chp4 酒店财务会计调整分录

1、Chp4 Adjusting the accountsGlossaryAccrual-basis accounting(权责发生制)Accrued expenses（应计费用）Accrued revenues（应计收入）Adjusted trial balance（调整后试算平衡）Adjusting entries（调整分录）Book value（账面价值）Calendar year（日历年）GlossaryCash-basis accounting（收付实现制会计）Contra asset account（资产抵消账户）Depreciation（折旧）Fiscal year（会计年度）Int

2、erim periods（会计期间）Matching principle（配比原则）Prepaid expenses（预付费用）GlossaryRevenue recognition principle（收入确认原则）Time period assumption（会计分期假设）Unearned revenues（预收收入）Useful life（使用年限）Study ObjectivesThe accrual basis of accountingWhy adjusting entries are neededThe major types of adjusting entriesAdjust

3、ing entries for prepayments Adjusting entries for accrualsStudy ObjectivesThe nature and the purpose of an adjusted trial balanceAdjusting entries for the alternative treatment of prepaymentsThe content and organization of Chapter 4Adjusting the Accounts1.Time Issues1)Time period Assumption2)Fiscal

4、and calendar years3)Accrual- vs. cash-basis4)Recognizing revenues and expenses2.The basics of Adjusting Entries1)Types of adjusting entries2)Adjusting entries for prepayments3)Adjusting entries for accruals4)Summary3.The adjusted trial balance and financial statements1)Preparing the adjusted trial b

5、alance2)Preparing financial statements1.Time Issues1）Time-period assumptionThe economic life of a business can be divided into artificial time period.Accounting time periods are generally a month,a quarter, or a year.The accounting period one a year in length is usuallyKnown as a fiscal year.1.Time

6、Issues2）Accrual basis of accountingThe revenue recognition and matching principleare used under the accrual basis of accounting.GAAP require accrual basis accounting rather thancash basis accounting.1.Time Issues3) Revenue Recognition PrincipleService performedCash receivedCustomer requests serviceU

7、nearned revenue, liabilityAccrued revenue, assetTime period assumptionRevenue Recognition PrincipleMatching Principle2. The basic of adjusting entriesWhy adjusting entries are needed?Revenues to be recorded in the period in which they are earned, and for expenses to be recognized in the period in wh

8、ich they are incurred.The revenue recognition and matching principle to be followed.2. The basic of adjusting entriesAdjusting entries are required every time financial statement are prepared.Every entries involves a balance sheet account and income statement account.No adjusting entry involves cash

9、.2. The basic of adjusting entries1)Types of adjusting entriesAdjusting entries are required every time financial statements are prepared.PrepaymentsAccrualsPrepaid expensesUnearned revenuesAccrued revenuesAccrued expenses2. The basic of adjusting entries2)PrepaymentsPrepaid expenses are expenses pa

10、id in cash and recordedas assets before they are used or consumed.Prepaid ExpensesAssetsUnadjusted balancecreditDebitAdjusting Entry(+)Expense2. The basic of adjusting entries2)Prepaymentsf. Assume on October 1, Catering pays 2400 cash to Sandy Insurance co. for a one-year insurance policy effective

11、 October 1.Insurance Expense - 200 Prepaid Insurance -200 2. The basic of adjusting entries3)Suppliesf. Premier agency purchased supplies costing 2500 on October 5, An inventory count at the close of business onOctober 31 reveals that 1000 of supplies are still on hand.Supplies Expense - 1500 Suppli

12、es - 1500 2. The basic of adjusting entries4)DepreciationIs the process of allocating the cost of an asset to expense over its useful life in a rational and systematic manner.The purchase of equipment or a building is viewed as a long-term prepayment of service.2. The basic of adjusting entries4)Dep

13、reciationDepreciation is an estimate rather than a factual measurement of the cost that has expired.DepreciationAccumulated DepreciationUnadjusted balancecreditDebitAdjusting Entry(+)Depreciation Expense2. The basic of adjusting entries4)DepreciationBook value=Cost of asset accumulated depreciation.

14、Accumulated depreciation is the contra account, use of the contra account provides disclosure of both the original cost of the equipment and the total cost that has expired to date.2. The basic of adjusting entries4)Depreciationf. R Restaurant purchases equipment for $6000 cash on January 1,2004.Ass

15、uming that annual depreciation is $1200, the adjusting entry at December 31, 2004 is:Depreciation Expense - 1200 Accumulated Depreciation-Equipment -1200 2. The basic of adjusting entries5)Unearned revenuesUnearned revenues are subsequently earned by rendering service to a customer.A liability-reven

16、ue account relationship exists with unearned revenues.2. The basic of adjusting entries5)Unearned revenuesUnearned revenues include rent, customer deposits for future service.Unearned revenuesUnearned revenuesLiabilities are overstateddebitCredit to a revenue accountrevenues2. The basic of adjusting

17、 entries5)Unearned revenuesf. Assume on October 1, Schoen Hotel receives $3000 cash for restaurant rental in payment of monthly rent for the period October through December, at October 31, the adjusting entry to record the rent earned in October is:Unearned Rent Revenue - 1000 Rent Revenue -1000 2.

18、The basic of adjusting entries6) Accrued RevenuesAccrued revenues are revenues earned but not yet received in cash or recorded.An asset-revenue account relationship exists with accrued revenues.2. The basic of adjusting entries6) Accrued RevenuesAccruals RevenuesUnearned revenuesassets are understat

19、eddebitrevenue are understatedrevenuesCredit2. The basic of adjusting entries6) Accrued RevenuesF. P1162. The basic of adjusting entries7) Accrued ExpensesAccrued expenses are expenses incurred but not yet paid or recorded. Accrued expenses include interest, rent, taxes, and salaries.A liability-exp

20、ense account relationship exists with accrued expenses.2. The basic of adjusting entries7) Accrued ExpensesAccrued ExpensesLiability accountliabilities are understatedCr.expenses are understatedExpenses accountDr.2. The basic of adjusting entries7) Accrued RevenuesF. Assume Schwenk Catering incurs s

21、alaries of $4000 during the last week of October that will be paid in November.The adjusting entry at October 31 is:Salaries Expense - 4000 Salaries Payable -4000 2. The basic of adjusting entriesSummaryEach adjusting entry affects one balance sheet account and one income statement account.Impact on

22、 Financial statement of Failure to Prepare AdjustmentType of AdjustmentExampleAssetsLiabilityOwners equityRevenueExpenseNetIncomePrepaid ExpenseDepreciationovernoneovernoneunderoverUnearnedRevenueAdvanced DepositsnoneoverunderundernoneunderAccrualExpenseWages AccrualnoneunderovernoneunderoverAccrual

23、RevenueAccrued InterestReceivableundernoneunderundernoneunderImpact on Financial statement of Failure to Prepare AdjustmentType of AdjustmentExampleAssetsLiabilityRevenueExpensePrepaid ExpenseDepreciationOverCr.nonenoneUnderDr.Unearned RevenueAdvanced DepositsnoneOverDr.underCr.noneAccrualExpenseWag

24、es AccrualnoneUnderCr.noneUnderDr.AccrualRevenueAccrued InterestReceivableUnderDr.noneUnderCr.none3. Adjusted Trial BalanceAfter all adjusting entries have been journalized and posted an adjusted trial balance is prepared.This trial balance shows the balances of all accounts, including those that ha

25、ve been adjusted, at the end of the accounting period.The purpose of an trial balance is to prove the equality of the total debit balances and the total credit balances in the ledger.The accounts in the adjusted trial balance contain allData that are needed for the preparation of financial statement

26、s.ExerciseTrue or False1. Monthly and quarterly time periods are commonly referred to as fiscal periods.2.Payments of expenses that will benefit more than one accounting period are referred to as prepaid expenses.True or False3. Cost less accumulated depreciation is a measurement of the current valu

27、e of an asset such as equipment or a building.4.A contra-asset account is an account whose balance is deducted from a related asset in the financial statements.True or False5. The adjusting entry for unearned revenues results in a debit to an asset account and a credit to a revenue account.6. An adj

28、usting entry always involves two balance sheet accounts.True or False7.Accrued revenues are revenues which have been received but not yet earned.8.The balance of the Depreciation Expense and the Accumulated Depreciation accounts should always be the same.True or False9.Accrued revenues are revenues

29、that have been earned and received before financial statements have been prepared.Choice1.The recording of wages earned but not yet paid is an example of an adjustment thatA recognizes an accrued expense.B recognizes an unrecorded revenue.C apportions revenues between two or more periods.D apportion

30、s costs between two or more periods.Choice2.A list of the accounts and their balances after all adjustments have been made is known asA adjusting entries.B adjusted trial balance.C book values.D accrued accounts.Choice3.Prior to recording of adjusting entries, revenues exceed expenses by 50000.Adjus

31、ting entries for accrued wages of 10000 and depreciation expense of 10000 were made. Net income for the year would beA 40000.B 60000.C 30000.D none of the above.Choice4.The adjustment for depreciation is an example of A recognizing an accrued expense.B apportioning costs between two or more periods.

32、C apportioning revenues between two or more periods.D recognizing an unrecorded revenue.Choice5. Businesses could choose fiscal years which correspond toA the calendar year.B any twelve-month period.C their natural business year.D any of the above.Choice6. Management usually desires _ financial statements and the IRS requires all business to file _ tax returns.A, annual, annualB, monthly, annualC, quarterly, monthlyD, monthly, monthlyChoice7. In general, the shorter the time period, the difficulty of making the proper adjustments to accountsA, is incre