财务会计专业英语(4).ppt

1、COMPLETING THE ACCOUNTING CYCLE,Chapter 4,Benefits of a Work Sheet,Aids 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 pro

2、posed transactions.,Not a required report.,P1,FastForwardWork Sheet For Month Ended December 31, 2009,First, enter the unadjusted amounts to the worksheet.,P1,Next, enter the adjustments.,FastForwardWork Sheet For Month Ended December 31, 2009,P1,Prepare adjusted trial balance.,FastForwardWork Sheet

3、 For Month Ended December 31, 2009,FastForwardWork Sheet For Month Ended December 31, 2007,Sort adjusted trial balance amounts to financial statements.,P1,FastForwardWork Sheet For Month Ended December 31, 2007,Total statement columns, compute income or loss, and balance columns.,P1,Prepare the Inco

4、me Statement.,Prepare the Financial Statements,A work sheet does not substitute for financial statements.,P1,Prepare the Statement of Owners Equity.,P1,Prepare the Balance Sheet.,Closing Process,Resets revenue, expense and withdrawal account balances to zero at the end of the period. Helps summarize

5、 a periods revenues and expenses in the Income Summary account.,C1,Temporary andPermanent Accounts,The closing process applies only to temporary accounts.,C1,Lets see how the closing process works!,Recording Closing Entries,Close Revenue accounts to Income Summary. Close Expense accounts to Income S

6、ummary. Close Income Summary account to Owners Capital. Close Withdrawals to Owners Capital.,P2,Using the adjusted trial balance, lets prepare the closing entries for FastForward.,P2,Close Revenue accounts to Income Summary.,P2,Close Revenue Accountsto Income Summary,Now, lets look at the ledger acc

7、ounts after posting this closing entry.,P2,Close Revenue Accountsto Income Summary,P2,Close Expense accounts to Income Summary.,P2,Now, lets look at the ledger accounts after posting this closing entry.,Close Expense Accountsto Income Summary,P2,Net Income,Close Expense Accountsto Income Summary,P2,

8、Close Income Summary to Owners Capital.,P2,Now, lets look at the ledger accounts after posting this closing entry.,Close Income Summaryto Owners Capital,P2,CLOSE INCOME SUMMARYTO OWNERS CAPITAL,P2,Close Withdrawals to Owners Capital.,P2,Now, lets look at the ledger accounts after posting this closin

9、g entry.,Close Withdrawalsto Owners Capital,P2,Close Withdrawalsto Owners Capital,P2,Lets look at FastForwardspost-closing trial balance.,Post-Closing Trial Balance,List of permanent accounts and their balances after posting closing entries. Total debits and credits must be equal.,P3,Post-Closing Tr

10、ial Balance,P3,Steps in the Accounting Cycle,C2,Current items are those expected to come due (both collected and owed) within the longer of one year or the companys normal operating cycle.,Classified Balance Sheet,C3,Current assets are expected to be sold, collected, or used within one year or the c

11、ompanys operating cycle.,C3,Long-term investments are expected to be held for more than one year or the operating cycle.,C3,Plant assets are tangible long-lived assets used to produce or sell products and services.,C3,Intangible assets are long-term resources used to produce or sell products and services and that lack physical form.,C3,Current liabilities are obligations due within the longer of one year or the companys operating cycle.,C3,Long-term liabilities are obligations not due within the longer of one year or the companys oper