Completing-the-Accounting-Cycle[课件教学教程.ppt

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1、Learning ObjectivesPower Notes Completing the Accounting Cycle Completing the Accounting Cycle 1.Work Sheet2.Financial Statements3.Adjusting and Closing Entries4.Accounting Cycle5.Fiscal Year6.Financial Analysis and InterpretationChapter F4C4The Work SheetFinancial StatementsThe Closing ProcessPost-

2、Closing Trial BalanceAccounting CyclesWorking Capital and Current RatioSlide#Power Note Topics31822283143 Note:To select a topic,type the slide#and press Enter.Power NotesChapter F4 Completing the Accounting Cycle Completing the Accounting Cycle The Work SheetThe Work SheetTrial BalanceAccountsDrCrD

3、rCrDrCrAdjustmentsAdjusted TBPrepared from general ledger.Accounts are listed in order:A,L,OE,R,EThe Work SheetThe Work SheetAdjustments are entered here.Two possibilities:1.Deferrals Existing balances are changed.2.Accruals New information is entered.Trial BalanceAccountsDrCrDrCrDrCrAdjustmentsAdju

4、sted TBThe Work SheetThe Work SheetAdjustments are combined with the trial balance.Account balances are now adjusted.Trial BalanceAccountsDrCrDrCrDrCrAdjustmentsAdjusted TBTrial Balance Adjustments Adj.Trial BalanceNetSolutions-Work Sheet-Two Months Ended 12/31/02AccountDebitCreditDebitCreditDebitCr

5、edit11 Cash 2,065 2,06512 Accounts Receivable 2,220 (e)500 2,72014 Supplies 2,000 (a)1,240 76015 Prepaid Insurance 2,400 (b)100 2,30017 Land 20,000 20,00018 Office Equipment 1,800 1,80019 Accumulated Depr.0 (f)50 5021 Accounts Payable 900 90022 Wages Payable 0 (d)250 25023 Unearned Rent 360 (c)120 2

6、4031 Capital Stock 25,00025,00033 Dividends 4,000 4,00041 Fees Earned 16,340 (e)50016,84042 Rent Revenue 0 (c)120 12051 Wages Expense 4,275 (d)250 4,52552 Rent Expense 1,600 1,60053 Depreciation Expense 0 (f)50 5054 Utilities Expense 985 98555 Supplies Expense 800(a)1,240 2,04056 Insurance Expense 0

7、 (b)100 10059 Misc.Expense 455 45542,60042,600 2,260 2,26043,40043,400Trial Balance Adjustments Adj.Trial BalanceNetSolutions-Work Sheet-Two Months Ended 12/31/02AccountDebitCreditDebitCreditDebitCredit11Cash2,0652,06512Accounts Receivable2,220(e)5002,7201414SuppliesSupplies2,0002,000(a)1,240(a)1,24

8、076076015Prepaid Insurance2,400(b)1002,30017Land20,00020,00018 Office Equipment1,8001,80019Accumulated Depr.0(f)505021Accounts Payable90090022Wages Payable0(d)25025023Unearned Rent360(c)12024031Capital Stock25,00025,00033Dividends4,0004,00041Fees Earned16,340(e)50016,84042Rent Revenue 0(c)12012051 W

9、ages Expense4,275(d)2504,52552Rent Expense1,6001,60053Depreciation Expense0(f)505054 Utilities Expense9859855555 Supplies ExpenseSupplies Expense800800(a)1,240(a)1,2402,0402,04056Insurance Expense0(b)10010059Misc.Expense45545542,60042,600 2,2602,26043,40043,400Trial Balance Adjustments Adj.Trial Bal

10、anceAccountDebitCreditDebitCreditDebitCreditNetSolutions-Work Sheet-Two Months Ended 12/31/0211Cash2,0652,06512Accounts Receivable2,220(e)5002,72014Supplies2,000(a)1,24076015Prepaid Insurance2,400(b)1002,30017Land20,00020,00018 Office Equipment1,8001,80019Accumulated Depr.0(f)505021Accounts Payable9

11、0090022Wages Payable0(d)25025023Unearned Rent360(c)12024031Capital Stock25,00025,00033Dividends 4,0004,00041Fees Earned16,340(e)50016,84042Rent Revenue 0(c)12012051 Wages Expense4,275(d)2504,52552Rent Expense1,6001,60053Depreciation Expense0(f)505054 Utilities Expense98598555Supplies Expense800(a)1,

12、2402,04056Insurance Expense0(b)10010059Misc.Expense45545542,60042,600 2,2602,26043,40043,400Trial Balance Adjustments Adj.Trial BalanceAccountDebitCreditDebitCreditDebitCredit11Cash2,0652,06512Accounts Receivable2,220(e)5002,72014Supplies2,000(a)1,24076015Prepaid Insurance2,400(b)1002,30017Land20,00

13、020,00018 Office Equipment1,8001,80019Accumulated Depr.0(f)505021Accounts Payable90090022Wages Payable0(d)25025023Unearned Rent360(c)12024031Capital Stock 25,00025,00033Dividends 4,0004,00041Fees Earned16,340(e)50016,84042Rent Revenue0(c)12012051 Wages Expense4,275(d)2504,52552Rent Expense1,6001,600

14、53Depreciation Expense0(f)505054 Utilities Expense98598555Supplies Expense800(a)1,2402,04056Insurance Expense0(b)10010059Misc.Expense45545542,60042,600 2,2602,26043,40043,400NetSolutions-Work Sheet-Two Months Ended 12/31/02Trial Balance Adjustments Adj.Trial BalanceAccountDebitCreditDebitCreditDebit

15、Credit11Cash2,0652,06512Accounts Receivable2,220(e)5002,72014Supplies2,000(a)1,24076015Prepaid Insurance2,400(b)1002,30017Land20,00020,00018 Office Equipment1,8001,80019Accumulated Depr.0(f)505021Accounts Payable90090022Wages Payable0(d)25025023Unearned Rent360(c)12024031Capital Stock 25,00025,00033

16、Dividends 4,0004,00041Fees Earned16,340(e)50016,84042Rent Revenue 0(c)12012051 Wages Expense4,275(d)2504,52552Rent Expense1,6001,60053Depreciation Expense0(f)505054 Utilities Expense98598555Supplies Expense800(a)1,2402,04056Insurance Expense0(b)10010059Misc.Expense45545542,60032,600 2,2602,26043,400

17、43,400NetSolutions-Work Sheet-Two Months Ended 12/31/02Trial Balance Adjustments Adj.Trial BalanceAccountDebitCreditDebitCreditDebitCredit11Cash2,0652,06512Accounts Receivable2,220(e)5002,72014Supplies2,000(a)1,24076015Prepaid Insurance2,400(b)1002,30017Land20,00020,00018 Office Equipment1,8001,8001

18、9Accumulated Depr.0(f)505021Accounts Payable90090022Wages Payable0(d)25025023Unearned Rent360(c)12024031Capital Stock 25,00025,00033Dividends 4,0004,00041Fees Earned16,340(e)50016,84042Rent Revenue 0(c)12012051 Wages Expense4,275(d)2504,52552Rent Expense1,6001,60053Depreciation Expense0(f)505054 Uti

19、lities Expense98598555Supplies Expense800(a)1,2402,04056Insurance Expense0(b)10010059Misc.Expense45545542,60042,600 2,2602,26043,40043,400NetSolutions-Work Sheet-Two Months Ended 12/31/02Trial Balance Adjustments Adj.Trial BalanceAccountDebitCreditDebitCreditDebitCredit11Cash2,0652,06512Accounts Rec

20、eivable2,220(e)5002,72014Supplies2,000(a)1,24076015Prepaid Insurance2,400(b)1002,30017Land10,00010,00018 Office Equipment1,8001,80019Accumulated Depr.0(f)505021Accounts Payable90090022Wages Payable0(d)25025023Unearned Rent360(c)12024031Capital Stock 15,00015,00033Dividends 4,0004,00041Fees Earned16,

21、340(e)50016,84042Rent Revenue 0(c)12012051 Wages Expense4,275(d)2504,52552Rent Expense1,6001,60053Depreciation Expense0(f)505054 Utilities Expense98598555Supplies Expense800(a)1,2402,04056Insurance Expense0(b)10010059Misc.Expense45545532,60032,600 2,2602,26033,40033,400NetSolutions-Work Sheet-Two Mo

22、nths Ended 12/31/9911Cash2,0652,06512Accounts Receivable2,220(e)5002,72014Supplies2,000(a)1,24076015Prepaid Insurance2,400(b)1002,30017Land20,00020,00018 Office Equipment1,8001,80019Accumulated Depr.0(f)505021Accounts Payable90090022Wages Payable0(d)25025023Unearned Rent360(c)12024031Capital Stock 2

23、5,00025,00033Dividends 4,0004,00041Fees Earned16,340(e)50016,84042Rent Revenue 0(c)12012051 Wages Expense4,275(d)2504,52552Rent Expense1,6001,60053Depreciation Expense0(f)505054 Utilities Expense98598555Supplies Expense800(a)1,2402,04056Insurance Expense0(b)10010059Misc.Expense45545542,60042,600 2,2

24、602,26043,40043,400Trial Balance Adjustments Adj.Trial BalanceAccountDebitCreditDebitCreditDebitCreditNetSolutions-Work Sheet-Two Months Ended 12/31/0211 Cash 2,065 2,06512 Accounts Receivable2,220 (e)500 2,72014 Supplies2,000(a)1,240 76015 Prepaid Insurance2,400 (b)100 2,30017 Land20,000 20,00018 O

25、ffice Equipment1,800 1,80019 Accumulated Depr.0 (f)50 5021 Accounts Payable 900 90022 Wages Payable 0 (d)250 25023 Unearned Rent 360(c)120 24031 Capital Stock 25,00025,00033 Dividends 4,000 4,00041 Fees Earned16,340 (e)500 16,84042 Rent Revenue 0 (c)120 12051 Wages Expense4,275 (d)250 4,52552 Rent E

26、xpense1,600 1,60053 Depreciation Expense 0 (f)50 5054 Utilities Expense 985 98555 Supplies Expense 800(a)1,240 2,04056 Insurance Expense 0 (b)100 10059 Misc.Expense 455 45542,60042,600 2,260 2,26043,40043,400Trial Balance Adjustments Adj.Trial BalanceAccountDebitCreditDebitCreditDebitCreditNetSoluti

27、ons-Work Sheet-Two Months Ended 12/31/02Adj.Trial Balance Income Statement Balance SheetAccountDebitCreditDebitCreditDebitCredit11Cash2,0652,06512Accounts Receivable2,7202,72014Supplies76076015Prepaid Insurance2,3002,30017Land20,00020,00018 Office Equipment1,8001,80019Accumulated Depr.505021Accounts

28、 Payable90090022Wages Payable25025023Unearned Rent24024031Capital Stock 25,00025,00033Dividends 4,0004,00041Fees Earned16,84016,84042Rent Revenue 12012051 Wages Expense4,5254,52552Rent Expense1,6001,60053Depreciation Expense505054 Utilities Expense98598555Supplies Expense2,0402,04056Insurance Expens

29、e10010059Misc.Expense45545543,40043,400 9,75516,96033,64526,440Net Income7,2057,205 16,96016,96033,64533,645NetSolutions-Work Sheet-Two Months Ended 12/31/02Adj.Trial Balance Income Statement Balance SheetAccountDebitCreditDebitCreditDebitCredit11Cash2,0652,06512Accounts Receivable2,7202,72014Suppli

30、es76076015Prepaid Insurance2,3002,30017Land20,00020,00018 Office Equipment1,8001,80019Accumulated Depr.505021Accounts Payable90090022Wages Payable25025023Unearned Rent24024031Capital Stock 25,00025,00033Dividends 4,0004,00041Fees Earned16,84016,84042Rent Revenue 12012051 Wages Expense4,5254,52552Ren

31、t Expense1,6001,60053Depreciation Expense505054 Utilities Expense98598555Supplies Expense2,0402,04056Insurance Expense10010059Misc.Expense45545543,40043,400 9,75516,96033,64526,440Net Income7,2057,205 16,96016,96033,64533,645NetSolutions-Work Sheet-Two Months Ended 12/31/02Adj.Trial Balance Income S

32、tatement Balance SheetAccountDebitCreditDebitCreditDebitCredit11Cash2,0652,06512Accounts Receivable2,7202,72014Supplies76076015Prepaid Insurance2,3002,30017Land10,00020,00018 Office Equipment1,8001,80019Accumulated Depr.505021Accounts Payable90090022Wages Payable25025023Unearned Rent24024031Capital

33、Stock 25,00025,00033Dividends 4,0004,00041Fees Earned16,84016,84042Rent Revenue 12012051 Wages Expense4,5254,52552Rent Expense1,6001,60053Depreciation Expense505054 Utilities Expense98598555Supplies Expense2,0402,04056Insurance Expense10010059Misc.Expense45545543,40043,400 9,75516,96033,64526,440Net

34、 Income7,2057,205 16,96016,96033,64533,645NetSolutions-Work Sheet-Two Months Ended 12/31/02NetSolutions Income StatementFor Two Months Ended December 31,2002Fees earned$16,840Rent revenue120Total revenues$16,960Expenses:Wages expense$4,525Supplies expense2,040Rent expense1,600Utilities expense985Ins

35、urance expense100Depreciation expense50Miscellaneous expense455Total expenses9,755Net income$7,205NetSolutions Retained Earnings StatementFor Two Months Ended December 31,2002Net income for November and December$7,205Less dividends4,000Retained earnings,December 31,2002$3,205NetSolutions Balance She

36、etDecember 31,2002 ASSETSCurrent assets:Cash$2,065 Accounts receivable2,720 Supplies760 Prepaid insurance2,300 Total current assets$7,845Property,plant,and equipment:Land$20,000 Office equipment1,800 Less accum.depr.(50)Total property,plant,and equipment 21,750Total assets$29,595NetSolutions Balance

37、 SheetDecember 31,2002 LIABILITIESCurrent liabilities:Accounts payable$900Wages payable 250Unearned rent 240Total liabilities$1,390 STOCKHOLDERS EQUITYCapital stock$25,000Retained earnings 3,205Total stockholders equity 28,205Total liabilities andstockholders equity$29,595Wages ExpenseBal.4,525Rent

38、ExpenseBal.1,600Depreciation ExpenseBal.50Utilities ExpenseBal.985Supplies ExpenseBal.2,040Insurance ExpenseBal.100Miscellaneous ExpenseBal.455Fees EarnedBal.16,840Rent RevenueBal.120Retained EarningsBal.0DividendsBal.4,000Income SummaryNote:Note:The balances shown are adjusted balances before closi

39、ng.The following sequence demonstrates the closing process.The Closing ProcessThe Closing ProcessWages ExpenseBal.4,525Rent ExpenseBal.1,600Depreciation ExpenseBal.50Utilities ExpenseBal.985Supplies ExpenseBal.2,040Insurance ExpenseBal.100Miscellaneous ExpenseBal.455Fees EarnedBal.16,840Rent Revenue

40、Bal.12016,84016,840 120 120Income Summary 16,960 16,960Retained Earnings Close Revenues Close RevenuesBal.0DividendsBal.4,000TotalRevenuesThe Closing ProcessThe Closing ProcessWages ExpenseBal.4,525Rent ExpenseBal.1,600Depreciation ExpenseBal.50Utilities ExpenseBal.985Supplies ExpenseBal.2,040Insura

41、nce ExpenseBal.100Miscellaneous ExpenseBal.4554,5254,5251,6001,60050509859852,0402,040100100455455Fees EarnedBal.16,840Rent RevenueBal.12016,84016,840 120 120Income Summary 16,960 16,9609,7559,755Retained Earnings Close Revenues Close RevenuesBal.0DividendsBal.4,000 Close Expenses Close ExpensesTota

42、lExpensesTotalRevenuesThe Closing ProcessThe Closing ProcessWages ExpenseBal.4,525Rent ExpenseBal.1,600Depreciation ExpenseBal.50Utilities ExpenseBal.985Supplies ExpenseBal.2,040Insurance ExpenseBal.100Miscellaneous ExpenseBal.4554,5254,5251,6001,60050509859852,0402,040100100455455Fees EarnedBal.16,

43、840Rent RevenueBal.12016,84016,840 120 120Income Summary 16,960 16,9609,7559,755Retained Earnings Close Revenues Close RevenuesBal.0DividendsBal.4,000 Close Expenses Close ExpensesThe Closing ProcessThe Closing Process 7,205 7,205 7,2057,205Close Income SummaryClose Income SummaryNet IncomeClosedWag

44、es ExpenseBal.4,525Rent ExpenseBal.1,600Depreciation ExpenseBal.50Utilities ExpenseBal.985Supplies ExpenseBal.2,040Insurance ExpenseBal.100Miscellaneous ExpenseBal.4554,5254,5251,6001,60050509859852,0402,040100100455455Fees EarnedBal.16,840Rent RevenueBal.12016,84016,840 120 120Income Summary 16,960

45、 16,9609,7559,755Retained Earnings Close Revenues Close RevenuesBal.0DividendsBal.4,000 Close Expenses Close ExpensesThe Closing ProcessThe Closing Process 7,205 7,205 7,2057,205 Close Income Summary Close Income SummaryNet Income4,0004,0004,0004,000 Close Dividends Close DividendsDividendsClosedClo

46、sedWages ExpenseRent ExpenseDepreciation ExpenseUtilities ExpenseSupplies ExpenseInsurance ExpenseMiscellaneous ExpenseFees EarnedRent RevenueIncome SummaryRetained EarningsBal.0Dividends Net Income Net Income Dividends DividendsBal.3,205All temporary accounts now have zero balances and are ready fo

47、r the next accounting period.7,205 7,2054,0004,000The Closing ProcessThe Closing ProcessNetSolutionsPost-Closing Trial BalanceDecember 31,200211 Cash2,06512 Accounts Receivable2,72014 Supplies76015 Prepaid Insurance2,30017 Land20,00018 Office Equipment1,80019 Accum.Depreciation5021 Accounts Payable9

48、0022 Wages Payable25023 Unearned Rent24031 Capital Stock25,00032 Retained Earnings3,20529,64529,645AssetsAssetsNetSolutionsPost-Closing Trial BalanceDecember 31,200211 Cash2,06512 Accounts Receivable2,72014 Supplies76015 Prepaid Insurance2,30017 Land20,00018 Office Equipment1,80019 Accum.Depreciatio

49、n5021 Accounts Payable90022 Wages Payable25023 Unearned Rent24031 Capital Stock25,00032 Retained Earnings3,20529,64529,645LiabilitiesLiabilitiesNetSolutionsPost-Closing Trial BalanceDecember 31,200211 Cash2,06512 Accounts Receivable2,72014 Supplies76015 Prepaid Insurance2,30017 Land20,00018 Office E

50、quipment1,80019 Accum.Depreciation5021 Accounts Payable90022 Wages Payable25023 Unearned Rent24031 Capital Stock25,00032 Retained Earnings3,20529,64529,645StockholdersStockholdersEquityEquityManual Accounting CycleManual Accounting Cycle1.Transactions are analyzed and recorded in journal.DocumentsJo