清华经管会计学原理Chapter04.pptVIP

Chapter 4 Adjustments, Financial Statements, and the Quality of Earnings Business Background Accounting Cycle During the period: Analyze transactions. Record journal entries. Post amounts to general ledger. Learning Objectives Adjusting Process Adjusting Process At the end of the accounting period, adjusting journal entries are recorded for internal transactions that have a direct and measurable effect on the accounting entity, particularly for revenue and expense recognition. Adjusting Entries Adjusting Entries Deferred Revenue Deferred Revenue Deferred Revenue Deferred Revenue Deferred Revenue Deferred Revenue Accrued Revenues Accrued Revenue Accrued Revenue Accrued Revenue Chart for Deferred and Accrued Revenues Expenses Deferred Expense Deferred Expense Deferred Expense Deferred Expense Deferred Expense Deferred Expense Accrued Expenses Accrued Expenses Accrued Expenses Chart for Deferred and Accrued Expenses Adjustments Involving Estimates Certain circumstances require adjusting entries to record accounting estimates. Examples include . . . Depreciation Bad debts Income taxes Adjustments Involving Estimates Certain circumstances require adjusting entries to record accounting estimates. Examples include . . . Depreciation Bad debts Income taxes Depreciation Adjustment Depreciation Adjustment Depreciation Adjustment At January 31, 2001, Papa John’s trial balance showed Property equipment of $338,000 (all numbers in thousands) and Accumulated depreciation of $83,000. For the period, Papa John’s needs to record an additional $2,500 in depreciation. Depreciation Adjustment After we post the entry to the T-accounts, the account balances look like this: Summary Accounting Cycle During the period: Analyze transactions. Record journal entries. Post amounts to general ledger. Learning Objectives Unadjusted Trial Balance A listing of individual accounts, usually in financial statement order. Ending debit or credit balances are listed in two separate columns. Tota