Accounting 20100913200905 22 NTUQF 2010 09 13 Accounting

Accounting 2010/09/132009/05/ 22 NTUQF 2010. 09. 13

基本概念 Accounting 2010 v Generally accepted accounting principles (GAAP) v The basic accounting equation and assets, liabilities, and stockholder’s equity v Analyze the effects of business transactions on the accounting equation v Financial statement 2010/09/13 NTHUQF 2

Who Uses Accounting Data? Accounting 2010 v 會計在提供有用資訊給使用者作決策, 故稱為language of business v 根據決策類型分為 n n Internal users: 企業內部掌理規劃, 組織與營運的階層管理人員. => managerial accounting External users: 企業個體以外使用會計資訊的人, 包括: n 財務利益者 n n n Investor: 買, 賣, 或繼續持有股票 Creditor: 如供應商或銀行評估授信或放款風險 間接財務利益者 n n n Taxing authorities (e. g. , Internal Revenue Service, IRS) Regulatory agencies (e. g. , Security exchange commission, SEC) Customer, labor unions => Financial accounting NTHUQF 2010/09/13 => Basic, intermediate, and advanced accounting 4

Generally Accepted Accounting Principles Accounting 2010 v 一般公認會計原則 (GAAP) n n 2010/09/13 成本原則(Cost principles) 收益實現原則(Revenue realization principles) 配合原則(Matching principles) 充分揭露原則(Full disclosure principles) NTHUQF 5

Assumptions Accounting 2010 v Assumptions (公設Postulate, 慣例 Convention) n n 2010/09/13 企業個體慣例 繼續經營慣例 貨幣評價假設 會計期間假設 (Separate entity) (Going-concern) (Monetary unit ) (Time Period ) NTHUQF 6

經濟個體假設(Economic Entity) Accounting 2010 v Entity: Any organization or unit in society (e. g. , 台積電, 慈濟) n n 意義: Activities of the entity should be separated from the activities of its owner 用途: (1) 業主與企業之間的交易, 應設業主往來(drawing) 科目入帳. (e. g. , 張忠謨 vs. 台積電) (2)企業盈虧應獨立計算, 不與業主混淆! v Entity: focus on business enterprises n 2010/09/13 (1) Proprietorship, (2) Partnership, (3) Corporation NTHUQF 7

獨資(Proprietorship) Accounting 2010 v 意義: Owned by one person => ex. retail stores v 特性: n n 2010/09/13 非法律個體 (Legal entity ), 業主與企業視為一體 =>The person liable for all debts of the business =>Small amount of capital; owner receives all the risks (profit or loss); 為會計個體 (Accounting entity)(如這家商店淨賺 **) n Affairs of proprietorship should be separated from the personal activities of the owners. NTHUQF 8

合夥 (Partnership) Accounting 2010 v 意義 n Owned by two or more persons; 二人以上互約出 資, 以經營共同事業, 並分攤損益之營利事業組織(如會 計師, 律師事務所) v 特性 n n 2010/09/13 非法律個體(Legal entity) n 業主對企業或是其他合夥人之債務付連帶無限清償 責任; 為會計個體(Accounting entity) n Affairs of partnership should be separated from the activities of the partners! NTHUQF 9

公司 (Corporation) Accounting 2010 v 意義 n Organized as a separate legal entity under state corporation law and having ownership divided into transferable shares of stock. (ps. 我國以營利為目的, 依 照公司法組織, 登記, 成立之社團法人) v 特性 n n n 2010/09/13 Legal entity (法人, 法律個體): 享有權利與承擔債務的能力 Limited liability: 以出資(股東所認股份)為限 Unlimited life Shares are transferable Other: 募集資金容易; 所有權與經營權分離; 政府管理嚴格 NTHUQF 10

Forms of Business Ownership Accounting 2010 Proprietorship Partnership Corporation Generally owned by one person. Owned by two or more persons. Often small service-type businesses Often retail and service-type businesses Ownership divided into shares of stock Owner receives any profits, suffers any losses, and is personally liable for all debts. Generally unlimited personal liability 2010/09/13 Separate legal entity organized under state corporation law Limited liability Partnership agreement NTHUQF 11

The Basic Accounting Equation Accounting 2010 Assets = Liabilities + Owners’ Equity (OE) Provides the underlying framework for recording and summarizing economic events. Assets are claimed by either creditors or owners. Claims of creditors must be paid before ownership claims. 2010/09/13 NTHUQF 12

The Basic Accounting Equation Accounting 2010 Assets = Liabilities + Owners’ Equity (OE) Assets Resources a business owns. Provide future services or benefits=>lead to cash inflow Cash, Supplies, Equipment, truck, etc. 2010/09/13 NTHUQF 13

The Basic Accounting Equation Accounting 2010 Assets = Liabilities + Owners’ Equity (OE) Liabilities Creditors - party to whom money is owed. Claims against assets: debts and obligations. Accounts payable, Notes payable, etc. 債權人為對企業總資產具有請求權, 而非對特定 (specific)資產! 2010/09/13 NTHUQF 14

The Basic Accounting Equation Accounting 2010 Assets = Liabilities + Owners’ Equity (OE) Owners’ Equity Ownership claim on total assets. Referred to as residual equity. Capital, Drawings, etc. (Proprietorship or Partnership). Subdivisions of Owner’s Equity: 1. Capital or Investments by Owner (+) 2. Drawing (-)=> withdrawal 3. Revenues (+) 2010/09/13 4. Expenses (-) NTHUQF 15

Owners’ Equity Accounting 2010 v 業主權益增加(Increase in owner’s equity) n n n 會因為業主投資(investment by owner)或收入(revenue)而增 加 Investment by owner: 業主將個人的資本投資於企業 Revenues: (a) The gross increases in OE that result from operating the business (因獲利活動而導致權益增加) (e. g. , sale, service, rental of property, rent) (b) Revenues =>an increase in an asset. v 業主權益減少(Decrease in owner’s equity) n n n 2010/09/13 會因為業主提取(Drawing)或費用(Expense)而減少: Drawing: 業主從企業領取現金或其他資產供私人使用 Expense: (a) 經營企業而使業主權益減少的部分(付出或耗用的資產或 勞務 e. g. , cost of ingredients, wage, utility expense, interest expense, …) (b) Revenues > (< ) Expenses => Net income (Net loss) NTHUQF 16

Transactions Accounting 2010 Problem: Barone’s Repair Shop was started on May 1 by Nancy. Prepare a tabular analysis of the following transactions for the month of May. 1. Invested $10, 000 cash to start the repair shop. Liabilities Assets Cash Accounts Barone, + Receivable + Equipment = Payable + Capital 1. +10, 000 2010/09/13 Equity +10, 000 NTHUQF Investment 18

Transactions 2. Purchased equipment for $5, 000 cash. Liabilities Assets Cash -5, 000 2010/09/13 Equity Accounts Barone, + Receivable + Equipment = Payable + Capital 1. +10, 000 2. Accounting 2010 +10, 000 Investment +5, 000 NTHUQF 19

Transactions 3. Paid $400 cash for May office rent. Liabilities Assets Cash -5, 000 3. -400 2010/09/13 Equity Accounts Barone, + Receivable + Equipment = Payable + Capital 1. +10, 000 2. Accounting 2010 +10, 000 Investment +5, 000 -400 NTHUQF Expense 20

Transactions Accounting 2010 4. Received $5, 100 from customers for repair service. Liabilities Assets Cash Accounts Barone, + Receivable + Equipment = Payable + Capital 1. +10, 000 2. -5, 000 3. 4. -400 +5, 100 2010/09/13 Equity +10, 000 Investment +5, 000 -400 +5, 100 NTHUQF Expense Revenue 21

Transactions 5. Withdrew $1, 000 cash for personal use. Liabilities Assets Cash Accounting 2010 Equity Accounts Barone, + Receivable + Equipment = Payable + Capital 1. +10, 000 Investment 2. -5, 000 3. 4. -400 +5, 100 Expense Revenue 5. -1, 000 Drawings 2010/09/13 +5, 000 NTHUQF 22

Transactions Accounting 2010 6. Paid part-time employee salaries of $2, 000. Liabilities Assets Cash Equity Accounts Barone, + Receivable + Equipment = Payable + Capital 1. +10, 000 Investment 2. -5, 000 3. 4. -400 +5, 100 Expense Revenue 5. 6. -1, 000 -2, 000 Drawings Expense 2010/09/13 +5, 000 NTHUQF 23

Transactions Accounting 2010 7. Incurred $250 of advertising costs, on account. Liabilities Assets Cash Equity Accounts Barone, + Receivable + Equipment = Payable + Capital 1. +10, 000 Investment 2. -5, 000 +5, 000 3. 4. -400 +5, 100 Expense Revenue 5. 6. -1, 000 -2, 000 Drawings Expense 7. 2010/09/13 +250 NTHUQF -250 Expense 24

Transactions Accounting 2010 8. Provided $750 of repair services on account. Liabilities Assets Cash Equity Accounts Barone, + Receivable + Equipment = Payable + Capital 1. +10, 000 Investment 2. -5, 000 3. 4. -400 +5, 100 Expense Revenue 5. 6. -1, 000 -2, 000 Drawings Expense 7. 8. 2010/09/13 +5, 000 +250 +750 NTHUQF -250 +750 Expense Revenue 25

Transactions Accounting 2010 9. Collected $120 cash for services previously billed. Liabilities Assets Cash Equity Accounts Barone, + Receivable + Equipment = Payable + Capital 1. +10, 000 Investment 2. -5, 000 3. 4. -400 +5, 100 Expense Revenue 5. 6. -1, 000 -2, 000 Drawings Expense 7. 8. 9. +5, 000 +250 +750 +120 6, 820 + 2010/09/13 -120 630 + 5, 000 = NTHUQF 250 + -250 +750 Expense Revenue 12, 200 26

Financial Statements Accounting 2010 Income Statement Reports the revenues and expenses for a specific period of time. Net income : revenues exceed expenses. Net loss : expenses exceed revenues. 2010/09/13 NTHUQF 28

Financial Statements Accounting 2010 Owners’ Equity Statement Income Statement Net income is needed to determine the ending balance in owner’s equity. 2010/09/13 NTHUQF 29

Financial Statements Accounting 2010 Owners’ Equity Statement 目的: 指出某期間Owner’s equity 增減的原因 2010/09/13 NTHUQF 30

Financial Statements Accounting 2010 Owners’ Equity Statement Balance Sheet The ending balance in owner’s equity is needed in preparing the balance sheet 2010/09/13 NTHUQF 31

Financial Statements Accounting 2010 Balance Sheet 目的: 報導某特定日assets, liabilities, and owner’s equity. 順序: Assets listed at the top, followed by liabilities and owner’s equity. Total assets = Total liabilities + Owner’s equity. 2010/09/13 NTHUQF 32

Financial Statements Accounting 2010 Balance Sheet 2010/09/13 Statement of Cash Flows NTHUQF 33

Financial Statements Accounting 2010 Information for a specific period of time. Statement of Cash Flows Answers the following: 1. Where did cash come from? 2. What was cash used for? 3. What was the change in the cash balance? 2010/09/13 NTHUQF 34

Financial Statements Review Question: Accounting 2010 Which of the following financial statements is prepared as of a specific date? 2010/09/13 a. Balance sheet. b. Income statement. c. Owner's equity statement. d. Statement of cash flows. NTHUQF 35

會計循環 Accounting 2010 v v v Define debits and credits Use in recording business transactions Journalizing the accounts Adjusting the accounts Closing the accounts 2010/09/13 NTHUQF 36

T Accounting 2010 v An account consists of n n The title of the account 借方 (Debit side) ＝＞左方=>簡寫為Dr. 貸方 (Credit side)＝＞右方=>簡寫為Cr. (約定成俗) The alignment of these parts resembles the letter T = T account Title of Account Left or debit side Debit balance 2010/09/13 NTHUQF Right or credit side Credit balance 38

Debiting an Accounting 2010 Example: The owner makes an initial investment of $15, 000 to start the business. => Cash is debited as the owner’s Capital is credited. Cash Debits Credits 15, 000 2010/09/13 NTHUQF 39

Crediting an Accounting 2010 Example: Monthly rent of $7, 000 is paid. => Cash is credited as Rent Expense is debited. Cash Debits 2010/09/13 Credits 7, 000 NTHUQF 40

Debiting and Crediting an Accounting 2010 Example: Cash is debited for $15, 000 and credited for $7, 000, leaving a debit balance of $8, 000. Cash Debits 15, 000 8, 000 2010/09/13 Credits 7, 000 NTHUQF 41

Double-entry System (複式簿記) Accounting 2010 v 左借右貸, 有借就有貸 (A = L + OE) v Total debits always equal the total credits. v The accounting equation will always stay in balance. 2010/09/13 NTHUQF 42

Normal Balances – Assets and Liabilites Accounting 2010 Assets Liabilities Increase Decrease Increase Debit Credit Normal Balance 每一帳戶都有正常餘額(Normal balance), 可能為右, 也可能為左. 正常餘額在右(左)者, 不應出現借(貸)餘. 2010/09/13 NTHUQF 43

Normal Balances – Owner’s Capital Accounting 2010 Owner’s Capital Decrease Debit Increase Credit Normal Balance 2010/09/13 NTHUQF 44

Normal Balances – Owner’s Drawing Accounting 2010 Owner’s Drawing Debits Credits Increase owner’s drawing Decrease owner’s drawing Normal Balance 2010/09/13 NTHUQF 45

Normal Balances – Revenues and Expenses Accounting 2010 Revenues Decrease Debit Expenses Increase Credit Increase Debit Decrease Credit Normal Balance 2010/09/13 NTHUQF 46

Accounting 2010/09/13 NTHUQF 47

會計循環(Accounting cycle) Accounting 2010 v 會計 作週而復始，每期都是從分錄開始，到編 製報表為止。 n n n 2010/09/13 「分錄」 「過帳」 「試算」 「調整」 「結帳」 「編表」 (Journalizing) (Posting) (Taking trial balance) (Adjusting) (Closing) (Preparing financial statements) NTHUQF 48

Journalizing (分錄) Accounting 2010 v 寫分錄(Journalizing) n 將各交易對會計要素的影響, 根據借貸法則, 按序記入日記簿內的紀 錄. v 每一交易都要寫分錄, 所寫的內容稱為分錄(Journal entries). v 日記簿=分錄簿=流水帳=原始記錄簿(Original record)=序時帳簿(Chronological record) v A complete entry consists of: n n n 2010/09/13 交易發生的日期(the date of the transaction) 借記與貸記之科目名稱與金額(the accounts and amounts to be debited and credited) 每一交易的摘要與說明(a brief explanation of the transaction). NTHUQF 51

Technique of Journalizing Accounting 2010 The date of the transaction is entered into the date column. J 1 GENERAL JOURNAL Date 2005 Sept. 1 1 2010/09/13 Account Titles and Explanation Cash R. Neal, Capital (Invested cash in business) Computer Equipment Cash (Purchased equipment for cash) NTHUQF Ref. Debit Credit 15, 000 7, 000 52

Technique of Journalizing Accounting 2010 v The debit account title is entered at the extreme left margin of the Account Titles and Explanation column. v The credit account title is indented on the next line. J 1 GENERAL JOURNAL Date 2005 Sept. 1 1 2010/09/13 Account Titles and Explanation Cash R. Neal, Capital (Invested cash in business) Computer Equipment Cash (Purchased equipment for cash) NTHUQF Ref. Debit Credit 15, 000 7, 000 53

Technique of Journalizing Accounting 2010 A brief explanation of the transaction is given. 2010/09/13 NTHUQF 54

Technique of Journalizing Accounting 2010 類頁欄位(Ref. )是空白的, 直到要過入分類帳時, 才填入所過入的 分類帳的頁碼 2010/09/13 NTHUQF 55

總分類帳與明細分類帳 Accounting 2010 Assets Equipment Land Supplies Cash 2010/09/13 Liabilities Interest Payable Salaries Payable Accounts Payable Notes Payable NTHUQF Owners’ Equity Salaries Expense Service Revenue Common Stock Retained Earnings 58

Example: 會計科目表(Chart of Accounts) Accounting 2010 會計科目表為所有會計科目與其編號的表格. 2010/09/13 NTHUQF 59

Posting Accounting 2010 The process of transferring amounts from the journal to the ledger accounts. General Journal J 1 101 General Ledger Oct. 1 Owner investment 2010/09/13 J 1 NTHUQF 15, 000 60

Example: Investment of Cash by Stockholders Accounting 2010 Transaction Basic Analysis Debit -Credit Analysis 2010/09/13 October 1, C. R. Byrd 投資 $10, 000 現金成立Pioneer Advertising Agency Inc. , 提供廣告服務 The asset Cash is increased $10, 000, and stockholders’ equity is increased $10, 000. Debits increase assets: debit Cash $10, 000. Credits increase stockholders’ equity: credit Byrd, Capital $10, 000. NTHUQF 61

Investment of Cash by Stockholders Accounting 2010 JOURNAL ENTRY POSTING 2010/09/13 NTHUQF 62

Purchase of Office Equipment Accounting 2010 Transaction Basic Analysis Debit -Credit Analysis 2010/09/13 October 1, 購買Office Equipment $5, 000 , 簽發 3個月期 , 利率12%, $5, 000的應付票據( note payable) The asset Office Equipment is increased $5, 000, and the liability Notes Payable is increased $5, 000. Debits increase assets: debit Office Equipment $5, 000. Credits increase liabilities: credit Notes Payable $5, 000. NTHUQF 63

Purchase of Office Equipment Accounting 2010 JOURNAL ENTRY POSTING 2010/09/13 NTHUQF 64

Receipt of Cash for Future Service Accounting 2010 Transaction Basic Analysis Debit -Credit Analysis 2010/09/13 October 2, 自客戶R. Knox, 預收現金 $1, 200 , 所提供的 廣告預期要到 12/31完成. The asset Cash is increased $1, 200; the liability Unearned Fees is increased $1, 200 because the service has not been rendered yet. Note that although many liabilities have the word “payable” in their title, Unearned Fees are considered a liability even though the word payable is not used. Debits increase assets: debit Cash $1, 200. Credits increase liabilities: credit Unearned Fees $1, 200. NTHUQF 65

Receipt of Cash for Future Service Accounting 2010 JOURNAL ENTRY POSTING 2010/09/13 NTHUQF 66

Payment of Monthly Rent Accounting 2010 Transaction Basic Analysis Debit-Credit Analysis 2010/09/13 October 3, office rent for October is paid in cash, $900. The expense Rent is increased $900 because the payment pertains only to the current month; The asset Cash is decreased $900. Debits increase expenses: debit Rent Expense $900. Credits decrease assets: credit Cash $900. NTHUQF 67

Payment of Monthly Rent Accounting 2010 JOURNAL ENTRY POSTING Rent Expense Oct. 3 900 2010/09/13 NTHUQF 729 68

Payment for Insurance Accounting 2010 Transaction Basic Analysis Debit -Credit Analysis 2010/09/13 October 4, 支付一年期$600之保單(insurance policy), 有效期間至 September 30. 由於保險期間及於往後月份, 因此資產: 預付保費 (Prepaid Insurance)增加 $600; the asset Cash is decreased $600. 凡支出之費用的效益期間大於 一期以上時, 由於具有未來經濟效益, 故應綽為資 產, 借記預付費用(prepaid expenses) or預付款項 ( prepayments)等資產科目. Debits increase assets: debit Prepaid Insurance $600. Credits decrease assets: credit Cash $600. NTHUQF 69

Payment for Insurance Accounting 2010 JOURNAL ENTRY POSTING 2010/09/13 NTHUQF 70

Purchase of Supplies on Credit Accounting 2010 Transaction Basic Analysis Debit -Credit Analysis 2010/09/13 October 5, 向Aero Supply賒購 3 -month 的廣告用品$2, 500 The asset Advertising Supplies is increased $2, 500; The liability Accounts Payable is increased $2, 500. Debits increase assets: debit Advertising Supplies $2, 500. Credits increase liabilities: credit Accounts Payable $2, 500. NTHUQF 71

Purchase of Supplies on Credit Accounting 2010 JOURNAL ENTRY POSTING 2010/09/13 NTHUQF 72

Hiring of Employees Accounting 2010 Transaction Basic Analysis Debit -Credit Analysis 2010/09/13 October 9, 聘 4名員 . 10/15上班, 每位週薪 $500, 每週 作 5天, 每兩週付一次薪水, 第一次 付薪日為October 26. 並未發生企業交易, 僅是老闆與員 之協議, 自 10/15開始上班後才有交易發生, 目前無分錄. A debit-credit analysis is not needed because there is no accounting entry. NTHUQF 73

Withdrawal of Cash by Owner Accounting 2010 Transaction Basic Analysis Debit -Credit Analysis 2010/09/13 On October 20, C. R. Byrd withdraws $500 cash for personal use. The drawings account is increased $500; The asset Cash is decreased $500. Debits increase drawings: debit C. R. Byrd Drawings $500. Credits decrease assets: credit Cash $500. NTHUQF 74

Withdrawal of Cash by Owner Accounting 2010 JOURNAL ENTRY POSTING 2010/09/13 NTHUQF 75

Payment of Salaries Accounting 2010 Transaction October 26, 支付積欠employee salaries of $4, 000 (See October 9 transaction. ) Basic Analysis The expense account Salaries Expense is increased $4, 000; the asset Cash is decreased $4, 000. Debit -Credit Analysis Debits increase expenses: debit Salaries Expense $4, 000. Credits decrease assets: credit Cash $4, 000. 2010/09/13 NTHUQF 76

Payment of Salaries Accounting 2010 JOURNAL ENTRY POSTING 2010/09/13 NTHUQF 77

Receipt of Cash for Fees Earned Accounting 2010 Transaction Basic Analysis Debit -Credit Analysis 2010/09/13 October 31, 收到Copa Company支付十 月份廣告服務的收入$10, 000 The asset Cash is increased $10, 000; The revenue Fees Earned is increased $10, 000. Debits increase assets: debit Cash $10, 000. Credits increase revenues: credit Fees Earned $10, 000. NTHUQF 78

Receipt of Cash for Fees Earned Accounting 2010 JOURNAL ENTRY POSTING 2010/09/13 NTHUQF 79

會計期間假設(Time Period Assumption) Accounting 2010 v 會計將企業生命劃分段落, 以便計算損益, 編制報 表, 俾及時提供報表. Jan. 2010/09/13 Feb. Mar. Apr. NTHUQF . . . Dec. 81

會計基礎 (Accounting Basis) Accounting 2010 v 指會計上對於收益與費用歸屬期間之認定 所用的標準， 並為入帳之依據。 v 種類： n n 現金基礎(Cash basis) n Revenue is recorded when cash is received=>收錢=> 收入 n Expenses are recorded when cash is paid=>付錢=>費 用 應計基礎(Accrued basis): n 收益實現原則(Revenue recognition) =>收入, n n Revenues are recognized when earned, rather than when cash is received 配合原則(Matching principles) =>費用 n Expenses are recognized when incurred, rather than when paid v GAAP requires accrual basis accounting 2010/09/13 n NTHUQF Cash basis often causes misleading financial statements. 82

Revenue Recognition Principle Accounting 2010 p 意義: 用來決定何期應該認 列收入的指導原則. p 通常在賺得(earned)的時 候認列，因為主要的獲利 過程(關鍵階段)已完成 => Not just when money is exchanged. p 例如: n Service business: at the time the service is performed. n 買賣業: At the time product is sold. 2010/09/13 NTHUQF 83

The Matching Principle Accounting 2010 p Expense recognition is the matching principle. p 意義 n Efforts (expenses) must be matched with accomplishments (revenues). p “Let the expenses follow the revenues. ” => 跟這筆收入有關的費用, 要 與這筆收入再同一其認列 => 如此才知道”淨賺”多少 2010/09/13 NTHUQF 84

Timing Issues Accounting 2010 GAAP relationships in revenue and expense recognition 2010/09/13 NTHUQF 85

The Basics of Adjusting Entries ( 調整) Accounting 2010 v 意義與目的 n 根據收益在earned期間認列, expense 在同期配合認 列, 使財務報表適當表達正確經營成果, 所為之分錄 n Revenues to be recorded in the period in which they are earned(賺得) n Expenses to be recognized in the period in which they are incurred(發生). v 時機 n 2010/09/13 Required each time financial statements are prepared (通常是期末) NTHUQF 86

Types of Adjusting Entries Accounting 2010 v 預付項目(Prepayments) n n 預付費用(Prepaid expenses) 預收收益(Unearned revenues) v 應計項目(Accruals) n n 2010/09/13 應計收益(Accrued revenues) 應計費用(Accrued expenses) NTHUQF 87

預付項目(Prepayments) Accounting 2010 v 預付費用(Prepaid expenses) n n 係未享用財貨或勞務之前，先行支付現金之費用 Expenses paid in cash - recorded as assets before used or consumed(已耗用部份作為費用 =>incurred). v 預收收益(Unearned Revenues) : n n 2010/09/13 指未提供財貨或勞務之前，已先行取得現金之收入 Cash received - recorded as liabilities before the revenue is earned (但已提供後為 收入 =>earned!) NTHUQF 88

Prepaid Expenses Accounting 2010 v 預付費用 n n Expenses paid in cash and recorded as assets before they are used or consumed Prepaid expenses expire with the passage of time or through use and consumption v 調整前, 資�高估 (overstated), 費用低估 (understated). The adjusting entry =>Debit to an expense account, credit to an asset account. n An asset-expense account relationship exists with prepaid expenses. n v 例子 n 2010/09/13 Supplies, insurance, advertising, rent, and depreciation. NTHUQF 89

Adjusting Entries for “Prepaid Expenses” Accounting 2010 Increase (debit) an expense account and Decrease (credit) an asset account. 2010/09/13 NTHUQF 90

Adjusting Entries for Prepayments Supplies Accounting 2010 ADJUSTMENT JOURNAL ENTRY October 31, an inventory count reveals that $1, 000 of $2, 500 of supplies are still on hand. POSTING 2010/09/13 NTHUQF 91

Adjusting Entries for Prepayments Insurance Accounting 2010 ADJUSTMENT October 31, an analysis of the policy reveals that $50 of insurance expires each month. JOURNAL ENTRY POSTING Prepaid Insurance Oct. 4 31 2010/09/13 600 Oct. 31 10 50 550 NTHUQF 92

Q&A 30 Accounting 2010 v On July 1, 2005, Bluestem Insurance Company received $12, 000 from a client for a 2 -year insurance policy. v Instructions n Prepare the necessary journal entries for Bluestem on July 1 and December 31. v Ans: 7/1 Cash 12, 000 Unearned Insurance Revenue 12, 000 12/31 Unearned Insurance Revenue 3, 000 2010/09/13 NTHUQF 93

預收收益 (Unearned Revenues) Accounting 2010 v Revenues received and recorded as liabilities before they are earned n n 在尚未提供勞務前已預收現金, 故列為負債. Earned by rendering a service to a customer. v A liability-revenue account relationship exists with unearned revenues. v 在做調整前, 負債高估(overstated) and 收入低估 (understated). The adjusting entry =>Debit to a liability account, credit to a revenue account. n v 例子 n 2010/09/13 Rent, magazine subscriptions, 客戶之存入保證金( customer deposits for future services), airline tickets, school tuition. NTHUQF 94

Adjusting Entries for “Unearned Revenues” Accounting 2010 Decrease (debit) to a liability account and Increase (credit) to a revenue account. 2010/09/13 NTHUQF 95

Adjusting Entries for Prepayments Unearned Revenues Accounting 2010 ADJUSTMENT October 31, analysis reveals that, of $1, 200 in fees, $400 has been earned in October. JOURNAL ENTRY POSTING 2010/09/13 NTHUQF 96

Depreciation Accounting 2010 v Recording depreciation n n Debit Depreciation Expense Credit Accumulated Depreciation (Contra asset) v 折舊金額之計算: n n 使用直線法(Straight-line depreciation) (資產成本 – 殘值) / useful life Accumulated Depreciation Expense XXX 2010/09/13 NTHUQF 98

Depreciation Accounting 2010 p Balance Sheet n Accumulated Depreciation is offset against the asset account n 未直接貸計資產而貸計AD, 旨在保持下列資訊: n 原始購入成本, n 目前為止累積已折舊的 數字 n Asset --> accumulated depreciation = book value. n Book value is not equal to market value. 2010/09/13 NTHUQF 99

Adjusting Entries for Prepayments Depreciation Accounting 2010 ADJUSTMENT October 31, depreciation on the office equipment is estimated to be $480 a year, or $40 per month. JOURNAL ENTRY Date Oct. 31 Account Titles and Explanation Depreciation Expense Accumulated Depreciation - Office Equipment (To record monthly depreciation) Debit Credit 40 40 POSTING Accumulated Depreciation Office Equipment Oct. 31 40 2010/09/13 NTHUQF Depreciation Expense Oct. 31 40 100

Q&A (30) Accounting 2010 v Coat Company purchased equipment on June 1 for $54, 000, paying $12, 000 cash and signing a 12%, 2 -month note for the remaining balance. The equipment is expected to depreciate $12, 000 each year. Coat Company prepares monthly financial statements. v Instructions (a) Prepare the general journal entry to record the acquisition of the equipment on June lst. (b) Prepare any adjusting journal entries that should be made on June 30 th. (c) Show the equipment will be reflected on Coat Company's balance sheet on June 30 th. 2010/09/13 NTHUQF 101

Ans: Accounting 2010 (a) Equipment 54, 000 Cash 12, 000 Note Payable 42, 000 (b) Depreciation Expense 1, 000 Accumulated Depreciation 1, 000 (c) Coat Company Balance Sheet June 30, xxxx Property, plant and equipment Office equipment $ 54, 000 Less: Accumulated Dep. 1, 000 NTHUQF 2010/09/13 53, 000 102

Adjusting Entries for Prepayments Accounting 2010 Adjusting Entries Prepaid Expenses Asset Expense Unadjusted Credit Adjusting Balance Entry (-) Debit Adjusting Entry (+) Unearned Revenues Liability Debit Adjusting Entry (-) 2010/09/13 Revenue Unadjusted Balance Credit Adjusting Entry (+) NTHUQF 103

應計項目(Accruals) Accounting 2010 v Adjusting entries n Required to record revenues earned and expenses incurred in the current period v Adjusting entry for accruals n 2010/09/13 Influence both a balance sheet and an income statement account NTHUQF 105

應計收益(Accrued Revenues) Accounting 2010 v Accrued revenues n n n Accumulate with the passing of time or through services performed but not billed or collected An asset-revenue account relationship exists Prior to adjustment, assets and revenues are understated v Adjusting entry n n 2010/09/13 Debit an asset account Credit a revenue account NTHUQF 106

Adjusting Entries for “Accrued Revenues” Accounting 2010 Increase (debit) an asset account and Increase (credit) a revenue account. 2010/09/13 NTHUQF 107

Adjusting Entries for Accruals Accrued Revenues Accounting 2010 ADJUSTMENT October 31, the agency earned $200 for advertising services that were not billed to clients before October 31. JOURNAL ENTRY POSTING Accounts Receivable Oct. 31 200 2010/09/13 NTHUQF 108

Q&A 32 Accounting 2010 v Ward Realty is in the business of renting several apartment buildings and prepares monthly financial statements. It has been determined that 3 tenants in $600 per month apartments and one tenant in the $1, 000 per month apartment had not paid their August rent as of August 31 st. v Prepare the required end-of-period adjusting entries v Ans: Rent Receivable Rent Revenue 2010/09/13 2, 800 NTHUQF 109

Accrued Expenses Accounting 2010 v Accrued expenses n n Expenses incurred but not paid yet A liability-expense account relationship exists Prior to adjustment, liabilities and expenses are understated Ex: rent, interest, salaries, taxes. v Adjusting Entry n n 2010/09/13 Debit an expense account Credit a liability account NTHUQF 110

Adjusting Entries for “Accrued Expenses” Accounting 2010 Increase (debit) an expense account and Increase (credit) a liability account. 2010/09/13 NTHUQF 111

Adjusting Entries for Accruals Accrued Interest Accounting 2010 ADJUSTMENT October 31, the portion of the interest to be accrued on a 3 -month note payable is calculated to be $50. JOURNAL ENTRY POSTING 2010/09/13 NTHUQF 112

Adjusting Entries for Accruals Accrued Salaries Accounting 2010 ADJUSTMENT October 31, accrued salaries are calculated to be $1, 200. JOURNAL ENTRY POSTING 2010/09/13 NTHUQF 113

Q&A 37 Accounting 2010 v On Friday of each week, Noble Company pays its factory personnel weekly wages amounting to $35, 000 for a five-day work week. v Instructions (a) Prepare the necessary adjusting entry at year end, assuming December 31 falls on Wednesday. (b) Prepare the journal entry for payment of the week's wages on the payday which is Friday, January 2 of the next year. v Ans: (a) Wages Expense Wages Payable 21, 000 (b) Wages Expense Wages Payable NTHUQF 2010/09/13 Accumulated Depreciation 21, 000 14, 000 21, 000 35, 000 114

Summary of Adjusting Entries Accounting 2010 1 Prepaid expenses 2 Unearned revenues Revenues 3 Accrued 4 Accrued expenses Liabilities 2010/09/13 Assets and expenses Liabilities and revenues Assets overstated Dr. Expenses understated Cr. Assets Liabilities overstated Dr. Liabilities Revenues understated Cr. Assets and Assets understated Dr. Assets revenues Revenues understated Cr. Revenues Expenses and Expenses understated Dr. Expenses liabilities Liabilities understated Cr. NTHUQF 115

調整後試算表(Adjusted Trial Balance) Accounting 2010 v 時機 n Prepared after all adjusting entries have been journalized and posted v 目的 n Prove equality of the total debit and credit balances in the ledger after adjustments have been made v Financial statements n 2010/09/13 Prepared directly from the adjusted trial balance NTHUQF 116

Trial Balance and Adjusted Trial Balance Compared Accounting 2010 PIONEER ADVERTISING AGENCY Adjusted Trial Balance October 31, 2008 Cash Accounts Receivable Advertising Supplies Prepaid Insurance Office Equipment Accumulated Depreciation - Office Equipment Notes Payable Accounts Payable Interest Payable Unearned Revenue Salaries Payable C. R. Byrd, Capital C. R. Byrd, Drawing Service Revenue Salaries Expense Advertising Supplies Expense Rent Expense Insurance Expense Interest Expense Depreciation Expense Before Adjustment Debit Credit $ 15, 200 2, 500 600 5, 000 $ 5, 000 2, 500 1, 200 10, 000 500 10, 000 4, 000 900 $ 28, 700 2010/09/13 NTHUQF $ 28, 700 After Adjustment Debit Credit $ 15, 200 1, 000 550 5, 000 $ 40 5, 000 2, 500 50 800 1, 200 10, 000 500 10, 600 5, 200 1, 500 900 50 50 40 $ 30, 190 117

Preparing Financial Statements Accounting 2010 v Income statement n Use the revenue and expense accounts v Owner’s Equity Statement n Use the owner’s capital and drawing accounts and the net income (or net loss) from the Income Statement v Balance sheet n 2010/09/13 Use asset and liability accounts and ending owner’s capital balance reported in Owner’s Equity Statement NTHUQF 118

Preparation of I/S and O/E from the Adjusted Trial Balance Accounting 2010 PIONEER ADVERTISING AGENCY Adjusted Trial Balance October 31, 2008 Cash Accounts Receivable Advertising Supplies Prepaid Insurance Office Equipment Accumulated Depreciation - Office Equipment Notes Payable Accounts Payable Interest Payable Unearned Revenue Salaries Payable C. R. Byrd, Capital C. R. Byrd, Drawing Service Revenue Salaries Expense Advertising Supplies Expense Rent Expense Insurance Expense Interest Expense Depreciation Expense 2010/09/13 NTHUQF Debit $ 15, 200 1, 000 550 5, 000 Credit $ 40 5, 000 2, 500 50 800 1, 200 10, 000 500 10, 600 5, 200 1, 500 900 50 50 40 $ 30, 190 119

Income Statement Accounting 2010 PIONEER ADVERTISING AGENCY Income Statement For the Month Ended October 31, 2008 Revenues Fees earned $ 10, 600 Expenses Salaries expense Advertising supplies expense Rent expense Insurance expense Interest expense Depreciation expense Total expenses Net income $ 5, 200 1, 500 900 50 50 40 7, 740 $ 2, 860 The income statement is prepared from the revenue and expense accounts. NTHUQF 2010/09/13 NTHUQF 120

Preparation of I/S and O/E from the Adjusted Trial Balance Accounting 2010 PIONEER ADVERTISING AGENCY Adjusted Trial Balance October 31, 2008 Cash Accounts Receivable Advertising Supplies Prepaid Insurance Office Equipment Accumulated Depreciation – Office Equipment Notes Payable Accounts Payable Interest Payable Unearned Revenue Salaries Payable C. R. Byrd, Capital C. R. Byrd, Drawing Service Revenue Salaries Expense Advertising Supplies Expense Rent Expense Insurance Expense Interest Expense Depreciation Expense 2010/09/13 NTHUQF Debit $ 15, 200 1, 000 550 5, 000 Credit $ 40 5, 000 2, 500 50 800 1, 200 10, 000 500 10, 600 5, 200 1, 500 900 50 50 40 $ 30, 190 121

Owner’s Equity Statement Accounting 2010 PIONEER ADVERTISING AGENCY Owner’s Equity Statement For the Month Ended October 31, 2008 C. R. Byrd, Capital, October 1 Add: Investments Net income $ $ 10, 000 2, 860 Less: Drawings C. R. Byrd, Capital, October 31 -0 - 12, 860 500 $ 12, 360 The owner’s equity statement is prepared from the owner’s capital and drawing accounts and the net income (or net loss) shown in the income statement. 2010/09/13 NTHUQF 122

Preparation of B/S from the Adjusted Trial Balance Accounting 2010 PIONEER ADVERTISING AGENCY Adjusted Trial Balance October 31, 2008 Cash Accounts Receivable Advertising Supplies Prepaid Insurance Office Equipment Accumulated Depreciation – Office Equipment Notes Payable Accounts Payable Interest Payable Unearned Revenue Salaries Payable C. R. Byrd, Capital C. R. Byrd, Drawing Service Revenue Salaries Expense Advertising Supplies Expense Rent Expense Insurance Expense Interest Expense Depreciation Expense 2010/09/13 NTHUQF Debit $ 15, 200 1, 000 550 5, 000 Credit $ 40 5, 000 2, 500 50 800 1, 200 10, 000 500 10, 600 5, 200 1, 500 900 50 50 40 $ 30, 190 123

Balance Sheet Accounting 2010 PIONEER ADVERTISING AGENCY Balance Sheet October 31, 2008 Assets Cash Accounts receivable Advertising supplies Prepaid insurance Office equipment Less: Accumulated depreciation Total assets Liabilities and Owner’s Equity $ 15, 200 1, 000 550 $ 5, 000 40 4, 960 $ 21, 910 Liabilities Notes payable Accounts payable Interest payable Unearned fees Salaries payable Total liabilities Owner’s equity C. R. Byrd, Capital Total liabilities and owner’s equity $ 5, 000 2, 500 50 800 1, 200 9, 550 12, 360 $ 21, 910 The balance sheet is then prepared from the asset and liability accounts and the ending owner’s capital balance as reported in the owner’s equity statement. 2010/09/13 NTHUQF 124

結帳: Temporary & Permanent Accounts Accounting 2010 (NOMINAL) 2010/09/13 (REAL) NTHUQF 125

結帳分錄圖 Accounting 2010 4 4. 將提取轉入Owner’s Capital. =>借記Owner’s Capital, 貸記提 取. 2010/09/13 NTHUQF 130

Closing the Books Accounting 2010 Note: Owner’s Drawing is closed directly to Capital and not to Income Summary because Owner’s Drawing is not an expense. 2010/09/13 Owner’s Capital is a permanent account; all other accounts are temporary accounts. NTHUQF 131

結帳分錄的分錄製作 Accounting 2010 GENERAL JOURNAL Date Account Titles and Explanation 2005 (1) Oct. 31 Service Revenue Income Summary (To close revenue account) NO. 400 INCOME SUMMARY Date 2005 Oct. 31 31 31 2010/09/13 Explanation Debit Credit Balance 10, 600 NTHUQF Ref. 400 350 Debit 10, 600 Service Revenue Date 2005 Oct. 31 31 Credit Explanation NO. 350 Debit Credit Balance 10, 600 – 0– 132

結帳分錄的分錄製作 Accounting 2010 GENERAL JOURNAL Date 2005 Oct. 31 Account Titles and Explanation (2) Income Summary Salaries Expense Advertising Supplies Expense 5, 200 Rent Expense Insurance Expense Interest Expense 1, 500 Depreciation Expense (To close expense accounts) 900 Explanation Debit 50 7, 740 350 726 631 729 722 905 911 Debit Credit 7, 740 NO. 350 INCOME SUMMARY Date 2005 Oct. 31 31 Ref. Credit 10, 600 Balance 10, 600 2, 860 50 2010/09/13 NTHUQF 133

結帳分錄的分錄製作 Accounting 2010 2, 860 2010/09/13 NTHUQF 134

結帳分錄的分錄製作 Accounting 2010 500 C. R. BYRD CAPITAL Date 2005 Oct. 31 31 500 2010/09/13 NTHUQF Explanation Debit 500 Credit NO. 301 Balance 2, 860 2, 360 135

結帳分錄的過帳 Accounting 2010 1 2 3 2 4 2010/09/13 NTHUQF 137

Summary of the Accounting Cycle Accounting 2010 1. 分析企業的交易 9. Prepare a post-closing trial balance (編制結帳後試算表) 2. Journalize the transactions (將交易寫成分錄) 8. Journalize and post closing entries (寫結帳分錄並過帳) 3. Post to ledger accounts 過到分類帳) 7. Prepare financial statements 4. Prepare a trial balance (編制調整前試算表) 6. Prepare an adjusted trial balance(編制調整後試算表) 5. Journalize and post adjusting entries (寫調整分錄並過帳) 2010/09/13 NTHUQF ( 139

資�負債表之標準分類 Accounting 2010 v 會計科目加以分類成各別小組以有效利用財務報 表 v 資�負債表之標準分類如下 : Assets 流動資� (Current Assets) 長期投資(Long-Term Investments) 財� , 廠房, 設備(Property, Plant and Equipment) 無形資� (Intangible Assets) 2010/09/13 Liabilities and Owner’s Equity 流動負債(Current Liabilities) 長期負債(Long-Term Liabilities) 股東權益(Owner’s (Stockholders’) Equity NTHUQF 140

流動資� (Current Assets) Accounting 2010 v 係指現金及預期在一年或一個營業週期中可即時變現, 出 售, 或消耗掉的其他資�. n 如: A/R, Prepaid expense, etc. v 流動資�項目中 , 按該項目的liquidity高低, 而由高而低列 示 n n 現金 有價證券(Short-term investment) 應收款項(Receivables) 預付費用(Prepaid expense) v 企業的營業週期(Operating cycle): n n 2010/09/13 This is the average time required to go from cash to cash in producing revenues. 此為企業短期償債能力之評估依據. NTHUQF 141

長期投資與財� , 廠房與設備 Accounting 2010 v 長期投資(Long-term investments): n n 預期變現時間超過一年或一個營業週期以上的資產. 例如: Investments in stock or bonds of another company v 財� , 廠房與設備(Property, plant, and equipment) n n 2010/09/13 為耐久性有形資產, 是供企業從事經營而非銷售之用. 例如: Land, buildings, and machinery等. NTHUQF 142

無形資� (Intangible assets) Accounting 2010 v 無實體存在的非流動性資�. v 例如 n 2010/09/13 Patents, copyrights, trademarks, or trade names, gives the holder exclusive right of use for a specified period of time (專利, 版權, 商標, 商業名稱專用權等, 這些接賦予持有人於法定期間內禁 止他人使用之排他性權利). NTHUQF 143

流動負債(Current liabilities) Accounting 2010 v 可預期能在一年內或一個營業週期內以流動資�或�生其 他流動負債來加以償還的債務. n Ex. Accounts payable, wages payable, interest payable and current maturities of long-term debt(一個營業週期內 到期的長期負債). v 流動負債是評估企業流動性(Liquidity )之重要依據. n Liquidity - ability to pay obligations expected to be due within the next year. v Usually list notes payable first, followed by accounts payable. Other items follow in order of magnitude. 2010/09/13 NTHUQF 144

長期負債(long-term liabilities) Accounting 2010 v 預期須在一年後或一個營業週期以後, 才需償還的 債務. n n 2010/09/13 應付公司債(bonds payable), 抵押借款(mortgages payable), 長期應付票據(Long-term notes payable), 租賃負債(lease liabilities). NTHUQF 145

業主權益 Accounting 2010 v 依據組織型態之不同, 業主權益的部分也有異. n n n 2010/09/13 獨資(Proprietorship)企業的業主權益部份, 主要項目 為: n (Owner’s Name), Capital. 合夥(Partnership)下的業主權益部份, 每個合夥人下 各別設立(Owner’s Name), Capital. 包括兩大部分: 1. Owner’s Drawing 2. Owner’s Capital 公司(Corporation)組織 n Capital Stock and n Retained Earnings NTHUQF 146

報告式 (Report Form of B/S) Accounting 2010 PIONEER ADVERTISING AGENCY Balance Sheet October 31, 2005 Assets Current assets Cash Accounts receivable Advertising supplies Prepaid insurance Total current assets Property, plant, and equipment Office equipment Less: Accumulated depreciation Total assets $ 15, 200 1, 000 550 16, 950 $ 5, 000 分類式資產負債表幫助財務報表使用人快速地得知 4, 960 1. 當負債到期時, 資產的可用性有多少; 2. 債權人可自總資產中取得多少債權. 2010/09/13 NTHUQF 40 $ 21, 910 147

報告式 (Report Form of B/S) Accounting 2010 $1, 000 2, 500 50 800 1, 200 5, 550 4, 000 9, 550 12, 360 $21, 910 • 資產負債表通常以報告式編寫. • 而資產項目於前, 負債與業主權益項目於後. 2010/09/13 NTHUQF 148

報告式 (Report Form of B/S) Accounting 2010 PIONEER ADVERTISING AGENCY Balance Sheet October 31, 2005 Assets Current assets Cash 15, 200 Account receivables 200 Advertising supplies 1, 000 Prepaid insurance 550 Total current assets Liabilities and Owner’s Equity $ 16, 950 Property, plant and equipment Office equipment $ 5, 000 Less: Accumulated Dep. 40 4, 960 Current liabilities Notes payable Accounts payable Interest payable 50 Unearned revenue 800 Salaries payable 1, 200 Total current liabilities 5, 550 Long-term liabilities Notes payable 4, 000 Total liabilities 9, 550 Owner’s equity C. R. BYRD Capital Total assets 2010/09/13 21, 910 $1, 000 2, 500 Total liabilities and Owner’s Equity $ NTHUQF 12, 360 $21, 910 149