11/6/2015 21 世纪行业英语系列教程会计英语上海交通大学出版社 11/6/2015 Unit...

04/21/23

21 世纪行业英语系列教程

会计英语

上海交通大学出版社

04/21/23

Unit 3 Accounting Cycle-2 会计循环 2

Objectives1. To adjust related accounts .2. To prepare financial statements using the adjusted

account balances .3. To close the accounts for the next accounting

period .

FocusS: Adjusted accountsL: Prepaid expensesL: Depreciation for fixed assetsS: Accrued expensesR: Final financial statements based on the

adjusted trial balanceR: Closing BackBack NextNext

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Unit 3 Accounting Cycle-2 会计循环 21. Starter

2. Prepaid expenses

3. Depreciation for fixed assets

4. Accrued expenses

5. Final financial statements based on the adjusted trial balance

6. Closing 7. Project 8. Supplementary reading

9. Surfing the Internet 10. Enjoying yourself

1.Starter—Adjusted accounts

Vocabularyadjust 调整eg:We can ~ some accounts after the p

reparation of the trial balance. 试算平衡

unused 未使用的eg:The used portion should be recorde

d as expense and the ~ portion is still in asset.

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1.Starter—Adjusted accounts A. Look at the picture of supplies and show the change during the year.

At the beginning of the year—office supplies are all unused, they are in asset.At the end of the year—office supplies are classified into unused and used portions.

Answer

NextNext MenuMenuBackBack

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B. Look at the picture of supplies and fill in the blanks.

Answer

asset

asset expense


2.Prepaid expenses

Vocabularyprepaid 预付的eg:~ expenses are assets.economic 经济的eg:The fall in the oil price will help our ~ dev

elopment.prefix 前缀eg:The ~ "un-" of unrecorded entries means

those entries are not recorded.consume 消费，消耗eg:They ~ large amounts of resources.

Vocabularyexpire 到期eg:Our agreement with China will ~ nex

t year.

portion 部分eg:A large ~ of his money would come t

o her.

initially 最初地eg:~,the company worked well.

Phrases and Expressions

in advance 预先refer to 指的是prepaid rent 预付租金prepaid insurance 预付保险

费

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2.Prepaid expenses

Read and listen to the passage and fill in the blanks.

1. A prepaid expense is a payment .2. , , and are examples of prepaid expenses. 3. Adjusting entry for supplies used: DR CR

.

in advance___________ Prepaid rent_____________ prepaid insurance___________________ supplies__________

supplies expense_________________ supplies___________


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A prepaid expense is an economic benefit that has been paid for in advance of its use. The prefix “pre-” of prepaid refers to an asset accountasset account. As the asset is consumed or expires, the future benefit decreases and the portion of the asset used becomes an expense. Examples of prepaid expenses include prepaid rent, prepaid insurance, and supplies. If prepayments are initially recorded as assets, they will be partially consumed during the period. This must be adjusted at the end of the accounting period to reflect the amount used. The adjusting entry requires a debit to an expense account and a credit to an asset account, as follows:

Expense ××× Asset (prepaid) ×××


3.Depreciation for

fixed assets

Vocabularydepreciation 折旧eg:Land is the asset that does not have ~.allocation 分配，分摊eg:Do you understand your asset ~?original 最初的，原始的eg:The ~ cost of the machine is listed in the

asset section.charge 要价，收费eg:How much interest do they charge on loa

ns?


be similar to 类似contra-asset account 资产备抵

账户book value 账面价值keep track of 记录accumulated depreciation 累计

折旧

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3.Depreciation for fixed assets Listen to the passage and complete the notes.

Depreciation

General entry: DR CR Entry for Depreciation: DR CR Net book value:

expense __________ asset________ depreciation expense_____________________ accumulated depreciation_______________________

cost-accumulated depreciation_____________________________ 成本累计折旧


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Tapescript

Depreciation is the allocation of the cost of a fixed asset to expense over its useful life. The general entry to record depreciation expense of an asset is shown as follows:

Expense (Depreciation expense) ………………×××

Asset (Accumulated depreciation) ………… ××× This entry is similar to the entry used to record expiration of a prepayment. Depreciation expense is an income statement item. The latter is a contra-asset account on the balance sheet. Net book value is the difference between the original cost of the asset and the contra-asset account. The purpose of accumulating depreciation in a contra-asset account is to keep track of the original cost of an asset separately from the amount of depreciation that has been charged to expense.


4.Accrued expenses

Vocabulary

accrue 生成，应计eg:Interest will ~ if you keep mo

ney in a savings account.incur 导致eg:Any expenses you may ~ will

be chargeable to the company.

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4.Accrued expenses Mark is talking about his new chapter with Lucy. Work in pairs to rearrange the dialogue and then role-play it.

1 Lucy Adjusted accounts? There must be lots of interesting things inside!

2 Lucy I see. Could you give me some examples?

3 Lucy Hi, Mark. How’s your course?

4 Lucy A debit of expense and a credit of cash?

5 Lucy Liability? Would you please tell me the reason?

6 Mark

Sure. An accrued liability may exist for interest, wages, taxes, or other expenses that have been incurred in the accounting period but have not been paid by period end. NextNext MenuMenuBackBack

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7 Mark

Well, partly. It is a debit of expense and a credit of liability!

8 Mark

Hi, Lucy! I spent a whole day reading my new chapter. It’s about adjusted accounts.

9 Mark

Quite true! You know, an accrued expense is recorded by preparing an adjusting entry. And do you know the entry?

10

Mark

Let me show you more. It is because an expense has been incurred during the accounting period but it has not been recorded through the normal course of accounting entries.

Correct order: ( 3 )-( 8 )- - - - - - - -_____

Answer


1 9 4 7 5 10 2 6

Background One purpose of the adjusting proce

ss is to measure business income,so each adjusting entry affects at least one income statement account——a revenue or an expense.

The other purpose of the adjusting process is to update the balance sheet account——an asset or a liability.All these accounts affected by the adjusting process are called adjusting accounts.

5.Final financial statements based on the adjusted trial balance

Vocabulary document 文件eg:Trial balances are accounting ~s.

advantage 好处eg:The ~ of being accountants is they can understand the l

anguage of business.

single 单一的eg:I have had to work for every single penny I earned.

compute 计算，核算eg:Who can compute the diatance of the moon from the ear

th?

combine 联合eg:Let us ~ our two firms against our competitors.


adjusted trial balance 调整后试算平衡表

along with 连同，共同unadjusted trial balance 调

整前试算平衡表

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Read the following passage and do the exercises.

The adjusted trial balance is prepared after the adjusting entries have been journalized and posted. The financial statements are prepared using the account balances found on the adjusted trial balance. The income statement comes from the revenue and expense accounts. The statement of changes in equity shows the reasons for the changes in owner’s equity. The balance sheet reports the assets, liabilities, and equity. A useful step in preparing the financial statements is to list the accounts, along with their adjusted balances. This document has the advantage of listing all the accounts and their adjusted balance in a single place. Each amount on the adjusted trial balance is computed by combining the amounts from the unadjusted trial balance plus or minus the adjustments. For example, supplies begin with a debit balance of $300. After the $200 credit adjustment, its adjusted balance is $100. If an account is unaffected by the adjustments, it will show the same amount on both the adjusted and unadjusted trial balances. Based on these adjusted accounts, the adjusted trial balance of ABC business is listed below:


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Account Debit Credit

Cash $8,700

Accounts receivable 1,500

Supplies 100

Equipment 3,000

Accumulated depreciation—equipment $50

Furniture 3,600

Accumulated depreciation—furniture 60

Accounts payable 3,600

Salaries payable 1,100

ABC, capital 12,000

ABC, withdrawals 1,600

Service revenue 3,200

Rent expense 500

Utilities expense 200

Salary expense 500

Depreciation expense—equipment 50

Depreciation expense—furniture 60

Supplies expense 200

Total 20,010 20,010


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A. Complete the following income statement and balance sheet.

ABC, Accountant

Income Statement

For the month ended December 31, 20××

Income

Service revenue

Expenses

Rent expense

Salary expense

Utilities expense

Supplies expense

Depreciation expense—furniture

Depreciation expense—equipment

Total expenses

Net profit


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ABC, Accountant

Balance Sheet

December 31, 20××

Assets Liabilities and capital

Cash Accounts payable

Accounts receivable Salaries payable

Supplies Total liabilities

Equipment

Less: Accumulated depreciation-equipment depreciation-equipment

Furniture Capital

Less: Accumulated depreciation-furniture ABC, capital

Total assets Total liabilities and capital


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Answer


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B. Explain the data flows from net profit to ending capital.


Net profit of $1,690 will increase the owner’s capital.The ending capital of 12,090 includes: investment (beginning balance) 12,000, current net profit 1,690, then minus withdrawal 1,600.

__________________________________________________________________________________________________________________________________________________________________________________________________________________

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Translation


基于调整后试算表的最终财务报表调整分录记账和过账后可编制调整后试算表。编制财务报

表是通过调整后试算表的账户余额。利润表来自于收入和费用账户。权益变化表显示所有者权益变化的原因。资产负债表报告资产、负债和权益。

编制财务报表中的一个有用的步骤是列出账户以及他们调整后的余额。它的好处是将所有账户和他们的余额列在一起。调整后试算表的每项金额由调整前试算表和账项调整结合而计算得出。比如，物料用品开始有借方余额 300 美元 . 经过200 美元的贷方调整后，它的调整后的余额是 100 美元。如果一个账户不受调整影响，它在调整后和调整前试算表都显示出相等的金额。

根据调整后的账户， ABC 企业的调整后试算表如下： NextNext MenuMenuBackBack

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账户借贷

现金 $8,700

应收账款 1,500

物料用品 100

设备 3,000

累计折旧－设备 $50

家具 3,600

累计折旧－家具 60

应付账款 3,600

应付工资 1,100

ABC，资本 12,000

ABC，提款 1,600

服务收入 3,200

租金费用 500

公用事业费用 200

工资费用 500

折旧费用－设备 50

折旧费用－家具 60

物料用品费用 200

合计 20,010 20,010



6.Closing

Vocabularypermanent 永久的eg:She is looking for ~ employment.nominal 名义上的eg:She charged only a ~ fee for her work.temporary 暂时的eg:The boss hired some ~ workers.periodic 定期的eg:The manager made ~ inspections of the wareho

use.absorb 吸收，吸取eg:The retailer has to absorb the cost of was

tage.

Vocabularyimpact

eg:Seasonality or econimic cycles will have minimal ~ on secular trends. 长期趋势

intermediate

eg:Following fundermental accounting,we will now study ~ accounting.

entitle

eg:An ambassador is entitled "Your Excellency". 大使被尊称为阁下。

Vocabularydirectlyeg:He is ~ responsible for marketing.

straighteg:Don't talk round the question;come

~ to the point of the new plant. 开门见山


carry forward 结转as you know 如你所知holding tank 储存器income summary 收益汇总

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6.Closing Read the following passage and do the exercises.

Accounts are either real (permanent) or nominal (temporary). Balance sheet accounts such as cash accounts are real accounts, while the income statement consists of nominal accounts. Real accounts are continuous accounts—their balances are carried forward from one accounting period to the next. Nominal accounts are periodic accounts, and at the end of each accounting period their balances are closed (transferred) to owner’s equity. Closing entries transfer the balances in the temporary accounts (revenue, expense, and withdrawals accounts) to a balance sheet equity account. As you know, revenues increase equity, and expenses and withdrawals/dividends decrease it. It is when we post the closing entries that the equity account absorbs the impact of the balances in the temporary accounts. As an intermediate step, however, the revenues and the expenses are transferred first to an account entitled Income Summary, which collects in one place the total debit for the sum of all expenses and the total credits for the sum of all revenues of the period. The Income Summary account is like a temporary “holding tank” that is used only in the closing process. Then the balance of Income Summary is transferred to Retained Earnings for a corporation, or to owner’s capital for a sole proprietorship. Dividends are closed to retained earnings directly, as withdrawals are closed straight to owner’s capital.


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A. Read the passage and find four closing entries for a sole proprietorship.

Hints: revenue and expense accounts should be closed to income summary.

1.2.3. 4.

Close revenues (credit balances) to income summary__________________________________________________ Close expenses (debit balances) to income summary_______________________________________________

Close withdrawals (debit balance) to capital (or dividends to retained earnings for corporations) __________________________________________________________________________________________________________________

Close income summary (the balance is net profit or loss) to the owner’s capital (or to retained earnings for corporations)_______________________________________________________________________________________________________________


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B. Present the four closing entries by using a T account form.


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6.Closing

Translation

结账

账户可分成实（永久）和虚（暂时）两种。资产负债表账户，比如现金账户，是实账户，而利润表账户由虚账户组成。实账户是持续账户——他们的余额从这个会计期向下一会计期结转。虚账户是定期账户，在每个会计期末，他们的余额要结清（转移）至所有者权益。结账分录要将暂时账户（收入，费用和提款账户）中的余额转入资产负债表的权益账户。如你所知，收入增加权益，而费用和提款 / 红利则使之减少。当我们将结账分录过账时，也就是权益账户吸收暂时账户余额影响的时候。但是，作为中间过渡步骤，收入和费用首先要转入名为“收益汇总”的这个账户，由它将本期借方的费用合计和贷方的收入合计汇集在一起。这个账户类似于只有在结账过程中才用的“储存器”。接着，对公司而言，收益汇总账户的余额转入留存收益，而对独资企业而言，则转入所有者资本。红利直接结至留存收益，而提款则直接结至所有者资本。

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7.Project

Let’s go on with the project. The adjustment data are listed below:

1. Unrecorded service revenue on account was $5,000.2. Supplies used were $1,100.3. Depreciation for furniture was $2,600. 4. Unpaid and unrecorded salary was $200.


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Please adjust and close related accounts, and then present the final financial statements.

1. Journal page 1

Date Account titles and explanation PR. Debit Credit

Dec. 1 Cash 101 30,000

Amy Schneider, Capital 301 30,000

2 Furniture 165 26,000

Cash 101 20,000

Notes payable 210 6,000

3 Supplies 124 3,600

Accounts payable 220 3,600

4 Cash 101 3,000

Accounts receivable 110 800

Service revenue 401 3,800NextNext MenuMenuBackBack

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5 Cash 101 800

Accounts receivable 110 800

6 Cash 101 300

Rental revenue 450 300

7 Rent expense 610 1,000

Cash 101 1,000

8 Salary expense 620 700

Cash 101 700

9 Amy Schneider, withdrawal 320 600

Cash 101 600

10 Accounts payable 220 3,400

Cash 101 3,400


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Journal page 2

Date Account titles and explanation PR. Debit Credit


Dec. 31 Adjusting entry

Accounts receivable 110 5,000

Service revenue 401 5,000

31 Supplies expense 630 1,100

Supplies 124 1,100

31 Depreciation expense 640 2,600

Accumulated depreciation 170 2,600

31 Salary expense 620 200

Salary payable 230 200

Answer

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Closing entry

31 Service revenue 401 8,800

Rental revenue 450 300

Income summary 330 9,100


Rent expense 610 1,000

Supplies expense 630 1,100

Depreciation expense 640 2,600

Salary expense 620 900


Amy Schneider, capital 301 3,500

Amy Schneider, capital 301 600

Amy Schneider, withdrawal 320 600

NextNext MenuMenuBackBackAnswer

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2. Ledger accounts

Cash Acct. No. 101

Date Explanation PR Debit Credit Balance

20××

Dec. 1 G1 30,000 30,000

2 G1 20,000 10,000

4 G1 3,000 13,000

5 G1 800 13,800

6 G1 300 14,100

7 G1 1,000 13,100

8 G1 700 12,400

9 G1 600 11,800

10 G1 3,400 8,400


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Accounts receivable Acct. No. 110


20××

Dec. 4 G1 800 800

5 G1 800 0

Supplies Acct. No. 124


20××

Dec. 3 G1 3,600 3,600


Answer

31 G2 5,000 5,000

G2 1,100 2,50031

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7.Project

Furniture Acct. No. 165


20××

Dec. 2 G1 26,000 26,000

Accumulated depreciation-furniture Acct. No. 170


20××

Answer NextNext MenuMenuBackBack

G231 2,600 2,600Dec.

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7.Project

Notes payable Acct. No. 210


20××

Dec. 2 G1 6,000 6,000

Accounts payable Acct. No. 220


20××

Dec. 3 G1 3,600 3,600

10 G1 3,400 200


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Salary payable Acct. No. 230


20××

Amy Schneider, capital Acct. No. 301


20××

Dec. 1 G1 30,000 30,000

7.Project


Dec.

31 G2 200 200

31

31

G2

G2 600

3,500 33,500

32,900

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Amy Schneider, withdrawal Acct. No. 320


20××

Dec. 9 G1 600 600

Income summary Acct. No. 330


20××

7.Project


31

31

31

31

Dec.

G2

G2

G2

G2

5,600

3,500

9,100

600 -

-

9,1003,500

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Service revenue Acct. No. 401


20××

Dec. 4 G1 3,800 3,800

Rental revenue Acct. No. 450


20××

Dec. 6 G1 300 300

7.Project

AnswerNextNext MenuMenuBackBack

31

31

G2

G2

31 G2

8,800

300

5,000 8,800

-

-

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Rent expense Acct. No. 610


20××

Dec. 7 G1 1,000 1,000

Salary expense Acct. No. 620


20××

Dec. 8 G1 700 700

7.Project


31 G2 1,000 -

31

31

G2

G2

200

900

900

-

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7.Project

Supplies expense Acct. No. 630


20××

Depreciation expense Acct. No. 640


20××


Dec. 31

31

G2

G2

1,100

1,100

1,100-

Dec. 31

31

G2

G2

2,600

2,600

2,600

-

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7.Project

3. Final statements

Amy Schneider, Accountant

Income Statement


Income

Service revenue

Rental revenue

Expenses

Depreciation expense—furniture

Supplies expense

Rent expense

Salary expense

Total expenses

Net profit


$8,800

300

9,100

$2,600

1,100

1,000

900

5,600

$3,500

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Answer


Capital Statement


Amy Schneider, capital December 1, 20××

Investment during the month

Add : net profit

Less: withdrawals

Amy Schneider, capital December 31, 20××

7.Project


$0

30,000

3,500

(600)

$32,900

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Balance Sheet

December 31, 20××

Assets Liabilities and capital

Cash Notes payable

Accounts receivable Accounts payable

Supplies Salaries payable

Furniture

Less: Accumulated depreciation—furniture

Capital

Amy Schneider, capital

Total assets Total liabilities and capital

7.Project


$8,400

5,000

2,500

26,000

2,600

23,400

$39,300

$6,000

200

200

$32,900

$39,300

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8.Supplementary reading

Read the passage and complete the accounting cycle chart.

A post-closing trial balance can be prepared for the next accounting period. The purpose is to ensure that the journalizing and posting of closing entries have been done properly. Then the temporary (nominal) accounts should have a zero balance. The permanent (real) accounts are still open. The post-closing trial balance of ABC Business is listed below:


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Account Debit Credit

Cash $8,700

Accounts receivable 1,500

Supplies 100

Equipment 3,000

Accumulated depreciation—equipment $50

Furniture 3,600

Accumulated depreciation—furniture 60

Accounts payable 3,600

Salaries payable 1,100

ABC, capital 12,090

Total 16,900 16, 900



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An understanding of all phases of the accounting cycle is essential as a foundation for further study of accounting principles and the uses of accounting data by management.

The following outline summarizes the basic phases of the cycle:

1. Transactions are analyzed.2. Transactions are journalized and posted to the ledger.3. Trial balance is prepared.4. Adjusting entries are journalized and posted to the

ledger.5. Financial statements are prepared.6. Closing entries are journalized and posted to the

ledger.7. Post-closing trial balance is prepared.



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9.Surfing the Internet Please go to the BBC website and download the balance sheet for March 31, 2010/2011. Find the structure of the consolidated balance sheet.

Reference Answer

http://www.bbc.co.uk/annualreport/download/index.shtml full financial statements 2010/2011Page 20


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9.Surfing the Internet


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10.Enjoying yourself Enjoy the following story with your partners.

There once was a business owner who was interviewing people for a division manager position. He decided to select the individual that could answer the question “How much is 2+2?” The engineer pulled out his slide rule

and shuffled it back and forth, and finally announced, “It lies between 3.98 and 4.02.” The mathematician said, “In two hours

I can demonstrate it equals 4 with the following short proof.” The physicist declared, “It’s in the

magnitude of 1x101.” The logician paused for a long while

and then said, “This problem is solvable.”

The social worker said, “I don’t know the answer, but I am glad that we discussed this important question.” The attorney stated, “In the case of Svenson vs. the State, 2+2 was declared to be 4.” The trader asked, “Are you buying or selling?” The accountant looked at the business owner, then got out of his chair, went to see if anyone was listening at the door, and pulled the drapes. Then he returned to the business owner, leaned across the desk, and said in a low voice, “What would you like it to be?”


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21 世纪行业英语系列教程

会计英语

上海交通大学出版社

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