[精选]会计英语第六单元
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► The journal entries that bring the accounts up to gate at the end of the accounting period are called adjusting entries.
三 Four typical adjusting entries:
► (1) unearned rent ► (2) tuition ► (3) annual retailer fee ► (4) premium ► (5) magazine subscriptions
► Accruals --------- are created by an unrecorded expense that has been incurred or an unrecorded revenue that has been earned.
► 4 At the end of December, accrued wages for A were $250.
► Dr. Wages Expense
$250
►
Cr. Wages Payable
$250
► (1) wages are paid on the second and fourth Fridays for the two-week period ending on those Fridays. The payments were $950 on December 13 and $1200 on December 27.
► 3 Journalize entries for accounts requiring adjustment.
► 4 Summarize the adjustment process and prepare an adjustment trial balance.
► 一 accounting period ► → cash basis (received or paid)
►Jan, 10:
►Dr. Wages Payable $250
► Cr. Cash
$250
►5 Assume that A signed an agreement with B on December 15. The agreement provides that A will be on call to answer computer questions and render assistance to B’s employees. The services provided will be billed to B on the fifteenth of each month at a rate of $20 per hour. As of December 31, A had provided 25 hours of assistance to B.
► Current accounting period → ► ( cash received or paid )
( revenue or expense incurred ) ► →future accounting period ► ( revenue or expense incurred )
Unit Four Accounting Cycle
(3) Adjustments
Objectives:
► 1 Explain how the matching concept relates to the accrual basis of accounting.
► 2 Explain why adjustments are necessary and list the characteristic of adjusting entries.
► ㈣ Accrued revenues (accrued assets) →revenues earned but not recorded
► (1) fees for services
► (2) unbilled commissions
► (3) accrued interest on notes receivable
► ㈢ Accrued expenses (accrued liabilities) →
► expense have been incurred but not recorded
► (1) accrued wages
► (2) accrued interest on notes payable
► (3) accrued taxes
►(2) The wages accrued for Monday and Tuesday, December 30 and 31, are $250.
►(3) Wages paid on Friday, Januห้องสมุดไป่ตู้ry 10,totals $1275.
Sund Mond Tues Wedn Fourt Frida Satur
► (2) What is the effect of omitting adjusting entries?
► On the income statement, Supplies Expense and Insurance Expense will be understated by a total of $1340.
► (4) accrued rent
Summarize:
► 1 How do you tell the difference between deferrals and accruals?
► If cash is received or paid in the current period, but the revenue or expense relates to a future period, the revenue or expense is a deferred item. If cash will not be received or paid until a future period, but the revenue or expense relates to the current period, the revenue or expense is an accrued item.
►Dr. Insurance Expense $100
►
Cr. Prepaid Insurance $100
Attention:
► (1) the balance of a prepaid (deferred) expense is an asset that will become an expense in a future period.
► On the balance sheet, Supplies and Prepaid Insurance will be overstated by a total of $1340.
► (3) Prepayments of expenses are sometimes made at the beginning of the period in which they will be entirely consumed.
►Dr. Supplies Expense $1240
► Cr. Supplies
$1240
►2 The debit balance of $2400 in A prepaid insurance account represents a December 1 prepayment of insurance for 24 months. At the end of December the insurance for one month turn into reality.
ay ay day esday h day y
day
1
2
3
4
5
6
7
8
9
10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
►13 ------- wages expense (paid) $950 ►27 ------- wages expense (paid) $1200 ►30,31 --wages expense (accrued) $250
► accrual basis (earned or relate):
► revenue recognition concept ► → matching principle
► GAAP require the use of the accrual basis , small service businesses may use the cash basis because they have few receivables and payables.
► The matching principle supports recording revenues and relate expenses in the same period.
► 二 At the end of an accounting period, some accounts in the ledger require updating.
►Dr. Unearned Rent $120
►
Cr. Rent Revenue $120
►In the case of wages expense, if the last day of a paid period is not the last day of the accounting period, the accrued wages expense and the related liability must be recorded in the accounts by an adjusting entry.
►Deferrals --------- are created by recording a transaction in a way that delays or defers the recognition of an expense or a revenue.
►㈠ Deferred expenses (prepaid expenses) → become expense over time
( cash received or paid )
► 2 All adjusting entries affect at least one income statement account and one balance sheet account.
四 Examples:
►1 Assuming that on December 31 the amount of supplies on hand is $760, the amount to be transferred from the asset account to the expense account is $1240.(supplies used is the amount of adjustment)
► 3 According to A’s trial balance on December 31, the balance in the unearned rent account is $360. This represents the receipt of three months’ rent on December 1 for Dec. Jan. Feb, At the end of December $120 rent should be turn into reality.
► (1) supplies ► (2) prepaid insurance ► (3) prepaid advertising ► (4) prepaid interest
► ㈡ Deferred revenues (unearned revenue) → become revenues over time
三 Four typical adjusting entries:
► (1) unearned rent ► (2) tuition ► (3) annual retailer fee ► (4) premium ► (5) magazine subscriptions
► Accruals --------- are created by an unrecorded expense that has been incurred or an unrecorded revenue that has been earned.
► 4 At the end of December, accrued wages for A were $250.
► Dr. Wages Expense
$250
►
Cr. Wages Payable
$250
► (1) wages are paid on the second and fourth Fridays for the two-week period ending on those Fridays. The payments were $950 on December 13 and $1200 on December 27.
► 3 Journalize entries for accounts requiring adjustment.
► 4 Summarize the adjustment process and prepare an adjustment trial balance.
► 一 accounting period ► → cash basis (received or paid)
►Jan, 10:
►Dr. Wages Payable $250
► Cr. Cash
$250
►5 Assume that A signed an agreement with B on December 15. The agreement provides that A will be on call to answer computer questions and render assistance to B’s employees. The services provided will be billed to B on the fifteenth of each month at a rate of $20 per hour. As of December 31, A had provided 25 hours of assistance to B.
► Current accounting period → ► ( cash received or paid )
( revenue or expense incurred ) ► →future accounting period ► ( revenue or expense incurred )
Unit Four Accounting Cycle
(3) Adjustments
Objectives:
► 1 Explain how the matching concept relates to the accrual basis of accounting.
► 2 Explain why adjustments are necessary and list the characteristic of adjusting entries.
► ㈣ Accrued revenues (accrued assets) →revenues earned but not recorded
► (1) fees for services
► (2) unbilled commissions
► (3) accrued interest on notes receivable
► ㈢ Accrued expenses (accrued liabilities) →
► expense have been incurred but not recorded
► (1) accrued wages
► (2) accrued interest on notes payable
► (3) accrued taxes
►(2) The wages accrued for Monday and Tuesday, December 30 and 31, are $250.
►(3) Wages paid on Friday, Januห้องสมุดไป่ตู้ry 10,totals $1275.
Sund Mond Tues Wedn Fourt Frida Satur
► (2) What is the effect of omitting adjusting entries?
► On the income statement, Supplies Expense and Insurance Expense will be understated by a total of $1340.
► (4) accrued rent
Summarize:
► 1 How do you tell the difference between deferrals and accruals?
► If cash is received or paid in the current period, but the revenue or expense relates to a future period, the revenue or expense is a deferred item. If cash will not be received or paid until a future period, but the revenue or expense relates to the current period, the revenue or expense is an accrued item.
►Dr. Insurance Expense $100
►
Cr. Prepaid Insurance $100
Attention:
► (1) the balance of a prepaid (deferred) expense is an asset that will become an expense in a future period.
► On the balance sheet, Supplies and Prepaid Insurance will be overstated by a total of $1340.
► (3) Prepayments of expenses are sometimes made at the beginning of the period in which they will be entirely consumed.
►Dr. Supplies Expense $1240
► Cr. Supplies
$1240
►2 The debit balance of $2400 in A prepaid insurance account represents a December 1 prepayment of insurance for 24 months. At the end of December the insurance for one month turn into reality.
ay ay day esday h day y
day
1
2
3
4
5
6
7
8
9
10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31
►13 ------- wages expense (paid) $950 ►27 ------- wages expense (paid) $1200 ►30,31 --wages expense (accrued) $250
► accrual basis (earned or relate):
► revenue recognition concept ► → matching principle
► GAAP require the use of the accrual basis , small service businesses may use the cash basis because they have few receivables and payables.
► The matching principle supports recording revenues and relate expenses in the same period.
► 二 At the end of an accounting period, some accounts in the ledger require updating.
►Dr. Unearned Rent $120
►
Cr. Rent Revenue $120
►In the case of wages expense, if the last day of a paid period is not the last day of the accounting period, the accrued wages expense and the related liability must be recorded in the accounts by an adjusting entry.
►Deferrals --------- are created by recording a transaction in a way that delays or defers the recognition of an expense or a revenue.
►㈠ Deferred expenses (prepaid expenses) → become expense over time
( cash received or paid )
► 2 All adjusting entries affect at least one income statement account and one balance sheet account.
四 Examples:
►1 Assuming that on December 31 the amount of supplies on hand is $760, the amount to be transferred from the asset account to the expense account is $1240.(supplies used is the amount of adjustment)
► 3 According to A’s trial balance on December 31, the balance in the unearned rent account is $360. This represents the receipt of three months’ rent on December 1 for Dec. Jan. Feb, At the end of December $120 rent should be turn into reality.
► (1) supplies ► (2) prepaid insurance ► (3) prepaid advertising ► (4) prepaid interest
► ㈡ Deferred revenues (unearned revenue) → become revenues over time