会计学：企业决策的基础（管理会计分册）（原书第19版）课件 Chap003 The Accounting Cycle Capturing Economic Events

Chapter3TheAccountingCycle:CapturingEconomicEventsTheAccountingCycleAccountingrecordsareusedto:Preparefinancialstatements.Completeincometaxreturns.Createotherreports.Theaccountingcycleisthesequenceofaccountingproceduresusedtorecord,classify,andsummarizeaccountinginformationinfinancialreportsatregularintervals.StepsoftheAccountingCycleJournalize(record)transactions.Posteachjournalentrytoledgeraccounts.Prepareatrialbalance.Makeend-of-periodadjustingentries.Prepareadjustedtrialbalance.Preparefinancialstatements.Journalizeandpostclosingentries.Prepareafter-closingtrialbalance.RoleofAccountingRecordsManagersandemployeesofabusinessfrequentlyusetheinformationstoredintheaccountingrecordsforthefollowing:Establishingaccountabilityfortheassetsand/ortransactionsunderanindividual’scontrol.Keepingtrackofroutinebusinessactivities.Obtainingdetailedinformationaboutaparticulartransaction.RoleofAccountingRecords(cont.)Evaluatingtheefficiencyandperformanceofvariousdepartmentswithinanorganization.Maintainingdocumentaryevidenceofthecompany’sbusinessactivitiesincludingregulatoryrequirementssuchastaxcomplianceanddocumentation.TheLedgerAccount:therecordusedtokeeptrackoftheincreasesanddecreasesinfinancialstatementitems;mayalsobecalleda“ledgeraccount.”Ledger:theaccountingrecordwhichincludestheentiregroupofindividualaccounts.TheUseofAccountsEachaccounthasthreeelements:AtitleAleftside,whichiscalledthedebitsideArightside,whichiscalledthecreditsideKEYPOINTWhetheranaccountisincreasedordecreasedbyadebitorcreditentrywilldepend

ontheaccounttype(i.e.asset,liability,etc.).Wewilllearnmoreaboutthisthroughoutthechapter.UsingTAccountsDebitsarerecordedontheleftsideoftheTaccount,andcreditsarerecordedontherightside.LeftorDebitSideRightorCreditSideTitleofAccountReceiptsareonthedebitside.Paymentsareonthecreditside.Thebalanceisthedifferencebetweenthedebitandcreditentriesintheaccount.DebitandCreditEntriesDeterminingtheBalanceofaTAccountThebalanceisthedifferencebetweenthedebit(left)andcredit(right)entriesintheaccount.Inourcashaccount,thedebitbalanceisenteredonthedebitsideoftheaccountjustbelowtheline.Alinefollowingthelastentrycreatesa“freshstart”intheaccount.ThebalanceofCashwouldbelistedonabalancesheetasanasset.DebitBalancesinAssetAccountsAssetaccountsareincreasedbydebitentriesanddecreasedbycreditentries.Assetaccountshaveanormaldebitbalance.Assetsarelocatedontheleftsideofthebalancesheetandfollowtherulethatanincreaseinanassetisrecordedontheleft(debit)sideoftheaccountandanassetaccountnormallyhasadebit(left-hand)balance.CreditBalancesinLiabilitiesandEquityLiabilityaccountsandowners’equityaccountsareincreasedbycreditsanddecreasedbydebits.Therelationshipbetweenentriesintheseaccountsandtheirpositiononthebalancesheetmaybesummedupasfollows:Liabilitiesandowners’equitybelongontherightsideofthebalancesheet.Anincreaseinaliabilityoranowners’equityaccountisrecordedontheright(credit)sideoftheaccount.Liabilityandowners’equityaccountsnormallyhavecredit(right-hand)balances.DebitandCreditRuleSummaryA

=

L

+

OEDebitbalancesCreditbalances=Inthedouble-entryaccountingsystem,everytransactionisrecordedbyequaldollaramountsofdebitsandcredits.Double-EntryAccounting:TheEqualityofDebitsandCreditsTheJournalInanactualaccountingsystem,theinformationabouteachbusinesstransactionisinitiallyrecordedinanaccountingrecordcalledthejournal.Thejournalisachronological(day-by-day)recordofbusinesstransactions.Thisinformationislatertransferredtotheappropriateaccountsinthegeneralledger.TheJournal(cont.)Atconvenientintervals,thedebitandcreditamountsrecordedinthejournalaretransferred(posted)totheaccountsintheledger.Theupdatedledgeraccounts,inturn,serveasthebasisforpreparingthecompany’sfinancialstatements.Example:Transaction1OnJanuary20,2018,theMcBryanfamilyinvested$80,000inexchangeforcapitalstock.Thus,theassetCashincreasedby$80,000,andtheowners’equityaccountCapitalStockincreasedbythesameamount.Applyingthedebitandcreditrulesdiscussedpreviously,weknowthatincreasesinassetsarerecordedbydebits,whereasincreasesinowners’equityarerecordedbycredits.Assuch,thiseventrequiresadebittoCashandacredittoCapitalStockintheamountof$80,000.Example:Transaction1(cont.)GENERALJOURNALDateAccountTitlesandExplanationDebitCredit2021Jan.20Cash80,000CapitalStock80,000Ownersinvestcashinthebusiness.Notethebasiccharacteristicsofthisgeneraljournalentry.Thenameoftheaccountdebited(Cash)iswrittenfirst,andthedollaramounttobedebitedappearsintheleft-handmoneycolumn.Thenameoftheaccountcredited(CapitalStock)appearsbelowtheaccountdebitedandisindentedtotheright.Thedollaramountappearsintheright-handmoneycolumn.Abriefdescriptionofthetransactionappearsimmediatelybelowthejournalentry.PostingJournalEntriestotheLedgerPostingsimplymeansupdatingtheledgeraccountsfortheeffectsofthetransactionsrecordedinthejournal.Postinginvolvescopyingintotheledgeraccountsinformationthatalreadyhasbeenrecordedinthejournal.KEYPOINTInmanualaccountingsystems,thiscanbeatediousandtime-consumingprocess,butincomputer-basedsystems,itisdoneinstantlyandautomatically.Inaddition,computerizedpostinggreatlyreducestheriskoferrors.PostingtheJournalEntrytoCashSummaryofJanuary20EntrySummaryofJanuary21EntryRepresentingOvernight,McBryannegotiatedwithboththeCityofSantaTeresaandMetropolitanTransitAuthority(MTA)topurchaseanabandonedbusgarage.(Thecityownedtheland,buttheMTAownedthebuilding.)OnJanuary21,OvernightAutoServicepurchasedthelandfromthecityfor$52,000cash.SummaryofJanuary22EntryOvernightcompletedtheacquisitionofitsbusinesslocationbypurchasingtheabandonedbuildingfromtheMTA.Thepurchasepricewas$36,000;Overnightmadea$6,000cashdownpaymentandissueda90-day,non-interest-bearingnotepayablefortheremaining$30,000.SummaryofJanuary23EntryOvernightpurchasedtoolsandequipmentonaccountfromSnappyTools.Thepurchasepricewas$13,800,duein60days.SummaryofJanuary24EntryOvernightfoundthatithadpurchasedmoretoolsthanitneeded.OnJanuary24,itsoldtheexcesstoolsonaccounttoAceTowingatapriceof$1,800.Thetoolsweresoldatapriceequaltotheircost,sotherewasnogainorlossonthistransaction.SummaryofJanuary26EntryOvernightreceived$600inpartialcollectionoftheaccountreceivablefromAceTowing.SummaryofJanuary27EntryOvernightmadea$6,800partialpaymentofitsaccountpayabletoSnappyTools.LedgerAccountsafterPostingNetincomeisnotanasset

it’sanincreaseinowners’equityfromprofitsofthebusiness.A

=

L

+

OEIncreaseDecreaseAsincomeisearned,eitheranassetisincreasedoraliabilityisdecreased.IncreaseNetincomealwaysresultsintheincreaseofOwners’Equity.WhatIsNetIncome?RetainedEarningsEarningnetincomecausesthebalanceinRetainedEarningstoincrease.Ifresourcesgeneratedbyprofitableoperations,calleddividends,aredistributedtostockholders,RetainedEarningsisdecreased.ThebalanceinRetainedEarningsrepresentstotalincomeoverthelifeofthecorporation,lessdividends.Overnight’sIncomeStatementCaseinPointAccountingPeriodTerminologyAccountingperiod—theperiodoftimecoveredbyanincomestatement.Timeperiodprinciple—netincomeismeasuredforrelativelyshortaccountingperiodsofequallengthtofacilitatetheinterpretationoffinancialeventsandthepreparationoffinancialstatements.Fiscalyear—the12-monthaccountingperiodusedbyanentity.RevenueRevenueisthepriceofgoodssoldandservicesrenderedduringanaccountingperiod.Causesowners’equitytoincrease.Resultsinanincreaseincashoraccountsreceivable.Representsthegrossincreaseinowners’equityresultingfromoperationofthebusiness.RealizationPrincipleTherealizationprincipleindicatesthatrevenueshouldberecognizedatthetimegoodsaresoldorservicesarerendered.Thebusinessmusthaveessentiallycompletedtheearningsprocess.Thesalesvalueofthegoodsorservicescanbemeasuredobjectively.ExpensesExpensesarethecostsofthegoodsandservicesusedupintheprocessofearningrevenue.Examplesincludethecostofsalaries,advertising,rent,utilities,anddepreciationoflong-termassets.Necessarytoattractandservecustomers.Causesadecreaseinowners’equity.Resultsineitheradecreaseinassetsoranincreaseinliabilities(accountspayable).TheMatchingPrincipleThematchingprinciplereferstotheconceptofoffsettingexpensesagainstrevenueonabasisofcauseandeffect.Expensesareincurredforthepurposeofproducingrevenue.Inordertomeasurenetincomeforaperiod,revenueshouldbeoffsetbyalltheexpensesincurredinproducingthatrevenue.ExpendituresBenefitingMoreThanOneAccountingPeriodManyexpendituresmadebyabusinessbenefittwoormoreaccountingperiods.Examplesmayincludeinsurancepolicies,buildings,machinery,andequipment.Assumingthatmanagementcanreasonablyestimatethenumberofaccountingperiodsthatwillbenefit,thecostshouldberecordedasanassetandallocatedtoexpenseovertheperiodforwhichitwillbenefitthecompany.ExpendituresBenefitingMoreThanOneAccountingPeriod(cont.)ItmaynotbepossibletoestimatethenumberofaccountingperiodsbenefitedforallexpendituresmadebyabusinesssoGAAPrequirestheexpenditurebeimmediatelyexpensed.ThistreatmentisbasedonObjectivity–ifobjectiveevidenceisn’tavailable,followconservatismandrecordasanexpense.Conservatism–applytheaccountingtreatmentthatresultsinthelowestestimateofnetincome.InternationalCaseinPointAccrualBasisofAccountingAccrualbasisofaccountinghastwobasicrequirements:Revenueisrecognizedintheperiodwhenitisearned.Expensesarerecognizedintheperiodwhentheyareincurred.Mostimportantconceptisthematchingprinciplewhichrequiresthatrevenueisoffsetwithalloftheexpensesincurredingeneratingthatrevenue,thusprovidingameasureoftheoverallprofitabilityoftheeconomicactivity.CashBasisofAccountingUnderthecashbasisofaccounting:Revenueisrecognizedwhencashiscollected.Expensesarerecognizedwhenpaymentsaremade.Cashbasismeasurestheamountofcashreceivedandpaidoutduringtheperiod.Thecashbasisdoesnotprovideagoodmeasureofprofitabilityduringtheperiod.CashFlowvs.IncomeStatementRecognitionDebitandCreditRulesforRevenueandExpensesThedebitandcreditrulesforrecordingrevenueandexpensesintheledgeraccountsareanaturalextensionoftherulesforrecordingchangesinowners’equity:Increasesinowners’equityarerecordedbycredits.Decreasesinowners’equityarerecordedbydebits.Thisruleisnowextendedtocoverrevenueandexpenseaccounts.Revenueincreasesowners’equity;therefore,revenueisrecordedbycredits.Expensesdecreaseowners’equity;therefore,expensesarerecordedbydebits.DebitandCreditRulesforRevenueandExpenses(cont.)DividendsAdividendisadistributionofassets(usuallycash)byacorporationtoitsstockholders.Reducesbothassetsandowners’equity.Isnotclassifiedasanexpense.Representsadistributionofprofitstotheownersofthebusiness.IncomeStatementTransactionsIllustratedInthefollowingslides,wewillcontinueouranalysisofOvernightAutoServicebyexaminingtheirtransactionsrelatedto:RevenueExpenseDividendsSummaryofJanuary31TransactionRecordedrevenueof$2,200,allofwhichwasreceivedincash.SummaryofJanuary31Entry2Paidemployees’wagesearnedinJanuary,$1,200.SummaryofJanuary31

Entry3PaidforutilitiesusedinJanuary,$200.February1TransactionPaidDailyTribune$360cashfornewspaperadvertisingtoberunduringFebruary.February2TransactionPurchasedradioadvertisingfromKRAMtobeairedinFebruary.Thecostwas$470,payablewithin30days.February4TransactionPurchasedvariousshopsupplies(suchasgrease,solvents,nuts,andbolts)fromCAPAAutoParts;thecostwas$1,400,duein30days.ThesesuppliesareexpectedtomeetOvernight’sneedsforthreeorfourmonths.February15TransactionCollected$4,980cashforrepairsmadetovehiclesofAirportShuttleService.February28Transaction1BilledHarborCabCo.$5,400formaintenanceandrepairservicesOvernightprovidedinFebruary.TheagreementwithHarborCabcallsforpaymenttobereceivedbyMarch10.February28Transaction2Paidemployees’wagesearnedinFebruary,$4,900.YourTurnYouasOvernightAutoService’sAccountantYourgoodfriend,FredJonas,isthemanagerofHarborCabCo.YourfamilyandFred’sfamilymeetfrequentlyoutsideofyourrespectiveworkplacesforfun.Atarecentbarbecue,FredaskedyouabouttheamountofrepairservicesrenderedbyOvernightAutotoAirportShuttleServicesinFebruary.AirportShuttleServicescompeteswithHarborCabCo.forfarestoandfromtheairport.WhatshouldyousaytoFred?February28Transaction3Recorded$1,600utilitybillforFebruary.TheentireamountisdueMarch15.February28Transaction4OvernightAutoServicesdeclaresandpaysadividendof40centspersharetotheownersofits8,000sharesofcapitalstock—atotalof$3,200.AllbalancesaretakenfromtheledgeraccountsonFeb.28afterconsideringallofOvernight’stransactionsforthemonth.Overnight’sTrialBalanceUsesandLimitationsoftheTrialBalanceThetrialbalanceprovidesproofthattheledgerisinbalance.Theagreementofthedebitandcredittotalsofthetrialbalancegivesassurancethat:Equaldebitsandcreditshavebeenrecordedforalltransactions.Theadditionoftheaccountbalancesinthetrialbalancehasbeenperformedcorrectly.KEYPOINTThepreparationofatrialbalancedoesnotprovethattransactionshavebeencorrectlyanalyzedandrecordedintheproperaccounts.Itisstillpossiblethatanentrywaspostedtoincorrectaccount(s)orthatanentrywasomittedalltogether.LocatingErrorsontheTrialBalanceSupposethatthedebitandcredittotalsofthetrialbalancedonotagree.Thissituationindicatesthatoneormoreerrorshavebeenmade.Typicalofsucherrorsare:Postofadebitasacreditorviceversa.Mathematicalmistakesincomputingaccountbalances.Clericalerrorsincopyingaccountbalances.Listingadebitbalanceinthecreditcolumnorviceversa.Errorsinadditionofthetrialbalance.ComputersImproveEfficiencyComputersnowfreeaccountantstofocusuponthemoreanalyticalaspectsoftheirdiscipline.Theseinclude,forexample:Determiningtheinformationneedsofdecisionmakers.Designingsystemstoprovidetheinformationquicklyandefficiently.Evaluatingtheefficiencyofoperationsthroughouttheorganization.ComputersImproveEfficiency(cont.)Assistingdecisionmakersininterpretingaccountinginformation.Auditing(confirmingthereliabilityofaccountinginformation).Forecastingtheprobableresultsoffutureoperations.Taxplanning.LearningObjectiveSummaryLO3-1LO3-1:Identifythestepsintheaccountingcycleanddiscusstheroleofaccountingrecordsinanorganization.

Theaccountingcyclegenerallyconsistsofeightspecificsteps:(1)journalizing(recording)transactions,(2)postingeachjournalentrytotheappropriateledgeraccounts,(3)preparingatrialbalance,(4)makingend-of-periodadjustments,(5)preparinganadjustedtrialbalance,(6)preparingfinancialstatements,(7)journalizingandpostingclosingentries,and(8)preparinganafter-closingtrialbalance.LearningObjectiveSummaryLO3-1(cont.)Accountingrecordsprovidetheinformationthatissummarizedinfinancialstatements,incometaxreturns,andotheraccountingreports.Inaddition,theserecordsareusedbythecompany’smanagementandemployeesforsuchpurposesas∙Establishingaccountabilityforassetsandtransactions.∙Keepingtrackofroutinebusinessactivities.∙Obtainingdetailsaboutspecifictransactions.∙Evaluatingtheperformanceofunitswithinthebusiness.∙Maintainingadocumentaryrecordofthebusiness’sactivities.(Sucharecordisrequiredbytaxlawsandisusefulformanypurposes,includingaudits.)LearningObjectiveSummaryLO3-2LO3-2:Describealedgeraccountandaledger.

Aledgeraccountisadeviceforrecordingtheincreasesordecreasesinonefinancialstatementitem,suchasaparticularasset,atypeofliability,orowners’equity.Thegeneralledgerisanaccountingrecordthatincludesalltheledgeraccounts—thatis,aseparateaccountforeachitemincludedinthecompany’sfinancialstatements.LearningObjectiveSummaryLO3-3LO3-3:Understandhowbalancesheetaccountsareincreasedordecreased.

Increasesinassetsarerecordedbydebitsanddecreasesarerecordedbycredits.Increasesinliabilitiesandinowners’equityarerecordedbycreditsanddecreasesarerecordedbydebits.Noticethatthedebitandcreditrulesarerelatedtoanaccount’slocationinthebalancesheet.Iftheaccountappearsontheleftsideofthebalancesheet(assetaccounts),increasesintheaccountbalancearerecordedbyleft-sideentries(debits).Iftheaccountappearsontherightsideofthebalancesheet(liabilityandowners’equityaccounts),increasesarerecordedbyright-sideentries(credits).LearningObjectiveSummaryLO3-4LO3-4:Explainthedouble-entrysystemofaccounting.

Thedouble-entrysystemofaccountingtakesitsnamefromthefactthateverybusinesstransactionisrecordedbytwotypesofentries:(1)debitentriestooneormoreaccountsand(2)creditentriestooneormoreaccounts.Inrecordinganytransaction,thetotaldollaramountofthedebitentriesmustequalthetotaldollaramountofthecreditentries.LearningObjectiveSummaryLO3-5LO3-5:Explainthepurposeofajournalanditsrelationshiptotheledger.

Thejournalistheaccountingrecordinwhichbusinesstransactionsareinitiallyrecorded.Theentryinthejournalshowswhichledgeraccountshaveincreasedasaresultofthetransactionandwhichhavedecreased.Aftertheeffectsofthetransactionhavebeenrecordedinthejournal,thechangesintheindividualledgeraccountsarethenpostedtotheledger.LearningObjectiveSummaryLO3-6LO3-6:Explainthenatureofnetincome,revenue,andexpenses.

Netincomeisanincreaseinowners’equitythatresultsfromtheprofitableoperationofabusinessduringanaccountingperiod.Netincomealsomaybedefinedasrevenueminusexpenses.Revenueisthepriceofgoodssoldandservicesrenderedtocustomersduringtheperiod,andexpensesarethecostsofthegoodsandservicesusedupintheprocessofear