美国会计基础课件BasicAcctg.ppt

* 4 We record two types of adjusting entries, accruals and reclassifications. Accruals are transactions for which cash has NOT yet been received or paid, but the effect of which must be recorded in the accounts in order to accomplish a matching of revenues and expenses. Reclassifications are necessary because the initial recording of a transaction does not result in assigning revenues to the period in which they were earned or expenses to the period in which they were incurred. * 4 Accruals and reclassification adjusting entries occur at the end of the accounting period. Adjusting entries are needed whenever revenue or expenses affect more than one accounting period. Every adjusting entry involves a change in either a revenue or expense account and an asset or liability account. * 4 Examples of expenses to be accrued at the end of the accounting period are wages and salaries, interest payable, and property taxes. * 4 Accruing Expenses: On May 31, Webb Co. owes wages of $3,000. Pay day is Friday, June 2. The rule of accrual accounting states that expenses are matched to the period when the revenue is earned. Considering that three days of wages were earned by employees during the month of May but will not be paid out in cash until June, the wage expense for the last three days of May must be reflected in that month’s financial statements. Also note that it is not necessary for cash to change hands in order to recognize revenue or expenses. * 4 A liability is recorded because on May 31 the organization “owes” these wages to employees regardless of when they will be paid in cash. Wage expense is debited for three thousand dollars to reflect an increase in the wage expense account. Wages payable is credited for three thousand dollars to reflect a liability. The three thousand dollar increase in the wages payable account records an increase in liabilities which must be paid sometime in the future. * 4 These T-accounts show the three thousand dollar incr