Académique Documents
Professionnel Documents
Culture Documents
Reporting and
Preparing Financial
Statements for SK
Officers
ACCT 201
Department of Accountancy
College of Business and Management
CENTRAL MINDANAO UNIVERSITY
ACCT 201
Knowing Accounting….
Owners’ Equity
3
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Knowing Accounting….
Double-entry accounting
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Debits=Credits
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4
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Knowing Accounting….
ncrease
Debit = “Left”
side of an account ebits
- Nothing more,
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5
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We Have Learned . . .
6
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We Have Learned . . .
Net Income
Income
Statement
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Retained
Stmt of Earnings
Retained
Earnings
About the
basic financial
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Balance
statements and how Sheet
they interrelate.
Knowing Accounting….
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Trial Balance
Post Transactions
Record Transactions
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Analyze Transactions
Financial
Prepare
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Statements
Trial Balance
Post Transactions
Record Transactions
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Analyze Transactions
Measurements
accounting period.
Identification of the
Accounting Period
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Time Period Principle
years, etc.
13
Exh.
Annual
1 2
Semiannual
1 2 3 4
Quarter
1 2 3 4 5 6 7 8 9 10 11 12
Month
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16
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Revenue Recognition . . .
17
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revenues.
19
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The Matching Principle
Another view . . .
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Revenue
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Accrual Basis
Recognition
Accounting
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Matching
Principle
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Yikes!! What
is Accrual
Basis
Accounting?
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Accrual Basis Accounting
25
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The time period principle
Gives rise to the need for
The Revenue Recognition
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Whoa! Let’s
back up a bit
here -- this
really does
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make sense?
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Periodicity
Assumption
96 97 98 99 00 01 02 03 04 05
? ? ? ? ? ?
Recognized
Revenues
Matched
Expenses
Yikes! I don’t
know Claude. We
probably better
ask the speaker!
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Absolutely.
You don’t
think we
would make it
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that easy, do
you?
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Cash Basis
Accounting
ACCT 201 ACCT 201 ACCT 201
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Cash Basis Accounting
33
Cash Basis Accounting . . .
BOP EOP
Revenue (Cash)
Expenses (Cash)
Ahhh, but
there is yet
another one!
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Fun! Fun!
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Modified Cash
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Basis Accounting
Modified Cash Basis
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Accounting
Overstated
Understated
FastForward Exh.
Trial Balance 3.19
Cash
Dr.
3,950
Cr. Dr. Cr.
FastForward’s
Dr. Cr.
Statements
Let’s use
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FastForward’s
adjusted trial
balance to prepare
the company’s
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financial
statements.
Dr. Fred Barbee 44
Exh.
Step One: 3.20
Adjusted
Trial Balance
Prepare the Statement
Dr. Cr. of Financial
Cash ₱ 3,950
Accounts receivable 1,800 Performance.
Supplies 8,670
Prepaid insurance 2,300
Equipment 26,000
FastForward
Accum. depr. - Equip. $ 375 Statement of Financial Performance
Accounts payable 6,200 For the Month Ended December 31, 2018
Salaries payable 210
Revenues:
Unearned revenue 2,750
Common Stock 30,000 Consulting revenue ₱ 7,850
Retained Earnings 600 Rental revenue 300
Consulting revenue 7,850 Operating expenses:
Rental revenue 300
Depr. expense 375
Depr. expense - Equip. ₱ 375
Salaries expense 1,610 Salaries expense 1,610
Insurance expense 100 Insurance expense 100
Rent expense 1,000
Rent expense 1,000
Supplies expense 1,050
Utilities expense 230 Supplies expense 1,050
Totals ₱ 47,685 ₱ 47,685 Utilities expense 230
Total expenses 4,365
Net income ₱ 3,785
Exh.
FastForward Step Two: 3.20
Statement of Financial Performance
For the Month Ended December 31, 2018 Prepare the Statement
Revenues: of Changes in Equity.
Consulting revenue ₱ 7,850
Rental revenue 300
Operating expenses: Note: The Net Income
Depr. expense - Equip. ₱ 375
Salaries expense 1,610 from the Statement of
Insurance expense 100 Financial Performance
Rent expense 1,000
Supplies expense 1,050 carries to the Statement
Utilities expense 230 Changes in Equity
Total expenses 4,365
Net income ₱ 3,785
FastForward
Statement of Retained Earnings
For the Month Ended December 31, 2018
Barangay
Financial Performance
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Financial Position
Changes in Equity
Cash Flows
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Performance
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49
Statement of Financial
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Position
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50
Statement of Changes in
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Equity
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Statement of Cash Flows
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52
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Statement of Comparison of Budget
and Actual Amounts (SCBAA)
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53