会计英语7week8closingentry

FastForwardIncomeStatementFortheMonthEndedDecember31,2009Revenues:Consultingrevenue7,850$Rentalrevenue300Operatingexpenses:Depr.expense-Equip.375$Salariesexpense1,610Insuranceexpense100Rentexpense1,000Suppliesexpense1,050Utilitiesexpense230Totalexpenses4,365Netincome3,785$1.PreparetheIncomeStatementDr.Cr.Cash3,950$Accountsreceivable1,800Supplies8,670Prepaidinsurance2,300Equipment26,000Accum.depr.-Equip.375$Accountspayable6,200Salariespayable210Unearnedrevenue2,750CommonStock30,000RetainedEarnings-Dividends600Consultingrevenue7,850Rentalrevenue300Depr.expense375Salariesexpense1,610Insuranceexpense100Rentexpense1,000Suppliesexpense1,050Utilitiesexpense230Totals47,685$47,685$AdjustedDecember31,2009TrialBalance1Single-StepIncomeStatementLO2Prepareasingle-stepincomestatement.Thesingle-stepstatementconsistsofjusttwogroupings:IncomeStatement(inthousands)Revenues:Sales285,000$Interestrevenue17,000Totalrevenue302,000Expenses:Costofgoodssold149,000Advertisingexpense10,000Depreciationexpense43,000Interestexpense21,000Incometaxexpense24,000Totalexpenses247,000Netincome55,000$Earningspershare0.75$RevenuesExpensesNetIncomeSingle-StepNodistinctionbetweenOperatingandNon-operatingcategories.Separatesoperatingtransactionsfromnonoperatingtransactions.Matchescostsandexpenseswithrelatedrevenues.Highlightscertainintermediatecomponentsofincomethatanalystsuse.LO3Prepareamultiple-stepincomestatement.Multiple-StepIncomeStatementBackgroundMultiple-StepIncomeStatementLO3Prepareamultiple-stepincomestatement.Thepresentationdividesinformationintomajorsections.IncomeStatement(inthousands)Sales285,000$Costofgoodssold149,000Grossprofit136,000Operatingexpenses:Advertisingexpense10,000Depreciationexpense43,000Totaloperatingexpense53,000Incomefromoperations83,000Otherrevenue(expense):Interestrevenue17,000Interestexpense(21,000)Totalother(4,000)Incomebeforetaxes79,000Incometaxexpense24,000Netincome55,000$Earningspershare0.75$1.OperatingSection2.NonoperatingSection3.Incometax2.PrepareStatementofRetainedEarningsFastForwardIncomeStatementFortheMonthEndedDecember31,2009Revenues:Consultingrevenue7,850$Rentalrevenue300TotalRevenues8,150Operatingexpenses:Depr.expense-Equip.375$Salariesexpense1,610Insuranceexpense100Rentexpense1,000Suppliesexpense1,050Utilitiesexpense230Totalexpenses4,365Netincome3,785$FastForwardStatementofRetainedEarningsFortheMonthEndedDecember31,2009Retainedearnings,12/1/09$-0-Add:Netincome3,785Less:Dividends600Retainedearnings12/31/093,185$Note:NetIncomefromtheIncomeStatementcarriestotheStatementofRetainedEarnings.5FastForwardBalanceSheetDecember31,2009AssetsCash3,950$Accountsreceivable1,800Supplies8,670Prepaidinsurance2,300Equipment26,000Less:accum.depr.(375)25,625Totalassets42,345$LiabilitiesAccountspayable6,200$Salariespayable210Unearnedrevenue2,750Totalliabilities9,160$EquityCommonstock30,000Retainedearnings3,185Totalliabilitiesandequity42,345$Dr.Cr.Cash3,950$Accountsreceivable1,800Supplies8,670Prepaidinsurance2,300Equipment26,000Accum.depr.-Equip.375$Accountspayable6,200Salariespayable210Unearnedrevenue2,750ChuckTaylor,Capital30,000ChuckTaylor,Withd'l.600Consultingrevenue7,850Rentalrevenue300Depr.expense375Salariesexpense1,610Insuranceexpense100Rentexpense1,000Suppliesexpense1,050Utilitiesexpense230Totals47,685$47,685$AdjustedTrialBalanceFastForwardStatementofRetainedEarningsFortheMonthEndedDecember31,2009Retainedearnings,12/1/09$-0-Add:Netincome3,785Less:Dividends600Retainedearnings12/31/093,185$3.PrepareBalanceSheet63.5closingentriesKeyterms–Realaccount实账户–Nominalaccount虚账户–Closingentry结账分录–Closingaccount结账账户–Incomesummary收益汇总（本年利润）7TemporaryandPermanentAccounts8Temporary(nominal)accountsaccumulatedatarelatedtooneaccountingperiod.Theyincludeallincomestatementaccounts,thedividendsaccount,andtheIncomeSummaryaccount.Theseaccountsare“closed”attheendoftheperiodtogetreadyforthenextaccountingperiod.Permanent(real)accountsreportactivitiesrelatedtooneormorefutureaccountingperiods.Theycarryendingbalancestothenextaccountingperiodandarenot“closed.”ClassexercisesChoice()ofthefollowingaccountsarerealaccounts–A.cashinbankB.accountreceivable–C.accountpayableD.servicerevenue–E.salaryexpenseF.inventoryTrueorfalse•1.Thebalanceofrealaccountswouldbeclosedtoowner’sequityviaclosingentries.•2.Normally,thebalanceintheincomesummaryafterclosingtherevenuesandexpensesmustequalthenetincomeornetloss.9ABCFRecordingClosingEntries101.Closerevenueaccounts.2.Closeexpenseaccounts.3.Closetheincomesummaryaccount.4.Closedividendsaccount.RecordingClosingEntriesP&L(income)SummarySalariesExpensesConsultingRevenues$18,100$25,000RetainedEarnings$7,000Examinetheaccountspresented.11$25,000CloserevenueswithadebittotherevenueaccountandacredittoIncomeSummary.RecordingClosingEntries$18,100SalariesExpensesConsultingRevenuesIncomeSummary$25,000$25,00012$25,000$25,000CloseexpenseaccountswithacredittoexpensesandadebittoIncomeSummary.$25,000RecordingClosingEntries$18,100SalariesExpensesConsultingRevenuesIncomeSummary$18,100$18,10013$18,100$25,000$18,100$25,000$25,000$18,100D