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1、会计学1Fundamental Financial Accounting 1,Instructor: Dr. Xiaoyan LuEmail: Tel: 84114272,STUDY OBJECTIVESAfter studying this chapter, you should understand:,CHAPTER 4COMPLETE THE ACCOUNTING CYCLE,A work sheet is a multiple-column form that may be used in the adjustment process and in preparing financia
2、l statements.It is an optional tool -not a permanent record. Adjustments are journalized and posted from the work sheet after financial statements are prepared.,STUDY OBJECTIVE 1PREPARING A WORKSHEET,Benefits of a Work Sheet,Aids the preparation of financial statements.,Reduces possibility of errors
3、.,Links accounts and their adjustments.,Assists in planning and organizing an audit.,Helps in preparing interim financial statements.,Shows the effects of proposed transactions.,Not a required report.,P 1,1.,2.,3.,4.,Prepare a,Enter,Enter,Extend adjusted balances to,trial balance,adjustment,adjusted
4、,appropriate statement columns,on the,dates,balances,5.,work sheet,Total the statement columns,compute net income (or net,loss), and complete work sheet,account titles,for,adjustments),FORM AND PROCEDURE FOR A WORK SHEET,1 Prepare a trial balance on the worksheet2 Enter the adjustments in the adjust
5、ments columns3 Enter adjusted balances in the adjusted trial balance columns4 Extend adjusted trial balance amounts to the F/S columns 5 Total F/S columns, compute net income or loss, and complete the worksheet,STEPS IN PREPARING A WORKSHEET,FastForwardWorksheetFor the Month Ended December 31, 2013,
6、P 1,STUDY OBJECTIVE 2 The Closing Process,Resets revenue, expense, and withdrawal account balances to zero at the end of the period.Helps summarize a periods revenues and expenses in the Income Summary account.,C 1,Temporary andPermanent Accounts,The closing process applies only to temporary account
7、s.,C 1,Lets see how the closing process works!,Recording Closing Entries,Close Credit Balances in Revenue Accounts to Income Summary.Close Debit Balances in Expense accounts to Income Summary.Close Income Summary account to Owners Capital.Close Withdrawals to Owners Capital.,P 2,Using the adjusted t
8、rial balance, lets prepare the closing entries for FastForward.,P 2,1. Close Credit Balances in Revenue Accounts to Income Summary.,P 2,Close Credit Balances inRevenue Accounts to Income Summary,Now, lets look at the ledger accounts after posting this closing entry.,P 2,P 2,Close Credit Balances inR
9、evenue Accounts to Income Summary,2. Close Debit Balances in Expense Accounts to Income Summary.,P 2,Now, lets look at the ledger accountsafter posting this closing entry.,Close Debit Balances in Expense Accounts to Income Summary,P 2,Net Income,Close Debit Balances in Expense Accounts to Income Sum
10、mary,P 2,3. Close Income Summary to Owners Capital.,P 2,Now, lets look at the ledger accountsafter posting this closing entry.,Close Income Summaryto Owners Capital,P 2,P 2,Close Income Summaryto Owners Capital,4. Close Withdrawals Account to Owners Capital.,P 2,Now, lets look at the ledger accounts
11、after posting this closing entry.,Close Withdrawals Accountto Owners Capital,P 2,P 2,Close Withdrawals Accountto Owners Capital,Summary of the Closing Process,Close Credit Balances in Revenue Accounts to Income Summary.Close Debit Balances in Expense Accounts to Income Summary.Close Income Summary t
12、o Owners Capital.Close Withdrawals Account to Owners Capital.,Lets look at FastForwardspost-closing trial balance.,Post-Closing Trial Balance,List of permanent accounts and their balances after posting closing entries.Total debits and credits must be equal.,P 3,Post-Closing Trial Balance,P 3,Account
13、ing Cycle,C 2,Current items are those expected to come due (both collected and owed) within the longer of one year or the companys normal operating cycle.,Classified Balance Sheet,C 3,Current assets are expected to be sold, collected, or used within one year or the companys operating cycle.,C 3,Long
14、-term investments are expected to be held for more than one year or the operating cycle.,C 3,Plant assets are tangible long-lived assets used to produce or sell products and services.,C 3,Intangible assets are long-term resources used to produce or sell products and services and that lack physical f
15、orm.,C 3,Current liabilities are obligations due within the longer of one year or the companys operating cycle.,C 3,Long-term liabilities are obligations not due within the longer of one year or the companys operating cycle.,C 3,Equity is the owners claim on the assets.,C 3,Global View,The definitio
16、n of an asset is similar under U.S. GAAP and IFRS and involves three basic criteria: the company owns or controls the right to use the item, the right arises from a past transaction or event, and the item can be reliably measured. Both systems define the initial asset value as historical cost for ne
17、arly all assets.,The definition of a liability is similar under U.S. GAAP and IFRS and involves three basic criteria: (1) the item is a present obligation requiring a probable future resource outlay, (2) the obligation arises from a past transaction or event, and (3) the obligation can be reliably m
18、easured.,Current Ratio,Helps assess the companys ability to pay its debts in the near future,Limited Brands, Inc.,A 1,P 4,Appendix 4A Reversing Entries,Reversing entries are optional. They are recorded in response to accrued assets and accrued liabilities that were created by adjusting entries at th
19、e end of a reporting period. The purpose of reversing entries is to simplify a companys recordkeeping.,Lets see how the accounting for our payroll accrual will be handled with and without reversing entries.,P 4,P 4,Without Reversing Entries,With Reversing Entries,Assignments,Individual: E4-1, E4-2, E4-3, E4-4, E4-5, E4-6, E4-7Group Assignment: P4-2A, P4-3AClass Discussion: What two purposes are accomplished by recording closing entries?,End of Chapter 4,
