财务会计第三章 accrual accounting and income.ppt

Learning Objective 1 Accrual Accounting Records cash transaction + noncash transactions Examples of noncash transactions: Purchase of inventory on account Sales on account Expenses used but not yet paid Revenue earned but not yet received Amortization expense Usage of prepaid rent, insurance and supplies Cash vs. Accrual Accounting Cash Vs. Accrual Accounting The Time-Period Concept Learning Objective 2 Revenue Principle The Matching Principle The Matching Principle The Matching Principle Ethical Issues inAccrual Accounting Ethical Issues inAccrual Accounting Learning Objective 3 Updating the Accounts:The Adjusting Process Tara Inc. Unadjusted Trial Balance April 30, 2009 Categories ofAccounting Adjustments Prepaid Expenses: Rent Prepaid Expenses: Rent Prepaid Expenses: Supplies Prepaid Expenses: Supplies Amortization of Property, Plantand Equipment Amortization of Capital Assets Amortization of Capital Assets Book Value Accrued Expenses Accrued Expenses Accrued Expenses Accrued Revenues Accrued Revenues Unearned Revenues Unearned Revenues Adjusting the Accounts Tara Inc. Adjusted Trial Balance April 30, 3009 Tara Inc. Adjusted Trial Balance April 30, 2009 Learning Objective 4 Tara Inc.Income Statement Tara Inc.Statement of Retained Earnings Tara Inc.Balance Sheet Learning Objective 5 Which AccountsNeed To Be Closed? Which AccountsNeed To Be Closed? Journalizing the Closing Entries Posting the Closing Entries Classifying Assets and Liabilities Classifying Assets and Liabilities Income Statement Format Learning Objective 6 Current Ratio Debt Ratio End of Chapter 3 April 20 Cash 450 Unearned Service Revenue 450 Received cash for revenue in advance April 30 Unearned Service Revenue 150 Service Revenue 150 To record unearned service revenue earned ($450 × 1/3) 3 - * Accounts receivable Supplies Prepaid rent Accumulated amor. Salary payable Unearned revenue Income tax payable Service revenue Rent expense Salary e