第3章 会计循环：借贷记账法.pptVIP

One of the basic concepts of accounting is that revenue should be recognized when the goods or services are sold to customers. This concept may take some time to understand, as most people are cash-based. That is, they recognize revenue when cash is received rather than when it is earned and recognize expenses when paid rather than when incurred. The matching principle states that we must match expenses with the period in which they are used. The matching principle states that we must match expenses with the period in which they are used. Part ILet’s look more closely at the recording of revenues and expenses. To review, revenues increase owners’ equity and expenses decrease owners’ equity.Part IIA decrease is shown in owners’ equity with a debit. Increases in expenses must be recorded as debits in a separate ledger account.Part IIIAn increase in owners’ equity is shown with a credit. Increases in revenues must be recorded as credits in a separate ledger account. Part ITo review, payments to owners decrease owners’ equity and investments by owners increase owners’ equity.Part IIDividends represent payments to owners of a corporation. An increase in the dividend account must be shown with a debit.Part IICapital stock represents investments by owners of a corporation. An increase in the capital stock account must be shown with a credit. 9 Let’s take a first look at a trial balance. On the next slides is the May 31st, trial balance of JJ’s Lawn Care. 9 Let’s take a first look at a trial balance. On the next slides is the May 31st, trial balance of JJ’s Lawn Care. 4 Part I A trial balance lists the balances of all accounts in the ledger. To review, all transactions have an equal debit and credit impact. The total debit balance should be equal to the total credit balance according to the rules of double-entry bookkeeping.Part II The total of the debit balance accounts is $21,900. This is exactly equal to the total of the credit balance accounts. So, th