专业英语会计学chap004研讨.pptVIP

4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 3 4 4 Examples Include: Interest Earned Work Completed But Not Yet Billed to Customer Accruing Uncollected Revenue Saturday, Jan. 15 Tuesday, Feb. 15 $170 Interest Revenue On Jan. 31, the bank owes Webb Co. interest of $170. Interest is paid on the 15th day of each month. Monday, Jan. 31 Accruing Uncollected Revenue Initially, the revenue is recognized and a receivable is created. Accruing Uncollected Revenue Income Statement Revenue earned this period. Balance Sheet Receivable to be collected in a future period. Accruing Uncollected Revenue Saturday, Jan. 15 Tuesday, Feb. 15 $320 Monthly Interest $170 Interest Revenue Let’s look at the entry for February 15. Monday, Jan. 31 $150 Interest Revenue Accruing Uncollected Revenue The receivable is collected in a future period. Accruing Uncollected Revenue As a corporation earns taxable income, it incurs income taxes expense, and also a liability to governmental tax authorities. Accruing Income Taxes Expense: The Final Adjusting Entry Costs are matched with revenue in two ways: Direct association of costs with specific revenue transactions. Systematic allocation of costs over the “useful life” of the expenditure. Adjusting Entries and Accounting Principles An item is “material” if knowledge of the item might reasonably influence the decisions of users of financial statements. Supplies Lightbulbs Many companies immediately charge the cost of immaterial items to expense. The Concept of Materiality Journalize transactions. Post entries to the ledger accounts. Prepare trial balance. Make end-of-year adjustments. Prepare adjusted trial balance. Let’s look at JJ’s Lawn Care Services’ adjusted trial balance. Effects of the Adjusting Entries All balances are taken from the ledger accounts on May 31 after preparing the two depreciation adjusting entries. Adjusted Trial Balance Case 4.1 Should this be adjusted? Property Management Professionals provides building management services to own