会计专业英语 (5)

Accounting English
Lesson five— accounting cycle
On 1 June 20X8, Jock Heiss commenced trading as an ice cream salesman, using a van which he drove around the streets of his town. (a) He rented the van at a cost of $1,000 for three month. Running expenses for the van averaged $300 per month. (b) He hired a par time helper at a cost of $100 per month. (c) He borrowed $2,000from his bank, and the interest cost of the loan was $25 per month. (d) His main business was to sell ice cream to customers in the street, but he also did some special catering for business customers, supplying ice creams for office parties. Sales to these customers were usually on credit. (e) for the three months to 31 August 20X8, his total sales were as follows: (i) cash sales $8,900 (ii) credit sales $1,100
Accounting English
Lesson five — accounting cycle
• 5.5 The Adjusted Trial Balance • A useful step in preparing the financial statements is to list the accounts, along with their adjusted balances, on an adjusted trial balance. This document has the advantage of listing all the accounts and their adjusted balances in a single place.
Accounting English
Lesson five — accounting cycle • 5.4 Preparing Unadjusted Trial Balance • A trial balance is a list of all the accounts with their balances—assets first, followed by liabilities and then owner’s equity—taken from the ledger. Before computers, the trial balance provided a check on accuracy by showing whether the total debits equal the total credits. The trial balance is still useful as a summary of all the accounts and their balances. Exhibit5-4 is the trial balance of the ledger of Gary Lyon’s accounting practice after the first six transaction have been journalized and posted.
Accounting English
Lesson five — accounting cycle
• 5.6 closing • Closing the accounts is the end-of-period process that prepare the accounts for the next period. Closing the accounts consists of journalizing and posting the closing entries. Closing zeroes out the balances of the revenue and expense accounts in order to clearly measure the net profit of each period separately from all other periods.
Accounting English
Lesson five — accounting cycle
• g.
Selling Expense 1) Sales salaries expense • 3) Depreciation for delivery equipment • 5) Advertising expense • 8) Transportation out
Accounting English
Lesson five— accounting cycle
On 1 June 20X8, Jock Heiss commenced trading as an ice cream salesman, using a van which he drove around the streets of his town. (f) He purchased his ice cream from a local manufacturer, Floors Co. The cost of purchases in the three months to 31 August 20X8 was $6,200, and at 31 August he had sold every item. He still owed $700 to Floors Co for unpaid purchases on credit. (g) He used his own home for his office work. Telephone and postage expenses for the three months to 31 August were $150. (h) During the period he paid himself $300 per month.
Administrative Expense 2) Office salaries expense • 4) Depreciation for office equipment • 6) Utilities expense • 7) Supplies expense • 9) Rent expense
Accounting English
Lesson five— accounting cycle
• 5.2 Journalizing • In Step 5, “Enter the transaction in the journal”, means to record the transaction in the journal. This step is also called “making the journal entry”. • Step1. The source documents are Lyon’s bank deposit slip and $100 000 cheque, which is deposited in the business bank account. • Step2. The accounts affected by the transaction are Cash and Cary Lyon, Capital. • Step3. Both accounts balance increase $100 000. • Step4.Cash at bank, the asset account, is increased (debited) and Cary Lyon, Capital, the owner’s equity account, is increase (credited). • Step5. The journal entry is: • Dr: Cash at bank 100 000 • Cr: Capital—Cary Lyon 100 000
Accounting English
Lesson five— accounting cycle
• 5.3 Posting from Journal to Ledger • Posting means transferring the amounts from the journal to the accounts in the ledger. Debits in the journal are posted as debits in the ledger. The initial investment transaction of Cary Lyon is posted to the ledger, as shown in Exhibit 5-2. Computers perform this tedious task quickly and without error.
Adjust the general ledger accounts
Post to general ledger accounts
Record in journals
Analyze transactions from source documents
Accounting English
Part 2 Presentation --- When
Journalize and post closing entries
Prepare adjusted trial balance
Accounting English
Lesson five— accounting cycle • • • • •
Learning objectives 1．Record transactions in the journal 2．Post from the journal to the ledger 3．Prepare and use a trial balance 4．Make adjusting entries and prepare an adjusted trial balance • 5．Prepare the financial statements from the adjusted trial balance • 6．Closing
批注本地保存成功开通会员云端永久保存去开通
Accounting English
Lesson five
Accounting Cycle
Lesson one
Steps in the accounting cycle

Close temporary accounts
Prepare financial statements
Capture transaction data on source documents Journalize transaction
Prepare post-closing trial balance
Post transaction to the ledger
Prepare trial balance Journalize and post adjusting entries Prepare financial statements