chapter6会计英语.pptVIP

Chapter 6 Completing the Accounting Cycle (I) Outline of Chapter 6 The Accounting Cycle Preparation of the Work Sheet Uses of the Work Sheet Closing the Accounts 6.1 The Accounting Cycle Definition: The accounting system encompasses the sequence of steps followed in the accounting process, from analyzing transactions to preparing financial statements and closing the accounts. Steps: (1) The transactions are analyzed from the source documents. (2)The transactions are recorded in the journal. (3)The entries are posted to the ledger. (4)The accounts are adjusted at end of the period, usually with the aid of a work sheet. (5) Financial statements are prepared from the work sheets. (6)The accounts are closed to conclude the current accounting period and prepare for the beginning of the new accounting period. 6.1 The Accounting Cycle Illustration: 6.2 Preparation of the Work Sheet 6.2.1 The Accountant’s Work Sheet The work sheet is used frequently as a preliminary step in the preparation of financial statements; Using a work sheet lessens the possibility of ignoring an adjustment, aids in checking the arithmetical accuracy of the accounts, and facilitates the preparation of financial statements; The work sheet is not part of the ledger or the journal, nor is a financial statement. 6.2 Preparation of the Work Sheet 6.2.2 Steps in Preparing the Work Sheet (1) Write the account titles and their unadjusted ending balances in the Trial Balance columns of the work sheet and total the amounts. (2)Enter the adjustments in the Adjustments columns and total the amounts. (3) Compute each account’s adjusted balance by combining the trial balance and adjustment figures. Enter the adjusted amounts in the Adjusted Trial Balance columns. (4)Extend the asset, liability, and owners equity amounts from the Adjusted Trial Balance to the Balance Sheet columns. Extend the revenue and expense amounts to the Income Statement columns. Total the statement columns. (5)Compute