FinancialandManagerialAccounting

JohnJ.Wild ThirdEdition

McGraw-Hill/Irwin

Copyright?2009byTheMcGraw-HillCompanies,Inc.Allrightsreserved.Chapter4CompletingtheAccountingCycleOutlineofChapter4CompletingtheAccountingCycleWorkSheetClosingProcessAccountingCycleClassifiedBalanceSheet

BenefitsofWorkSheetUseofaWorkSheetTemporaryandPermanetaccountsClosingentriesPost-closingtrialbalance

DefinitiobnofaccountingcycleReviewofaccountingcycleClassificationstructureClassificationcategoriesConceptualChapterObjectivesC1:Explainwhytemporaryaccountsareclosedeachperiod.C2:

Identifystepsintheaccountingcycle.C3:

Explainandprepareaclassifiedbalancesheet.3-4ProceduralChapterObjectivesP1:Prepareaworksheetandexplainitsusefulness.工作表格P2:Describeandprepareclosingentries.結(jié)賬分錄P3:

Explainandprepareapost-closingtrialbalance.結(jié)帳后試算平衡3-5WorkSheetasaToolWorkingPapers工作底稿internaldocumentsusedwhenpreparingfinancialstatementsWorkSheet工作底表/試算表OnetypeofwidelyusedworkingpaperUsuallynotavailabletoexternalusersNotarequiredreport,buthaveseveralpotentialbenefitsC1FastForwardWorkSheetForMonthEndedDecember31,2009AccountUnadjustedTrialBalanceDr.Cr.AdjustmentsDr.Cr.AdjustedTrialBalanceDr.Cr.IncomeStatementDr.Cr.B/S&StatementofOwner’sEquityDr.Cr.BenefitsofaWorkSheetAidsthepreparationoffinancialstatementsReducesthepossibilityoferrorsLinksaccountsandadjustmentstotheirimpactsinfinancialstatementsAssistsinplanningandorganizinganauditoffinancialstatementsHelpsinpreparinginterimFSswhenthejournalizingandpostingofadjustingentriesarepostponeduntilyear-endShowstheeffectsofproposedor“what-if”transactionsUseofaWorkSheetWhenusedtoprepareFSs,WorkSheetisconstructedattheendofaperiod

beforetheadjustingprocess.CompleteStructureforWorkSheet–theAccountsBalancesandAdjustments(Dr.&Cr.)SortingintoFinancialStatements(Dr.&Cr.)Itsformatisflexibleandcanbemodifiedbyuserstofithispreferences.-Worksheetisnotarequiredreport!5StepsPreparingWorkSheetStep1.EnterUnadjustedTrialBalanceListthetitleofeveryaccountanditsaccountnumberAccountsintheledgerNewaccountsfromadjustingentries

EnterunadjustedbalanceforeachaccountinappropriateDebitorCreditcolumnThetotalsoftwocolumnsmustbeequal.Note:Blanklinesleft,orcombine,oraddnewlinesfollowingtheTotalsline.15StepsPreparingWorkSheetStep2.EnterAdjustmentsintheAdjustmentsColumnsKeyingtheadjustments–“加關(guān)鍵詞”LettersidentifiedlinkthedebitandcreditofeachadjustingentryAfterpreparingworksheet,adjustingentriesmuststillbeenteredinthejournalandpostedtotheledger.12FastForwardRecordingAdjustmentsTrialBalance

December31,20093-14Exhibit3.135StepsPreparingWorkSheetStep3.PrepareAdjustedTrialBalanceTocombinetheadjustmentswiththeunadjustedbalancesforeachaccountTotalsoftheAdjustedTrialBalancecolumnsconfirmtheequalityofDr.andCr.Anexample–PrepaidInsuranceaccountUnadjustedTrialBalance-$2,400DebitAdjustedcolumns-$100CreditAdjustedTrialBalancecolumns-$2,300Dr.1235StepsPreparingWorkSheetStep4.SortAdjustedTrialBalanceAmountstoFinancialStatementsExpensesgototheI/SDebitcolumnRevenuesgototheI/SCreditcolumnAssets&WithdrawalstoB/S&SOEDebitc.LiabilitiesandOwner’sCapitaltoCreditc.123455StepsPreparingWorkSheetStep5.TotalStatementColumns,ComputeIncomeorLoss,andBalanceColumnsThedifferencebetweenthetotalsofI/Scolumnsisnetincomeornetloss.Netincome,ifCredittotalexceedsDebittotal.Netloss,ifDebittotalexceedsCredittotal.NetincomeenteredinB/S&SOECreditcolumn.Iflossoccurs,addedtoDebitcolumn.Endingbalanceofowner’scapitalneedstobecomputed,notappearasasingleamount.Totalsofthelasttwocolumnsmustbalance.FinancialStatementsPreparedfrom

theWorkSheetFinancialStatementsPreparedfrom

theWorkSheetWorkSheet

ApplicationsandAnalysisAworksheetdoesnotsubstituteforFSs.AtoolusedtohelporganizedataandprepareFSsI/SamountstakenfromI/Scolumnsoftheworksheet;AmountsforB/S&SOEtakenfromB/S&SOEcolumnsoftheworksheet.InformationfromAdjustmentscolumnsofaworksheetcanbeusedtojournalize

andpostadjustingentries.TheClosingProcess–結(jié)賬Animportantstep

attheendofanaccountingperiodafter

FSshavebeencompletedAimstoprepareaccountsforrecordingthetransactionsandtheeventsofthenextperiodMaintasksintheclosingprocess–IdentifyaccountsforclosingRecordandposttheclosingentriesPrepareapost-closingtrialbalanceC2TheClosingProcess:Temporary&PermanentAccounts

暫時(shí)性&永久性賬戶Temporary(nominal)accountsaccumulatedatarelatedtooneaccountingperiod.-allincomestatementaccounts,thedividendsaccount,&theIncomeSummaryaccount.Temporary–accountsareopened

atthebeginningofaperiod,usedtorecordtransactionsandeventsforthatperiod,andthenclosed

attheendoftheperiod.Permanent(real)accountsreportactivitiesrelatedtooneormorefutureaccountingperiods.Theycarryendingbalancestothenextaccountingperiodandarenot“closed”C33-25Closingprocessappliesonlytotemporaryaccounts.RecordingClosingEntriesCloserevenueaccounts.Closeexpenseaccounts.ClosetheIncomeSummary

account.Closedividends/withdrawalsaccount.P43-26Totransfertheend-of-periodbalancesintheaboveaccountstothepermanentcapitalaccount.I/Sreportsrevenuesandexpensesforaspecificaccountingperiod.RevenuesandExpensesaccountsmustaccumulateinformationseparatelyforeachperiod,sotheymuststarteachperiodwithzerobalances.TotransferthebalancesfirsttoanaccountIncomeSummary,atemporaryaccountSumofallrevenuesSumofallexpensesAnybalancestransferto

CapitalAccountDr.Cr.RecordingClosingEntriesIncomeSummarySalariesExpensesConsultingRevenues$18,100$25,000Owner,Capital$7,000Examinetheaccountspresented.P43-28$25,000CloserevenueswithadebittotherevenueaccountandacredittoIncomeSummary.RecordingClosingEntries$18,100SalariesExpensesConsultingRevenuesIncomeSummary$25,000$25,000P43-29$25,000$25,000CloseexpenseaccountswithacredittoexpensesandadebittoIncomeSummary.$25,000RecordingClosingEntries$18,100SalariesExpensesConsultingRevenuesIncomeSummary$18,100$18,100P43-30$18,100$25,000$18,100$25,000$25,000$18,100DeterminethebalanceintheIncomeSummaryaccount.RecordingClosingEntriesSalariesExpensesConsultingRevenuesIncomeSummary$6,900P43-31ConsultingRevenues$18,100$25,000$18,100$18,100$7,000ClosetheIncomeSummarytoOwner’sCapital.RecordingClosingEntries$6,900SalariesExpensesIncomeSummaryOwner,Capital$6,900$6,900P43-32RecordingClosingEntriesDividends$2,000$7,000

6,900RetainedEarningsThewithdrawals/dividendsaccountisclosedtoOwner’sCapitalorRetainedEarnings.$2,000$2,000P43-33RecordingClosingEntriesDividends$2,000$2,000$2,000DeterminetheendingbalanceinRetainedEarnings.$11,900$7,000

6,900RetainedEarningsP43-34Thewithdrawals/dividendsaccountisclosedtoOwner’sCapitalorRetainedEarnings.RecordingClosingEntriesCloseCreditBalancesinRevenueAccountstoIncomeSummary.Close

DebitBalancesinExpenseaccountstoIncomeSummary.CloseIncomeSummaryaccounttoOwner’sCapital.CloseWithdrawalsAccounttoOwner’sCapital.P43-35PostClosingTrialBalance

結(jié)賬后試算平衡表TrialBalancepreparedaftertheclosingentrieshavebeenposted.Thepurposeistoinsurethatallnominalortemporaryaccountshavebeenclosed.Theonlyaccountsonthistrialbalanceshouldbeassets,liabilities,andequityaccounts.Totaldebitsequaltotalcreditsforpermanentaccounts.P53-36TheAccountingCycleStartAnalyze

transactionsJournalizePostPrepare

unadjusted

trialbalanceAdjustPrepare

adjusted

trialbalancePrepare

statementsClosePrepare

post-closing

trialbalanceC3Reverse(optional)3-38AccountingCycleClassifiedBalanceSheetCurrentitemsarethoseexpectedtocomedue(eithercollectedorowed)withinoneyearorthecompany’soperatingcycle,whicheverislonger.C43-39ClassifiedBalanceSheetOperatingCycle–thetimespanfromwhencashisusedtoacquiregoodsandservicesuntilcashisreceivedfromthesaleofgoods&servicesMostoperatingcycleslessthanoneyearAfewcompanieshaveanoperatingcyclelongerthanoneyear.Certainbeverages-wineindustrialbusiness-shipbuildingClassifiedBalanceSheetCurrentAssetsResourcesthatareexpectedtobesold,collected,orusedwithinoneyearorthecompany’soperatingcycle,whicheverislonger.Listedintheorderofhowquicklyconvertedtocash:按流動(dòng)性排序CashShort-terminvestmentsAccountsreceivableShort-termnotereceivableInventory

Prepaidexpenses–oftencombinedPlantAssetstangibleassets,bothlonglivedandusedtoproduceorsellproductsorservices.Eg.equipment,machinery,buildings,andlandusedtoproduceorsellproductsandservices.C4IntangibleAssetsLong-termresources,usuallylackphysicalformandhaveuncertainbenefits.patents,trademarks,copyrights,franchises,andgoodwill.3-42Long-termInvestmentsResourcesexpectedtobeheldformorethanthelongeroroneyearortheoperatingcycleEg.NotesReceivable,Investmentsinstocksandbonds商譽(yù)LongTermLiabilities

Obligationsduetobepaidorsettledwithinoneyearortheoperatingcycle,whicheverislonger.C4

Obligationsnotduewithinoneyearortheoperatingcycle,whicheverislonger.Mortgagespayable,LeaseObligations,BondspayalgeCurrentLiabilities3-43CurrentPortionoflong-termliabilitiesLong-termliabilities(netofcurrentportion)CurrentorNon-currentLiabilities?ClassifiedBalanceSheet3-44EndofChapter43-45UsethefollowinginformationfromtheAdjustmentscolumnsofa10-columnworksheettopreparethenecessaryadjustingjournalentries(a)through(e).⑴DeterminetheNetincome;⑵Preparetheclosingentries.

Nowithdrawalsmade.78,84011,16090,00090,00090,000ToprepareclosingEntriesDr:RentRevenue90,000

Cr:IncomeSummary90,000Dr:IncomeSummary78,840Cr:SalariesExpenses39,960InsuranceExpenses5,670OfficeSuppliesExpenses13,230BikeRepairExpenses2,790DepreciationExpense17,190

Dr:IncomeSummary11,160Cr:Owner’sCapital11,160IncomeSummary78,84090,00011,160DeterminingBalanceSheetClassifications,

CurrentAssets,Long-termInvestments,PlantAssets,

IntangibleAssets,CurrentLiabilities,Long-termLiabilities,Equity

Accumulateddepreciation-TrucksCashBuildingsStoresuppliesOfficeequipmentLand(usedinoperations)RepairsexpenseOfficesuppliesCurrentportionoflong-termnotepayableUnearnedservicerevenueLong-terminvestmentinstockDepreciationexpense–BuildingPrepaidrentInterestreceivableTaxespayableAutomobilesNotespayable(duein3ys)AccountspayablePrepaidinsuranceOwner,CapitalStatementofCashFlowsP11-50StatementofCashFlowsOperatingactivitiesCashreceivedandpaidforoperatinguseInvestingactivitiesBuyingandsellingassetsheldforlong-termuseFinancingactivitiesLong-termborrowingandrepayingofthecashfromlendersandcashinvestmentsfrom,andwithdrawalsby,theownerIdentifysectionsofthestatementofcashflowsCashpaidforrentCashpaidonanaccountpayableCashinvestmentbyownerCashreceivedfromclientsCashpaidforadvertisingCashpaidforwagesCashwithdrawalbyownerCashpurchaseofequipmentOnOct.1,KeishaKingorganizedRealAnswers,anewconsultingfirm.OnOct.31,thecompany’srecordsshowthefollowingitemsandamounts.Cash$11,500AccountsRec.12,000Officesupplies24,437Land46,000OfficeEquip.18,000AccountsPaya.25,037Ownerinvest.84,360Owner’sinitialinvestmentconsistsof$38,360cash&$46,000inland.Thecompany’s$18,000equipmentpurchaseispaidincashAccountspayablebalanceof$25,037consistsofthe$24,437officesuppliespurchaseand$600inemployeesalariesyettobepaid.Rent,telephoneandmiscellaneousexpensesarepaidincash.$2,000hasbeencollectedonthe$14,000consultingfeesearned.Cashwithdrawalsbyowner$2,000Consultingfeesearned14,000Rentexpense2,520Salariesexpense5,600Telephoneexpense760Miscellaneousexpense580StatementofCashFlowsP11-54SomeReviewsforChap.1-4Answerquestions(Hint:Useaccountingequation)OfficeSupplieshasassetsequalto$137,000andliabilitiesequalto$110,000atyear-end.WhatisthetotalequityforOfficeSuppliesatyear-end?Atthebeginningoftheyear,AddisonCompany’sassetsare$259,000anditsequityis$194,250.Duringtheyear,assetsincrease$80,000andliabilitiesincrease$52,643.Whatistheequityattheendoftheyear?SomeReviewsforChap.1-4Answerquestions(Hint:Useaccountingequation)Atthebeginningoftheyear,QuasarCompany’sliabilitiesequal$57,000.Duringtheyear,assetsincreaseby$60,000,andatyear-endassetsequal$190,000.Liabilitiesdecrease$16,000duringtheyear.Whatarethebeginningandendingamountsofequity?SomeReviewsforChap.1-4Atrialbalancepreparedatyear-endshowstotalcreditsexceedtotaldebitsby$765.Thisdiscrepancycouldhavebeencausedby:Anerroringeneraljournalwherea$765increaseinAccountsPayable