會(huì)計(jì)學(xué)原理英文教學(xué)課件：Chapter-04 COMPLETING THE ACCOUNTING CYCLE

1、COMPLETING THE ACCOUNTING CYCLEChapter 4BENEFITS OF A WORK SHEETAids the preparation of financial statements.Reduces possibility of errors.Links accounts and their adjustments.Assists in planning and organizing an audit.Helps in preparing interim financial statements.Shows the effects of proposed tr

2、ansactions.Not a required report.P1FastForwardWork SheetFor Month Ended December 31, 2009First, enter the unadjusted amounts to the worksheet.P1Next, enter the adjustments.FastForwardWork SheetFor Month Ended December 31, 2009P1Prepare adjusted trial balance.FastForwardWork SheetFor Month Ended Dece

3、mber 31, 2009FastForwardWork SheetFor Month Ended December 31, 2007Sort adjusted trial balance amounts to financial statements.P1FastForwardWork SheetFor Month Ended December 31, 2007Total statement columns, compute income or loss, and balance columns.P1Prepare the IncomeStatement.PREPARE THE FINANC

4、IAL STATEMENTSA work sheet does not substitute for financial statements.P1Prepare the Statement of Owners Equity. P1Prepare the Balance Sheet. CLOSING PROCESSResets revenue, expense and withdrawal account balances to zero at the end of the period.Helps summarize a periods revenues and expenses in th

5、e Income Summary account.Identify accountsfor closing.Record and postclosing entries. Prepare post-closingtrial balance.C1Temporary AccountsRevenuesIncome SummaryExpensesWithdrawalsPermanent AccountsAssetsLiabilitiesOwners CapitalTEMPORARY ANDPERMANENT ACCOUNTSThe closing process applies only to tem

6、porary accounts.C1Lets see how the closing process works!RECORDING CLOSING ENTRIESClose Revenue accounts to Income Summary.Close Expense accounts to Income Summary.Close Income Summary account to Owners Capital.Close Withdrawals to Owners Capital.P2Using the adjusted trial balance, lets prepare the

7、closing entries for FastForward.P2Close Revenue accounts to Income Summary.P2 CLOSE REVENUE ACCOUNTSTO INCOME SUMMARYNow, lets look at the ledger accounts after posting this closing entry. Dr. Cr. Dec. 31 Consulting revenue 7,850 Rental revenue 300 Income summary 8,150 P2 CLOSE REVENUE ACCOUNTSTO IN

8、COME SUMMARYP2Close Expense accounts to Income Summary.P2Now, lets look at the ledger accounts after posting this closing entry. CLOSE EXPENSE ACCOUNTSTO INCOME SUMMARYP2Net Income CLOSE EXPENSE ACCOUNTSTO INCOME SUMMARY P2Close Income Summary to Owners Capital.P2Now, lets look at the ledger account

9、s after posting this closing entry. CLOSE INCOME SUMMARYTO OWNERS CAPITALP2 CLOSE INCOME SUMMARYTO OWNERS CAPITALP2Close Withdrawals to Owners Capital.P2Now, lets look at the ledger accounts after posting this closing entry. CLOSE WITHDRAWALSTO OWNERS CAPITALP2 CLOSE WITHDRAWALSTO OWNERS CAPITALP2Le

10、ts look at FastForwardspost-closing trial balance.POST-CLOSING TRIAL BALANCEList of permanent accounts and their balances after posting closing entries.Total debits and credits must be equal.P3POST-CLOSING TRIAL BALANCEP3Steps in the Accounting CycleC2Current items are those expected to come due (bo

11、th collected and owed) within the longer of one year or the companys normal operating cycle.CLASSIFIED BALANCE SHEETC3Current assets are expected to be sold, collected, or used within one year or the companys operating cycle. C3Long-term investments are expected to be held for more than one year or

12、the operating cycle.C3Plant assets are tangible long-lived assets used to produce or sell products and services.C3Intangible assets are long-term resources used to produce or sell products and services and that lack physical form.C3Current liabilities are obligations due within the longer of one yea

13、r or the companys operating cycle.C3Long-term liabilities are obligations not due within the longer of one year or the companys operating cycle.C3Equity is the owners claim on the assets. C3CURRENT RATIOHelps assess the companys ability to pay its debts in the near futureCurrent Ratio =Current Assets Current Liabilities$ in millions2007200