會(huì)計(jì)學(xué)原理23版 英文版教學(xué)書冊(cè)Wild FAP 23e Ch03 IRM

1、Wild,Wild,Shaw&Chiappetta:FundamentalAccountingPrinciples,23rdEditionCopyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or dis

2、tribution without the prior written consent of McGraw-Hill Education.3- PAGE 6CHAPTER 3 ADJUSTING ACCOUNTS FOR FINANCIAL STATEMENTSConceptual objectives:C1. Explain the importance of33-13-3, 3-43-23-1, 3-3,periodic reporting and the time3-4, 3-5,period principle.3-8C2. Explain accrual accounting and

3、1, 23-2, 3-93-13-1, 3-3how it improves financialstatements.C3. Identify the types of adjustments and their purpose.5, 6, 73-3, 3-43-23-1, 3-43-6Analytical objectives:A1. Explain how accounting4, 9, 103-13, 3-15,3-4, 3-5,3-2, 3-3,3-1, 3-3,adjustments link to financialstatements.3-163-83-4, 3-5,GL 3-2

4、3-6A2. Compute profit margin and3-183-103-53-1, 3-2,describe its use in analyzing3-4, 3-5,company performance.3-7Procedural objectives:P1. Prepare and explain adjusting3-5, 3-6, 3-7,3-3, 3-4, 3-5,3-1, 3-2,3-6entries.3-8, 3-9, 3-10,3-6, 3-7, 3-83-3, 3-4,3-11, 3-12,3-6,3-13, 3-14GL 3-2,SP, ESP2. Expla

5、in and prepare an adjusted3-173-3, 3-4,trial balance.GL 3-2, SP,ESP3. Prepare financial statements from an adjusted trial balance.3-8, 3-93-3, 3-4,3-5, SP,GL 3-2P4A. Explain the alternatives in83-193-11, 3-123-6accounting for prepaids.Related AssignmentRelated AssignmentMaterialsStudent Learning Obj

6、ectivesQuestionsQuick Studies*Beyond Exercises*Problems*Numbers(appendix 3A)SP refers to the Serial ProblemGL refers to the General Ledger problem ES refers to Excel SimulationsAdditional Information on Related Assignment MaterialConnectAvailable on the instructors course-specific website) repeats a

7、ll numerical Quick Studies, all Exercises and Problems Set A. Connect also provides algorithmic versions for Quick Study, Exercises and Problems. It allows instructors to monitor, promote, and assess student learning. It can be used in practice, homework, or exam mode .Connect InsightThe first and o

8、nly analytics tool of its kind, Connect Insight is a series of visual data displays that are each framed by an intuitive question and provide at-a-glance information regarding how an instructors class is performing.Connect Insight is available through Connect titles.The Serial Problem for Success Sy

9、stems continues in this chapter.General LedgerAssignable within Connect, General Ledger (GL) problems offer students the ability to see how transactions post from the general journal all the way through the financial statements. Critical thinking and analysis components are added to each GL problem

10、to ensure understanding of the entire process. GL problems are auto-graded and provide instant feedback to the student.Excel SimulationsAssignablewithinConnect,ExcelSimulationsallowstudentstopracticetheirExcelskillssuchasbasicformulas and formattingwithin the context of accounting. These questions f

11、eature animated, narrated Help and Show Me tutorials (when enabled). Excel Simulations are auto-graded and provide instant feedback to thestudent.Synopsis of Chapter RevisionsNEW openerre:char and entrepreneurial assignment. Streamlined accrual-basis vs cash-basis section.New box on how accounting i

12、s used to clawback false gains. Streamlined introduction to accounting adjustments.Continue to emphasize 3-step adjusting process. Simplified the Explanation section for each adjustment. Enhanced Exhibit 3.12 on summary of adjustments.Sustainability section on how accounting aided funding of recycli

13、ngbusiness. Updated profit margin analysis using Limited Brands.Added one Quick Study and one Exercise.Updated Piaggios classified balance sheet.Chapter OutlineTiming and ReportingThe Accounting PeriodTo provide timely information, accounting systems prepare reports at regular intervals.Time-period

14、principle assumes that an organizations activities can be divided into specific time periods such as a month, a three-month quarter, a six-month interval, or a year for periodic reporting. Interim and annual financial statements then be prepared.Annual reporting period:Calendar yearJanuary 1 to Dece

15、mber 31.Fiscal yearany twelve consecutive months or 52 on which to base the annual financial reports.Natural business yeara fiscal year that ends when companys sales activities are at their lowest point.Interim financial statementsstatements prepared for period less than a fiscal year.Accrual Basis

16、versus Cash BasisAccrual basisapplies adjustments so that revenues are recognized when services and products are delivered and expenses when incurred (matched with revenues). This the economic effects of revenues and expenses are recorded when earned or incurred, not when cash is received or paid. A

17、ccrual basis is consistent with GAAP. Improves comparability of statements.Cash basisrevenues are recognized when cash is received and expenses are recognized when cash is paid. Cash basis not consistent with GAAP.Recognizing Revenues and ExpensesThe revenue recognition principle requires revenue be

18、 recorded when goods or services are provided to customers.The expense recognition (or matching) principle aims to record expenses in the same period as the revenues earned as result of these expenses.NotesAdjustingAccountsAnadjustingentryisrecordedtobringanor liability account balance to its proper

19、 amount. This entry also updates the related expense or revenue account.Framework for AdjustmentsAdjustments are necessary for transactions that extend over more than one period.Chapter OutlineAdjusting Prepaid (Deferred) ExpensesPrepaid expenses (including depreciation) are assets paid for in advan

20、ce of receiving their benefits. Prepaid expenses, called deferred expenses, are assets. As the assets are used, their costs become expenses.Common prepaid items are supplies, prepaid insurance, prepaid rent and depreciation.Adjusting entries for prepaids involve increasing (debiting) expenses and de

21、creasing (crediting) assets (with the exception of depreciation on plant and equipment).Adjusting for DepreciationDepreciation is the process of allocating the cost of assets over their expected useful lives.Adjusting entries for depreciation expense involve increasing (debiting) expenses and increa

22、sing (crediting) a special account called Accumulated Depreciation. This account is classified as a contra-asset. It is linked to the asset as a subtraction and thus used to record the declining asset balance.Book value is a term used to describe the asset less its contra- asset (accumulated-depreci

23、ation).Adjusting Unearned (Deferred) RevenuesUnearned revenues (also called deferred revenues) are liabilities created by cash received in advance of providing products or services. The obligation is to provide the or product. As they are provided, unearned revenues (liabilities) become earned reven

24、ues(revenues).Adjusting entries for unearned revenues involve increasing (crediting) revenues and decreasing (debiting) unearned revenues.Adjusting Accrued ExpensesAccrued expenses are costs or expenses incurred in a but are both unpaid and unrecorded.Common accrued expenses are salaries, interest,

25、rent, taxes.Adjusting entries for recording accrued expenses involve increasing (debiting) expenses and increasing (crediting) liabilities. (The liability is a “payable.”)NotesChapter OutlineAdjusting Accrued RevenuesAccrued revenues are revenues earned in a period that are unrecorded and not yet re

26、ceived in cash.Accrued revenues commonly result from partially completed jobs or interest earned.Adjusting entries for recording accrued revenues involve increasing (debit) assets and increasing (credit) revenues. asset is a“receivable.”)Links to Financial StatementsEach adjusting entry affects one

27、or more income statement accounts and one or more balance sheet accounts. Failure to make a necessary adjustment will result in misstatements of amounts on each of these statements. See textbook Exhibit 3-12, for a summary of adjustments and financial statement links.Trial Balance and Financial Stat

28、ementsAdjusted Trial BalanceA list of accounts and balances prepared after adjusting entries are recorded and posted to the ledger.Preparing Financial StatementsPrepare financial statements directly from information in the adjusted trial balance. The following preparation order shows the flow of inf

29、ormation from one statement another:Income StatementStatement of OwnersEquityRequires use of net income or loss from previous statement.Balance SheetRequires use of ending equity from previous statement.Decision AnalysisProfit MarginUsed to evaluate operating results by measuring the ratio of compan

30、ys net income to sales. Also called return onsales.Calculated as net income divided by net sales revenues.Interpreted as reflecting the portion of profit in each dollar revenue.NotesChapter OutlineAppendix 3AAlternative Accounting forPrepaymentsPrepaid expenses may originally be recorded with debits

31、 to expense accounts instead of assets. If so, then adjusting must transfer the cost of the unused portions from expense accounts to prepaid expense (asset) accounts.Prepaid revenues or revenues collected in advance may originally be recorded with credits to revenue accounts instead of liabilities.

32、If so, then adjusting entries must transfer the unearned portions from revenue accounts to unearned revenue (liability) accounts.Note that the financial statements are identical under procedure, but the adjusting entries are different.NotesWild, Shaw & Chiappetta: Fundamental Accounting Principles,

33、23 rdEditionVISUAL #3-1ACCRUAL BASIS ACCOUNTING(Follows GAAP)requires that theIncome Statement (for a period)reportRevenu RecognitALL REVENUES EARNED in period (Collected or Not) Minus ALL EXPENSES INCURRED in period (Paid or Not)Equals Net Income or Net Loss for the periodGAAPExpensGAAPRecognitiPer

34、iodicityACCOUNTS MUST BE ADJUSTED TO FOLLOW PRINCIPCopyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hil3-7Wild,Wild,Shaw&Chiappetta:FundamentalAccountingPrinciples,23rdEditionCopyright 2017 McGraw-Hill Education. A

35、ll rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.3- PAGE 16DEFERRALSThe converse of stat

36、ements in Visual #3-1 also applies.Revenue not earned or expense not incurred results inDEFERRALSThe converse of statements in Visual #3-1 also applies.Revenue not earned or expense not incurred results inDeferrals*UNEARNED = LIABILITY *A REVENUE not earned cannot be shown, even if collected.An EXPE

37、NSE not incurred cannot be shown, even if paid.PREPAID = ASSET *We defer or postpone the reporting of the collected revenues(as revenues) and prepaid expenses (as expenses) until the revenue is earned and the expense is incurred.TYPEVISUAL #3-3ADJUSTMENTSGENERALIZED* ENTRYAMOUNT1A.Prepaid(deferred)D

38、r.ExpenseexpensesinitiallyrecordedasCr. the Asset* assets1B.Prepaid(deferred)Dr. Depreciation expensesthataredepreciableCr. Accumulated (plantassets)Depreciation1C.Prepaid(deferred)Dr. the Asset* acct. expensesinitiallyrecordedasCr.Expense expenses (alternatetreatmentappendix)2A.UnearnedrevenuesDr.U

39、nearned (revenue receivedinadvance)Cr. the Revenue* initially record asliability(unearned account)2B. UnearnedrevenuesDr. the Revenue* acct. (revenue receivedinadvance)Cr.Unearned initially recorded as arevenue(alternate treatment appendix)AccruedexpensesDr.Expense (expenses incurred butnotyetCr.Pay

40、able recorded)AccruedrevenuesDr.Receivable (revenues earnedbutnotCr. the Revenue* yetrecorded)Amount used, orconsumed, or expiredPortion of cost allocated to this period as depreciationAmount left, or not consumed, or unexpiredAmount earned to dateAmount still not earnedAmountaccruedAmountaccrued*No

41、te:(1)EachadjustmentaffectsaBalanceSheetAccountandanStatement Account and (2) CASH NEVER appears in an adjustment.*Title or account name varies.Chapter 3 Alternate Demonstration Problem - 1On July 1, 2017, Howard M. Tenant, Inc., rents office space from John Q. Landlord for two years, starting immed

42、iately, at a rate of $100 per month, or$2,400 in total. The full $2,400 was paid on this date. Record the original transaction and the appropriate adjusting entries in 2017, 2018, and from the point of view of Tenant and Landlord.Solution: Chapter 3 Alternate Demonstration Problem - 1TenantLandlord7

43、/1/17Prepaid Rent 2,400Cash 2,400Cash2,400Unearned RentRev. 2,40012/31/17Rent Expense 600Unearned Rent Rev.600Prepaid Rent 600Rent Revenue60012/31/18Rent Expense 1,200Unearned Rent Rev.1,200*Prepaid Rent1,200Rent Revenue1,20012/31/19*Rent Expense 600Unearned Rent Rev.600Prepaid Rent 600Rent Revenue6007/1/17TenantAn Alternative Solution (Based on the Appendix)LandlordRent Expense 2,400Cash 2,400Cash2,400Rent Rev. 2,40012/31/17Prepaid Rent 1,800Rent Rev.1,800Rent Expen