COMPLETING THE ACCOUNTING CYCLE 授課老師: 方郁惠 課程名稱: 會計學 (初會) Chapter 4 COMPLETING THE ACCOUNTING CYCLE 授課老師: 方郁惠 課程名稱: 會計學 (初會) Chapter 1: Accounting in Business

CHAPTER PREVIEW

工作底稿的優點 協助編製財務報表 有助於規劃和組織審計工作 非必要之報告 降低錯誤機率 有助於編製期中財務報表 聯結帳戶與調整 A work sheet is not a required report, yet using a manual or electronic work sheet has several potential benefits. Specifically, a work sheet: 1. Aids the preparation of financial statements. 2. Reduces the possibility of errors. 3. Links accounts and adjustments to their impacts in financial statements. 4. Assists in planning and organizing an audit of financial statements. 5. Helps in preparing interim financial statements. 6 Shows the effects of proposed transactions. 聯結帳戶與調整 顯示交易的影響

工作底稿的運用 工作底稿是一張列示所有帳戶、餘額、調整 分錄、到編製財務報表的多欄式表格 針對調整前試算表、調整分錄、調整後試算 表、損益表及財務狀況表提供兩欄式資訊

工作底稿的運用 1.填入調整前試算表 5.從報表欄位計算利益或損失 2.填入調整 分錄 4.從調整後試算表挑選數據至財務報表 3.編製調整後試算表 4.從調整後試算表挑選數據至財務報表 5.從報表欄位計算利益或損失

USE OF A WORK SHEET 3/6 1.Enter Unadjusted Trial Balance 2.Enter Adjustments 3.Prepare Adjusted Trial Balance 4.Sort Adjusted Trial Balance Amounts to Financial Statements 5.Total Statement Columns,Compute Profit or Loss,and Balance Columns

預期出現在 財務報表

CLOSING PROCESS 結帳分錄: 會計期間結束時，財務報表編製後必須做結帳分錄 Resets revenue, expense and dividend account balances to zero at the end of the period.期末時，將收入 、費用及股利結清為零 Helps summarize a period’s revenues and expenses in the Income Summary account.彙整此段會計 期間的收入及費用至損 益彙總 Identify accounts for closing.辨認需結帳的帳戶 Record and post closing entries. 記錄結帳分錄並過帳 The closing process is an important step at the end of an accounting period after financial statements have been completed. After the formal financial statements have been prepared, we may begin the process of closing the books and getting ready for the next accounting period. Income is earned over a period of time. At the end of the time period, we start over and calculate income for the next period. The purpose of the closing process is to reset all revenue, expense and dividend accounts to a zero balance at the end of the period. By doing so, we can start the next accounting period anew. We will use a temporary account called income summary to facilitate the closing process. The account will never appear on any financial statement and will have a zero balance when the closing process is complete. Prepare post-closing trial balance. 編製結帳後試算表

TEMPORARY (暫時性) AND PERMANENT(永久性) ACCOUNTS 帳戶 Temporary (or nominal) accounts暫時性帳戶（ 或虛帳戶）accumulate data related to one accounting period. They include all income statement accounts, the dividends account, and the Income Summary account. 只累積一個會計期間,包括所有損益表科目、股利 及損益彙總

TEMPORARY (暫時性) AND PERMANENT(永久性) ACCOUNTS 帳戶 Permanent (or real) accounts永久性帳戶(或實 帳戶）report on activities related to one or more future accounting periods.會累積存在未來的會計 期間 They carry their ending balances into the next period and generally consist of all statement of financial position accounts.其餘額會結轉至下 一個會計期間，包括所有財務狀況表科目

TEMPORARY (暫時性) AND PERMANENT(永久性) ACCOUNTS 帳戶 Temporary Accounts Revenues Income Summary Expenses Dividends Permanent Accounts Assets Liabilities Equity The closing process applies only to temporary accounts.

RECORDING CLOSING ENTRIES結帳分錄 透過結帳分錄及過帳，將收入、費用、股利 結清至保留盈餘 收入、費用、股利期初時從零開始 保留盈餘必須反應前期的收入、費用、股利

RECORDING CLOSING ENTRIES結帳分錄 Income Summary損益彙總is a temporary account (only used for the closing process) that contains a credit for the sum of all revenues (and gains) and a debit for the sum of all expenses (and losses).包括收入總數寫在貸方，費用總數寫在借方 Its balance equals net profit or net loss and it is transferred to the retained earnings.產生的淨利 或淨損結清至保留盈餘 Next the dividends account balance is transferred to the retained earnings.將股利結清至保留盈餘

RECORDING CLOSING ENTRIES結帳分錄 1 2 損益表科目 3 (臨時性科目) 損益彙總 4

RECORDING CLOSING ENTRIES Permanent Accounts not closed at period-end 2016/12/31 Statement of Changes in Equity R/E $3,785 2016/1/1 Income statement Revenues $0 Expenses $0 2016/12/31 Income statement Revenues $8,150 Expenses $4,365 Net profit $3,785 2016/12/31 Statement of Financial Position R/E $3,785 Closed 2017/1/1 Income statement Revenues $0 Expenses $0 2017/1/1 Statement of Changes in Equity R/E $3,785 2017/1/1 Statement of Financial Position R/E $3,785

EXHIBIT 4.3 FOUR-STEP CLOSING PROCESS

EXHIBIT 4.3

RECORDING CLOSING ENTRIES A post-closing trial balance (結帳後試算表): a list of permanent accounts and their balances from the ledger after all closing entries have been journalized and posted.列示所有永久性帳戶 及其結帳後餘額的報表

RECORDING CLOSING ENTRIES The aim of a post-closing trial balance is to verify that total debits equal total credits for permanent accounts and永久性帳戶借貸是否平衡 all temporary accounts have zero balances.所有暫時性帳戶都為零

EXHIBIT 4.6 POST-CLOSING TRIAL BALANCE

EXHIBIT 4.7 STEPS IN THE ACCOUNTING CYCLE(會計循環):產生報表所需的步驟 迴轉

ACCOUNTING CYCLE 會計循環 說明 分析交易：分析交易以準備做分錄 做分錄：在日記簿裡記錄借貸科目 過帳：將日記簿裡借貸資料轉至總分類帳簿 編製調整前試算表：彙整調整前總分類帳簿的帳戶及其餘額 調整：做調整分錄並過帳 編製調整後試算表：彙整調整後總分類帳簿的帳戶及其餘額 編製財務報表：利用調整後試算表編製財報 結帳：結清所有暫時性帳戶並過帳 編製結帳後試算表：檢視結帳程序的正確性 回轉 (可選擇) ：選定某些調整分錄做回轉(附錄4A)

CLASSIFIED STATEMENT OF FINANCIAL POSITION 分類後財務狀況表 分類後財務狀況表將資產及負債再加以組織分類， 以提供更有用的資訊給決策者 Current or short-term items are those expected to come due (both collected and owed) within the longer of one year or the company’s normal operating cycle. 流動（短期）資產：預期在一年或一個營業循環內（取長的）會變現、耗用掉的資源

CLASSIFICATION STRUCTURE Current items流動項目are those expected to come due (either collected or owed) within one year or the company’s operating cycle, whichever is longer. 是預期在 一年或一個營業循環內（取長的）會變現、耗用掉的項目 The operating cycle營業循環is the time span from when cash is used to acquire goods and services until cash is received from the sale of goods and services. 是指付現 取得商品或服務，到提供商品或服務而收現所需要的時間 Service company: Paying employees who perform the service~ receiving cash from customers.服務業的營業循環 ：支付薪水給員工，到員工提供服務給顧客而收現

CLASSIFICATION CATEGORIES Current assets (also called short-term assets)流 動資產（短期資產）are cash and other resources that are expected to be sold, collected, or used within one year or the company’s operating cycle, whichever is longer.預期在一年或一個營業 循環內(取長的)會出售、變現、耗用完的資源 Noncurrent assets (also called long-term assets)非流動資產（長期資產）are assets not used up within one year or the operating cycle, whichever is longer.不預期在一年或一個營業循環 內（取長的）會耗用完的資源

CLASSIFICATION CATEGORIES Current liabilities (also called short-term liabilities)流動負債（短期負債）are obligations due to be paid or settled within one year or the operating cycle, whichever is longer.預期在一年 或一個營業循環內（取長的）必須償還的義務 Noncurrent liabilities (also called long-term liabilities)非流動負債（長期負債）are obligations not due within one year or the operating cycle, whichever is longer. Equity權益is the owner’s claim on assets. Two main subsections, share capital股本 and retained earnings 保留盈餘. 是業主對淨資產的請求權

EXHIBIT 4.9 EXAMPLE OF A CLASSIFIED STATEMENT OF FINANCIAL POSITION Current assets are expected to be sold, collected, or used within one year or the company’s operating cycle, whichever is longer.流動資產是預期在一年或一個營業循環內（取長的）會出售、變現、耗用完的資源 Noncurrent assets are assets not used up within one year or the operating cycle, whichever is longer.非流動資產

EXHIBIT 4.9 Noncurrent liabilities are obligations not due within one year or the company’s operating cycle, whichever is longer. Current liabilities are obligations due within one year or the company’s operating cycle, whichever is longer.流動負債是預期在一年或一個營業循環內(取長的)必須償還的義務

Equity is the owner’s claim on the assets.權益是業主對淨資產的請求權 EXHIBIT 4.9 Equity is the owner’s claim on the assets.權益是業主對淨資產的請求權

Current Assets Current Liabilities CURRENT RATIO流動比率 Helps assess the company’s ability to pay its debts in the near future有助於評估企業短期償債的能力   Current Ratio = Current Assets Current Liabilities Nestlé The current ratio of a company gives us a good indication of the company’s ability to pay its debts when they fall due. The current ratio is calculated by dividing current assets by current liabilities. Based on its current ratio, Nestlé’s liquidity position has remained quite stable over the years. Further analysis can be done by comparing its ratios with competitors and the industry average.

不用印

4A – REVERSING ENTRIES Reversing entries are optional. They are recorded in response to accrued assets and accrued liabilities that were created by adjusting entries at the end of a reporting period. The purpose of reversing entries is to simplify a company’s recordkeeping. We will now see how the accounting for our payroll accrual will be handled with and without reversing entries. Reversing entries are optional. They are recorded in response to accrued assets and accrued liabilities that were created by adjusting entries at the end of a reporting period. The purpose of reversing entries is to simplify a company’s recordkeeping. We will now see how the accounting for our payroll accrual will be handled with and without reversing entries.

Recall our salary accrual at December 31, 2016, for our one employee Recall our salary accrual at December 31, 2016, for our one employee. The adjusting entry was to debit Salaries Expense and credit Salaries Payable for $210. If we do not use reversing entries, there will be no entry on January 1, 2017. Instead, the next entry will be made when salary is paid on January 9, 2017. If we elect to use reversing entries, an entry on January 1, 2017 is necessary. We will reverse the accrual made at the end of 2016, with a debit to Salaries Payable and a credit to Salaries Expense for the amount of the accrual of $210. Notice that on January 1, 2017, we have an abnormal balance in the Salaries Expense account. The expense account has a credit balance of $210. We will now move on to January 9, 2017, the next payday, and look at the journal entry to record the payment to our employee.

Without Reversing Entries With Reversing Entries When we were preparing adjusting entries we did not make reversing entries. As a result, we had a rather complex journal entry to record the payment of payroll and recording the proper payroll expense in 2017. The journal entry we made was to debit Salaries Expense for $490 (the amount actually earned by the employee in 2017), debit Salaries Payable for $210 (resulting from our adjusting entry) and credit cash for $700. Some bookkeepers may forget to eliminate the salaries payable account when recording the payroll and this will cause an error to occur in 2017. If we elected to use reversing entries, we made the January 1, 2017 entry, and on the payday we will merely debit Salaries Expense for $700 and credit Cash for the same amount. Remember, salaries expense started the year with an abnormal credit balance of $210, the salaries expense for 2017 is equal to $490 ($700 less $210 credit balance).