太原工业学院管理工程系会计学原理英文课件CHAPTER6 Accounting for Merchandising Activities.pptVIP

copyright 2006 All Rights Reserved Chapter 6 The adjustment process 6.16.2 adjusting entries Types of adjusting entries converting assets to expenses converting liabilities to revenue accruing unpaid expense accruing uncollected revenue converting assets to expenses 1.Shop supplies Dr: supplies expense Cr: supplies 2.Insurance polices Dr: insurance expense Cr: unexpired insurance 3.Depreciation Dr: depreciation expense Cr: accumulated depreciation converting liabilities to revenue Dr: unearned revenues Cr: revenues accounts accruing unpaid expense 1.Accrual of salaries expense Dr: salary expense Cr: salaries payable 2.Accrual of interest expense Dr: interest expense Cr: interest payable accruing uncollected revenue Dr: accounts receivable Cr: revenues accounts Dr: interest receivable Cr: interest earned 6.3 adjusted trial balance An adjusted trial balance is a listing of all the account titles and balances contained in the general ledger after the adjusting entries for an accounting period have been posted to the accounts. The process of adjusted trial balance New words terms (6.1\ 6.2\ 6.3) adjusting entry accounting period unexpired insurance deferral (postponement) unearned revenue interest payable salaries payable expenditure 6.4 the closing entries Income summary A temporary account to which the income statement accounts are closed. This account is then closed to the owners capital account or a corporations retained earnings account. This and other summary accounts can be thought of as a clearing account.  Steps of closing process An illustration Case P98 adjusting entry 1.Dec.31 Dr: depreciation expense:office equipment 250 Cr: accumulated depreciation: office equipment 250 2.Dec.31 Dr: unearned agency fees 2500 Cr: agency fees earned 2500 Case P98 adjusting entry 3.Dec.31 Dr: salaries expense 1360 Cr: salaries payable 1360 4.Dec.3