Lecture International accounting: Chapter 3 - Nguyễn Quốc Nhất

Lecture "International accounting - Chapter 2: Completing the accounting cycle" has content: The worksheet, completing the accounting cycle, closing the accounts, post closing trial balance, classifying assets and liabilities, accounting ratios.
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Lecture International accounting: Chapter 3 - Nguyễn Quốc NhấtInternational Accounting 1Chapter 3: Completing the accounting cycleChapter 3: Completingthe accounting cycleMA. Nguyen Quoc NhatLearning Objectives1.Prepare an accounting worksheet2.Use the worksheet to prepare financialstatements3.Close the revenue, expense, and drawingaccounts4.Prepare the post-closing trial balance5.Classify assets and liabilities as current orlong-term6.Describe the effect of various transactionson the current ratio and the debt ratioChapter’s content3.1 The Worksheet3.2 Completing the Accounting Cycle3.3 Closing the Accounts3.4 Post-Closing Trial Balance3.5 Classifying Assets and Liabilities3.6 Accounting RatiosMA.Nguyen Quoc Nhat- nhatnq.faa@gmail.com1International Accounting 1Chapter 3: Completing the accounting cycle3.1 The Worksheet• a document with several columns• to summarize data for the financialstatements.3.1 The Worksheet3.1 The Worksheet1. Preparetrial balanceon theworksheet.2. Enteradjustmentdata.3. Enteradjustedbalances4. Extend adjustedbalance to appropriatecolumns.5. Calculate income/lossand complete theworksheet.MA.Nguyen Quoc Nhat- nhatnq.faa@gmail.com2International Accounting 1Chapter 3: Completing the accounting cycle3.1 The WorksheetA step-by-step description of the worksheetfollows:1. Enter the account titles and their unadjustedbalances in the Trial Balance columns of theworksheet, and total the amounts.2. Enter the adjusting entries in the Adjustmentscolumns, and total the amounts.3. Compute each account’s adjusted balance bycombining the trial balance and adjustmentfigures. Enter each account’s adjusted amountin the Adjusted Trial Balance columns3.1 The WorksheetA step-by-step description of the worksheetfollows:4. Draw an imaginary line above the first revenueaccount (in this case, Service revenue). Every accountabove that line (assets, liabilities, and equity accounts)is copied from the Adjusted Trial Balance to the BalanceSheet columns. Every account below the line (revenuesand expenses) is copied from the Adjusted Trial Balanceto the Income Statement columns.3.1 The WorksheetA step-by-step description of the worksheetfollows:5. On the income statement, compute net income ornet loss as total revenues minus total expenses. Enternet income (loss) as the balancing amount on theincome statement. Also enter net income (loss) as thebalancing amount on the balance sheet. Then total thefinancial statement columns.MA.Nguyen Quoc Nhat- nhatnq.faa@gmail.com3International Accounting 1Chapter 3: Completing the accounting cycle3.1 The WorksheetA step-by-step description of the worksheetfollows:5. On the income statement, compute net income ornet loss as total revenues minus total expenses. Enternet income (loss) as the balancing amount on theincome statement. Also enter net income (loss) as thebalancing amount on the balance sheet. Then total thefinancial statement columns.3.2 Completing the Accounting Cycle• Preparing the Financial Statements from aWorksheet• Recording the Adjusting Entries from a Worksheet3.3 Closing the AccountsMA.Nguyen Quoc Nhat- nhatnq.faa@gmail.com4International Accounting 1Chapter 3: Completing the accounting cycle3.3 Closing the Accounts3.3 Closing the Accounts3.3 Closing the AccountsMA.Nguyen Quoc Nhat- nhatnq.faa@gmail.com5