Chap003会计学基础.ppt

4 4 4 4 3 3 3 3 9 3 3 3 3 3 3 9 4 3 4 The Realization Principle: When To Record Revenue(100) Realization Principle Revenue should be recognized at the time goods are sold and services are rendered. The Matching Principle: When To Record Expenses(101) Matching Principle Expenses should be recorded in the period in which they are used up. Debits and Credits for Revenue and Expense EQUITIES Debit for Decrease Credit for Increase REVENUES Debit for Decrease Credit for Increase EXPENSES Credit for Decrease Debit for Increase Expenses decrease owner’s equity. Revenues increase owner’s equity. EQUITIES Debit for Decrease Credit for Increase CAPITAL STOCK Debit for Decrease Credit for Increase DIVIDENDS Credit for Decrease Debit for Increase Payments to owners decrease owners’ equity. Owners’ investments increase owners’ equity. Investments by and Payments to Owners Let’s analyze the revenue and expense transactions for JJ’s Lawn Care Service for the month of May. We will also analyze a dividend transaction. May 29: JJ’s provided lawn care services for a client and received $750 in cash. Will Cash increase or decrease? Will Sales Revenue increase or decrease? May 29: JJ’s provided lawn care services for a client and received $750 in cash. Cash increases $750 with a debit. Sales Revenue increases $750 with a credit. May 31: JJ’s purchased gasoline for the lawn mower and the truck for $50 cash. Will Cash increase or decrease? Will Gasoline Expense increase or decrease? May 31: JJ’s purchased gasoline for the lawn mower and the truck for $50 cash. Cash decreases $50 with a credit. Gasoline Expense increases $50 with a debit. May 31: JJ’s Lawn Care paid Jill Jones and her family a $200 dividend. Will Cash increase or decrease? Will Dividends increase or decrease? May 31: JJ’s Lawn Care paid Jill Jones and her family a $200 dividend. Cash decreases $200 with a credit. Dividends increase $200 with a debit. Now, let’s look at the