資料案例快會計ed stateme

1、Copyright 2007 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 3Operating Decisions and theIncome Statement3-2Business Background3-3 Learning ObjectivesDescribe a typical business operating cycle and explain the necessity for the time period assumption.3-4The Operating Cycle3-5The Ti

2、me Period AssumptionTo meet the needs of decision makers, we report financial information for (monthly, quarterly, annually).20042005200620072008200920102011Annual Accounting Periods3-6The Time Period Assumption3-7 Learning ObjectivesThe elements of the income statement.3-8Elements on the Income Sta

3、tement3-9Elements on the Income Statement+Revenue- Expense+ Gains - LossesIncome before income tax- Income tax (= Income before income tax*tax rate)Net IncomeEPS (=NI/# of shares of common stock)Operating ActivitiesPeripheral Activities3-10Papa Johns Primary Operating Activity is selling pizza and s

4、elling franchises.Operating ActivitiesPeripheral Activities3-11 Learning ObjectivesHow to report revenues, expenses, gains and losses in T-accounts?3-12A = L + SEDebit for IncreaseCredit for DecreaseDebit for DecreaseCredit for IncreaseDebit for DecreaseCredit for IncreaseDebit for DecreaseCredit fo

5、r Increase 3-13Debit for IncreaseCredit for DecreaseDebit for DecreaseCredit for Increase Debit for DecreaseCredit for IncreaseExpanded Transaction Analysis Model3-14 Learning ObjectivesExplain the accrual basis of accounting (應(yīng)計制/權(quán)責發(fā)生制) and apply the revenue and matching principles to measure incom

6、e.3-15Cash Basis AccountingAccrual Basis Accounting3-16Cash Basis Accounting3-17Required by - GenerallyAcceptableAccountingPrinciplesAccrual Basis Accounting3-18Accrual Basis AccountingRevenue PrincipleMatching Principle3-19Revenue Principle3-20Revenue Principle Case 1CashReceivedCompany Delivers3-2

7、1Revenue Principle Case 2Cash received before revenue is earned -CashReceivedCompany Delivers3-22Revenue PrincipleCASH COLLECTED (Goods or services due to customers)over time will becomeREVENUE (Earned when goods or services provided)Rent collected in advanceRent revenueUnearned air traffic revenueA

8、ir traffic revenueDeferred subscription revenueSubscription revenue3-23Revenue Principle Case 3Cash received after revenue is earned -Company DeliversCashReceived3-24Revenue Principle Case 33-25Revenue PrinciplenRevenue is recorded according to the revenue principle when the four conditions are metn

9、It is regardless of when cash is receivednCash may be received before or after revenue recognition, each resulting two transactions: one on the date of the cash receipt and one the date the revenue is earned 3-26Matching Principle3-27Matching Principle Case 1CashPaidExpenseIncurredAND3-28Matching Pr

10、inciple Case 2Cash is paid before expense is incurred -CashPaidExpenseIncurred3-29Matching Principle Case 2CASH PAID FORas used over time becomesEXPENSESupplies inventorySupplies expensePrepaid insuranceInsurance expenseBuildings and equipmentDepreciation expense3-30Matching Principle Case 3Cash pai

11、d after expense is incurred -ExpenseIncurredCashPaid3-31Matching Principle Case 3CASH TO BE PAIDand already incurred asEXPENSESalaries payableSalaries expenseInterest payableInterest expenseProperty taxes payableProperty tax expense3-32Matching PrinciplenExpenses are recognized with revenuesnRegardl

12、ess of when cash is paidnCash may be paid before or after expense recognition, resulting two transactions: one on the date of the cash payment and one on the date of expense is incurred in generating revenue3-33Analyzing Papa Johns TransactionsLets apply the complete transaction analysis model to so

13、me of Papa Johns transactions. All amounts are in thousands of dollars.3-34Identify & Classify the Accounts1. Cash (asset)2. Franchise fee revenue (revenue)3. Unearned franchise fees (liability)Determine the Direction of the Effect1. Cash increases.2. Franchise fee revenue increases.3. Unearned

14、franchise fees increases.(a) Papa Johns sold franchises for $400 cash. The company earned $100 immediately. The rest will be earned over several months.Identify & Classify the AccountsDetermine the Direction of the Effect3-35(a) Papa Johns sold franchises for $400 cash. The company earned $100 i

15、mmediately. The rest will be earned over several months.3-36Identify & Classify the Accounts1. Cash (asset)2. Restaurant sales revenue (revenue)3. Cost of sales- restaurant (expense)4. Inventories (asset)Determine the Direction of the Effect1. Cash increases.2. Restaurant sales revenue increases

16、.3. Cost of sales- restaurant increases. 4. Inventories decrease.(b) The company sold $36,000 of pizzas for cash. The costs of the pizza ingredients for those sales were $9,600.Identify & Classify the AccountsDetermine the Direction of the Effect3-37(b) The company sold $36,000 of pizzas for cas

17、h. The costs of the pizza ingredients for those sales were $9,600.3-38(c) In January, Papa Johns paid $7,000 for utilities, repairs, and fuel for delivery vehicles, all considered general and administrative expenses.3-39(d) Papa Johns ordered and received $29,000 in supplies, paying $9,000 in cash a

18、nd owing the rest on account to suppliers.3-40(e) Papa Johns paid $14,000 cash to employees for their work in January.3-41(f) At the beginning of January, Papa Johns paid the following: $2,000 for insurance covering the next four month beginning January 1, $6,000 for renting space in shopping center

19、s over the next three months beginning January 1, and $1,000 for advertising to be run in February, all considered prepaid expenses when paid.3-42(g) Papa Johns sold land with an historical cost of $1,000 for $4,000 cash.3-43 Learning ObjectivesPrepare (unadjusted) financial statements.3-44How are F

20、inancial Statements Prepared?Revenues - Expenses +Gains - Losses= Net Income Beginning Retained Earnings+ Net Income- Dividends Declared Ending Retained EarningsAssets = Liabilities + Stockholders EquityContributed CapitalRetained EarningsChangeinCash= Cash from Operating Activities+ Cash from Inves

21、ting Activities+ Cash from Financing Activities3-45 Income Statement3-46 Statement of Retained Earnings 3-47Balance Sheet 3-48 Statement of Cash Flows3-49 Learning ObjectivesCompute and interpret the total asset turnover ratio.3-50Key Ratio Analysis3-51Financial Analysisn 2010 2011 nTA $396,000 $372

22、,000 nRevenue $825,000 $945,000nAsset turnover ratio for 2011?nCompetitors: 3.11nComments?3-52End of Chapter 33-53(1)Transaction analysis related to I/S(2)Accrual accounting v.s. cash accounting(3)Revenue recognition and matching principle(4)Asset Turnover Ratio3-54(1) Hudsons Department Store order

23、s 1000 mens shirts from Arrow Shirt Company for $18 each for future delivery. The terms require payment in full within 30 days of delivery. Answer from Arrows standpoint.(2) Arrow Shirt Company completes and ships production of the shirts described in (1). Answer from Arrows standpoint.(3) Arrow receives payment from Hudsons for the order described in (1). Answer from Arrows standpoint.3-55(4) Air China receives $20,000,000 cash f