会计学原理英文课件Chapter_03ADJUSTING ACCOUNTS AND PREPARING FINANCIAL STATEMENTS教学教材.pptVIP

ADJUSTING ACCOUNTS AND PREPARING FINANCIAL STATEMENTS;1;Accounting;ACCRUAL BASIS VS. CASH BASIS;ACCRUAL BASIS VS. CASH BASIS; An adjusting entry is recorded to bring an asset or liability account balance to its proper amount.;Here is the check for my 24-monthinsurance policy.;PREPAID INSURANCE;SUPPLIES;OTHER PREPAID EXPENSES;Straight-Line Depreciation Expense;DEPRECIATION;Accumulated depreciation is a contra asset account.;;Equipment is shown net of accumulated depreciation.;UNEARNED (DEFERRED)REVENUES;UNEARNED (DEFERRED)REVENUES;On December 31, earns some of the 5-days of consulting fees. Each day that passes results in consulting fees of $50 ($3,000 ÷ 60).;We’re about one-half done with this job and want to be paid forour work!;;ACCRUED SALARIES EXPENSES;FUTURE PAYMENT OFACCRUED EXPENSES;ACCRUED INTEREST EXPENSE;Yes, I’ve completed yourconsulting job, but have not had time to bill you yet.;ACCRUED SERVICE REVENUES;FUTURE RECEIPT OFSERVICE REVENUES;THE FOLLOWS CAN BE DELETED ;LINKS TO FINANCIAL STATEMENTS;FastForward - Trial Balance - December 31, 2009;Next, FastForward’s adjustments are added.;Finally, the totals are determined.;PREPARING FINANCIAL STATEMENTS;1. Prepare the Income Statement;2. Prepare the Statement of Changes in Owner’s Equity. Note: Net Income from the Income Statement carries to the Statement of Changes in Owner’s Equity.;3. Prepare the Balance Sheet;END OF CHAPTER 3