ChapTheAccountingCycleCapturingEconomicEvents實(shí)用實(shí)用教案

1、Journalize transactions.Post entries to the ledger accounts.Prepare trial balance.Make end-of-year adjustments.Prepare adjusted trial balance.Prepare financial statements.Prepare after-closing trial balance.Journalize and post closing entries.The Accounting Cycle第1頁/共44頁第一頁，共45頁。The Role of Accounti

2、ng RecordsEstablishes accountability for assets and transactions.Keeps track of routine business activities.Obtains detailed information about a particular transaction.Evaluates efficiency and performance within company.Maintains evidence of a companys business activities.第2頁/共44頁第二頁，共45頁。The Ledger

3、The entire group of accounts is kept together in an accounting record called a ledger.CashAccounts PayableCapital StockAccounts are individual records showing increases and decreases.第3頁/共44頁第三頁，共45頁。The Use of Accounts Increases are recorded on one side of the T-account, and decreases are recorded

4、on the other side.Left or Debit SideRight or Credit SideTitle of Account第4頁/共44頁第四頁，共45頁。Lets see how debits and credits are recorded in the Cash account for JJs Lawn Care Service.第5頁/共44頁第五頁，共45頁。Receipts are on the debit side.Payments are on the credit side.The balance is the difference between th

5、e debit and credit entries in the account.Debit and Credit Entries第6頁/共44頁第六頁，共45頁。 = + Debit for IncreaseCredit for DecreaseDebit for DecreaseCredit for IncreaseDebit for DecreaseCredit for IncreaseDebits and credits affect accounts as follows:Debit and Credit Rules第7頁/共44頁第七頁，共45頁。 = + Debit balan

6、ces=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第8頁/共44頁第八頁，共45頁。In an actual accounting system, transactions are initially recorded in the journal.GENERAL JOURNALDateAccou

7、nt Titles and ExplanationPR DebitCredit2005May1 Cash8,000Capital Stock8,000Owners invest cash in the business.The Journal第9頁/共44頁第九頁，共45頁。 Posting involves copying information from the journal to the ledger accounts.Posting Journal Entries to the Ledger Accounts第10頁/共44頁第十頁，共45頁。GENERAL JOURNALDateA

8、ccount Titles and ExplanationPR DebitCredit2005May1 Cash8,000Capital Stock8,000Owners invest cash in the business.General LedgerCashDateDebitCreditBalance2005May1 8,000 8,000 Posting Journal Entries to the Ledger Accounts第11頁/共44頁第十一頁，共45頁。GENERAL JOURNALDateAccount Titles and ExplanationPR DebitCre

9、dit2005May1 Cash8,000Capital Stock8,000Owners invest cash in the business.General LedgerCapital StockDateDebitCreditBalance2005May1 8,000 8,000 Posting Journal Entries to the Ledger Accounts第12頁/共44頁第十二頁，共45頁。GENERAL JOURNALDateAccount Titles and ExplanationPR DebitCredit2005May2 Tools & Equipme

10、nt2,500Cash2,500Purchased lawn mower.Lets see what the cash account looks like after posting the cash portion of this transaction for JJs Lawn Care Service.Posting Journal Entries to the Ledger Accounts第13頁/共44頁第十三頁，共45頁。General LedgerCashDateDebitCreditBalance2005May1 8,000 8,000 2 2,500 5,500 This

11、 ledger format is referred to as a running balance.Ledger Accounts After Posting第14頁/共44頁第十四頁，共45頁。General LedgerCashDateDebitCreditBalance2005May1 8,000 8,000 2 2,500 5,500 T accounts are simplified versions of the ledger account that only show the debit and credit columns.Ledger Accounts After Pos

12、ting第15頁/共44頁第十五頁，共45頁。Revenue and ExpensesThe price for goods sold and services rendered during a given accounting period.Increases owners equity.The costs of goods and services used up in the process of earning revenue.Decreases owners equity.第16頁/共44頁第十六頁，共45頁。Debits and Credits for Revenue and E

13、xpenseDebit for DecreaseCredit for IncreaseDebit for DecreaseCredit for IncreaseCredit for DecreaseDebit for IncreaseExpenses decrease owners equity.Revenues increase owners equity.第17頁/共44頁第十七頁，共45頁。Net income is not an asset its an increase in owners equity from profits of the business. = + Increa

14、seDecreaseIncreaseEither (or both) of these effects occur as net income is earned . . . . . but this is what “net income” really means.What is Net Income?第18頁/共44頁第十八頁，共45頁。 = + Retained EarningsCapital StockRetained EarningsThe balance in the Retained Earnings account represents the total net incom

15、e of the corporation over the entire lifetime of the business, less all amounts which have been distributed to the stockholders as dividends.第19頁/共44頁第十九頁，共45頁。Debit for DecreaseCredit for IncreaseDebit for DecreaseCredit for IncreaseCredit for DecreaseDebit for Increase Payments to owners decrease

16、owners equity.Owners investments increase owners equity.Investments by and Payments to Owners第20頁/共44頁第二十頁，共45頁。JJs Lawn Care ServiceIncome StatementFor the Month Ended May 31, 2005Sales Revenue750$ Operating Expense: Gasoline Expense50 Net Income700$ The income statement summarizes the profitabilit

17、y of a business for a specified period of time.The Income Statement: A Preview第21頁/共44頁第二十一頁，共45頁。Accounting PeriodsTime Period PrincipleTo provide users of financial statements with timely information, net income is measured for relatively short accounting periods of equal length.Annually, Quarterl

18、y, MonthlyFiscal year : 1.1-12.31 (in China)第22頁/共44頁第二十二頁，共45頁。MonthlyQuarterlyJan. 1Dec. 31AnnuallyMany companies prepare financial statements at various points throughout the year.Interim Financial StatementsPreparing Financial Statements Covering Different Periods of Time第23頁/共44頁第二十三頁，共45頁。Lets

19、 record transactions for JJs Lawn Care Service for the month of May.We will also analyze a dividend transaction. 第24頁/共44頁第二十四頁，共45頁。 May 1: Jill Jones and her family invested $8,000 in JJs Lawn Care Service and received 800 shares of stock. Will Cash increase or decrease?Will Capital Stock increase

20、 or decrease? 第25頁/共44頁第二十五頁，共45頁。Capital Stock5/18,000 Cash5/18,000 May 1: Jill Jones and her family invested $8,000 in JJs Lawn Care Service and received 800 shares of stock. Cash increases $8,000 with a debit.Capital Stock increases $8,000 with a credit.第26頁/共44頁第二十六頁，共45頁。 May 2: JJs purchased a

21、 riding lawn mower for $2,500 cash.Will Cash increase or decrease?Will Tools & Equipment increase or decrease?第27頁/共44頁第二十七頁，共45頁。 May 2: JJs purchased a riding lawn mower for $2,500 cash.Tools & Equipment5/22,500Cash5/18,0005/22,500Cash decreases $2,500 with a credit.Tools & Equipment i

22、ncreases $2,500 with a debit.第28頁/共44頁第二十八頁，共45頁。 May 8: JJs purchased a $15,000 truck. JJs paid $2,000 in cash and issued a note payable for the remaining $13,000.Will Truck increase or decrease? Will Cash and Notes Payable increase or decrease?第29頁/共44頁第二十九頁，共45頁。 May 8: JJs purchased a $15,000 tr

23、uck. JJs paid $2,000 in cash and issued a note payable for the remaining $13,000.Truck5/815,000Cash5/18,0005/22,5005/82,000Notes Payable5/813,000Truck increases $15,000 with a debit. Cash decreases $2,000 with a credit. Notes Payable increases $13,000 with a credit.第30頁/共44頁第三十頁，共45頁。 May 11: JJs pu

24、rchased some repair parts for $300 on account.Will Tools & Equipment increase or decrease?Will Accounts Payable increase or decrease?第31頁/共44頁第三十一頁，共45頁。 May 11: JJs purchased some repair parts for $300 on account.Tools & Equipment increases $300 with a debit.Accounts Payable increases $300

25、with a credit.Tools & Equipment5/22,5005/11300 Accounts Payable5/11300 第32頁/共44頁第三十二頁，共45頁。 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.Will Tools & Equipment increase or decrease? Will Accounts Receiv

26、able increase or decrease? 第33頁/共44頁第三十三頁，共45頁。 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.Tools & Equipment decreases $150 with a credit. Accounts Receivable increases $150 with a debit. Tools & Equi

27、pment5/22,5005/18150 5/11300 Accounts Receivable5/18150 第34頁/共44頁第三十四頁，共45頁。 May 29: JJs provided lawn care services for a client and received $750 in cash.Will Cash increase or decrease?Will Sales Revenue increase or decrease?第35頁/共44頁第三十五頁，共45頁。Sales Revenue5/29750 May 29: JJs provided lawn care s

28、ervices for a client and received $750 in cash.Cash increases $750 with a debit.Sales Revenue increases $750 with a credit.Cash5/18,000 5/22,500 5/29750 5/82,000 第36頁/共44頁第三十六頁，共45頁。 May 31: JJs purchased gasoline for the lawn mower and the truck for $50 cash.Will Cash increase or decrease? Will Gas

29、oline Expense increase or decrease?第37頁/共44頁第三十七頁，共45頁。Gasoline Expense5/3150 May 31: JJs purchased gasoline for the lawn mower and the truck for $50 cash.Cash decreases $50 with a credit. Gasoline Expense increases $50 with a debit.Cash5/18,000 5/22,500 5/29750 5/82,000 5/3150 第38頁/共44頁第三十八頁，共45頁。 May 31: JJs Lawn Care paid Jill Jones and her family a $200 dividend.Will Cash increase or decrease? Will Dividends increase or decrease?第39頁/共44頁第三十九頁，共45頁。Dividends5/31200 May 31: JJs Law