T3_Journal Entries 会计分录 英文

Reference: Letter, Number, or date
60,000
Amounts: Debited amounts on left. Credited amount on right
Issued common stock.
T-Account
• An account can be represented by the letter T • Is called T-account • Every business transaction involves both a debit and credit Cash (Left side) (Right side) Debit Credit
Current/Temporary accounts
• Current/Temporary accounts - as revenues, expenses and dividends relate to a limited period, they are called current/temporary accounts - closing process applies only to current/temporary accounts (revenues, expenses, and dividends) - Closing entries transfer the revenue, expense, and dividends balances to Retained Earnings
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Normal Balance of an Account
• The normal balance of assets is on the debit side, so assets are debit-balance accounts • Liabilities and stockholders equity usually have a credit balance, so these are creditbalance accounts • (Dividends and expenses carry debit balance because they represent decreases in stockholders’ equity)
Double-Entry Accounting
• You give something and you receive something • Records the dual effects on the entity • Each transaction affects at least two accounts
T-Account
After journal entries are prepared, the accountant posts (transfers) the dollar amounts to each account affected by the transaction.
(c) Property and Equipment (+A) Cash (-A) Notes Payable (+L) Debit 10,000 Credit 2,000 8,000
Jeans Company Balance Sheet 30 November, 2009 (Tห้องสมุดไป่ตู้ousands)
Non-current assets Property and plant (net)
$325,292
Equipment (net)
Other assets Total non-current assets Current assets Inventories Accounts Receivables Cash Total current assets Total assets
Financial Statements
• Present a company to the public in financial terms • Different types - Income Statement/Statement of Comprehensive Income - Balance Sheet/Statement of Financial Position - Statement of Cash Flows - Statement of Stockholders’ Equity - Statement of Retained Earnings
The Account
• Assets – Cash, Accounts Receivable, Notes Receivable, Inventory, Prepaid Expenses, Land, Buildings, Equipment, Furniture, and Fixtures. • Liabilities – Accounts Payable, Notes Payable, Accrued Liabilities • Stockholders’ (Owners’) Equity – Common Equity, Retained Earnings, Dividends
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Posting
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Prepare Unadjusted Trial Balance
Prepare Account Adjustment Prepare Adjusted Trial Balance Prepare Financial Statements - Income Statement - Balance Sheets - Statement of Cash Flow - Statement of Stockholders’ Equity - Statement of Retained Earnings
Permanent accounts
• Permanent accounts - assets, liabilities and stockholders’ equity are the permanent accounts - no need to be closed at the end of the period, as they carry over to the next period
Balance Sheet
Statement of Cash Flows
Statement Of Stockholders’ Equity
Income Statement
• Measures operating performance • Also called the Statement of Comprehensive Income • Reports revenues and expenses for the period • Bottom line is net income or net loss for the period
Journal Entry
Account Titles: Debited accounts on top. Credit accounts on bottom.
Journal
Debit 60,000 Credit
Date Apr 2
Accounts and Explanation Cash Common Stock
Ledger
Post
Accounting Information Processing System
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Record all Transaction Activities (Data)
Classifying Data (Categorize) Group into Account Books (Journalising / Account Ledger) Group into General Ledger
Income Statement
• Two main categories: - Revenues and gains - Expenses and losses
Net Income = Total Revenues and Gains – Total Expenses and Losses
Income Statement - Example
The following diagram shows how the data flow from one financial statement to the next and the order is important
Income Statement
Statement of Retained Earnings
Recording Transaction - Journal
• Accountants use a chronological record of transactions called a journal • Is an accounting method for expressing the effects of a transaction on accounts • Written in a debits-equal-credits format • Any journal entry that affects more than two accounts is called a compound entry
Chart of Accounts
• To facilitate the recording of transaction, each company established a chart of accounts • List all account titles and their unique numbers • Account numbers usually have 2 or more digits
Balance Sheet
• Also called the statement of financial position • Reports 3 items: assets, liabilities, and stockholders’ equity (shareholders’ equity) • The balance sheet is dated at the moment in time when the accounting period ends
Topic 3 Journal, Ledger, Double Entry Book-Keeping
Account
• To accumulate the dollar effect of transaction on each financial statement items, organizations use a standardized format called an account • The resulting balances are kept separate for financial statement purposes
68,403
22,500 $416,195
$387,750 339,714 265,599 993,063 $1,409,258
Owners' equity Capital Retained earnings Total owners' equity
Liabilities Non-current liabilities Notes payable Total non-current liabilities Current liabilities Accounts payable Salary payable Interest payable Total current liabilities Total liabilities Total equity and liabilities