西方財務會計3課件

PresentedbyAnnieChenTheDepartmentofAccountingGDUFChapter3TheAccountingCycle--CapturingEconomicEventsThischapterdemonstrateshowaccountingsystemsrecordeconomiceventsrelatedtoavarietyofbusinesstransactions.TheRoleofAccountingRecordsEstablishesaccountabilityforassetsandtransactions.Keepstrackofroutinebusinessactivities.Obtainsdetailedinformationaboutaparticulartransaction.Evaluatesefficiencyandperformancewithincompany.Maintainsevidenceofacompany’sbusinessactivities.P86ABJOURNALLEDGERACCOUNTTheLedgerAccount

andTheLedgerTheentiregroupofaccountsiskepttogetherinanaccountingrecordcalledaledger.Accountsareindividualrecordsshowingincreasesanddecreases.Transactionsareinitiallyrecordedinthejournalratherthantheledgeraccount.Thejournalrecordstransactionsinchronological(daybyday)order.Theledgergroupstogetheralltransactionsthatimpactaparticularaccount.

Debit/CreditSkillTestsP117Q4P118BE3.4ASSETSDebitforIncreaseCreditforDecreaseEQUITIESDebitforDecreaseCreditforIncreaseLIABILITIESDebitforDecreaseCreditforIncreaseDebitsandcreditsaffectaccountsasfollows:DebitandCreditRulesInthedouble-entryaccountingsystem,everytransactionisrecordedbyequaldollaramountsofdebitsandcredits.A

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OELet’srecordselectedtransactionsforOvernightAutoServiceintheaccounts.Jan20:MichaelMcBryanandfamilyinvested$80,000inexchangeforcapitalstock.Cashincreases$80,000withadebit.CapitalStockincreases$80,000withacredit.RepresentingOvernight,McBryannegotiatedwithboththeCityofSantaTeresaandMetropolitanTransitAuthoritytopurchaseanabandonedbusgarage.(ThecityownedthelandbuttheMTAownedthebuilding.)OnJanuary21,OvernightAutoServicepurchasedthelandfromthecityfor$52,000cash.WillCashincreaseordecrease?WillLandincreaseordecrease?

RepresentingOvernight,McBryannegotiatedwithboththeCityofSantaTeresaandMetropolitanTransitAuthoritytopurchaseanabandonedbusgarage.(ThecityownedthelandbuttheMTAownedthebuilding.)OnJanuary21,OvernightAutoServicepurchasedthelandfromthecityfor$52,000cash.Cashdecreases$2,500withacredit.Landincreases$2,500withadebit.Jan22:OvernightcompletedtheacquisitionofitsbusinesslocationbypurchasingtheabandonedbuildingfromtheMTA.Thepurchasepricewas$36,000;Overnightmadea$6,000cashdownpaymentandissueda90-day,non-interest-bearingnotepayablefortheremaining$30,000.Buildingincreases$36,000withadebit.Cashdecreases$6,000withacredit.NotesPayableincreases$30,000withacredit.Jan23:OvernightpurchasedtoolsandequipmentonaccountfromSnappyTools.Thepurchasepricewas$13,800,duein60days.WillTools&Equipmentincreaseordecrease?WillAccountsPayableincreaseordecrease?Jan23:OvernightpurchasedtoolsandequipmentonaccountfromSnappyTools.Thepurchasepricewas$13,800,duein60days.Tools&Equipmentincreases$13,800withadebit.AccountsPayableincreases$13,800withacredit.Jan24:OvernightsoldtheexcesstoolsonaccounttoAceTowingatapriceof$1,800,apriceequaltoOvernight’scost.Tools&Equipmentdecreases$1,800withacredit.AccountsReceivableincreases$1,800withadebit.Jan26:Overnightreceived$600inpartialcollectionoftheaccountreceivablefromAceTowing.WillCashincreaseordecrease?WillAccountsReceivableincreaseordecrease?Jan26:Overnightreceived$600inpartialcollectionoftheaccountreceivablefromAceTowing.Cashincreases$600withadebit.AccountsReceivabledecreases$600withacredit.Jan27:Overnightmadea$6,800partialpaymentofitsaccountspayabletoSnappyTools.Cashdecreases$6,800withacreditAccountspayabledecreases$6,800withadebitInanactualaccountingsystem,transactionsareinitiallyrecordedinthe

journal.The

Journal

Postinginvolvescopyinginformationfromthejournaltotheledgeraccounts.PostingJournalEntries

totheLedgerAccountsPostingJournalEntriestotheLedgerAccountsLet’sseewhatthecashaccountlookslikeafterpostingthecashportionofthistransactionforOvernightAutoService.PostingJournalEntriestotheLedgerAccountsThisledgerformatisreferredtoasarunningbalance.LedgerAccountsAfterPostingLedgerAccountsAfterPostingTaccountsaresimplifiedversionsoftheledgeraccountthatonlyshowthedebitandcreditcolumns.NetIncomeNetincomeanincreaseinowners’equityfromprofitsofthebusiness.A

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OEIncreaseDecreaseEither(orboth)oftheseeffectsoccurasnetincomeisearned...Increase...butthisiswhat“netincome”reallymeans.RetainedEarningsA

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OECapitalStockRetainedEarningsThebalanceintheRetainedEarningsaccountrepresentsthetotalnetincomeofthecorporationovertheentirelifetimeofthebusiness,lessallamountswhichhavebeendistributedtothestockholdersasdividends.RevenuesandExpensesRevenuesandExpensesThepriceforgoodssoldandservicesrenderedduringagivenaccountingperiod.Increasesowners’equity.Thecostsofgoodsandservicesusedupintheprocessofearningrevenue.Decreasesowner’sequity.REVENUESEXPENSESTheRealizationPrinciple:

WhenToRecordRevenueRealizationPrincipleRevenueshouldberecognizedatthetimegoodsaresoldandservicesarerendered.MatchingPrinciple:

WhenToRecordExpensesMatching