本科会计专业英语chapter 2教学课件_第1页
本科会计专业英语chapter 2教学课件_第2页
本科会计专业英语chapter 2教学课件_第3页
本科会计专业英语chapter 2教学课件_第4页
本科会计专业英语chapter 2教学课件_第5页
已阅读5页,还剩29页未读 继续免费阅读

下载本文档

版权说明:本文档由用户提供并上传,收益归属内容提供方,若内容存在侵权,请进行举报或认领

文档简介

1、YCF正版可修改PPT(本科)会计专业英语chapter 2教学课件Chapter 2 Accounting Cycle2Learning ObjectivesUnderstand the basics of accounting cycleExplain the principle of journaling and posting processBe familiar with preparing a trail balanceApply the adjusting proceduresApply the closing process 3Mini Case John is a new i

2、nternship in the finance department of a company, he has to deal with various business transactions in his daily work. Here is a conversation between John and his tutor, Gary. Gary: “How are you getting on with your work, John?” John: “Not bad, sir. But I have a question about the accounting journal

3、s. You know that now we are in the computer world, one computer database is enough for all reporting purpose, such as accounting, marketing, and production. Its obvious that accountants can prepare financial reports upon the information directly abstracted from database. But now we are still using t

4、he traditional accounting journals to record business events. Im wondering is it still necessary for us?” Discuss: If you were Gary, how will you answer Johns question?4ContentTopic 1: Basics of Accounting CycleTopic 2: Journals and LedgersTopic 3:The Trail BalanceTopic 4: Adjusting Procedures 5Topi

5、c 1: Basics of Accounting CycleThe accounting cycle include standardized procedures that are performed in sequence during every accounting period. The sequence of accounting procedures used to record, classify, and summarize accounting information is often termed the accounting cycle.6Topic 1: Basic

6、s of Accounting CycleAccounting cycle can be divided into the following steps:1.Journalize transactions. 2.Post to ledger accounts. 3.Prepare a trial balance. 4.Make end-of-period adjustments. 5.Prepare an adjusted trial balance. 6.Prepare financial statements and appropriate disclosures.7.Journaliz

7、e and post the closing entries.8.Prepare an after-closing trial balance. 7Topic 2: Journals and LedgersThe accounting cycle include standardized procedures that are performed in sequence during every accounting period. The sequence of accounting procedures used to record, classify, and summarize acc

8、ounting information is often termed the accounting cycle.8Topic 2: Journals and Ledgers1. JournalsIn a western accounting system, the information about each business transaction is initially recorded in an accounting record called a Journal.The information about each transaction that should be recor

9、ded in the journal is the date of the transaction, the debit and credit changes in specific ledger accounts, and a brief explanation of the transaction.9Topic 2: Journals and Ledgers(1) Advantages of using journalsThe journal shows all information about a transaction in one place and also provides a

10、n explanation of the transaction.The journal provides a chronological record of all the financial events in the life of a business.The use of a journal helps to prevent errors. If transactions were recorded directly in the ledger, it would be very easy to make errors such as omitting the debit or th

11、e credit, or entering the debit twice or the credit twice.10Topic 2: Journals and Ledgers(2)Types of JournalsGeneral Journals It has only two money columns, one for debits and one for credit; it may be used for all types of transactions. Exhibit 2-2 shows the standard format of a general journal ent

12、ry. Exhibit 2-2 General journal entry Journal Page 1DateAccounts titles and explanationPost. Ref.DebitCredit11Topic 2: Journals and LedgersSpecial Journals In the modern world, a business of any size enters into so many transactions that the use of a single journal would impose intolerable restricti

13、ons on its ability to maintain adequate records. It is, therefore, usual to break down or subdivide the journal into a number of specialized journals, each being used to record transactions of certain kind. It is much simpler and more efficient to group together those transactions which are repetiti

14、ve such as sales, purchases, cash receipts and cash payments and place each of them in a special journal.12Topic 2: Journals and Ledgers2.Ledgers The complete set of accounts for a business entity is called a ledger. It is the “reference book of the accounting system and is used to classify and summ

15、arize transactions and to prepare data for financial statements. There are two types of ledgersgeneral ledger and subsidiary ledger.13Topic 2: Journals and Ledgers2.Ledgers(1)General Ledger A general ledger contains a specific account for each item listed on the financial statements and shows how ea

16、ch transaction changes the balances of these accounts. A companys size and diversity of operations affect the number of accounts needed. A small company can get by with as few as 20 or 30 accounts; a large company can require several thousand. Exhibit 2-3 shows a partial chart of accounts for a smal

17、l company.14Topic 2: Journals and LedgersAccount NumberAccount Name101Cash106Accounts receivable126Supplies128Prepaid insurance167Equipment201Accounts payable236Unearned revenue307Common Stock319Dividends403Fees revenue406Rental revenue622Salaries expense637Insurance expense640Rent expense652Supplie

18、s expense690Utilities expenseExhibit 2-3 Charts of Accounts15Topic 2: Journals and Ledgers(2) Subsidiary Ledgers Further simplification of the general ledger is brought about by the use of subsidiary ledger. Transactions are first recorded in the journal, and at specified intervals the same transact

19、ions are recorded in both the general and, when appropriate, subsidiary ledger accounts. The balances in the general ledger are then used to prepare financial statements.16Topic 2: Journals and Ledgers3.Posting TransactionsPosting is the process of copying journal entry information from the journal

20、to the ledger. The posting of journal entry to ledger is performed in the following steps:(1) Record the date and the amount of the entry in the account.(2) Insert the number of the journal page in the Posting Reference column of the account.(3) Insert the ledger account number in the Posting Refere

21、nce column of the journal.17Topic 3:The Trail BalanceThe equality of debits and credits in the ledger is tested periodically by preparing a trial balance, which lists the balance in each account after the posting process has been completed. The trial balance is prepared using the following procedure

22、s:18Topic 3:The Trail Balance(1)Determine the balance of each account in the ledger.(2)List each account and place its balance beside it.(3)Compute the total of the debit balances.(4)Compute the total of the credit balances.(5)Verify that the sum of the debit balances equals the sum of the credit ba

23、lances.Each amount in the trial balance is simply the final balance of each account in the ledger.19Topic 4: Adjusting Procedures 1. The need for adjustmentsFor purposes of measuring income and preparing financial statements, the 1ife of a business is divided into a series of accounting periods. But

24、 some transactions affected the revenue or expenses of more than one period. Therefore, adjusting entries are needed whenever transactions affect the revenues or expenses of more than one accounting period.20Topic 4: Adjusting Procedures 2. Adjusting the Accounts Adjusting entries can be divided int

25、o deferrals and accruals. Each adjustment affects both the balance sheet and income statement. The adjustments can be further divided into five categories: prepaid expenses, depreciation, unearned revenues, accrued expenses, and accrued revenues.21Topic 4: Adjusting Procedures 1. The need for adjust

26、mentsFor purposes of measuring income and preparing financial statements, the 1ife of a business is divided into a series of accounting periods. But some transactions affected the revenue or expenses of more than one period. Therefore, adjusting entries are needed whenever transactions affect the re

27、venues or expenses of more than one accounting period.22Topic 4: Adjusting Procedures (1) Prepaid ExpensesA prepaid expense is an economic benefit that has been paid for in advance of its use. It requires adjustment because the cash is paid in one period, but the resource is not completely used unti

28、l a later period. There are two methods to adjust prepaid expenses. 23Topic 4: Adjusting Procedures Asset method. If prepayments are initially recorded as assets, they will be incorrectly stated during the accounting period as they are consumed. This must be adjusted at the end of the accounting per

29、iod to reflect the amount used. Part of the asset or the entire asset has become an expense. The adjusting entry requires a debit to an expense account and a credit to an asset accounts, as follows: Expense xxx Asset xxx Expense method. Prepayments initially recorded as expenses will be improperly s

30、tated during the accounting period and must be adjusted at the end of the accounting period to reflect the amount of future benefit remaining and to avoid overstating expenses.24Topic 4: Adjusting Procedures (2) DepreciationDepreciation is the allocation of the cost of a plant asset to expense over

31、its useful life.The amount of the asset used in a period is determined by allocating the net amortizable cost of the asset (original cost less expected trade-in allowance) over the expected useful life of the asset. The general format of the entry to record depreciation expense of an asset is shown

32、as follows: Expense (Depreciation expense) xxx Asset (Accumulated depreciation) xxx25Topic 4: Adjusting Procedures (3) Unearned RevenuesUnearned revenues (also called advance from clients or deferred revenue) represents payment received for goods or services in advance of their delivery. Unearned re

33、venue arises when a business receives cash in one period but does not earn all of it until a later period. Thus, unearned revenue is a liability because the business owes the customer a good or service. The receipt of the cash would increase cash an increase a liability. When the revenue is earned,

34、the adjustment would usually decrease the liability and increase the revenue.26Topic 4: Adjusting Procedures (4) Accrued ExpenseAn accrued expense is recorded by preparing an adjusting entry. An adjusting entry is required because an expense has been incurred during the accounting period but it has

35、not been recorded through the normal course of accounting entries. According to the matching principle, these accrued expenses must be recorded in the period that the effort was expended.27Topic 4: Adjusting Procedures (5) Accrued RevenueAccrued revenue is recorded by preparing an adjusting entry. A

36、n adjustment entry is required because revenue has been earned during the accounting period but is has not been recorded through the normal course of accounting entries.28Topic 4: Adjusting Procedures 3. Adjusted Trial BalanceAfter adjusted entries are made, we can go ahead with adjusted trial balan

37、ce. By preparing and using adjusted trial balance, we can prove that the ledger is still in balance after all the necessary adjusting entries have been journalized and posted. Once an adjusted trial balance has been prepared, the process of recording changes in financial position for this accounting period is complete.29Topic 5: Closing process1. The closing entriesThe term of closing the account

温馨提示

  • 1. 本站所有资源如无特殊说明,都需要本地电脑安装OFFICE2007和PDF阅读器。图纸软件为CAD,CAXA,PROE,UG,SolidWorks等.压缩文件请下载最新的WinRAR软件解压。
  • 2. 本站的文档不包含任何第三方提供的附件图纸等,如果需要附件,请联系上传者。文件的所有权益归上传用户所有。
  • 3. 本站RAR压缩包中若带图纸,网页内容里面会有图纸预览,若没有图纸预览就没有图纸。
  • 4. 未经权益所有人同意不得将文件中的内容挪作商业或盈利用途。
  • 5. 人人文库网仅提供信息存储空间,仅对用户上传内容的表现方式做保护处理,对用户上传分享的文档内容本身不做任何修改或编辑,并不能对任何下载内容负责。
  • 6. 下载文件中如有侵权或不适当内容,请与我们联系,我们立即纠正。
  • 7. 本站不保证下载资源的准确性、安全性和完整性, 同时也不承担用户因使用这些下载资源对自己和他人造成任何形式的伤害或损失。

评论

0/150

提交评论