《会计英语》Accounting03.ppt

* Entries to Accrued Revenue (1)Debit:Accounts receivable Credit: revenues (2)Debit: cash Credit: Accounts receivable * Entries to Accrued Revenue Prior Periods Current Period Future Periods Transaction Receivable will be collected. End of Current Period Adjusting Entry Recognize revenue earned but not yet recorded, and Record receivable. * Entries to Accrued Revenue Saturday, Jan. 15 Tuesday, Feb. 15 $170 Interest Revenue On Jan. 31, the bank owes Webb, Co. interest of $170. Interest is paid on the 15th day of each month. Monday, Jan. 31 * Entries to Accrued Revenue Initially, the revenue is recognized and a receivable is created. * Entries to Accrued Revenue Income Statement Revenue earned this period. Balance Sheet Receivable to be collected in a future period. * Entries to Accrued Revenue Saturday, Jan. 15 Tuesday, Feb. 15 $320 Monthly Interest $170 Interest Revenue Let’s look at the entry for February 15. Monday, Jan. 31 $150 Interest Revenue * Entries to Accrued Revenue The receivable is collected in a future period. * Steps 6 and 7: The adjusted trial balance and preparation of financial statements The sixth step in the accounting cycle is the preparation of an adjusted trial balance to prove the equality of debits and credits upon completion of the adjustment process. * The seventh step in the accounting cycle is preparing the financial statements using the adjusted account balances as summarized on the adjusted trial balance. * The worksheet A worksheet is a tool the accountant uses at the end of an accounting period to show the effects of the adjustments and organize the data for use in preparing financial statements and recording the adjusting and closing entries. * The worksheet is an internal working paper that from steps 4 (unadjusted trial balance) through 7 (preparation of financial statements) of the accounting cycle. * Step 8: Closing entries Closing the temporary accounts虚账户 at the end of each accounting