(本科)會(huì)計(jì)英語(第三版)全套教學(xué)課件完整版PPT

1、Accounting English 20171Chapter 1An Introduction to AccountingAccountinginformationThe accounting processDecision makersEconomic activitiesActions (decisions)Accounting thinks decision makers with economic activities and with the results of their decisions.1.1 Accounting is an information systemAcco

2、unting English 201721.2 Forms of organization Sole proprietorship Owned by one person.The owner is responsible for the debts of proprietorship.Partnership Owned by two or more persons. Partners are personally responsible for all partnership debts.CorporationOwned by shareholders or stockholders.A co

3、rporation is a separate legal entity.Owners are not liable for the debts of the corporation.Accounting English 201731.3 Framework for Preparation and presentation of financial statementsIASC since 1973IASB since 2001There is a growing trend to adopt accounting standards that are in harmony with inte

4、rnational accounting standards.Accounting English 20174Accounting English 20175Underlying assumptionsAccrual basisGoing concern Qualitative characteristics of financial statements UnderstandabilityRelevance ReliabilityComparability Accounting English 201761.4 Understanding financial statementsThe st

5、atement of comprehensive income (income statement) summarizes financial performance resulting from income (revenue and gains) less expenses (including losses).The statement of changes in equity reconciles changes in equity (increases are caused by owner investments and net income, while decreases re

6、sult from owner withdrawals/dividends and net losses.The statement of financial position (balance sheet) details assets, liabilities, and equity.The statement of cash flows shows the cash inflows and outflows from operating activities, investing activities, and financing activities.Users of accounti

7、ng information investors and creditors etc. Accounting English 20177 1.5 Accounting and its professionThere are three basic types of accountants:Private accountants work for a single employer.Public accountants are available to the public.Government accountants work for federal, provincial, and muni

8、cipal agencies.Accounting English 20178 Fields of accountingfinancialmanagerialtaxationaccounting-relatedAccounting English 201791.6 Using the accounting equationBusiness transactions always affect at least two elements in the accounting equation. The accounting equation is: Assets = Liabilities + E

9、quityAfter a transaction is recorded, the accounting equation must be in balance.Accounting English 201710Using the accounting equation(1)Recording (2)Reporting(Basic Steps of Accounting Processing)Example on textbookAccounting English 201711An example!Lets analyze some transactions for JJs Lawn Car

10、e Service.Accounting English 201712On May 1, 20 x1, Jill Jones deposited $8,000 in the bank to officially start JJs Lawn Care Service.The Effects of Business TransactionsAccounting English 201713The Effects of Business TransactionsAccounting English 201714On May 2, 20 x1, JJs purchased a riding lawn

11、 mower for $2,500 cash.The Effects of Business TransactionsAccounting English 201715The Effects of Business TransactionsAccounting English 201716On May 8, 20 x1, JJs purchased a $15,000 truck.JJs paid $2,000 down in cash and issued a note payable for the remaining $13,000.The Effects of Business Tra

12、nsactionsAccounting English 201717The Effects of Business TransactionsAccounting English 201718On May 11, 20 x1, JJs purchased some repair parts for $300 on account.The Effects of Business TransactionsAccounting English 201719The Effects of Business TransactionsAccounting English 201720On May 18, 20

13、 x1, JJs sold half of their repair parts to ABC Lawns for $150, a price equal to JJs cost.JJs will receive the cash within 30 days.The Effects of Business TransactionsAccounting English 201721The Effects of Business TransactionsAccounting English 201722On May 25, 20 x1, ABC Lawns pays JJs $75 as a p

14、artial settlement of its accounts receivable.The Effects of Business TransactionsAccounting English 201723The Effects of Business TransactionsAccounting English 201724On May 28, 20 x1, JJs pays $150 of its accounts payable.The Effects of Business TransactionsAccounting English 201725The Effects of B

15、usiness TransactionsAccounting English 201726On May 29, 20 x1, JJs recorded lawn care services provided during May of $750. All clients paid in cash.The Effects of Business TransactionsAccounting English 201727The Effects of Business TransactionsAccounting English 201728On May 31, 20 x1, JJs purchas

16、ed gasoline for the lawn mower and the truck for $50 cash.The Effects of Business TransactionsAccounting English 201729The Effects of Business TransactionsAccounting English 201730Lets review how JJs transactions affected the accounting equation. The Effects of Business TransactionsAccounting Englis

17、h 201731Accounting English 201732Accounting English 201733These transactions impact the Statement of Cash Flows.These transactions impact SOCISOFP!Accounting English 201734 1.7 Ethics in accountingAccountants must perform their responsibilities according to the highest ethical standards because many

18、 users rely on financial reports. Some of the basic ethical standards expected of professional accountants include: IntegrityConfidentialityCompetenceObjectivity1.8 Convergence of Accounting StandardsChinese accounting standards (CAS) is composed of a basic standard, 42 specific standards and Applic

19、ation Guidance. There are three stages for the development of CAS:Building Convergence Implementation and equivalenceAccounting English 201735Accounting English 201736End of Chapter 1Chapter 2-1Accounting CycleAccounting English 201737Using of an accounts Increases are recorded onone side of the T-a

20、ccount, and decreases are recorded on the other side.The balance is the difference between the debit and credit entries in the account.Accounting English 201738Left or Debit SideRight or Credit SideTitle of AccountT-account and debit & creditAccounting English 201739The entire group of accounts is k

21、ept together in an accounting record called a ledger.CashAccounts PayableJill Jones, CapitalAccounts are individual records showing increases and decreases.Each account is assigned a unique number in the companys chart of accounts.Commonly used asset accounts include:CashAccounts receivableEquipment

22、BuildingsLandAccounting English 201740Commonly used liability accounts include:Accounts payableNotes payableSalaries or Wages payableCommonly used equity accounts include:Owners capitalOwners withdrawalsRevenuesExpensesAccounting English 201741Accounting English 201742Receipts are on the debit side.

23、Payments are on the credit side.The balance is the difference between the debit and credit entries in the account.Accounting English 201743A = L + OEASSETSDebit for IncreaseCredit for DecreaseEQUITIESDebit for DecreaseCredit for IncreaseLIABILITIESDebit for DecreaseCredit for IncreaseDebits and cred

24、its affect accounts as follows: Debit and Credit Rules Accounting English 201744A = L + OEDebit balancesCredit balances=In the double-entry accounting system, every transaction is recorded by equal dollar amounts of debits and credits. Debit and Credit Rules Accounting English 201745Net income is no

25、t an asset its an increase in owners equity from profits of the business.A = L + OEIncreaseDecreaseIncreaseEither (or both) of these effects occur as net income is earned . . . . . but this is what net income really means. Debit and Credit Rules Accounting English 201746The price for goods sold and

26、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. Debit and Credit Rules Accounting English 201747EQUITIESDebit for DecreaseCredit for IncreaseREVENUESDebit for DecreaseCredit

27、for IncreaseEXPENSESCredit for DecreaseDebit for IncreaseExpenses decrease owners equity.Revenues increase owners equity. Debit and Credit Rules Accounting English 201748EQUITIESDebit for DecreaseCredit for IncreaseJILL JONES, CAPITALDebit for DecreaseCredit for IncreaseJILL JONES, DRAWINGCredit for

28、 DecreaseDebit for IncreaseAn owners withdrawals decrease owners equity.An owners investments increase owners equity. Debit and Credit Rules Accounting cycle journalizing posting and trial balance The steps in the accounting cycle follow each accounting period to accomplish the analysis, recording,

29、and reporting of financial transactions.Accounting English 201749Step 1: Analyzing transactionsAnalyzing transactions is the first step in the accounting cycle.Accounting English 201750Step 2: Recording transactionsThe second step in the accounting cycle is to record debits and credits in the genera

30、l journal, the book of original entry. This process is known as journalizing.Recording transactions is based on double-entry accounting, which requires that debits = credits.Accounting English 201751Step 2: Recording transactions (cont.)Debits are used to record increases in assets, withdrawals, and

31、 expenses. Decreases in liabilities, the owners capital account, and revenues are also recorded with debits.Credits are used to record decreases in assets, withdrawals, and expenses. Increases in liabilities, the owners capital account, and revenues are also recorded with credits.Assets, expenses, a

32、nd withdrawals normally have debit balances. Liabilities, owners capital, and revenue normally have credit balances.Accounting English 201752Step 3: PostingThe third step in the accounting cycle begins the summarization process. Journal entries in the general journal are posted into the general ledg

33、er at the end of the accounting period.Accounting English 201753Step 4: Preparing a trial balanceThe fourth step in the accounting cycle is the preparation of a trial balance that proves the equality of debits and credits.The trial balance is prepared for internal use only. It is a listing of accoun

34、t balances copied from the general ledger. next lessonAccounting English 201754The JournalAccounting English 201755In an actual accounting system, transactions are initially recorded in the journal.Posting Journal Entries to the Ledger AccountsAccounting English 201756Posting Journal Entries to the

35、Ledger AccountsAccounting English 201757Ledger Accounts After PostingAccounting English 201758This ledger format is referred to as a running balance (as opposed to simple T accounts).Accounting English 201759All balances are taken from the ledger accounts on May 31.Proves equality of debits and cred

36、its.Trial balanceThe Accounting CycleAccounting English 201760Journalize 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 ent

37、ries.Accounting English 201761At the end of the period, we need to make adjusting entries to get the accounts up to date for the financial statements.Chapter 2-2Accounting Cycle (Cont.)Accounting English 201762Before financial statements can be prepared, the accounts must be reviewed to ensure they

38、reflect the correct balances; adjustments will be needed to adjust prepayments and unearned amounts, and to record amortization and accruals. The adjusted trial balance is used to prepare the statements. Closing entries are journalized and posted in preparation for the next accounting period.Account

39、ing English 201763Need for adjustmentsThe life of a business is divided into accounting periods so that periodic financial reports can be prepared and used. Adjustments at the end of each period are necessary to update some of the asset, liability, expense, and revenue accounts and to show the effec

40、ts of previously unrecorded internal economic events of the business.Accounting English 201764Accounting English 201765Revenue = Cash receivedExpense = Cash paidRevenue Cash receivedExpense Cash paidAccrual and cash basis accountingAccrual accounting requires adjustments for prepaid, unearned, and a

41、ccrued items; therefore, it reports revenues when earned and expenses when the expiration of benefit is incurred.Cash basis accounting does not make adjustments; revenues are recorded when cash is received and expenses are recorded when cash is paid. The cash basis of accounting is not generally acc

42、epted.Accounting English 201766Adjusting the accounts ( step 5)Adjusting entries are journalized in the general journal and then posted into the general ledger.Adjusting entries are used to:charge the expired portion of prepaid expenses to Expensecharge the expired portion of fixed assets cost to Am

43、ortization/Depreciation expenseaccrue expenses and record the related liabilitiesrecognize as revenues the earned portion of unearned revenue liabilitiesaccrue revenues and record the related assetsAccounting English 201767Types of Adjusting EntriesAccounting English 201768 Prepaid Expenses Accrued

44、ExpensesUnearned RevenueAccrued Revenue DepreciationEntries to prepaid expensesAccounting English 201769Prior PeriodsCurrent PeriodFuture PeriodsTransactionPaid future expenses in advance (creates an asset).End of Current PeriodAdjusting Entry Recognize portion of asset consumed as expense, andReduc

45、e balance of asset account.Entries to prepaid expensesAccounting English 201770Examples Include:DepreciationSuppliesExpiring Insurance PoliciesEntries to prepaid expensesAccounting English 201771Jan. 1Dec. 31$2,400 Insurance Policy Coverage for 12 Months$200 Monthly Insurance ExpenseOn January 1, We

46、bb, Co. purchased a one-year insurance policy for $2,400.Entries to prepaid expensesAccounting English 201772Initially, costs that benefit more than one accounting period are recorded as assets. Entries to prepaid expensesAccounting English 201773The costs are expensed as they are used to generate r

47、evenue.Entries to prepaid expensesAccounting English 201774SOCICost of assets used this period to generate revenue.SOFPCost of assets that benefit future periods.The Concept of DepreciationAccounting English 201775Depreciation is the systematic allocation of the cost of a depreciable asset to expens

48、e.Depreciable assets are physical objects that retain their size and shape but lose their economic usefulness over time.The Concept of DepreciationThe portion of an assets utility that is used up must be expensed in the period used.Accounting English 201776Cash (credit)Fixed Asset (debit)On date whe

49、n initial payment is made . . .The assets usefulness is partially consumed during the period.At end of period . . .Accumulated Depreciation (credit)Depreciation Expense (debit)Depreciation Is Only an EstimateDuring May of 20 x7, Barones repair shop purchased an equipment with a useful life of 50 mon

50、ths for $5,000 cash. Using the straight-line method, calculate the monthly depreciation expense.Accounting English 201777$5,00050=$100Depreciationexpense (perperiod)=Cost of the assetEstimated useful lifeDepreciation Is Only an EstimateAccounting English 201778Barones repair shop would make the foll

51、owing adjusting entry.Contra-asset Accounting English 201779Accumulated depreciation would appear on the SOFP as follows: Equipment $5,000Less: accumulated depreciation 100 4,900Entries to Unearned RevenueAccounting English 201780Prior PeriodsCurrent PeriodFuture PeriodsTransactionCollected from cus

52、tomers in advance (creates a liability).End of Current PeriodAdjusting Entry Recognize portion earned as revenue, andReduce balance of liability account.Entries to Unearned RevenueAccounting English 201781Examples Include:Airline Ticket SalesSports Teams Sales of Season TicketsEntries to Unearned Re

53、venue.Accounting English 201782Jan. 1Dec. 31$6,000 Rental Contract Coverage for 12 Months$500 Monthly Rental RevenueOn January 1, Webb, Co. received $6,000 in advance for a one-year rental contract.Entries to Unearned Revenue.Accounting English 201783Initially, revenues that benefit more than one ac

54、counting period are recorded as liabilities. Entries to Unearned Revenue.Accounting English 201784Over time, the revenue is recognized as it is earned.Entries to Unearned RevenueAccounting English 201785SOCIRevenue earned this period.SOFPLiability for future periods.Entries to Accrued Expenses.Accou

55、nting English 201786Prior PeriodsCurrent PeriodFuture PeriodsTransactionLiability will be paid.End of Current PeriodAdjusting Entry Recognize expense incurred, andRecord liability for future payment.Entries to Accrued Expenses.Accounting English 201787Examples Include:InterestWages and SalariesPrope

56、rty TaxesHey, when do we get paid?Entries to Accrued Expenses.Accounting English 201788Monday,May 29Friday, June 2$3,000 Wages ExpenseOn May 31, Webb, Co. owes wages of $3,000. Pay day is Friday, June 2.Wednesday,May 31Entries to Accrued Expenses.Accounting English 201789Initially, an expense and a

57、liability are recorded.Entries to Accrued Expenses.Accounting English 201790SOCICost incurred this period to generate revenue.SOFPLiability to be paid in a future period.Entries to Accrued ExpensesAccounting English 201791Monday,May 29Friday, June 2$5,000 Weekly WagesLets look at the entry for June

58、2.Wednesday,May 31$2,000 Wages Expense$3,000 Wages ExpenseEntries to Accrued ExpensesAccounting English 201792The liability is extinguished when the debt is paid.Entries to Accrued RevenueAccounting English 201793Prior PeriodsCurrent PeriodFuture PeriodsTransactionReceivable will be collected.End of

59、 Current PeriodAdjusting Entry Recognize revenue earned but not yet recorded, andRecord receivable.Entries to Accrued RevenueAccounting English 201794Examples Include:Interest EarnedWork Completed But Not Yet Billed to CustomerEntries to Accrued RevenueAccounting English 201795Saturday,Jan. 15Tuesda

60、y, Feb. 15$170 Interest RevenueOn Jan. 31, the bank owes Webb, Co. interest of $170. Interest is paid on the 15th day of each month.Monday,Jan. 31Entries to Accrued RevenueAccounting English 201796Initially, the revenue is recognized and a receivable is created.Entries to Accrued Revenue.Accounting