Chapter 8 Adjustments（课件）-《实用会计英语》同步教学（大连理工大学出版社）

ADJUSTMENTS CHAPTER 8 8-1 2 2 Adjustments ? When are adjustments finished? ! At the end of the accounting period, usually the end of a month 8-1 2 2 Accruals Adjustments Defferals Defferrals and Accruals Not mentioned postponement of expenses and revenues paid or received before 8-1 5 3 Deferrals Apportioning recorded revenues Apportioning recorded expenses D E F E R R A L s 8-1 3 3 an expense of the month Prepaid Expenses At the end of each month Part of prepaid expenses expire assets exaggerated expenses understated or 8-1 4 3 Examples Suppose that $500 of photocopy supplies and $300 of office supplies are used up at the end of March. 8-1 49 49 Analysis of Example Assets decreased. Owner’s equity decreased. Decreases in assets are recorded by credits. Decreases in owner’s equity are recorded by debits. Decreases in owner’s equity are recorded by debits to Photocopy Supplies Expense and Office Supplies Expense. Decreases in assets are recorded by credits to Photocopy Supplies and Office Supplies. 8-1 49 49 8-1 Dr. Photocopy Supplies Expense $500 Cr.Photocopy Supplies $500 Entries for the example Dr. Office Supplies Expense $300 Cr. Office Supplies $300 8-1 Exampels On March 6, George Ross Photocopy Company paid $4,800 for a year’s rent in advance. 8-1 Asset decreased. Owner’s equity decreased. Decreases in assets are recorded by credits. Decreases in owner’s equity are recorded by debits. Decrease in owner’s equity is recorded by a debit to Rent Expense. Decrease in assets is recorded by a credit to Prepaid Rent. Analysis 8-1 49 49 Dr. Rent Expense $400 Cr. Prepaid Rent $400 Entries for the example 8-1 6 6 Example George Ross Photocopy Company paid $4,800 for a year’s rent in advance. 8-1 Analysis of transaction Asset decreased. Owner’s equity decreased. Decreases in assets are recorded by credits. Decrea