专业英文讲解Chap003.ppt

The Role of Accounting Records The Ledger The Use of Accounts Debit and Credit Entries Debit and Credit Rules Double Entry Accounting???The Equality of Debits and Credits The Journal Posting Journal Entries to the Ledger Accounts Posting involves copying information from the journal to the ledger accounts. Posting Journal Entries to the Ledger Accounts Posting Journal Entries to the Ledger Accounts Posting Journal Entries to the Ledger Accounts Ledger Accounts After Posting Ledger Accounts After Posting What is Net Income? Retained Earnings The Income Statement: A Preview Accounting Periods Revenue and Expenses The Realization Principle: When To Record Revenue The Matching Principle: When To Record Expenses Debits and Credits for Revenue and Expense Investments by and Payments to Owners End of Chapter 3 4 4 4 4 3 3 9 3 3 Realization Principle Revenue should be recognized at the time goods are sold and services are rendered. Matching Principle Expenses should be recorded in the period in which they are used up. EQUITIES Debit for Decrease Credit for Increase REVENUES Debit for Decrease Credit for Increase EXPENSES Credit for Decrease Debit for Increase Expenses decrease owner’s equity. Revenues increase owner’s equity. EQUITIES Debit for Decrease Credit for Increase CAPITAL STOCK Debit for Decrease Credit for Increase DIVIDENDS Credit for Decrease Debit for Increase Payments to owners decrease owners’ equity. Owners’ investments increase owners’ equity. Let’s analyze the revenue and expense transactions for JJ’s Lawn Care Service for the month of May. We will also analyze a dividend transaction. May 29: JJ’s provided lawn care services for a client and received $750 in cash. Will Cash increase or decrease? Will Sales Revenue increase or decrease? May 29: JJ’s provided lawn care services for a client and received $750 in cash. Cash increases $750 with a debit. Sales Revenue increases $750 with a credit. May 31: JJ’s purch