This document provides an overview of the accounting cycle and accounting information system. It begins with learning objectives that cover basic accounting terminology, double-entry rules, steps in the accounting cycle including journalizing, posting, trial balances and financial statements. The accounting cycle is then explained through examples of transactions being recorded in journals and posted to ledger accounts. The purpose of the accounting information system is also summarized as collecting, processing and disseminating financial information to interested parties like management.
Current Liabilities, Provisions, and Contingenciesreskino1
Current Liabilities,
Provisions, and Contingencies
After studying this chapter, you should be able to:
1. Describe the nature, valuation, and reporting of current liabilities.
2. Explain the accounting for different types of provisions.
3. Explain the accounting for loss and gain contingencies.
4. Indicate how to present and analyze liability-related information
The document discusses accounting issues related to cash, accounts receivable, and uncollectible accounts receivable. It defines cash and receivables, identifies different types of receivables, and explains recognition and valuation of receivables including estimation of uncollectible amounts using percentage-of-sales and percentage-of-receivables approaches. It also covers presentation of receivables on the statement of financial position and journal entries related to receivables transactions.
Bab 8 membahas penilaian persediaan dengan pendekatan biaya dasar, meliputi klasifikasi persediaan, sistem perpetual dan periodik, biaya yang dimasukkan ke persediaan, dan asumsi arus biaya seperti FIFO, rata-rata, dan identifikasi khusus. "
The document provides information about adjusting entries for Micro Computer Services for August 2017. It states that accrued revenues of $500 were earned but not recorded for services performed. It also states that accrued expenses of $300 were incurred for unpaid utilities. The adjusting entries would debit Accounts Receivable and credit Service Revenue for $500 to record accrued revenues. For accrued expenses, the adjusting entries would debit Utilities Expense and credit Accounts Payable for $300 to record accrued expenses.
Wilson would make the following entry to record the estimated uncollectible accounts of $26,610 using the allowance method:
Bad Debt Expense 26,610
Allowance for Doubtful Accounts 26,610
This entry increases the Bad Debt Expense to record the estimated uncollectible amount and increases the contra-asset account Allowance for Doubtful Accounts to offset Accounts Receivable and report it at its net realizable value.
Bab 21 audit siklus perolehan dan pembayaran kembali modal ARCHIVES BLOG Vendrian Dinata
Dokumen tersebut membahas empat hal penting yaitu: (1) pengendalian internal untuk transaksi modal saham dan hutang dividen, (2) enam tujuan audit utama terkait transaksi ekuitas pemilik dan hutang dividen, (3) empat perhatian utama dalam audit modal saham dan kelebihan modal disetor, dan (4) empat pengendalian penting atas wesel bayar.
Ch03-financial reporting and accounting standardsVivi Tazkia
The document provides an overview of the key concepts and steps covered in Chapter 3 of Intermediate Accounting (IFRS 2nd Edition) by Kieso, Weygandt, and Warfield. It outlines 8 learning objectives for the chapter, which include understanding basic accounting terminology, the double-entry system, the accounting cycle, journalizing and posting transactions, adjusting entries, and preparing financial statements. The chapter also discusses the accounting equation, T-accounts, the different types of accounts, and the accounting process from recording transactions to the adjusted trial balance.
This document provides an overview of fixed assets (aktiva tetap) in Indonesian. It defines key characteristics of fixed assets such as their tangible nature and use in productive operations. It then discusses various costs that can be included in the valuation of major fixed asset categories like land, buildings, machinery, and equipment. The document also explains common depreciation methods like straight-line and declining-balance that are used to allocate the costs of fixed assets over their useful lives.
Current Liabilities, Provisions, and Contingenciesreskino1
Current Liabilities,
Provisions, and Contingencies
After studying this chapter, you should be able to:
1. Describe the nature, valuation, and reporting of current liabilities.
2. Explain the accounting for different types of provisions.
3. Explain the accounting for loss and gain contingencies.
4. Indicate how to present and analyze liability-related information
The document discusses accounting issues related to cash, accounts receivable, and uncollectible accounts receivable. It defines cash and receivables, identifies different types of receivables, and explains recognition and valuation of receivables including estimation of uncollectible amounts using percentage-of-sales and percentage-of-receivables approaches. It also covers presentation of receivables on the statement of financial position and journal entries related to receivables transactions.
Bab 8 membahas penilaian persediaan dengan pendekatan biaya dasar, meliputi klasifikasi persediaan, sistem perpetual dan periodik, biaya yang dimasukkan ke persediaan, dan asumsi arus biaya seperti FIFO, rata-rata, dan identifikasi khusus. "
The document provides information about adjusting entries for Micro Computer Services for August 2017. It states that accrued revenues of $500 were earned but not recorded for services performed. It also states that accrued expenses of $300 were incurred for unpaid utilities. The adjusting entries would debit Accounts Receivable and credit Service Revenue for $500 to record accrued revenues. For accrued expenses, the adjusting entries would debit Utilities Expense and credit Accounts Payable for $300 to record accrued expenses.
Wilson would make the following entry to record the estimated uncollectible accounts of $26,610 using the allowance method:
Bad Debt Expense 26,610
Allowance for Doubtful Accounts 26,610
This entry increases the Bad Debt Expense to record the estimated uncollectible amount and increases the contra-asset account Allowance for Doubtful Accounts to offset Accounts Receivable and report it at its net realizable value.
Bab 21 audit siklus perolehan dan pembayaran kembali modal ARCHIVES BLOG Vendrian Dinata
Dokumen tersebut membahas empat hal penting yaitu: (1) pengendalian internal untuk transaksi modal saham dan hutang dividen, (2) enam tujuan audit utama terkait transaksi ekuitas pemilik dan hutang dividen, (3) empat perhatian utama dalam audit modal saham dan kelebihan modal disetor, dan (4) empat pengendalian penting atas wesel bayar.
Ch03-financial reporting and accounting standardsVivi Tazkia
The document provides an overview of the key concepts and steps covered in Chapter 3 of Intermediate Accounting (IFRS 2nd Edition) by Kieso, Weygandt, and Warfield. It outlines 8 learning objectives for the chapter, which include understanding basic accounting terminology, the double-entry system, the accounting cycle, journalizing and posting transactions, adjusting entries, and preparing financial statements. The chapter also discusses the accounting equation, T-accounts, the different types of accounts, and the accounting process from recording transactions to the adjusted trial balance.
This document provides an overview of fixed assets (aktiva tetap) in Indonesian. It defines key characteristics of fixed assets such as their tangible nature and use in productive operations. It then discusses various costs that can be included in the valuation of major fixed asset categories like land, buildings, machinery, and equipment. The document also explains common depreciation methods like straight-line and declining-balance that are used to allocate the costs of fixed assets over their useful lives.
This document provides an assignment classification table for Chapter 3 of Intermediate Accounting. It classifies the chapter's topics, questions, brief exercises, regular exercises, and problems by topic and learning objective. The table also describes the level of difficulty and estimated time to complete for each assignment. It includes 13 topics covered in the chapter and 10 learning objectives. The document provides guidance for instructors on organizing assignments to help students learn the material.
Bab 4 Income Statement and Related Informationmsahuleka
The document discusses key elements and objectives related to preparing and understanding income statements, including:
- The uses and limitations of income statements in evaluating past performance and predicting future cash flows
- Components of single-step and multiple-step income statements and how they differ
- Reporting of irregular items like discontinued operations, extraordinary items, and changes in accounting principles
- Intraperiod tax allocation and where earnings per share information is reported
The document discusses accounting entries for asset exchanges and depreciation calculations for two companies, Carlos Arruza Co. and Tony Lobianco Co. It provides details of the assets exchanged, including original costs, accumulated depreciation, and fair values. It then shows the journal entries to record the exchange under the assumptions that the exchange had no commercial substance or that it did have commercial substance. It also provides examples of calculating depreciation expense using different methods for various asset purchases and revisions to estimated useful lives.
"[Ringkuman]"
Dokumen tersebut membahas akuntansi untuk sekuritas dilutif dan perhitungan laba per saham. Secara khusus, dibahas mengenai akuntansi untuk obligasi konversi, saham preferen konversi, berbagi waran, dan rencana kompensasi saham. Juga dijelaskan perhitungan laba per saham untuk struktur modal yang sederhana dan kompleks.
Ini adalah sebuah resume dari buku Auditing and Assurance Services An Integrated Approach oleh Alvin Aren. I do not own the copyrights, it's only for educational purposes.
Koreksi Kesalahan, Perubahan Kebijakan Akuntansi, Perubahan Estimasi Akuntans...Adi Jauhari
PSAP No. 10 mengatur perlakuan akuntansi atas koreksi kesalahan, perubahan kebijakan akuntansi, perubahan estimasi akuntansi, dan operasi yang tidak dilanjutkan dalam laporan keuangan. Koreksi kesalahan yang tidak berulang dilakukan dengan pembetulan pada akun yang bersangkutan, sedangkan koreksi kesalahan berulang secara sistematis dilakukan dengan menyajikan kembali laporan keuangan periode sebelumnya.
ch02 - Conceptual Framework for Financial Reporting.pptNicolasErnesto2
The conceptual framework establishes fundamental concepts that guide standard-setting and financial reporting more broadly. It is being jointly developed by the IASB and FASB and consists of three levels: the objective of financial reporting, qualitative characteristics, and specific concepts. The objective is to provide useful information to capital providers. Key qualitative characteristics include relevance and faithful representation. The framework also outlines basic elements, assumptions, principles, and constraints that guide accounting practices. It aims to create consistency and coherence in financial reporting standards over time.
Siklus produksi PT Yuki Springbed meliputi desain produk, operasi produksi, dan akuntansi biaya. Perusahaan merancang produk tempat tidur berdasarkan umpan balik pelanggan dan memproduksinya menggunakan mesin otomatis meskipun pengoperasian dilakukan secara manual. Laporan biaya digunakan untuk pelaporan keuangan.
This document summarizes key accounting concepts related to cash, receivables, and related valuation issues. It defines cash and receivables, discusses how to recognize, measure, and present them in financial statements. Specific topics covered include cash controls, restricted cash, cash equivalents, accounts and notes receivable, allowance for doubtful accounts, present value concepts for long-term notes receivable.
The document provides an overview of basic accounting concepts and the accounting cycle. It defines accounting as a process to record and communicate financial information. It explains the accounting equation that balances assets, liabilities, and owner's equity. Transactions are exchanges that affect accounts. The accounting cycle includes analyzing transactions, journalizing, posting, preparing a trial balance, adjusting entries, financial statements, and closing entries. The document also outlines users and branches of accounting.
The document discusses the accounting information system and key concepts in the accounting cycle. It provides learning objectives for understanding basic accounting terminology, explaining double-entry rules, identifying steps in the accounting cycle, and recording transactions in journals and ledgers. Key terms are defined, such as assets, liabilities, equity, revenues, expenses, and debits and credits. Examples demonstrate double-entry accounting, the accounting equation, and the steps of the accounting cycle including journalizing, posting, preparing a trial balance, and making adjusting entries.
The document provides an overview of the key concepts and steps covered in Chapter 3 of Intermediate Accounting. It discusses the accounting information system and its objectives. The key steps in the accounting cycle are identified as journalizing transactions, posting to ledger accounts, preparing an initial trial balance, adjusting entries, and final financial statements. Basic accounting terminology is defined, including accounts, debits/credits, the accounting equation, and the different types of accounts. Examples are provided to illustrate double-entry accounting and the posting process.
This document provides an assignment classification table for Chapter 3 of Intermediate Accounting. It classifies the chapter's topics, questions, brief exercises, regular exercises, and problems by topic and learning objective. The table also describes the level of difficulty and estimated time to complete for each assignment. It includes 13 topics covered in the chapter and 10 learning objectives. The document provides guidance for instructors on organizing assignments to help students learn the material.
Bab 4 Income Statement and Related Informationmsahuleka
The document discusses key elements and objectives related to preparing and understanding income statements, including:
- The uses and limitations of income statements in evaluating past performance and predicting future cash flows
- Components of single-step and multiple-step income statements and how they differ
- Reporting of irregular items like discontinued operations, extraordinary items, and changes in accounting principles
- Intraperiod tax allocation and where earnings per share information is reported
The document discusses accounting entries for asset exchanges and depreciation calculations for two companies, Carlos Arruza Co. and Tony Lobianco Co. It provides details of the assets exchanged, including original costs, accumulated depreciation, and fair values. It then shows the journal entries to record the exchange under the assumptions that the exchange had no commercial substance or that it did have commercial substance. It also provides examples of calculating depreciation expense using different methods for various asset purchases and revisions to estimated useful lives.
"[Ringkuman]"
Dokumen tersebut membahas akuntansi untuk sekuritas dilutif dan perhitungan laba per saham. Secara khusus, dibahas mengenai akuntansi untuk obligasi konversi, saham preferen konversi, berbagi waran, dan rencana kompensasi saham. Juga dijelaskan perhitungan laba per saham untuk struktur modal yang sederhana dan kompleks.
Ini adalah sebuah resume dari buku Auditing and Assurance Services An Integrated Approach oleh Alvin Aren. I do not own the copyrights, it's only for educational purposes.
Koreksi Kesalahan, Perubahan Kebijakan Akuntansi, Perubahan Estimasi Akuntans...Adi Jauhari
PSAP No. 10 mengatur perlakuan akuntansi atas koreksi kesalahan, perubahan kebijakan akuntansi, perubahan estimasi akuntansi, dan operasi yang tidak dilanjutkan dalam laporan keuangan. Koreksi kesalahan yang tidak berulang dilakukan dengan pembetulan pada akun yang bersangkutan, sedangkan koreksi kesalahan berulang secara sistematis dilakukan dengan menyajikan kembali laporan keuangan periode sebelumnya.
ch02 - Conceptual Framework for Financial Reporting.pptNicolasErnesto2
The conceptual framework establishes fundamental concepts that guide standard-setting and financial reporting more broadly. It is being jointly developed by the IASB and FASB and consists of three levels: the objective of financial reporting, qualitative characteristics, and specific concepts. The objective is to provide useful information to capital providers. Key qualitative characteristics include relevance and faithful representation. The framework also outlines basic elements, assumptions, principles, and constraints that guide accounting practices. It aims to create consistency and coherence in financial reporting standards over time.
Siklus produksi PT Yuki Springbed meliputi desain produk, operasi produksi, dan akuntansi biaya. Perusahaan merancang produk tempat tidur berdasarkan umpan balik pelanggan dan memproduksinya menggunakan mesin otomatis meskipun pengoperasian dilakukan secara manual. Laporan biaya digunakan untuk pelaporan keuangan.
This document summarizes key accounting concepts related to cash, receivables, and related valuation issues. It defines cash and receivables, discusses how to recognize, measure, and present them in financial statements. Specific topics covered include cash controls, restricted cash, cash equivalents, accounts and notes receivable, allowance for doubtful accounts, present value concepts for long-term notes receivable.
The document provides an overview of basic accounting concepts and the accounting cycle. It defines accounting as a process to record and communicate financial information. It explains the accounting equation that balances assets, liabilities, and owner's equity. Transactions are exchanges that affect accounts. The accounting cycle includes analyzing transactions, journalizing, posting, preparing a trial balance, adjusting entries, financial statements, and closing entries. The document also outlines users and branches of accounting.
The document discusses the accounting information system and key concepts in the accounting cycle. It provides learning objectives for understanding basic accounting terminology, explaining double-entry rules, identifying steps in the accounting cycle, and recording transactions in journals and ledgers. Key terms are defined, such as assets, liabilities, equity, revenues, expenses, and debits and credits. Examples demonstrate double-entry accounting, the accounting equation, and the steps of the accounting cycle including journalizing, posting, preparing a trial balance, and making adjusting entries.
The document provides an overview of the key concepts and steps covered in Chapter 3 of Intermediate Accounting. It discusses the accounting information system and its objectives. The key steps in the accounting cycle are identified as journalizing transactions, posting to ledger accounts, preparing an initial trial balance, adjusting entries, and final financial statements. Basic accounting terminology is defined, including accounts, debits/credits, the accounting equation, and the different types of accounts. Examples are provided to illustrate double-entry accounting and the posting process.
The document provides an overview of the key learning objectives and content covered in Chapter 3 of Intermediate Accounting (IFRS 2nd Edition) by Kieso, Weygandt, and Warfield. The chapter introduces fundamental accounting concepts including the accounting equation, double-entry system, accounting cycle, basic terminology, adjusting entries, and preparation of financial statements. It also discusses how the accounting information system collects and processes transaction data to disseminate financial information to stakeholders.
The Accounting Information System
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
Describe the basic accounting information system.
Record and summarize basic transactions.
Identify and prepare adjusting entries.
Prepare financial statements from the adjusted trial balance and prepare closing entries.
Prepare financial statements for a merchandising company.
The document describes the accounting cycle and basic accounting concepts. It begins by outlining the learning objectives of describing the basic accounting information system, recording transactions, preparing adjusting entries, and preparing financial statements. It then provides details on the accounting information system, journal entries, T-accounts, debits and credits, the accounting equation, the trial balance, and adjusting entries. It includes examples of adjusting entries for supplies, insurance, depreciation, and unearned revenue. The overall purpose is to explain the fundamentals of the accounting process.
Bab 3 - The Accounting Information Systemmsahuleka
The document discusses key aspects of an accounting information system and the accounting cycle, including basic terminology, double-entry rules, journalizing and posting transactions, preparing adjusting entries, and financial statements. It explains the steps in the accounting cycle such as recording transactions, preparing a trial balance, making adjustments, preparing an adjusted trial balance and financial statements, and closing entries.
The document discusses key concepts in the accounting information system including:
1) The basic steps in the recording process such as analyzing transactions, journalizing, posting to ledger accounts, and preparing a trial balance.
2) The use of debits and credits to record transactions and their effect on different types of accounts.
3) The purpose and use of accounts, journals, ledgers, and the trial balance in the recording process.
The document describes the accounting recording process, including how accounts, debits, credits, journals, ledgers, and trial balances are used. It explains that journals are used to record transactions chronologically, while ledgers contain accounts for assets, liabilities, equity, revenues, and expenses. Transactions are posted from journals to ledgers to update account balances. A trial balance is prepared to check that total debits equal total credits. While useful, a trial balance does not guarantee accurate records as errors can still exist.
The document summarizes key aspects of the accounting recording process. It explains that the recording process involves (1) analyzing transactions, (2) journalizing transactions by recording them in a journal, and (3) posting journal entries to individual accounts in the general ledger. It also describes what a journal and general ledger are and how they are used. The chapter concludes by explaining what a trial balance is and that its purpose is to ensure total debits equal total credits.
Sure, let's go through the main concepts of financial statements, their advantages and disadvantages, and provide examples and relevant ratio calculations.
Main Financial Statements
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. Statement of Changes in Equity
1. Income Statement
Concept:
• Shows the company's revenues, expenses, and profits or losses over a specific period.
• Key components include revenues, cost of goods sold (COGS), gross profit, operating expenses, operating income, interest, taxes, and net income.
Advantages:
• Provides a clear picture of profitability.
• Helps in assessing operational efficiency.
• Useful for trend analysis over different periods.
Disadvantages:
• Can be manipulated through accounting practices.
• Does not provide a complete financial health picture (e.g., cash flow).
Example:
Sure, let's go through the main concepts of financial statements, their advantages and disadvantages, and provide examples and relevant ratio calculations.
Main Financial Statements
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. Statement of Changes in Equity
1. Income Statement
Concept:
• Shows the company's revenues, expenses, and profits or losses over a specific period.
• Key components include revenues, cost of goods sold (COGS), gross profit, operating expenses, operating income, interest, taxes, and net income.
Advantages:
• Provides a clear picture of profitability.
• Helps in assessing operational efficiency.
• Useful for trend analysis over different periods.
Disadvantages:
• Can be manipulated through accounting practices.
• Does not provide a complete financial health picture (e.g., cash flow).
Example:
The document describes the basic accounting process of recording transactions. It explains that each transaction affects at least two accounts, with equal debits and credits, to keep the accounting equation in balance. A journal is used to initially record transactions in chronological order before they are posted to individual accounts in the general ledger. Ledger accounts track increases and decreases to assets, liabilities, equity, revenues and expenses, with standard rules for whether balances are normally debit or credit. A trial balance is prepared to check that total debits equal total credits after all posting, but may still balance with certain types of errors present.
The document provides an overview of the key steps and concepts in the accounting recording process, including:
1. Defining accounts, debits and credits, journals, ledgers, and the trial balance. Accounts track increases and decreases to specific items and use debits and credits to record transactions.
2. Outlining the basic steps as analyzing transactions, journalizing, posting to ledger accounts, and preparing a trial balance. Journals provide a chronological record and ledgers contain all accounts.
3. Explaining the purposes and limitations of the trial balance in checking that debits equal credits but not ensuring all transactions are recorded correctly.
1) The document discusses the recording process in accounting, which involves using accounts, debits and credits, journals, ledgers, and posting to record business transactions.
2) It defines key terms like accounts, debits and credits, journals, ledgers, and explains how transactions are recorded in the steps of journalizing, posting, and preparing T-accounts.
3) The recording process is illustrated through examples of various business transactions and how they are recorded in journals and ledgers using debits and credits to ensure the accounting equation stays in balance.
This document provides information about a financial accounting course at Eelo University in Borama, Somaliland. It introduces the lecturer, Professor Abdi Ali Hassan, who holds a B.Sc. and MBA in Strategic Management from the University of Nairobi. It also provides Professor Abdi's contact information.
Here are the steps to analyze and post a journal entry:
1. Analyze the journal entry to determine the accounts involved and whether each account increased or decreased.
2. Determine if each account is an asset, liability, equity, revenue or expense account based on the general ledger chart of accounts.
3. Translate increases in asset and expense accounts and decreases in liability, equity and revenue accounts into debits, and increases in liability, equity and revenue accounts and decreases in asset and expense accounts into credits.
4. Record the debits and credits in the appropriate general ledger accounts.
Posting
Question
LO 6
Chapter 2, Fundamentals of Accounting I (2).pptxKalkaye
This document provides an overview of the accounting cycle for service businesses. It discusses key concepts like accounts, debits and credits, journals, ledgers, and the steps in the recording process. The recording process involves analyzing transactions, recording them in a journal, and then posting the journal entries to the appropriate accounts in the general ledger. Adjusting entries, preparing an adjusted trial balance, and closing entries are also part of the full accounting cycle.
The document discusses the accounting information system and accounting cycle. It defines key accounting terminology and explains the double-entry system and accounting equation. The accounting cycle includes identifying and recording transactions, posting to accounts, preparing a trial balance, adjusting entries, and financial statements. The document provides examples to illustrate double-entry accounting and the accounting equation.
Analysis insight about a Flyball dog competition team's performanceroli9797
Insight of my analysis about a Flyball dog competition team's last year performance. Find more: https://github.com/rolandnagy-ds/flyball_race_analysis/tree/main
End-to-end pipeline agility - Berlin Buzzwords 2024Lars Albertsson
We describe how we achieve high change agility in data engineering by eliminating the fear of breaking downstream data pipelines through end-to-end pipeline testing, and by using schema metaprogramming to safely eliminate boilerplate involved in changes that affect whole pipelines.
A quick poll on agility in changing pipelines from end to end indicated a huge span in capabilities. For the question "How long time does it take for all downstream pipelines to be adapted to an upstream change," the median response was 6 months, but some respondents could do it in less than a day. When quantitative data engineering differences between the best and worst are measured, the span is often 100x-1000x, sometimes even more.
A long time ago, we suffered at Spotify from fear of changing pipelines due to not knowing what the impact might be downstream. We made plans for a technical solution to test pipelines end-to-end to mitigate that fear, but the effort failed for cultural reasons. We eventually solved this challenge, but in a different context. In this presentation we will describe how we test full pipelines effectively by manipulating workflow orchestration, which enables us to make changes in pipelines without fear of breaking downstream.
Making schema changes that affect many jobs also involves a lot of toil and boilerplate. Using schema-on-read mitigates some of it, but has drawbacks since it makes it more difficult to detect errors early. We will describe how we have rejected this tradeoff by applying schema metaprogramming, eliminating boilerplate but keeping the protection of static typing, thereby further improving agility to quickly modify data pipelines without fear.
ViewShift: Hassle-free Dynamic Policy Enforcement for Every Data LakeWalaa Eldin Moustafa
Dynamic policy enforcement is becoming an increasingly important topic in today’s world where data privacy and compliance is a top priority for companies, individuals, and regulators alike. In these slides, we discuss how LinkedIn implements a powerful dynamic policy enforcement engine, called ViewShift, and integrates it within its data lake. We show the query engine architecture and how catalog implementations can automatically route table resolutions to compliance-enforcing SQL views. Such views have a set of very interesting properties: (1) They are auto-generated from declarative data annotations. (2) They respect user-level consent and preferences (3) They are context-aware, encoding a different set of transformations for different use cases (4) They are portable; while the SQL logic is only implemented in one SQL dialect, it is accessible in all engines.
#SQL #Views #Privacy #Compliance #DataLake
4th Modern Marketing Reckoner by MMA Global India & Group M: 60+ experts on W...Social Samosa
The Modern Marketing Reckoner (MMR) is a comprehensive resource packed with POVs from 60+ industry leaders on how AI is transforming the 4 key pillars of marketing – product, place, price and promotions.
Predictably Improve Your B2B Tech Company's Performance by Leveraging DataKiwi Creative
Harness the power of AI-backed reports, benchmarking and data analysis to predict trends and detect anomalies in your marketing efforts.
Peter Caputa, CEO at Databox, reveals how you can discover the strategies and tools to increase your growth rate (and margins!).
From metrics to track to data habits to pick up, enhance your reporting for powerful insights to improve your B2B tech company's marketing.
- - -
This is the webinar recording from the June 2024 HubSpot User Group (HUG) for B2B Technology USA.
Watch the video recording at https://youtu.be/5vjwGfPN9lw
Sign up for future HUG events at https://events.hubspot.com/b2b-technology-usa/
STATATHON: Unleashing the Power of Statistics in a 48-Hour Knowledge Extravag...sameer shah
"Join us for STATATHON, a dynamic 2-day event dedicated to exploring statistical knowledge and its real-world applications. From theory to practice, participants engage in intensive learning sessions, workshops, and challenges, fostering a deeper understanding of statistical methodologies and their significance in various fields."
The Building Blocks of QuestDB, a Time Series Databasejavier ramirez
Talk Delivered at Valencia Codes Meetup 2024-06.
Traditionally, databases have treated timestamps just as another data type. However, when performing real-time analytics, timestamps should be first class citizens and we need rich time semantics to get the most out of our data. We also need to deal with ever growing datasets while keeping performant, which is as fun as it sounds.
It is no wonder time-series databases are now more popular than ever before. Join me in this session to learn about the internal architecture and building blocks of QuestDB, an open source time-series database designed for speed. We will also review a history of some of the changes we have gone over the past two years to deal with late and unordered data, non-blocking writes, read-replicas, or faster batch ingestion.
06-04-2024 - NYC Tech Week - Discussion on Vector Databases, Unstructured Data and AI
Round table discussion of vector databases, unstructured data, ai, big data, real-time, robots and Milvus.
A lively discussion with NJ Gen AI Meetup Lead, Prasad and Procure.FYI's Co-Found
2. Slide
3-2
C H A P T E R 3
THE ACCOUNTING
INFORMATION SYSTEM
Intermediate Accounting
IFRS Edition
Kieso, Weygandt, and Warfield
3. Slide
3-3
1. Understand basic accounting terminology.
2. Explain double-entry rules.
3. Identify steps in the accounting cycle.
4. Record transactions in journals, post to ledger accounts,
and prepare a trial balance.
5. Explain the reasons for preparing adjusting entries.
6. Prepare financial statement from the adjusted trial balance.
7. Prepare closing entries.
Learning Objectives
4. Slide
3-4
Identifying and recording
Journalizing
Posting
Trial balance
Adjusting entries
Adjusted trial balance
Preparing financial
statements
Closing
Post-closing trial balance
Reversing entries
Summary
Accounting
Information System
The Accounting
Cycle
Financial
Statements For
Merchandisers
Basic terminology
Debits and credits
Accounting equation
Financial statements
and ownership
structure
Income statement
Statement of retained
earnings
Statement of financial
position
Closing entries
The Accounting Information System
5. Slide
3-5
Collects and processes transaction data.
Disseminates the information to interested parties.
Accounting Information System
Accounting Information System (AIS)
6. Slide
3-6
How much and what kind of debt is outstanding?
Were sales higher this period than last?
What assets do we have?
What were our cash inflows and outflows?
Did we make a profit last period?
Are any of our product lines or divisions operating at a loss?
Can we safely increase our dividends to shareholders?
Is our rate of return on net assets increasing?
Accounting Information System
Helps management answer such questions as:
8. Slide
3-8
Debits and Credits
LO 2 Explain double-entry rules.
An Account shows the effect of transactions on a
given asset, liability, equity, revenue, or expense
account.
Double-entry accounting system (two-sided effect).
Recording done by debiting at least one account and
crediting another.
DEBITS must equal CREDITS.
9. Slide
3-9
Account Name
Debit / Dr. Credit / Cr.
Debits and Credits
An arrangement that shows the
effect of transactions on an
account.
Debit = “Left”
Credit = “Right”
Account
LO 2 Explain double-entry rules.
An Account can
be illustrated in a
T-Account form.
10. Slide
3-10
Account Name
Debit / Dr. Credit / Cr.
Debits and Credits
If Debit entries are greater than Credit entries, the
account will have a debit balance.
LO 2 Explain double-entry rules.
$10,000 Transaction #2
$3,000
$15,000
8,000
Transaction #3
Balance
Transaction #1
11. Slide
3-11
Account Name
Debit / Dr. Credit / Cr.
Debits and Credits
If Credit entries are greater than Debit entries, the
account will have a credit balance.
LO 2 Explain double-entry rules.
$10,000 Transaction #2
$3,000
$1,000
8,000 Transaction #3
Balance
Transaction #1
12. Slide
3-12
Chapter
3-23
Assets
Assets
Debit / Dr. Credit / Cr.
Normal Balance
Normal Balance
Chapter
3-27
Debit / Dr. Credit / Cr.
Normal Balance
Normal Balance
Expense
Expense
Chapter
3-24
Liabilities
Liabilities
Debit / Dr. Credit / Cr.
Normal Balance
Normal Balance
Chapter
3-25
Debit / Dr. Credit / Cr.
Normal Balance
Normal Balance
Equity
Equity
Chapter
3-26
Debit / Dr. Credit / Cr.
Normal Balance
Normal Balance
Revenue
Revenue
Normal
Balance
Credit
Normal
Balance
Debit
Debits and Credits Summary
LO 2 Explain double-entry rules.
13. Slide
3-13
Statement of Financial Position Income Statement
= + =
-
Asset Liability Equity Revenue Expense
Debit
Credit
Debits and Credits Summary
LO 2 Explain double-entry rules.
14. Slide
3-14
The Accounting Equation
LO 2 Explain double-entry rules.
Relationship among the assets, liabilities and equity of a
business:
The equation must be in balance after every transaction.
For every Debit there must be a Credit.
Illustration 3-3
22. Slide
3-22
Double-Entry System Illustration
Assets Liabilities
= +
8. Pay cash of $16,000 for a delivery van.
LO 2 Explain double-entry rules.
- 16,000
+ 16,000
Note that the accounting equation equality is
maintained after recording each transaction.
Equity
23. Slide
3-23
Ownership structure dictates the types of accounts that
are part of the equity section.
Proprietorship or
Partnership
Corporation
Share capital
Share premium
Dividends
Retained Earnings
Financial Statements and Ownership Structure
LO 2 Explain double-entry rules.
Capital account
Drawing account
24. Slide
3-24
Financial Statements and Ownership Structure
LO 2 Explain double-entry rules.
Equity
Statement of Financial Position
Retained Earnings Statement
Net income or Net loss
(Revenues less expenses)
Income Statement
Dividends
Retained Earnings
(Net income retained in business)
Share Capital
(Investment by shareholders)
Illustration 3-4
25. Slide
3-25
The Accounting Cycle
LO 3 Identify steps in the accounting cycle.
Transactions
1. Journalization
6. Financial Statements
7. Closing entries
8. Post-closing trail balance
9. Reversing entries
3. Trial balance
2. Posting
5. Adjusted trial balance
4. Adjustments
Work
Sheet
Illustration 3-6
26. Slide
3-26
Identify and Recording Transactions
What to Record?
An item should be recognized in the financial
statements if it is an element, is measurable,
and is relevant and a
faithful representation.
LO 3 Identify steps in the accounting cycle.
27. Slide
3-27
General Journal – a chronological record of transactions.
Journal Entries are recorded in the journal.
1. Journalizing
LO 4 Record transactions in journals, post to
ledger accounts, and prepare a trial balance.
September 1: Shareholders invested $15,000 cash in the
corporation in exchange for ordinary shares.
Illustration 3-7
28. Slide
3-28
Posting – the process of transferring amounts from the journal
to the ledger accounts.
2. Posting
LO 4 Record transactions in journals, post to
ledger accounts, and prepare a trial balance.
Illustration 3-7
Illustration 3-8
30. Slide
3-30
Expanded Example
LO 4 Record transactions in journals, post to
ledger accounts, and prepare a trial balance.
2. Posting
The purpose of transaction analysis is
(1) to identify the type of account involved, and
(2) to determine whether a debit or a credit is required.
Keep in mind that every journal entry affects one or more of the
following items: assets, liabilities, equity, revenues, or expense.
31. Slide
3-31
1. October 1: Shareholders invest $100,000 cash in an
advertising venture to be known as Pioneer Advertising
Agency Inc.
Share capital - ordinary 100,000
Cash 100,000
Oct. 1
Debit Credit
Cash
100,000 100,000
Debit Credit
Share Capital - Ordinary
2. Posting
LO 4 Record transactions in journals, post to
ledger accounts, and prepare a trial balance.
Illustration 3-9
32. Slide
3-32
2. October 1: Pioneer Advertising purchases office equipment
costing $50,000 by signing a 3-month, 12%, $50,000 note
payable.
Notes payable 50,000
Office equipment 50,000
Oct. 1
Debit Credit
Office Equipment
50,000 50,000
Debit Credit
Notes Payable
2. Posting
LO 4 Record transactions in journals, post to
ledger accounts, and prepare a trial balance.
Illustration 3-10
33. Slide
3-33
3. October 2: Pioneer Advertising receives a $12,000 cash
advance from KC, a client, for advertising services that are
expected to be completed by December 31.
Unearned service revenue 12,000
Cash 12,000
Oct. 2
Debit Credit
Cash
100,000 12,000
Debit Credit
Unearned Service Revenue
2. Posting
12,000
LO 4 Record transactions in journals, post to
ledger accounts, and prepare a trial balance.
Illustration 3-11
34. Slide
3-34
4. October 3: Pioneer Advertising pays $9,000 office rent, in
cash, for October.
Cash 9,000
Rent expense 9,000
Oct. 3
Debit Credit
Cash
100,000 9,000
Debit Credit
Rent Expense
2. Posting
12,000
9,000
LO 4 Record transactions in journals, post to
ledger accounts, and prepare a trial balance.
Illustration 3-12
35. Slide
3-35
5. October 4: Pioneer Advertising pays $6,000 for a one-year
insurance policy that will expire next year on September 30.
Cash 6,000
Prepaid insurance 6,000
Oct. 4
Debit Credit
Cash
100,000 6,000
Debit Credit
Prepaid Insurance
2. Posting
12,000
9,000
6,000
LO 4 Record transactions in journals, post to
ledger accounts, and prepare a trial balance.
Illustration 3-13
36. Slide
3-36
6. October 5: Pioneer Advertising purchases, for $25,000 on
account, an estimated 3-month supply of advertising
materials from Aero Supply.
Accounts payable 25,000
Advertising supplies 25,000
Oct. 5
Debit Credit
Advertising Supplies
25,000 25,000
Debit Credit
Accounts Payable
2. Posting
LO 4 Record transactions in journals, post to
ledger accounts, and prepare a trial balance.
Illustration 3-14
37. Slide
3-37
7. October 9: Pioneer Advertising signs a contract with a local
newspaper for advertising inserts (flyers) to be distributed
starting the last Sunday in November. Pioneer will start
work on the content of the flyers in November. Payment of
$7,000 is due following delivery of the Sunday papers
containing the flyers.
2. Posting
LO 4 Record transactions in journals, post to
ledger accounts, and prepare a trial balance.
Illustration 3-15
38. Slide
3-38
8. October 20: Pioneer Advertising’s board of directors
declares and pays a $5,000 cash dividend to shareholders.
Cash 5,000
Dividends 5,000
Oct. 20
Debit Credit
Cash
100,000 5,000
Debit Credit
Dividends
2. Posting
12,000
9,000
6,000
5,000
LO 4 Record transactions in journals, post to
ledger accounts, and prepare a trial balance.
Illustration 3-16
39. Slide
3-39
9. October 26: Employees are paid every four weeks. The
total payroll is $2,000 per day. The pay period ended on
Friday, October 26, with salaries of $40,000 being paid.
Cash 40,000
Salaries expense 40,000
Oct. 26
Debit Credit
Cash
100,000 40,000
Debit Credit
Salaries Expense
2. Posting
12,000
9,000
6,000
5,000
40,000
LO 4 Record transactions in journals, post to
ledger accounts, and prepare a trial balance.
Illustration 3-17
40. Slide
3-40
10. October 31: Pioneer Advertising receives $28,000 in cash
and bills Copa Company $72,000 for advertising services
of $100,000 provided in October.
Accounts receivable 72,000
Cash 28,000
Oct. 31
Debit Credit
Cash
100,000 72,000
Debit Credit
Accounts Receivable
2. Posting
12,000
9,000
6,000
5,000
40,000
Service revenue 100,000
100,000
Debit Credit
Service Revenue
28,000
80,000
Illustration 3-18
41. Slide
3-41
Trial Balance –
A list of each
account and its
balance; used
to prove
equality of debit
and credit
balances.
3. Trial Balance
LO 4 Record transactions in journals, post to
ledger accounts, and prepare a trial balance.
Illustration 3-19
42. Slide
3-42
4. Adjusting Entries
LO 5 Explain the reasons for preparing adjusting entries.
Makes it possible to:
Report on the statement of financial position the
appropriate assets, liabilities, and equity at the statement
date.
Report on the income statement the proper revenues and
expenses for the period.
Revenues are recorded in the period in which they are
earned.
Expenses are recognized in the period in which they are
incurred.
43. Slide
3-43
Types of Adjusting Entries
1. Prepaid Expenses.
Expenses paid in cash and
recorded as assets before
they are used or consumed.
Deferrals
3. Accrued Revenues.
Revenues earned but not
yet received in cash or
recorded.
4. Accrued Expenses.
Expenses incurred but not
yet paid in cash or recorded.
2. Unearned Revenues.
Revenues received in cash
and recorded as liabilities
before they are earned.
Accruals
LO 5 Explain the reasons for preparing adjusting entries.
Illustration 3-20
45. Slide
3-45
Payment of cash that is recorded as an asset because
service or benefit will be received in the future.
Adjusting Entries for “Prepaid Expenses”
insurance
supplies
advertising
Cash Payment Expense Recorded
BEFORE
rent
purchasing buildings and
equipment
Prepayments often occur in regard to:
LO 5 Explain the reasons for preparing adjusting entries.
46. Slide
3-46
Supplies. Pioneer purchased advertising supplies costing
$25,000 on October 5. Prepare the journal entry to record the
purchase of the supplies.
Cash 25,000
Advertising supplies 25,000
Oct. 5
Debit Credit
Advertising Supplies
25,000 25,000
Debit Credit
Cash
Adjusting Entries for “Prepaid Expenses”
LO 5 Explain the reasons for preparing adjusting entries.
47. Slide
3-47
Supplies. An inventory count at the close of business on
October 31 reveals that $10,000 of the advertising supplies are
still on hand.
Advertising supplies 15,000
Advertising supplies expense 15,000
Oct. 31
Debit Credit
Advertising Supplies
25,000 15,000
Debit Credit
Advertising Supplies
Expense
15,000
Adjusting Entries for “Prepaid Expenses”
10,000
LO 5 Explain the reasons for preparing adjusting entries.
50. Slide
3-50
Insurance. On Oct. 4th, Pioneer paid $6,000 for a one-year fire
insurance policy, beginning October 1. Show the entry to
record the purchase of the insurance.
Cash 6,000
Prepaid insurance 6,000
Oct. 4
Debit Credit
Prepaid Insurance
6,000 6,000
Debit Credit
Cash
Adjusting Entries for “Prepaid Expenses”
LO 5 Explain the reasons for preparing adjusting entries.
51. Slide
3-51
Insurance. An analysis of the policy reveals that $500 ($6,000 /
12) of insurance expires each month. Thus, Pioneer makes the
following adjusting entry.
Prepaid insurance 500
Insurance expense 500
Oct. 31
Debit Credit
Prepaid Insurance
6,000 500
Debit Credit
Insurance Expense
Adjusting Entries for “Prepaid Expenses”
500
5,500
LO 5 Explain the reasons for preparing adjusting entries.
54. Slide
3-54
Depreciation. Pioneer Advertising estimates depreciation on its
office equipment to be $400 per month. Accordingly, Pioneer
recognizes depreciation for October by the following adjusting
entry.
Accumulated depreciation 400
Depreciation expense 400
Oct. 31
Debit Credit
Depreciation Expense
400 400
Debit Credit
Accumulated Depreciation
Adjusting Entries for “Prepaid Expenses”
LO 5 Explain the reasons for preparing adjusting entries.
57. Slide
3-57
Receipt of cash that is recorded as a liability because the
revenue has not been earned.
Adjusting Entries for “Unearned Revenues”
rent
airline tickets
school tuition
Cash Receipt Revenue Recorded
BEFORE
magazine subscriptions
customer deposits
Unearned revenues often occur in regard to:
LO 5 Explain the reasons for preparing adjusting entries.
58. Slide
3-58
Unearned Revenue. Pioneer Advertising received $12,000 on
October 2 from KC for advertising services expected to be
completed by December 31. Show the journal entry to record
the receipt on Oct. 2nd.
Unearned service revenue 12,000
Cash 12,000
Oct. 2
Debit Credit
Cash
12,000 12,000
Debit Credit
Unearned Service Revenue
Adjusting Entries for “Unearned Revenues”
LO 5 Explain the reasons for preparing adjusting entries.
59. Slide
3-59
Debit Credit
Service Revenue
100,000 12,000
Debit Credit
Unearned Service Revenue
4,000
8,000
Adjusting Entries for “Unearned Revenues”
Unearned Revenues. Analysis reveals that Pioneer earned
$4,000 of the advertising services in October. Thus, Pioneer
makes the following adjusting entry.
Service revenue 4,000
Unearned service revenue 4,000
Oct. 31
4,000
LO 5 Explain the reasons for preparing adjusting entries.
63. Slide
3-63
Revenues earned but not yet received in cash or
recorded.
Adjusting Entries for “Accrued Revenues”
rent
interest
services performed
BEFORE
Accrued revenues often occur in regard to:
Cash Receipt
Revenue Recorded
Adjusting entry results in:
LO 5 Explain the reasons for preparing adjusting entries.
64. Slide
3-64
Accrued Revenues. In October Pioneer earned $2,000 for
advertising services that it did not bill to clients before October
31. Thus, Pioneer makes the following adjusting entry.
Service revenue 2,000
Accounts receivable 2,000
Oct. 31
Debit Credit
Accounts Receivable
72,000
Adjusting Entries for “Accrued Revenues”
Debit Credit
Service Revenue
100,000
4,000
2,000
106,000
2,000
74,000
66. Slide
3-66
Expenses incurred but not yet paid in cash or recorded.
Adjusting Entries for “Accrued Expenses”
rent
interest
BEFORE
Accrued expenses often occur in regard to:
Cash Payment
Expense Recorded
salaries
taxes
Adjusting entry results in:
LO 5 Explain the reasons for preparing adjusting entries.
67. Slide
3-67
Adjusting Entries for “Accrued Expenses”
Accrued Interest. Pioneer signed a three-month, 12%, note
payable in the amount of $50,000 on October 1. The note
requires interest at an annual rate of 12 percent. Three factors
determine the amount of the interest accumulation:
1 2 3 Illustration 3-29
LO 5 Explain the reasons for preparing adjusting entries.
68. Slide
3-68
Interest payable 500
Interest expense 500
Oct. 31
Debit Credit
Interest Expense
500 500
Debit Credit
Interest Payable
Adjusting Entries for “Accrued Expenses”
Accrued Interest. Pioneer signed a three-month, 12%, note
payable in the amount of $50,000 on October 1. Prepare the
adjusting entry on Oct. 31 to record the accrual of interest.
LO 5 Explain the reasons for preparing adjusting entries.
70. Slide
3-70
Adjusting Entries for “Accrued Expenses”
Accrued Salaries. At October 31, the salaries for these days
represent an accrued expense and a related liability to Pioneer.
The employees receive total salaries of $10,000 for a five-day
work week, or $2,000 per day.
LO 5 Explain the reasons for preparing adjusting entries.
71. Slide
3-71
Salaries payable 6,000
Salaries expense 6,000
Oct. 31
Debit Credit
Salaries Expense
40,000 6,000
Debit Credit
Salaries Payable
Adjusting Entries for “Accrued Expenses”
Accrued Salaries. Employees receive total salaries of $10,000
for a five-day work week, or $2,000 per day. Prepare the
adjusting entry on Oct. 31 to record accrual for salaries.
6,000
46,000
LO 5 Explain the reasons for preparing adjusting entries.
73. Slide
3-73
Salaries expense 34,000
Salaries payable 6,000
Nov. 23
Debit Credit
Salaries Expense
34,000 6,000
Debit Credit
Salaries Payable
Adjusting Entries for “Accrued Expenses”
Accrued Salaries. On November 23, Pioneer will again pay total
salaries of $40,000. Prepare the entry to record the payment of
salaries on November 23.
Cash 40,000
6,000
LO 5 Explain the reasons for preparing adjusting entries.
74. Slide
3-74
Adjusting Entries for “Accrued Expenses”
Bad Debts. Assume Pioneer reasonably estimates a bad debt
expense for the month of $1,600. It makes the adjusting entry for
bad debts as follows.
Illustration 3-32
LO 5 Explain the reasons for preparing adjusting entries.
75. Slide
3-75
Shows the balance
of all accounts,
after adjusting
entries, at the end
of the accounting
period.
5. Adjusted Trial Balance
LO 5
Illustration 3-33
76. Slide
3-76
6. Preparing Financial Statements
LO 6 Prepare financial statement from the adjusted trial balance.
Financial Statements are prepared directly from the
Adjusted Trial Balance.
Statement
of Financial
Position
Income
Statement
Retained
Earnings
Statement
79. Slide
3-79
7. Closing Entries
LO 7 Prepare closing entries.
To reduce the balance of the income statement
(revenue and expense) accounts to zero.
To transfer net income or net loss to equity.
Statement of financial position (asset, liability, and
equity) accounts are not closed.
Dividends are closed directly to the Retained
Earnings account.
83. Slide
3-83
9. Reversing Entries
LO 7 Prepare closing entries.
After preparing the financial statements and
closing the books, a company may reverse
some of the adjusting entries before
recording the regular transactions of the next
period.
84. Slide
3-84
Accounting Cycle Summarized
LO 7 Prepare closing entries.
1. Enter the transactions of the period in appropriate journals.
2. Post from the journals to the ledger (or ledgers).
3. Take an unadjusted trial balance (trial balance).
4. Prepare adjusting journal entries and post to the ledger(s).
5. Take a trial balance after adjusting (adjusted trial balance).
6. Prepare the financial statements from the second trial balance.
7. Prepare closing journal entries and post to the ledger(s).
8. Take a trial balance after closing (post-closing trial balance).
9. Prepare reversing entries (optional) and post to the ledger(s).
88. Slide
3-88
Internal controls are a system of checks and balances designed to
prevent and detect fraud and errors. Both of these actions are
required under SOX.
Companies find that internal control review is a costly process. One
study estimates the cost for U.S. companies at over $35 billion,
with audit fees doubling in the first year of compliance.
The enhanced internal control standards apply only to large public
companies listed on U.S. exchanges. There is continuing debate over
whether foreign issuers should have to comply.
89. Slide
3-89
Most companies use accrual-basis accounting
recognize revenue when it is earned and
expenses in the period incurred,
without regard to the time of receipt or payment of cash.
Under the strict cash basis, companies
record revenue only when they receive cash, and
record expenses only when they disperse cash.
Cash basis financial statements are not in conformity with IFRS.
LO 8 Differentiate the cash basis of accounting
from the accrual basis of accounting.
90. Slide
3-90
Illustration: Quality Contractor signs an agreement to construct a
garage for $22,000. In January, Quality begins construction, incurs
costs of $18,000 on credit, and by the end of January delivers a
finished garage to the buyer. In February, Quality collects $22,000
cash from the customer. In March, Quality pays the $18,000 due the
creditors.
Illustration 3A-1
LO 8 Differentiate the cash basis of accounting
from the accrual basis of accounting.
91. Slide
3-91
Illustration: Quality Contractor signs an agreement to construct a
garage for $22,000. In January, Quality begins construction, incurs
costs of $18,000 on credit, and by the end of January delivers a
finished garage to the buyer. In February, Quality collects $22,000
cash from the customer. In March, Quality pays the $18,000 due the
creditors.
Illustration 3A-2
LO 8 Differentiate the cash basis of accounting
from the accrual basis of accounting.
92. Slide
3-92
Conversion From Cash Basis To Accrual Basis
Illustration: Dr. Diane Windsor, like many small business owners,
keeps her accounting records on a cash basis. In the year 2010, Dr.
Windsor received $300,000 from her patients and paid $170,000 for
operating expenses, resulting in an excess of cash receipts over
disbursements of $130,000 ($300,000 - $170,000). At January 1 and
December 31, 2010, she has accounts receivable, unearned service
revenue, accrued liabilities, and prepaid expenses as shown in
Illustration 3A-5.
Illustration 3A-5
LO 8 Differentiate the cash basis of accounting
from the accrual basis of accounting.
93. Slide
3-93
Conversion From Cash Basis To Accrual Basis
Illustration: Calculate service revenue on an accrual basis.
Illustration 3A-5
Illustration 3A-8
LO 8 Differentiate the cash basis of accounting
from the accrual basis of accounting.
94. Slide
3-94
Conversion From Cash Basis To Accrual Basis
Illustration: Calculate operating expenses on an accrual basis.
Illustration 3A-5
Illustration 3A-11
LO 8 Differentiate the cash basis of accounting
from the accrual basis of accounting.
95. Slide
3-95
Conversion From Cash Basis To Accrual Basis
Illustration 3A-12
LO 8 Differentiate the cash basis of accounting
from the accrual basis of accounting.
96. Slide
3-96
Theoretical Weaknesses of the Cash Basis
Today’s economy is considerably more lubricated by credit than
by cash.
The accrual basis, not the cash basis, recognizes all aspects of
the credit phenomenon.
Investors, creditors, and other decision makers seek timely
information about an enterprise’s future cash flows.
LO 8 Differentiate the cash basis of accounting
from the accrual basis of accounting.
97. Slide
3-97
LO 9 Identifying adjusting entries that may be reversed.
Illustration of Reversing Entries—Accruals
Illustration 3B-1
98. Slide
3-98
LO 9 Identifying adjusting entries that may be reversed.
Illustration of Reversing Entries—Deferrals
Illustration 3B-2
99. Slide
3-99
LO 9 Identifying adjusting entries that may be reversed.
Summary of Reversing Entries
1. All accruals should be reversed.
2. All deferrals for which a company debited or credited the
original cash transaction to an expense or revenue
account should be reversed.
3. Adjusting entries for depreciation and bad debts are not
reversed.
Recognize that reversing entries do not have to be used.
Therefore, some accountants avoid them entirely.
100. Slide
3-100
LO 10 Prepare a 10-column worksheet.
A company prepares a worksheet either on
columnar paper or
within an electronic spreadsheet.
A company uses the worksheet to adjust
account balances and
to prepare financial statements.
101. Slide
3-101
LO 10 Prepare a 10-column worksheet.
A company prepares a worksheet either on
columnar paper or
within an electronic spreadsheet.
Worksheet Columns
102. Slide
3-102 LO 10 Prepare a 10-column worksheet.
Adjusted
Trial
Balance
Illustration 3C-1
103. Slide
3-103
The Worksheet:
Provides information needed for preparation of the
financial statements.
Sorts data into appropriate columns, which facilitates
the preparation of the statements.
LO 10 Prepare a 10-column worksheet.
Preparing Financial Statements from a Worksheet