中外比較會計ch3

1、Chapter 3Accounting Proceduresldouble-entry 復式簿記 ltransaction 交易ljournal 日記賬lposting 過賬lledger 分類賬 ltrial balance 試算平衡ladjusting 調整 l closing 結賬lAssets liabilities equitylrevenuelexpenseslgains and losses: increase or decreases in equity from incidental or peripheral transactions lnet income (loss)

2、凈收益（損失） =revenues-expenses+gains-lossesCashSuppliesBuildingAccounts receivableAccounts payableNotes payableWages payable(Accrued liabilities)Owners equity is the owners right to the assets of the business.Chris Clark, CapitalChris Clark, DrawingCommon stockRetained earnings DividendFees EarnedFares

3、EarnedCommission RevenueRent ExpenseSalary ExpenseUtilities Expensel1).analyzing transactionsl2).recording transactions in journalsl3).posting to ledger accountsl4) trial balance preparationl5).making adjusting entries l6).preparing financial statements (in a work sheet) l7).journalizing and posting

4、 closing entriesl8).preparing a closed trial balanceAccounting equation Assets=Liabilities+Owners equitylThe journal is a chronological accounting record in which transactions are first recorded.Post. Ref.JOURNALDateDescriptionDebitCreditPage 11 2 3 4Nov. 12005Cash25 000 00Chris Clark, Capital25 000

5、 00Invested cash in NetSolutions.1.The journal shows all information about a transaction in one place and also provides an explanation of the transaction.2.The journal provides a chronological record of all the life of a business.3. The journal helps to prevent errors.l The T-accountlIncreases in as

6、sets are recorded on the _side of the account.lIncreases in liabilities and equities are recorded by _. lExample:lOn Jan. 2, John Brown started the Brown company. During Jan., Brown Company make the following transactions:l1.It received $5,000 cash from John Brown as its capital on Jan.1.lDr. Cash 5

7、,000l Cr. Capital, Brown 5,000l2.It borrowed $10,000 from a bank on Jan. 5, giving a note.lDr. Cash 10,000l Cr. Notes payable 10,000l3. It purchased $4,000 of inventory for cash on Jan.6.lDr. Inventory 4,000l Cr. Cash 4,000l4.On Jan. 10, it sold $2,000 of its inventory for $6,000 to a customer, who

8、paid $3,500 cash and agreed to pay $2,500 within 30 days.lDr. Cash 3.500l Accounts receivable 2,500l Cr. Sales revenue 6,000lDr. Cost of goods sold 2,000l Cr. Inventory 2000l5.It purchased an auto for $7,000. It paid $2,000 down and gave a note to the dealer for the remaining $5,000.lDr. Automobile

9、7,000l Cr. Cash 2,000l Notes payable 5,000l6.Brown withdrew $1,000 cash for his personal use.lDr. Drawing 1,000 l Cr. Cash 1,000 A ledger account is a means of accumulating in one place all the information about changes in a specific asset, a liability, or a owners equity. (double entry accounting,

10、)1.General ledger accounts p292.Subsidiary ledger accounts（明細分類賬）Such as :accounts receivable Arthur Billy3.Four-column account format Cash bal. 0 inventory 4000 capital 5000 auto. 2000notes payable 10000 drawing 1000sales revenue 3500Bal. 11500lA chart that lists all accounts and their numbers.lCla

11、ssified into categories and orderedlBusinesses may have different chart of accounts (Service corporation ,merchandising corporation ,manufacturing corporation)4. trial balance preparationlA trial balance is a two-column schedule listing the names and balances of all the accounts, the debit balances

12、are listed in the left-hand column and the credit balances in the right-hand column.NetSolutionsTrial BalanceDecember 31, 2005Cash2 065 00Accounts Receivable2 220 00Supplies2 000 00Prepaid Insurance2 400 00Land20 000 00Office Equipment1 800 00Accounts Payable900 00Unearned Rent360 00Chris Clark, Cap

13、ital25 000 00Chris Clark, Drawing4 000 00Fees Earned16 340 00Wages Expense4 275 00Rent Expense1 600 00Utilities Expense985 00Supplies Expense800 00Miscellaneous Expense455 0042 600 0042 600 00lThe purpose of adjusting entries is to record certain revenues and expenses that are not properly measured

14、in the course of recording daily business transactions.lTwo basic classifications of items require adjusting entries:l1.deferrals prepaid expensesl p49 unearned revenuesl2.accruals accrued expensesl p49 accrued revenuesl1.entries to apportion recorded costs (assets expenses)lPrepaid expenses(assets)

15、lDepreciation of plant assetslPaid $600 for a year fire insurance lUnexpired insurance 600l Cash 600 lTo apportion:lInsurance expense 50l Unexpired insurance 50l2.entries to apportion unearned revenue (liabilities revenue)lOn Nov. 1, Arthur received 6-month service fees $1800 in advance.l lCash 1800

16、l Unearned service fees 1800lOn Nov.30,l unearned service fees 300l services fees earned 300l3.entries to record unrecorded expenses (accrued expenses)lDr. Interest Expense l Cr. Interest Payablel4.entries to record unrecorded revenuelOn Sept.16, Arthur agrees to offer service to Bill and Bill will

17、pay $300 in every fifteenth.lOn Sept.30,l Dr.service fees receivable 150l Cr.services fees earned 150 l1.every adjusting entry affects an item of both income statement and balance sheet.l2.adjusting entries are based upon the concepts of accrual accounting.lTrial balance columnslAdjustment columnslA

18、djusted trial balance columnslIncome statement columnlBalance sheet columnThe work sheet is a useful device for understanding the flow of accounting data from the unadjusted trial balance to the financial statements.Trial BalanceAccountsDrCrDrCrDrCrAdjustmentsAdjusted TBPrepared from the general led

19、ger. Accounts are listed in the following order: assets, liabilities, owners equity, revenues, and expenses.Adjustments are entered here. Two possibilities:1. Deferrals Existing balances are changed.2. Accruals New information is entered.Trial BalanceAccountsDrCrDrCrDrCrAdjustmentsAdjusted TBAdjustm

20、ents are combined with the trial balance. Account balances are now adjusted.Trial BalanceAccountsDrCrDrCrDrCrAdjustmentsAdjusted TBCash2,065Accounts Receivable2,220Supplies2,000Prepaid Insurance2,400Land20,000Office Equipment1,800Accounts Payable900Unearned Rent360Chris Clark, Capital25,000Chris Cla

21、rk, Drawing4,000Fees Earned16,340Wages Expense4,275Rent Expense1,600Utilities Expense985Supplies Expense800Miscellaneous Expense45542,60042,600 Account TitleDebitCreditDebitCreditDebitCredit Adjusted Trial Balance Adjustments Trial BalanceNetSolutionsWork SheetFor the Two Months Ended December 31, 2

22、00512345678910111213141516171819202122Cash2,065Accounts Receivable2,220Supplies2,000Prepaid Insurance2,400Land20,000Office Equipment1,800Accounts Payable900Unearned Rent360Chris Clark, Capital25,000Chris Clark, Drawing4,000Fees Earned16,340Wages Expense4,275Rent Expense1,600Utilities Expense985Suppl

23、ies Expense800Miscellaneous Expense45542,60042,600 Account TitleDebitCreditDebitCreditDebitCredit Adjusted Trial Balance Adjustments Trial BalanceNetSolutionsWork SheetFor the Two Months Ended December 31, 200512345678910111213141516171819202122(a) 1,240(a) 1,240Cash2,065Accounts Receivable2,220Supp

24、lies2,000(a) 1,240Prepaid Insurance2,400Land20,000Office Equipment1,800Accounts Payable900Unearned Rent360Chris Clark, Capital25,000Chris Clark, Drawing4,000Fees Earned16,340Wages Expense4,275Rent Expense1,600Utilities Expense985Supplies Expense800(a) 1,240Miscellaneous Expense45542,60042,600 Accoun

25、t TitleDebitCreditDebitCreditDebitCredit Adjusted Trial Balance Adjustments Trial BalanceNetSolutionsWork SheetFor the Two Months Ended December 31, 200512345678910111213141516171819202122 Insurance Expense(b) 100 Accounts are added as needed.(b) 100 FOR RENTCash2,065Accounts Receivable2,220Supplies

26、2,000(a) 1,240Prepaid Insurance2,400(b) 100Land20,000Office Equipment1,800Accounts Payable900Unearned Rent360Chris Clark, Capital25,000Chris Clark, Drawing4,000Fees Earned16,340Wages Expense4,275Rent Expense1,600Utilities Expense985Supplies Expense800(a) 1,240Miscellaneous Expense45542,60042,600 Acc

27、ount TitleDebitCreditDebitCreditDebitCredit Adjusted Trial Balance Adjustments Trial BalanceNetSolutionsWork SheetFor the Two Months Ended December 31, 200512345678910111213141516171819202122 Insurance Expense(b) 100 (c) 120 Rent Revenue(c) 120Cash2,065Accounts Receivable2,220Supplies2,000(a) 1,240P

28、repaid Insurance2,400(b) 100Land20,000Office Equipment1,800Accounts Payable900Unearned Rent360(c) 120Chris Clark, Capital25,000Chris Clark, Drawing4,000Fees Earned16,340Wages Expense4,275Rent Expense1,600Utilities Expense985Supplies Expense800(a) 1,240Miscellaneous Expense45542,60042,600 Account Tit

29、leDebitCreditDebitCreditDebitCredit Adjusted Trial Balance Adjustments Trial BalanceNetSolutionsWork SheetFor the Two Months Ended December 31, 200512345678910111213141516171819202122 Insurance Expense(b) 100 Rent Revenue (c) 120 Wages Payable(d) 250 (d) 250Cash2,065Accounts Receivable2,220Supplies2

30、,000(a) 1,240Prepaid Insurance2,400(b) 100Land20,000Office Equipment1,800Accounts Payable900Unearned Rent360(c) 120Chris Clark, Capital25,000Chris Clark, Drawing4,000Fees Earned16,340Wages Expense4,275(d) 250Rent Expense1,600Utilities Expense985Supplies Expense800(a) 1,240Miscellaneous Expense45542,

31、60042,600 Account TitleDebitCreditDebitCreditDebitCredit Adjusted Trial Balance Adjustments Trial BalanceNetSolutionsWork SheetFor the Two Months Ended December 31, 200512345678910111213141516171819202122 Insurance Expense(b) 100 Rent Revenue (c) 120 Wages Payable(d) 250 (e) 500 (e) 500Cash2,065Acco

32、unts Receivable2,220(e) 500Supplies2,000(a) 1,240Prepaid Insurance2,400(b) 100Land20,000Office Equipment1,800Accounts Payable900Unearned Rent360(c) 120Chris Clark, Capital25,000Chris Clark, Drawing4,000Fees Earned16,340(e) 500Wages Expense4,275(d) 250Rent Expense1,600Utilities Expense985Supplies Exp

33、ense800(a) 1,240Miscellaneous Expense45542,60042,600 Account TitleDebitCreditDebitCreditDebitCredit Adjusted Trial Balance Adjustments Trial BalanceNetSolutionsWork SheetFor the Two Months Ended December 31, 200512345678910111213141516171819202122 Insurance Expense(b) 100 Rent Revenue (c) 120 Wages

34、Payable(d) 250Depreciation Expense(f) 50Accum. Depreciation(f) 50Cash2,065Accounts Receivable2,220(e) 500Supplies2,000(a) 1,240Prepaid Insurance2,400(b) 100Land20,000Office Equipment1,800Accounts Payable900Unearned Rent360(c) 120Chris Clark, Capital25,000Chris Clark, Drawing4,000Fees Earned16,340(e)

35、 500Wages Expense4,275(d) 250Rent Expense1,600Utilities Expense985Supplies Expense800(a) 1,240Miscellaneous Expense45542,60042,600 Account TitleDebitCreditDebitCreditDebitCredit Adjusted Trial Balance Adjustments Trial BalanceNetSolutionsWork SheetFor the Two Months Ended December 31, 20051234567891

36、0111213141516171819202122 Insurance Expense(b) 100 Rent Revenue (c) 120 Wages Payable(d) 250 Depreciation Expense(f) 50 Accum. Depreciation(f) 50To make more space, lets remove the heading.Cash2,065Accounts Receivable2,220(e) 500Supplies2,000(a) 1,240Prepaid Insurance2,400(b) 100Land20,000Office Equ

37、ipment1,800Accounts Payable900Unearned Rent360(c) 120Chris Clark, Capital25,000Chris Clark, Drawing4,000Fees Earned16,340(e) 500Wages Expense4,275(d) 250Rent Expense1,600Utilities Expense985Supplies Expense800(a) 1,240Miscellaneous Expense45542,60042,600 Account TitleDebitCreditDebitCreditDebitCredi

38、t Adjusted Trial Balance Adjustments Trial Balance12345678910111213141516171819202122232425 Insurance Expense(b) 100 Rent Revenue (c) 120 Wages Payable(d) 250 Depreciation Expense(f) 50 Accum. Depreciation(f) 502,2602,26031Next, the unadjusted Trial Balance columns and the Adjustments columns are combined to determine the amounts displayed in the Adjusted Trial Balance.Cash2,0652,065Accounts Receivable2,220(e) 5002,720Supplies2,000(a) 1,240760Prepaid Insurance2,400(b) 1002,300Land20,00020,000Office Equipment1,8001,800Accounts Payable900900Unearned Rent360(c) 120240Chris Clark, Capita