Lecture Notes Week 6_09 - THE UNIVERSITY OF NEW SOUTH WALES...

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THE UNIVERSITY OF NEW SOUTH WALES Australian School of Business School of Accounting ACCT 1501: Accounting and Financial Management 1A Week 6 Completing the Accounting Cycle Student Handout Contents: 1. Introduction 2. Tutorial questions – Week 7 3. Lecture slides Lecturer: Claudia Gormly School of Accounting UNSW c.gormly@unsw.edu.au Course website: http://www.webct.unsw.edu.au/
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AFM1A 2 1. Introduction If you have followed the course to date, we are now in a position to complete the accounting cycle. This week we will complete the accounting cycle through to the financial statements. Secondly, we explore different types of accounting systems, and introduce the special journals and subsidiary ledgers, which can make record keeping easier. Learning objectives ± Understand how the accounting cycle works in its entirety ± Prepare financial statements ± Understand how accounting systems work ± Explain the function of the sales, purchases, cash receipts, cash payments and general journals ± Record appropriate transactions in special and general journals and subsidiary ledgers ± Understand and perform the function of posting to subsidiary ledgers and the general ledger ± Reconcile subsidiary ledgers to their control accounts Required Reading Trotman & Gibbins (4th ed.) Chapter 2 Chapter 5: Appendix 2. Tutorial Questions – Week 7 Preparation Questions ± T&G Discussion Questions Appendix 5.1-5.4 (p.278) ± T&G Problem Appendix A5.4 (p.282) ± T&G Problem Appendix A5.5 (p.282) Tutorial Questions ± T&G Problem Appendix A5.7 (p.284)
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1 Accounting and Financial Management 1A Session 1, 2009 Week 6 Completing the Accounting Cycle Claudia Gormly c.gormly@unsw.edu.au 2 Today’s lecture objectives: Understand the worksheet Understand how accounting systems work Explain the function of the special journals Record appropriate transactions in special and general journals and subsidiary ledgers Understand and perform the function of posting to subsidiary ledgers and the general ledger 3 Accounting Cycle Identifying and measuring Source documents Recording Journal entries Transformation • Adjusting entries • Closing entries Reporting Financial Position Financial Performance Cash Flows Classifying and summarising Ledger Entries Trial Balance Transactions Accounting assumptions and principles 4 Adjusting entries are needed for: Recognizing revenue for the period. Matching expenses with revenues they helped generate. Adjusting entries are required every time financial statements are prepared. Adjusting Entries (Refresher)
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5 Adjusting Unearned Revenue Recording Accrued Revenue Revenues received in cash and recorded as liabilities Revenues earned but not yet recorded in books Adjusting Entries: Recognizing Revenue 6 Adjusting Prepayments for Expenses Recording Accrued Expense Prepayments made in cash and recorded as assets Expense incurred but not yet recorded in books Adjusting Entries: Matching Expenses Adjusting Entries: Matching Expenses 7 Adjusting Entries Accruals Deferrals Revenues
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Lecture Notes Week 6_09 - THE UNIVERSITY OF NEW SOUTH WALES...

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