Week 4 Have a closer look at year end adjustments (instructor)

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ACCT2010Principles ofAccounting IA closer look at year endadjustments1
Relevant readings1.Chapter 4 – Key points (textbook page reference)a.Adjusting revenues & expenses pp.162-166b.Deferred & accrued revenues pp.166-167c.Deferred (prepaid) & accrued expenses pp.167-172d.Relationship between income statement & balance sheet p.175e.Financial analysis tools – earnings per share p.177 and totalasset turnover ratio p.1802.Demonstration Case – Greener Grass Corporationpp.184-1892
ContentI.What are adjusting entries and Why neededII.Deferred & accrued revenuesIII.Deferred & accrued expensesIV.Preparing financial statements from adjusted trial balanceV.Financial analysis toolVI.Class activitiesa.business transactionsb.activities3
ACCT2010Principles ofAccounting II.What are the adjustingentries and Why needed4
What are adjusting entries &Why needed1.Revisit the accounting cycle5
What are adjusting entries &Why needed2.Unadjusted trial balance (TB) - revisita.A listing of individual accounts in general ledger, infinancial statement orderb.Account ending balances, where Dr. and Cr. Balances arelisted in two separate columnsc.Total Dr. = total Cr.d.Watch the video againhttps://6
What are adjusting entries &Why needed3.How a typical TB looks like …7
What are adjusting entries &Why needed3.How a typical TB looks like … (Continued)8
What are adjusting entries &Why needed4.Why adjusting entries are needed (Purpose ofadjustments)a.Adjustments are required at the end of eachaccounting periodb.In order to get the revenues & expenses into the“right” period9
What are adjusting entries &Why needed5.Types of adjustments10
ACCT2010Principles ofAccounting III.Deferred & accruedrevenues11
Deferred & accrued revenues1.Adjustment process12
Deferred & accrued revenues2.Deferred (Unearned) revenues - illustration13Papa John’s received cash last period and recorded an increase inCash and increase in Unearned Franchise Fees, a liability, torecognize the business’s obligation to provide future services tofranchisees. During January, Papa John’s performed $1,100 inservices for franchisees who had previously paid fees.Papa John’s received cash last period and recorded an increase inCash and increase in Unearned Franchise Fees, a liability, torecognize the business’s obligation to provide future services tofranchisees. During January, Papa John’s performed $1,100 inservices for franchisees who had previously paid fees.
Deferred & accrued revenues

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Term
Summer
Professor
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Tags
Accounting, Balance Sheet, Income Statement, Trial Balance, Generally Accepted Accounting Principles, Papa John

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