会计英语

1. 会计英语

2. CHAPTER 10 Cash and Receivables 了解什么是现金以及和现金相关的会计处理 了解编制银行余额调节表的必要性及其编制 了解应收项目及其会计处理 了解对于坏账的两种会计处理方法 复习知识点 2

3. STUDY OBJECTIVE 1 CASH AND RELATED ACCOUNTING ISSUES Cash is the most liquid assets, the standard medium of exchange, the basis for measuring and accounting . Cash is generally classified as a current asset. The characteristics of cash: 1. It is readily to aquire to pay for the current liabilities 2. It cannot be designated for some specific use. Such as the cash be set aside for retairement of long-term debt. 3

4. Composition of cash Currency, coin and available funds on deposit at the bank Money order, certified check, cashier's check, personal check, Bank draft, saving account, petty cash funds

5. STUDY OBJECTIVE 1 CASH AND RELATED ACCOUNTING ISSUES • Cash received: • Dr. Cash • Cr. Related account • Cash payment: • Dr. Related account • Cr. Cash 5

6. STUDY OBJECTIVE 1 CASH AND RELATED ACCOUNTING ISSUESc • Sally began a grocery shop at Feb. 2, 20*2. On the Feb 2, 20*2, she invested $34,000 cash and shelves valued at $3,000 in the business . The accounting entry should be: • Dr. Cash 34,000 Fixed furniture 3,000 Cr. Sally, Capital 37,000 6

7. STUDY OBJECTIVE 1 CASH AND RELATED ACCOUNTING ISSUESc • Sally hired a salesgirl on Feb. 3, 20*2. She would pay the girl $20 a day, with 2 days off per week: • No entry is required. 7

8. STUDY OBJECTIVE 1 CASH AND RELATED ACCOUNTING ISSUESc • Sally's grocery shop bought some goods for selling. She bought some food, drinks, and dressings which cost her $1000 and she paid by cash. • Dr. Purchases 1000 Cr. Cash 1000 8

9. STUDY OBJECTIVE 1 CASH AND RELATED ACCOUNTING ISSUES • Sally's grocery shop sold some vegetables and drinks on Feb.3, 20*2, Sally received $300 cash: • Dr. Cash 300 Cr. Sales 300 9

10. STUDY OBJECTIVE 1 CASH AND RELATED ACCOUNTING ISSUESc • On Feb.4, 20*2, Sally collected $20 cash fromTom, her neighbourhood, who bought some fruit the day before without paying.: • Dr. Cash 20 Cr. Accounts Receivable 20 10

11. STUDY OBJECTIVE 1 CASH AND RELATED ACCOUNTING ISSUES • March.1 20*2, Sally paid the power bill for $50: • Dr.Utilities Expense 300 Cr. Cash 300 utilities expense 11

12. STUDY OBJECTIVE 1 CASH AND RELATED ACCOUNTING ISSUESc • Sally paid the salesgirl' salary for four weeks: • $20×5days×4weeks=$400 • Dr. Salaries Expense 400 Cr. Cash 400 12

13. STUDY OBJECTIVE 2 BANK RECONCILIATION AND RELATED ACCOUNTING ISSUES A bank reconciliation statement, often called a bank reconciliation, is a statement the company prepares to "reconcile," or explain, the difference between the cash balance shown on the bank statement and the cash balance on the company's book. A bank statement is a statement issued(usually monthly) by a bank describing the activities in the depositor's checking account during the period. A bank reconciliation statement is prepared to determine the company's actual cash balance.

14. STUDY OBJECTIVE 2 BANK RECONCILIATION AND RELATED ACCOUNTING ISSUES How to prepare the bank reconciliation The bank reconciliation is divided into two main sections. Section Right Begins with the balance show on the compnay's book Section Left Begins with the balance show on the bank statement

15. STUDY OBJECTIVE 2 BANK RECONCILIATION AND RELATED ACCOUNTING ISSUES Four types of transactions should be reconciled: 1. A deposit in transit is cash receipts recorded the company's book in one period but will be recorded by bank in the next period. 2. Outstanding checks are checks issued by the company that have not yet been presented at the bank for collection. 3. Bank credit. Notes collected by bank for the company are recorded in the company's account that the company is not aware of until receipt of the bank statement. 4. Bank charges. Charges by the bank for services that are deducted from the account by the bank and the company don't know that until it recevies the bank statement. 5. Errors.

16. STUDY OBJECTIVE 2 BANK RECONCILIATION AND RELATED ACCOUNTING ISSUES To illustrate the preparation of the bank reconciliation , we assume that: 1. On May 31, 20*6, Parker Company showed a balnce in its Cash account of $1,890. On June 2, Parker received the bank statement for the month ended May 31, 20*6 with the ending balance of $3,252. 2. A matching of debits to the Cash account on the books with deposits on the bank statement showed that the $452 receipts of May 31 are included in Cash but not included as a deposit on the bank statement.

17. STUDY OBJECTIVE 2 BANK RECONCILIATION AND RELATED ACCOUNTING ISSUES To illustrate the preparation of the bank reconciliation , we assume that: 3. An examination of checks issued and checks cleared showed three checks outstanding: No.9544........$322 No.9545......... 168 No.9546........ 223 Total ..... ...$713 4. Included with the bank statement was a credit memo for $1,225 for collection of a note owed to Parker by Brown. Parker did not earn interest on the note. 5. Included with the bank statement is a $102 debit memo for an NSF check written by Depp and deposited by Lee.

18. STUDY OBJECTIVE 2 BANK RECONCILIATION AND RELATED ACCOUNTING ISSUES To illustrate the preparation of the bank reconciliation , we assume that: 6. Charges made to Parker's account include $15 for safe-deposit box rent and $8 for service charges.

19. STUDY OBJECTIVE 2 BANK RECONCILIATION AND RELATED ACCOUNTING ISSUES After preparing the reconciliation, the cash balance will be the actual cash balance, which will be presented on the balance sheet.

20. STUDY OBJECTIVE 2 BANK RECONCILIATION AND RELATED ACCOUNTING ISSUES Accounting entries are needed to record information from the bank reconciliation: Dr. Cash 1,225 Cr. Notes Receivable 1,225 To record note collected by the bank from Brown. Dr. Bank Service Charges 23 Cr. Cash 23. To record bank service charges

21. STUDY OBJECTIVE 2 RECEIVABLES AND RELATED ACCOUNTING ISSUES Receivables are defined as claims held against customers and others for money, goods, or services. Oral promises of the purchaser to pay for goods and services sold. Written promises to pay a sum of money on a specified future date. Accounts Receivable Notes Receivable

22. STUDY OBJECTIVE 3 RECEIVABLES AND RELATED ACCOUNTING ISSUES Accounts Receivable are amounts customers owe company for goods sold and services rendered on account. Accounts Receivable is an asset account. the account should be debited. On the contrary, when the receivables , the account should be credited. When receivables increase: Dr. Accounts Receivable Cr. Related account When receivables collected or fail to collect: Dr. Related account Cr. Accounts Receivable

23. STUDY OBJECTIVE 3 RECEIVABLES AND RELATED ACCOUNTING ISSUES On June 3, Benette Company sold to Summer firm merchandise having a sale price of $5,000 on account. On June 12, Benette received a check for the balance due from Summer. Prepare required journal entries for Benette. On June 3 Dr. Accounts Receivable 5,000 Cr. Sales 5,000 On June 12 Dr. Cash 5,000 Cr. Accounts Receivable 5,000

24. STUDY OBJECTIVE 3 RECEIVABLES AND RELATED ACCOUNTING ISSUES On June 3, Benette Company sold to Summer firm merchandise having a sale price of $5,000 for note . On June 12, Benette received a check for the balance due from Summer. Prepare required journal entries for Benette. On June 3 Dr. Notes Receivable 5,000 Cr. Sales 5,000 On June 12 Dr. Cash 5,000 Cr. Notes Receivable 5,000

25. STUDY OBJECTIVE 4 THE TWO METHODS TO DEAL WITH BAD DEBT Bad debt is the accounts receivable that is unlikely to be paid and is to be treated as a loss. Two methods are designed to measure it. Direct Write-Off Theoretically undesirable: no matching receivable not stated at net realizable value Allowance Method Losses are Estimated: Percentage-of-sales Percentage-of-receivables

26. STUDY OBJECTIVE 4 THE TWO METHODS TO DEAL WITH BAD DEBT Direct write-off method. No entry is made until a specific accout has definitely been established as uncollectible. The bad debt is recorded in the period in which a company determines that it cannot collect a specific receivable. Dr. Bad Debt Expense Cr. Accounts Receivable Allowance method. An estimate is made of the expected uncollectible accounts from all sales made on account or from the total of outstanding receivables. The bad debt is reorded in the accounting period in which the sales on account occur. Dr. Bad Debt Expense Cr. Allowance for Doubtful Account

27. STUDY OBJECTIVE 4 THE TWO METHODS TO DEAL WITH BAD DEBT Direct Write-off Method Amy Company sold 5 computers to Becker Company valued at $20,000 on June 4, 20*6. On Aug.13, 20*6, Becker Company declared to be bankrupt. The following entry should be made to record the transaction. June 4, 20*6 Dr. Accounts Receivable 20,000 Cr. Sales 20,000 Aug. 13, 20*6 Dr. Bad Debt Expense 20,000 Cr. Accounts Receivable 20,000

28. STUDY OBJECTIVE 4 THE TWO METHODS TO DEAL WITH BAD DEBT Allowance Method Assume that the R Company's uncollectible accounts is 5% of the total accounts receivable. The total accounts receivable were $100,000. How is the accounting process for the transaction. The estimated bad debts: $100,000×5%=$5,000 Dr. Bad Debt Expense 5,000 Cr. Allowance for Doubtful Account 5,000 When $4000 account has been determined to be uncollectible. Dr. Allowance for Doubtful Account 4,000 Cr. Accounts Receivable 4,000

29. STUDY OBJECTIVE 4 THE TWO METHODS TO DEAL WITH BAD DEBT Under the percentage-of-receivables method, any balance in the allowance must be considered when adjusting for bad debts. Using the same information as before, R company had a $300 debit balance in the allowance prior to adjustment. How is the accounting entry for the bad debt expense. Allowance Bad Debt Expense adjustment 530 300 adjustment 5300 5000 The estimated bad debts should be : $100,000×5%=5,000

30. STUDY OBJECTIVE 4 THE TWO METHODS TO DEAL WITH BAD DEBT The accounting entry should be: Dr. Bad Debt Expense 5,300 Cr. Allowance for Doubtful Account 5,300

31. STUDY OBJECTIVE 5 REVIEW

32. Add your company slogan Thank You !