provided lawn care services for a client and received $750 in cash.,May 29: JJs provided lawn care services for a client and received $750 in cash.,May 31: JJs purchased gasoline for the lawn mower and the truck for $50 cash.,May 31: JJs purchased gasoline for the lawn mower and the truck for $50 cash.,May 31: JJs Lawn Care paid Jill Jones and her family