会计学原理英文课件3.pptVIP

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Matching Principle – Case 3 Typical liabilities and their related expense accounts include . . . Matching Principle Expenses are recognized with revenues Regardless of when cash is paid Cash may be paid before or after expense recognition, resulting two transactions: one on the date of the cash payment and one on the date of expense is incurred in generating revenue Analyzing Papa John’s Transactions Let’s apply the complete transaction analysis model to some of Papa John’s transactions. All amounts are in thousands of dollars. Identify Classify the Accounts 1. Cash (asset) 2. Franchise fee revenue (revenue) 3. Unearned franchise fees (liability) Determine the Direction of the Effect 1. Cash increases. 2. Franchise fee revenue increases. 3. Unearned franchise fees  increases. (a) Papa John’s sold franchises for $400 cash. The company earned $100 immediately. The rest will be earned over several months. Identify Classify the Accounts Determine the Direction of the Effect (a) Papa John’s sold franchises for $400 cash. The company earned $100 immediately. The rest will be earned over several months. Identify Classify the Accounts 1. Cash (asset) 2. Restaurant sales revenue (revenue) 3. Cost of sales- restaurant (expense) 4. Inventories (asset) Determine the Direction of the Effect 1. Cash increases. 2. Restaurant sales revenue increases. 3. Cost of sales- restaurant increases. 4. Inventories decrease. (b) The company sold $36,000 of pizzas for cash. The costs of the pizza ingredients for those sales were $9,600. Identify Classify the Accounts Determine the Direction of the Effect (b) The company sold $36,000 of pizzas for cash. The costs of the pizza ingredients for those sales were $9,600. (c) In January, Papa John’s paid $7,000 for utilities, repairs, and fuel for delivery ve