LectureNoteswk6_209(1) - THE UNIVERSITY OF NEW SOUTH WALES...

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Unformatted text preview: THE UNIVERSITY OF NEW SOUTH WALES 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: Andrew Jackson School of Accounting UNSW Course website: http://www.webct.unsw.edu.au/ 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 (4 th ed.) Chapter 2 Chapter 5: Appendix 2. Tutorial Questions – Week 7 Preparation Questions  T&G P 4.14  T&G P A5.4  T&G P A5.5 Tutorial Questions  T&G DQ A5.1-5  T&G P A5.7 1 Accounting and Financial Management 1A Week 6, Session 2, 2009 Completing the Accounting 1 Completing the Accounting Cycle Andrew Jackson QUAD 3060 Today’s lecture objectives: • Understand the worksheet • Understand how accounting systems work 2 • 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 • Reconcile subsidiary ledgers to their control accounts Accounting Cycle Identifying and measuring Source documents Recording Journal entries Transactions 3 Transformation • Adjusting entries • Closing entries Reporting Financial Position Financial Performance Cash Flows Classifying and summarising Ledger Entries Trial Balance Accounting assumptions and principles 2 Adjusting entries are needed for: • Recognizing revenue for the period. • Matching expense with revenues they Adjusting Entries (Refresher) 4 • Matching expenses with revenues they helped generate. • Adjusting entries are required every time financial statements are prepared. Adjusting Entries Accruals Deferrals Revenues Accrued revenues (an asset Unearned revenues (a liability 5 Expenses (an asset) (a liability) Accrued expenses (a liability) Prepayments (an asset) The Worksheet  In addition to this we can use a worksheet  A worksheet is a pretty neat “tool” to help you prepare your financial statements  It lists all the accounts vertically down the 6 page starting with the ...
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LectureNoteswk6_209(1) - THE UNIVERSITY OF NEW SOUTH WALES...

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